- Swing to pre-tax profit
- Order book grows to £3.5bn
Construction company Galliford Try (GFRD) offered plenty of good news for its investors in its half-year results. Its order book ticked up to £3.5bn-worth of projects, meaning that 95 per cent and 79 per cent of respective projected revenues for 2023 and 2024 have already been secured. Its ability to secure public sector contracts is what gives its cash flows such reliability – accounting for 91 per cent of the order book.
With such a high degree of certainty about its future revenue, investors can therefore be reasonably confident in consensus forecasts for earnings, which are predicted to grow over the next two years. Based on those projections, the shares are currently priced at 8.4 times earnings for the 2024 calendar year, which is good value when you consider that assurance of revenue.