Annual Report and Financial Statements 2026
Delivering
Sustainable
Growth
Revenue
£1,931.1m
(2025: £1,875.2m)
Adjusted operating profit
1
£49.5m
(2025: £40.6m)
Adjusted profit before tax
1
£55.9m
(2025: £45.0m)
Adjusted basic earnings per share
1
42.4p
(2025: 34.4p)
Full year dividend per share
23.5p
(2025: 19.0p)
Net cash
£259.0m
(2025: £237.6m)
Order book
£4.3bn
(2025: £4.1bn)
Divisional adjusted
operating margin
1,2
3.5%
(2025: 3.0%)
Profit before tax
£55.0m
(2025: £44.1m)
Earnings per share
41.7p
(2025: 33.7p)
Average month-end cash
£216.2m
(2025: £178.7m)
Performance
Strategy and outlook
The Group operates in diversified, growing sectors
and we are well placed to benefit from
the significant required investment in planned Government and regulated spend.
Confident outlook for further progress in FY27 underpinned by a high quality £4.3bn order
book
(2025: £4.1bn) across our chosen growth sectors in water and wastewater, highways,
education, defence, custodial, facilities management and health, and growing presence in
affordable homes and energy. Good visibility of future revenue with 90% and 62% of the current
financial year and FY28 projected revenue secured.
Confidence in delivering 2030 Sustainable Growth targets
generating significant cashflows
to support further post-dividend capital allocation optionality.
Financial and operational highlights
3.0% increase in revenue to £1,931.1m
(2025: £1,875.2m), driven by strong performance in
Highways and a smooth transition to AMP8 in Environment.
24.2
% increase in adjusted profit before tax to £
55.9m
(2025: £45.0m), driven by increased
volumes, quality delivery and continued disciplined commercial and operational management.
No exceptional items in the period.
3.5% divisional adjusted operating margin up 53bps
(2025: 3.0%), continued strong margin
progress across core divisions.
25.9
% increase in final dividend payment of 17.0p
(2025: 13.5p), together with an interim
dividend of 6.5p equals a total dividend for the financial year of 23.5p, up 23.7%.
Resilient debt-free balance sheet, strong cash conversion
with average month-end cash for the
year up 21.0% at £216.2
m (2025: £178.7m), £259.0m year-end cash, up 9.0% (2025: £237.6m),
PPP asset portfolio of £37.2m (2025: £38.6m) and no pension liabilities. The Group’s revolving
credit facility remains undrawn since placement.
Capital allocation in line with our priorities:
£38.4m of organically generated capital deployed
through M&A and organic investments and shareholder returns in the period. Announcement of
new £15m share buyback programme.
1 Note 31
contains the rationale for use, and reconciliations of these adjusted measures
to their nearest statutory measure.
2
Divisional adjusted operating margin is defined as adjusted operating profit as a percentage
of adjusted revenue. It is stated for the combined Building and Infrastructure divisions.
Cover image:
we are pleased to have successfully completed our second Build-to-Rent building at
Brent Cross Town, a high-quality residential development that reflects our capability in delivering
complex, large-scale urban projects. This scheme offers 286 apartments, and represents another
positive milestone in our long-standing partnership with Related Argent.
Strategic report
2
Business overview and investment case
4
Our purpose, vision and values
5
Our business model
5
Who we are and what we do
6
Our brands
7
Who we work with
8
How we do it
9
Who we need
10
What we need
11
How we make money
12
How we are evolving
13
Our sustainable
competitive advantages
14
Chair’s statement
16
Market review
24
Our strategy
30
Chief Executive’s review
32
Operating sustainably
34
Health and safety
38
Our people
42
Environment and climate change
46
Communities
50
Clients
54
Supply chain
57
Human rights and modern slavery
58
Financial review
62
Operating review
66
Risk management
72
Task Force on Climate-related
Financial Disclosures (TCFD)
86
Stakeholder engagement and
s172(1) statement
Governance
88
Chair’s review
90
Governance at a glance
94
Directors and Executive Board
96
Governance review
96
Our Board’s year
96
Site visits and strategy
97
Focus areas in detail
97
Key Board discussions and activities
100
Culture and Board effectiveness
103
UK Corporate Governance
Code 2024 compliance
104
Nomination Committee report
107
Audit Committee report
111
Remuneration Committee report
114
Directors’ Remuneration Policy report
120
Annual report on remuneration
128
Directors’ report
131
Statement of directors’ responsibilities
Financial statements
132
Independent auditor’s report
141
Consolidated income statement
142
Consolidated statement of
comprehensive income
143
Balance sheets
144
Consolidated and Company statements
of changes in equity
145
Statements of cash flows
146
Notes to the financial statements
180
Five-year record (unaudited)
181
Shareholder information
1
Strategic report
Annual Report and Financial Statements 2026
Delivering
Sustainable
Growth
We are proud to be one of the
UK’s largest construction
companies, and are passionate
about our role in delivering vital
social and economic infrastructure
across the country, making a real
difference to people’s lives.
Well-positioned
for the future
Over the past year, we have continued to deliver
disciplined growth, underpinned by a strong
order book and excellent framework position.
Our performance reflects our clear focus on
high-quality projects aligned to our risk appetite,
operational excellence and growth in higher-margin
markets. There is strong demand for our services,
driven by the need for national resilience, better
infrastructure, improved living standards, and a
connected economy. Our breadth of long-term
frameworks, particularly in the public and regulated
sectors, means we are well placed for the future
and we remain confident in our strategy.”
Bill Hocking
Chief Executive
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Business overview and investment case
FTSE 250 tier one
contractor,
operating across the UK
22
business units
and seven manufacturing
facilities across the UK
4,300
employees
and 85% employee
advocacy score
Leading
positions
in core markets
of water,
defence, education,
custodial and highways
92%
of our business comes
from repeat clients
Delivering
Sustainable
Growth
413%
Total Shareholder
Returns
delivered from
1 July 2020 to
30 June 2026
Award-winning
innovation
£4.3bn
order book
with 90% of work
already secured FY27
and 62% for FY28
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Strategic report
Annual Report and Financial Statements 2026
£527m
of social and local economic
value delivered in FY26
Five
acquisitions,
all
in higher-margin
markets, since 2021
Number one
employer for
graduates and
apprentices
with 10.4% of our people in
early careers roles
Six
consecutive
years
of revenue and
profit growth
Robust market opportunity
Excellent positions in chosen sectors.
Non-cyclical demand driven by ageing
infrastructure, a growing population and
climate change.
Strategy for growth in adjacent markets
with higher margins.
More mature contracting environment.
Geographical footprint and regional
offices allow national scalability with
local relationships.
Highlights
95% of our clients are in the public
and regulated sectors.
91% of our work is in frameworks, which
are long-term, collaborative arrangements.
£4.3bn order book with 90% of work for
FY27 already secured and 62% for FY28.
92% repeat business based on
successful delivery.
Rigorous risk management
Embedded culture of assessing and
managing risk.
Rigorous contract selection and delivery.
High-quality, well bid order book;
robust pipeline.
Broad, risk managed portfolio.
Highlights
99% of our order book is secured
via negotiation.
70% to 80% of bid criteria are typically
weighted towards quality, safety,
management capability, social value
and technical expertise.
A people-orientated,
progressive culture that
delivers for stakeholders
Retain, develop and gain employees who
share our vision, values and purpose.
Focus on quality and innovation, using
digital tools and Modern Methods of
Construction (MMC).
Embedded ESG strategy.
Highlights
Consistently high, and above average,
employee advocacy score of 85%.
Voted the number one Construction and
Civil Engineering company for Apprentices
and Graduates via TheJobCrowd.
Maintained MSCI AAA ESG rating and
achieved the London Stock Exchange
Green Economy Mark.
Strong financial position
Track record of financial delivery.
Strong balance sheet; no bank debt
or pension liabilities.
Deploying capital organically and
through M&A.
Margin growth leading to increasing
shareholder returns.
Highlights
Five acquisitions since 2021.
Circa £146m returned to shareholders
since FY21.
413% total shareholder returns for the
period from 1 July 2020 to 30 June 2026.
Our Sustainable Growth Strategy to 2030 p24.
A compelling
investment case
We are a high-quality business operating in
dynamic markets, generating growing returns.
4
Galliford Try
Our purpose, vision and values
A progressive UK
construction business
What we believe
Our purpose is to improve
people’s lives by delivering the
buildings and infrastructure
that communities need, while
providing opportunities for
our people to learn, grow and
progress; working with our
supply chain to promote the
very best working practices;
and caring for the environment.
Our vision
and values
Our vision is to be
a people-orientated,
progressive business,
driven by our values to
deliver for our stakeholders
and the communities
we work in.
Our values
Excellence
Striving to deliver the best.
Passion
Committed and enthusiastic in all
that we do.
Integrity
Demonstrating strong ethical standards
with openness and honesty.
Collaboration
Dedicated to working together to
achieve results.
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Strategic report
Annual Report and Financial Statements 2026
Our business model
Who we are
We are proud to be one of the UK’s largest construction companies
and are passionate about our role in delivering vital social and economic
infrastructure across the country, making a real difference to people’s lives.
What we do
We are a FTSE 250 major UK contractor, leading the overall management
of projects, working with designers, and selecting and managing
subcontractors to carry out works under our direction.
Our network of regional offices is a key advantage, offering clients the
benefit of national strength with local relationships.
Building
This business operates across
the UK through regional bases,
designing, constructing and
refurbishing assets in markets
where we have significant
expertise, particularly education,
defence, custodial and health.
We also work with carefully
chosen private clients in the
commercial sector and have
selectively re-entered the
affordable homes market.
Our Facilities Management (FM)
business works with Building,
predominantly across education
and health, delivering high-quality,
full-lifecycle solutions and green
retrofitting to enhance the
performance and sustainability
of client assets.
Infrastructure
Our Infrastructure business,
comprising Highways and
Environment – including our water
and wastewater activities, carries
out critical engineering projects.
Environment works with all
13 of the UK’s major water and
wastewater companies and is
one of the largest contractors
in the market, carrying out
capital design and delivery,
alongside capital maintenance
and asset optimisation.
In Highways, we contribute
substantially to the national road
network and deliver large-scale
schemes for local authorities, as
well as active travel, maintenance
work and urban, multi-modal
transport schemes. We deliver
civil engineering and highways
solutions to assist clients in the
energy sector to deliver major
infrastructure schemes.
Both Building and Infrastructure
have established long-term
frameworks with clients where
we have a strong track record,
focusing on public and regulated
sector work that benefits from
early involvement.
We maintain a substantial
presence in Scotland, operating
as Morrison Construction.
Investments
Investments leads bid consortia
and arranges finance for major
building projects via public private
partnerships. We specialise in
managing construction through
to operations and devise and
secure solutions for our clients
on an individual basis. These
skillsets enable us to progress
co-development opportunities,
with a focus on the Private
Rented Sector and affordable
homes partnerships.
Specialist Services
This area brings together
Asset Intelligence, our integrated
physical and electronic security
and fire protection business;
the newly acquired Nene Valley
Fire & Acoustic; Digital
Infrastructure, which provides
end-to-end services across
land acquisition and planning,
5G and connectivity solutions,
and large-scale electric vehicle
charging infrastructure; and
Oak Facades, specialists in facade
remediation and installation.
Scan the QR code to watch
our ‘What we do’ video.
Place holder image
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Our business model continued
Our brands
Main brand, operating across
England and Wales.
Main operating brand
across Scotland.
Hard and soft FM business,
operating in both public and
private settings, with a focus on
the education and health sectors.
Design, manufacture,
and installation of packaged
metalwork and pipework solutions
for critical infrastructure,
particularly within the water
and wastewater sectors.
End-to-end digital infrastructure
solutions, from site acquisition
and planning through to design,
deployment and ongoing
network optimisation.
Physical, electronic and fire
security provider for high value
critical national infrastructure
assets, and people working in
live environments.
Passive fire protection,
fire door installation and
maintenance specialists.
Design, manufacture and
after-care of factory-built,
packaged water and wastewater
treatment systems, process
software/systems integration,
and electrical control panels.
Asset inspection, maintenance
and screens and distributor
operations for the water sector.
Mechanical and electrical design
and build solutions specialist,
delivering complex technical
projects predominantly in the
water and energy sectors.
Facade design and build contracting
solutions across both new-build
and remediation projects.
FACADES
Fabrications
Digital Infrastructure
Facilities Management
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Strategic report
Annual Report and Financial Statements 2026
Who we work with
Around 95% of our work is with clients in the
public and regulated sectors, where we have
a strong understanding of the market, client
requirements, and the risk profile of projects.
Our Building clients include major public sector bodies such as
the Department for Education, the Ministry of Defence, the
Ministry of Justice, the Department of Health and Social Care,
and Homes England. In our Environment business, we work
with all 13 of the UK’s largest water and wastewater companies.
Our Highways business partners with National Highways as
well as local authorities, while Investments works with major
investment funds and Private Rented Sector businesses.
8
Galliford Try
Identifying
opportunities
See Our framework positions p23.
We seek opportunities in carefully chosen
markets and only pursue those where we
have the skills, expertise and resources to
successfully complete work safely, profitably
and to a high quality. We choose clients who
value collaboration and long-term relationships,
and often deliver work for them under
frameworks. Public and regulated sector clients
use frameworks to procure services from a list
of pre-approved contractors, with agreed terms
and conditions. Frameworks typically run for
four years and provide opportunities for deeper,
collaborative working, early planning and
mitigation of risk. They support wider strategic
and social goals, create better understanding
between the parties, and generate repeat
business. Frameworks also facilitate cross-
selling opportunities to meet wider client needs.
Alignment to
risk appetite and
contract selection
See Principal risks p66.
Our businesses follow a well-established
contract selection process to ensure all aspects
of a contract’s terms and conditions satisfy
our strict criteria. The initial selection stage
considers factors such as the scope of work,
our geographical presence, client type, project
size, technical complexities, our experience
of similar projects and supply chain and
resource availability.
Contracts meeting these criteria are subjected
to a rigorous risk assessment.
Contracts with a value exceeding £50m or
with specific risk parameters require Executive
Board review before proceeding. Almost
all projects reaching Executive level are
subsequently approved, demonstrating cross-
company alignment with our strict risk appetite.
Planning and
managing
construction
We plan, manage, monitor and oversee the
project’s construction phase, subcontracting
packages of work to specialists.
Pre-construction and planning activities
are an essential part of managing a construction
project and we look to start as early as possible,
so we can influence design decisions. During
these phases, we identify and mitigate risks
such as those relating to health and safety,
resources, build conditions such as the presence
of asbestos, underground or overhead services,
site restrictions, ground conditions and logistical
challenges such as access or build restrictions.
During construction, we carry out the
agreed work, managing and monitoring
safety, programme, budget, quality and
sustainability requirements.
We co-ordinate with the client, designers and all
contractors involved, and supervise and track
overall works, resolving any challenges that
arise and making any required adjustments.
Our robust, integrated financial and commercial
management processes ensure projects are
delivered in line with clients’ budgets and our
profit expectations.
Handover
Before handover, we check the project against
contractual requirements and ensure all final
installations and outstanding deliverables have
been completed.
The client then approves the project and we
typically issue a final completion certificate,
confirming satisfactory handover. In some
instances, we also take on the maintenance
of the asset through our FM business.
Assembling a team
and procuring
products and services
See Who we need p9.
Delivering a construction project requires
different disciplines and specialisms. Our role
includes assembling the right team, including
subcontractors and consultants with the
necessary skills, knowledge, experience and
organisational capability.
Most of the construction phase is delivered
with our supply chain, so we align key supply
chain members with our culture and develop
collaborative relationships using our Advantage
through Alignment programme. This offers
benefits such as training, enhanced visibility of
our pipeline and access to resources including
our behavioural safety programme. We choose
our partners based on their ability to deliver the
work and improve social, environmental and
economic outcomes for us and our clients.
We have a reputation as a prompt payer
and collaborative client who seeks mutually
beneficial relationships.
This works to our advantage when selecting
supply chain partners, particularly in times of
high demand or skills shortages.
Our business model continued
How we do it
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Strategic report
Annual Report and Financial Statements 2026
Who we need
Employees
Our business relies on the ability
to retain, develop and attract
the right talent, prioritise their
safety and wellbeing, and create
an environment where they
can thrive.
We employ 4,300 people, covering:
Leadership
who set our culture
and strategy.
Pre-construction
covering all
activities undertaken before we
start building (work winning,
estimating, surveying, design
management and engineering).
Operations
including project
and site management,
operational supervision,
mechanical and electrical
roles and tradespeople.
Support Services
such as Health
& Safety, HR, Legal, Quality,
Finance and Sustainability
that provide the oversight and
governance required to help
operational businesses deliver
work safely, efficiently and in
line with regulations.
We support our people’s interests
through our People strategy,
Grow Together.
Our People p38.
Clients
We need clients to deliver for, and
carefully choose the sectors we
want to work in and the clients we
partner with. Our client base is
largely in the public and regulated
sectors. We have collaborative
relationships with framework
operators and procurement
bodies, giving us access to long-
term frameworks that can provide
significant pipelines of work.
Market review p16.
Supply chain
The majority of our work is
delivered in partnership with our
supply chain, which predominantly
consists of suppliers who
provide materials, and specialist
subcontractors who carry out
works including mechanical
and electrical, earthworks,
surfacing, groundworks and
piling, and steelwork.
We manage the procurement
of certain goods and services
through centrally arranged national
agreements for items such as hired
plant and equipment, and services
including energy and IT equipment,
to enable economies of scale and
standardise quality.
We use local procurement
to benefit from flexibility,
responsiveness and access to
local suppliers and market
knowledge, as well as to provide
social value locally.
Supply chain p54.
A digitised approach to project delivery
We are using digital solutions to improve safety, efficiency, quality and collaboration, and drive down carbon.
BIM
We are industry leaders in Building Information Modelling (BIM), using it to improve
how we plan, design, build, and manage structures. We aggregate data from multiple
construction models into a single project model in a virtual environment, helping to reduce
risk of errors in real world conditions. We use these models to confirm constructability, to
measure material quantities and spaces accurately, and to detect clashes. This enables us to
reduce waste, address potential design conflicts early, and prevent costly adjustments and
delays during construction. Post handover, BIM modelling supports life-cycle management.
3D, 4D & 5D
planning
We use 3D models to visualise structures and layouts. 4D enables us to add in construction
timelines, sequencing and schedules, and 5D adds cost information to our modelling.
Digital
rehearsals
We routinely deploy digital rehearsals for complex works to test logistics and highlight any
potential issues with sequencing and space limitations, particularly for high risk operations,
or where precision is needed.
Digital twins
Digital replicas of real infrastructure enable us to monitor assets remotely in real-time,
access data for maintenance purposes, and share information with multiple stakeholders
from a single point.
360 photos
and videos
Immersive visual data records from construction enable us to carry out digital
walkthroughs and allow us to assess asset performance and access hidden infrastructure
with minimal disruption.
10
Galliford Try
Materials
Our work requires a stable supply
of construction materials such as
concrete and aggregates (sand,
gravel, crushed stone and recycled
materials used for fill), and fuel. We
balance local needs with centralised
support to carefully manage supplies
and needs, particularly in times of
peak demand or shortages.
Plant hire
We hire plant such as excavators,
cranes, piling rigs and other heavy
equipment to benefit from lower
capital requirements. This also avoids
costs associated with servicing,
repairs and regulatory compliance.
It gives us the agility to trial new,
more innovative and less carbon
intensive models and tailor the
specification of the plant chosen
for each project. Plant hire to meet
our needs also avoids storage costs
and idle assets.
Systems and technology
These enable us to efficiently plan,
manage and monitor construction
projects, HR processes, and cost
controls. We digitise project
delivery, and are leaders in Building
Information Modelling (BIM)
(page nine) – the management of
information using digital processes
that connect data to improve
design and construction outcomes.
We operate a Group-wide Business
Management System (BMS)
comprising a structured framework
of policies, processes, and guidance
documents that are used to plan and
execute our business activities in
a consistent way to meet customer
and regulatory requirements.
Careful cash management
This allows us to maintain and invest
in our operations and growth, pursue
strategic acquisitions, maintain
balance sheet strength, which is
important to our clients, supply
chain and employees, and to deliver
excess cash to shareholders.
Our business model continued
What we need
11
Strategic report
Annual Report and Financial Statements 2026
How we make money
We choose markets where we have
a proven track record
We operate in core markets within Building and
Infrastructure which we know, understand, have
experience in, and where we are well placed to benefit
from Government investment and regulated spend.
We do not try to compete in every sector. In addition,
our markets are diversified, so we are not reliant on
one particular type of work or revenue stream.
We also earn revenue and profit from our
Investments and FM businesses, which offer lower-risk
annuity-type income and margin accretion.
We are targeting higher margin markets
As described on pages 12, 26 and 28, we are targeting
growth in adjacent markets, where we can transfer
our existing skills and capabilities, and typically earn
a higher margin. Within these markets, we have a good
understanding of the risks involved and can deliver
safely, to a high quality, and profitably.
We are selective about the contracts we
take on and the clients we work with
We adopt a low-risk appetite for project selection,
maintaining strict discipline in the projects that we take
on. We only accept projects where we are confident
that we have the experience, knowledge and supply
chain to deliver effectively. We prioritise collaborative
client relationships and robust commercial terms that
support effective risk management.
Our pricing and procurement routes
prioritise quality and value over cost
We are awarded work based on outcomes such as
our ability to deliver safely and to a high standard,
building in social value and carbon commitments
above and beyond cost. This drives a more sustainable
contracting environment that better values our
specific technical and project expertise.
Example of scoring criteria
Non-financial criteria
15%
Management
15%
Project delivery
10%
Safety, Health, Environment and Quality
8%
Sustainability and carbon
20%
Social value
12%
Contract management
Typical scoring criteria
Non-financial
70%-80%
Financial
20%-30%
Almost 100% of our order book is
procured via some form of negotiation
and early involvement
98% of our order book comes through some form
of negotiated route be it two stage, target cost/cost
plus or direct negotiated work. This means projects
are developed and agreed with the client through
negotiation rather than scenarios where the
cheapest bid wins.
Multi-stage negotiation and early
involvement deliver the benefits of:
Improved buildability, programming, visibility
and management of construction risk
, through
earlier collaboration between designers,
contractor and supply chain.
Improved innovation
, by enabling us to share
expertise and ideas early in the design phase.
Reduced costs
, by mitigating risks early, and
making fewer changes to designs.
Faster delivery,
as a result of better design,
and more efficient planning and mobilisation
of resources.
More reliable budgets
and cost estimates.
Lower operational and financial risk profile
.
We focus on quality and use digital tools,
innovation and MMC
Our focus on quality
drives margin by taking a
‘right first-time approach’, saving us the time and
cost of redoing work and reducing waste.
Digital tools and innovation
improve productivity,
operational efficiency, safety, sustainability and asset
performance. They can protect margins by detecting
problems before work starts, improve accuracy,
automate functions and, again, reduce waste and
rework. They help us improve governance and control,
and ultimately enhance operational and financial
performance (page nine).
Modern Methods of Construction
(MMC) such as
off-site construction techniques and factory assembly
similarly improve our efficiency and margins by
speeding up delivery, reducing labour costs, eliminating
unnecessary waste and improving quality.
12
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Scan the QR code to watch our
Bracknell Supply Works video.
We have carried out five bolt-on acquisitions in higher margin, adjacent markets since 2021. Four of these deals
have supported our end-to-end delivery capability in water. The five acquisitions originally brought c£134m of
annual revenues; they are expected to deliver up to £650m of annual revenues by 2030.
How we are evolving
Adjacent markets
There is a significant opportunity
for us to expand into adjacent
markets that are closely aligned
with our core sectors, offering
niche services that our
clients need.
Having a range of companies is
attractive to clients as we can
deliver specialist works on their
site with a single point of contact
and accountability.
Expanding our offering in this
way makes us more attractive to
clients, while earning us a higher
margin within a risk environment
that is aligned to our appetite.
Our business model continued
Acquisition history
October 2021
nmcn acquisition
Expanded presence in water
nationally through established
frameworks and talent base of
circa 900 people.
Added higher margin design
and Mechanical, Electrical,
Instrumentation, Control and
Automation (MEICA) capabilities
to our Group.
Included Lintott
– distributes power,
monitors performance, executes
automation, and injects precise
quantities of chemicals into a process
through Motor Control Centres
(MCCs), control panels and chemical
dosing units.
Included
Fabrications
– access
metalworks (including platforms and
stairways), pipework, pump sets,
valves and penstocks.
Asset Intelligence
– physical and
electronic security and fire solutions.
July 2022
MCS Systems acquisition
(now part of Lintott)
Added complementary
expertise in controls,
automation and MCCs
to Lintott’s capability,
giving it national reach.
November 2022
Ham Baker acquisition
Producers of mechanical
process equipment that
screens and controls the flow
of water and wastewater.
November 2023
AVRS acquisition
Designs, installs, commissions,
and maintains complete
MEICA systems for water,
energy, nuclear and
infrastructure projects.
February 2026
Nene Valley Fire & Acoustic
acquisition (Nene Valley Fire)
Passive fire protection
specialists enabling us
to self-deliver complete
fire safety solutions.
See page 61 for our bolt-on
acquisition opportunity.
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Annual Report and Financial Statements 2026
Our sustainable competitive advantages come from
our expertise and knowledge, execution capability,
relationships and market experience that have all
been developed over decades.
Public sector clients typically procure contracts
via frameworks which require comprehensive
pre-qualification and tendering processes including
evidence of capabilities and financial strength, and
significantly reduce the pool of contractors who can
compete for work.
We work on large construction projects, which come
with structural barriers to entry, as our clients trust us
with multi-million pound programmes that can span
long periods of time. They rely on us to manage risk
and resources, comply with current and emerging
regulations, be financially resilient and safely deliver
their programmes. Tier 1 contractors require a strong
balance sheet to give clients assurance of delivery in
the long-term.
These factors are difficult to replicate at scale.
Our sustainable competitive advantages
Vertical integration
We have moved beyond the traditional tier one contractor model by acquiring specialist engineering and manufacturing
businesses. These businesses enable the Group to internalise key activities such as MEICA engineering, off-site
manufacturing, process control systems, specialist fabrication and asset maintenance, reducing reliance on
subcontractors while increasing control over quality, programme and lifecycle service delivery.
Bolt-on acquisition
How it supports vertical integration
nmcn – Lintott
Designs and manufactures packaged water treatment systems, control
panels, SCADA and process automation, allowing Galliford Try to deliver
specialist process engineering rather than relying on third parties.
nmcn – Fabrications
Manufactures structural metalwork and fabricated components (page 27).
nmcn – Asset Intelligence
Delivers physical, electronic and fire security for high value critical national
infrastructure assets, and people working in live environments.
Ham Baker
Engineering
Manufactures and maintains equipment such as screens and distributors
for water flow control infrastructure, bringing specialist products and asset
maintenance capabilities in-house.
AVRS Systems
Provides in-house MEICA design, installation and commissioning.
Nene Valley Fire
Extends Galliford Try’s capability in passive fire protection, allowing the
Group to deliver more specialist building services internally.
Experienced
people
Relationships
Financial
strength
Risk
management
Delivery track
record at scale
14
Galliford Try
Through careful adherence to these strong
fundamentals and focus on strategic priorities,
we are pleased to report our sixth year of
growth and remain well-positioned to deliver
our Sustainable Growth Strategy to 2030.
Revenue increased by 3% from £1,875.2m
to £1,931.1m and adjusted operating profit
increased by 21.9% from £40.6m to £49.5m.
The combined divisional adjusted operating
margin was up 53bps at 3.5% from 3.0% last
year, driven by execution of our quality strategy
in an improved contracting environment.
We continue to be well capitalised, maintaining
our focus on disciplined cash management in
line with our key capital allocation objectives.
The Board’s confidence in our balance sheet
strength enabled us to implement a third share
buyback programme in September 2025.
Under this share buyback programme, a total
of 1,957,703 ordinary shares of 50 pence
each were repurchased, and subsequently
cancelled, at an average price of approximately
£5.11 per share, and a total cost of £10m,
balancing reinvestment in the business with
returning excess capital to shareholders.
The Group also seeks to invest in organic
growth and acquisitions. Our investment
in a new steel fabrication facility in Keighley
will support the Group’s pipeline for higher
margin adjacent market opportunities
(page 27). The Board oversees an
active M&A pipeline, ensuring that any
transaction is complementary to existing
activities, aligned to our Sustainable Growth
Strategy to 2030, subject to robust challenge,
and facilitates long-term shareholder value.
The acquisition of Nene Valley Fire & Acoustic
Limited (Nene Valley Fire) in February 2026 is
the latest example of this. This well-established
fire protection business offers strong growth
potential and enhances our existing passive
and active specialist fire business (page 99).
Over the year, UK businesses have been
operating across a complex and rapidly
evolving macroeconomic landscape globally,
managing geopolitical tensions, volatility in
energy prices, supply challenges, inflation
and an enhanced regulatory environment.
Against this backdrop, UK growth has
remained modest and business confidence
is subdued in some sectors.
The Board closely monitors these conditions
and any potential impact on the company’s
long-term strategy, devoting time to these
discussions and supporting the management
team in strategic, proactive and agile
decision-making that futureproofs operations.
The management team has continued to
navigate the conditions with the same
principles that have been the backbone of
Galliford Try’s track record to date – consistent
focus on low-risk delivery, disciplined project
selection, agility through a strong balance
sheet, and a capital allocation policy that
prioritises a strong cash position, investment
in growth where it is right for the business,
and consistent returns to shareholders.
Chair’s statement
Galliford Try continues to
deliver excellent stakeholder
value, delivering 12 periods
of consecutive growth.
The Group is strongly
positioned to achieve its
targets to 2030 and beyond.”
Alison Wood
Chair
Resilient growth and
long-term value creation
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Strategic report
Annual Report and Financial Statements 2026
A differentiated culture
A strong culture is key to the delivery of the
Group’s objectives, linking directly to how
work is procured and delivered, how the
business collaborates with its clients and
supply chain partners, and its reputation
and acceptance within the communities
where it operates.
We consider the discussions held in our
Employee Forum (page 101), which is chaired
by Sally Boyle, Non-executive Director.
The Group prides itself on being
people-orientated, progressive and
values-driven and this is obvious in our site
visits where there is a clear and open culture,
and strong camaraderie across all levels.
This is reaffirmed by an employee advocacy
score of 85% in the Employee Survey –
an above market performance.
The Group’s efforts facilitate diversity, equity
and inclusion, which are embedded in the
Group’s culture, reflected in leadership,
and supported by reporting.
Key areas of Board focus
The Board maintained close oversight of
several priority areas, as summarised below:
Safety remains a top priority and over
the years Galliford Try has established
consistent industry-leading performance,
reporting historically low levels of
incidents within the business last year.
Given this low baseline, a small number
of incidents resulted in an increased
Accident Frequency Rate this year.
The management team has sought to
understand causes and trends, taking
action in the Group’s pursuit of no harm
(pages 34 to 37). We will continue to
monitor progress closely, indeed it
remains linked to Executive remuneration.
Cyber security is high on the Board’s
agenda. We are encouraged by the
vigour and momentum dedicated to the
continued testing of the Group’s cyber
security strategies, employee and supply
chain education and awareness of online
threats, and investment in technology
and processes such as introducing
password-less access to systems to
reduce risk in practical ways.
We remain committed to upholding the
highest standards of corporate governance
and have confirmed and documented
our internal controls framework ahead
of Provision 29 of the UK Corporate
Governance Code becoming effective for
our financial year ending 30 June 2027.
More details can be found in the
Governance report.
Board and senior
leadership developments
There were no changes to the Board during
the year and, following review, we agreed
the current Board members have the right
mix of skills, expertise and knowledge
for the company’s future development.
The Board met with new Executive team
members Cliff Wheatley and Thomas
Faulkner, Managing Directors of the Building
and Specialist Services businesses on several
occasions including the Strategy Away
Day (page 96). Both have proven to be
strong additions to the Executive Board,
following the retirement of Ian Jubb and the
departure of Mark Baxter announced for
December 2026.
Cliff has an excellent understanding of the
Building business, following 19 years of
dedicated service to the Group, including
12 years leading the Building North East
business. He brings constructive challenge to
the existing members, and practical views which
strengthen the relationship between central
decision-making and operational delivery.
Thomas is new to Galliford Try and brings fresh
perspectives to our Specialist businesses, their
growth plans and how they interact with other
parts of the Group. He has quickly embedded
himself into the team and wider businesses.
Increasing shareholder value
Having reviewed the Group’s results and
outlook, the directors are recommending
a final dividend of 17.0p per share
which, subject to approval will be paid on
4 December 2026 to shareholders on the
register at 6 November 2026. Combined with
the interim dividend of 6.5p per share paid
in April 2026, this results in a total full year
dividend of 23.5p per share, based on the
adjusted EPS of 42.4p and 1.8x cover.
As a result of the strong cash delivery in the
period, record order book and strong visibility
of future revenue, we are announcing a share
buyback totalling £15m over the balance of
the current financial year.
Conclusion
All our businesses have performed well
since the period end, underpinned by the
Government’s spending commitments in
our chosen markets. We are confident in
delivering further margin expansion as
we make continued progress towards our
4.0% divisional adjusted operating margin
target in 2030.
Alison Wood
Chair
Generating
attractive returns
We remain committed to delivering
long-term value to all our stakeholders,
including our shareholders. In line with
this, we have returned circa £146m
to shareholders since FY21 through a
combination of dividends, including a
special dividend, and three completed
share buybacks. Our total shareholder
return from 1 July 2020 to 30 June 2026
was 413%. This reflects our strong financial
performance, the success of our disciplined
capital allocation policy and confidence in
the company’s outlook.
c£146m
returned to shareholders since FY21.
413%
total shareholder returns from
1 July 2020 to 30 June 2026.
Strategy in action
16
Galliford Try
Water
Long-term underinvestment in
water infrastructure has resulted in
an ageing asset base that requires
frequent maintenance or replacing.
Regardless of the political outlook and
ownership structures of the regulated
water companies, the requirement for
water is acute and only set to grow.
Clients must either build new assets or
focus on asset optimisation to extend the
operational lifespan of existing facilities.
Poor asset condition is being exacerbated
by heavier and more intense rainfall,
which overwhelms ageing infrastructure,
causing sewage discharge and flooding.
Increasing periods of dry spells will
drive investment in drought monitoring,
planning and response activities to
ensure supplies are not disrupted even
in the driest of weather.
Statutory standards and regulatory
requirements set out by the Environment
Agency, Natural Resources Wales and
the Drinking Water Inspectorate are
driving investment to reduce spills from
storm overflows, improve wastewater
treatment standards and raise the quality
of drinking water. Implementation of the
Environment Act 2024 will provide a
database of water quality information on
a scale that England has never had before.
The Act requires utilities to continuously
monitor water quality upstream and
downstream of the majority of storm
overflow and sewage treatment works,
which discharge into a watercourse.
Our response
We are now one of the biggest
contractors in the sector, with a
national water business working with
all 13 of the UK’s major water and
sewerage companies. We are well
positioned to serve their needs across
spending cycles, with our ability to
respond to local water plans.
Targeted acquisitions have extended our
specialist capabilities to include capital
maintenance, asset optimisation and
Mechanical, Electrical, Instrumentation,
Control, and Automation, giving us the
ability to work across the life-cycle of
client assets, to improve asset efficiency,
resilience and optimisation.
Our investment in digitalisation,
including digital twins and AI, is enabling
us to: optimise processes for clients;
improve safety during construction and
in use; enhance quality through greater
accuracy, achieve stronger governance
and control; deliver greater efficiency;
leverage skills nationally through
remote working; and drive net zero
carbon commitments.
Our carbon capabilities are, in turn,
enabling our clients to meet both their
own net zero carbon ambitions and their
objectives to deliver value for customers
in the long run.
Market review
Building a more
resilient UK
Following the change in
leadership, the Government
remains committed to building
a stronger and more resilient
economy, driven by investment
in the construction industry.
In March 2026, the Government published
the UK Infrastructure Pipeline, a 10-year
forward look of investment into major UK
capital infrastructure, developed with input
from industry. It provides information on
734 planned projects covering £718bn of
private and public sector investment over
the next decade, a significant increase on the
value of projects in the first Pipeline.
The Pipeline supports the UK Infrastructure
Strategy through long-term committed
funding to renew social and economic
infrastructure, and reaffirms the commitments
made in the 2025 Spending Review.
The Pipeline has been devised in conjunction
with the National Infrastructure and
Service Transformation Authority (NISTA),
whose role is to provide more co-ordinated
oversight and strategic planning for
infrastructure projects, to drive better project
execution, reduce bottlenecks, and improve
overall efficiency in delivering national
infrastructure. We have actively participated
with NISTA to provide feedback on how to
translate strategy into delivery, and identify
measures to support flagship programmes
such as the Ten-Year Infrastructure Strategy.
Market opportunity
Ageing social and economic infrastructure
Source: https://www.ofwat.gov.uk/ofwat-approves-104bn-upgrade-to-accelerate-delivery-of-cleaner-
rivers-and-seas-and-secure-long-term-drinking-water-supplies-for-customers
£104bn
of investment announced
by Ofwat through the
AMP8 period until 2030.
17
Strategic report
Annual Report and Financial Statements 2026
Transport
The Strategic Road Network provides
4,500 miles of critical routes and
connections across the country that
support UK growth and safe and
efficient journeys for people and
business. It connects towns, cities,
ports and airports, with 81% of
domestic freight in the UK carried
by roads.
Key drivers of investment are to provide
access to infrastructure that unlocks
growth across the UK including housing,
and significant investment in energy for
upgrades and energy security.
The new £27bn Road Investment
Strategy (RIS 3) places a clear focus on
the maintenance and renewal of the
Strategic Road Network, including an
unprecedented investment of £8.4bn into
renewals, targeting major structures and
replacement of road surfaces, with £3.8bn
set aside for key enhancement schemes
that will increase capacity where it is most
needed, tackling bottlenecks and promoting
economic growth.
In addition, 15% of the National
Infrastructure Pipeline is allocated to
transport covering a £24bn pipeline of
capital funding from 2026-2030, to maintain
and improve motorways and local roads,
including £1bn to enhance the road network
and to repair major structures.
The £15.6bn Transport for City Regions
settlements devolve funding to nine Mayoral
Combined Authorities, to invest in local and
regional transport.
Our response
We operate nationally, with local teams
organised into three businesses streams
of Strategic Infrastructure, Regional
Infrastructure and Infrastructure
Scotland, which reflects the way
investment in the UK’s road infrastructure
is made.
We have long-term relationships with
strategic clients across this market,
working with Local Authorities and being
a long-term partner of National Highways.
Sources: https://www.gov.uk/government/publications/road-investment-strategy-3-ris3-2026-to-2031;
https://www.gov.uk/government/publications/uk-infrastructure-pipeline
£27bn
of spending announced in the
Road Investment Strategy 3.
Energy
The UK energy market presents
a significant growth opportunity,
driven by investment in electricity
networks, renewable generation
and decarbonisation.
The UK Government’s Clean Power
2030 Action Plan highlights that delivery
of the energy transition is expected to
unlock approximately £40bn of annual
investment through to 2030. This investment
will support renewable generation,
electricity networks, energy storage
and enabling infrastructure.
Electricity transmission infrastructure
alone represents a significant opportunity.
National Grid has announced plans to invest
up to £35bn between 2026 and 2031 to
maintain, upgrade and expand the electricity
transmission network, including major
strategic reinforcement schemes under
the Accelerated Strategic Transmission
Investment (ASTI) programme.
Our response
Galliford Try is well positioned
to capitalise on this growth
through its geographic reach,
civil engineering capability and
expanding framework presence.
Early success includes our appointment
as one of six contractors on National
Grid’s HVDC Lot 1 framework,
a five-year framework to deliver £9bn
of civil engineering works to the new
convertor station programme.
£40bn
of annual investment and a
further £35bn.
18
Galliford Try
Market review continued
Market opportunity
Ageing social and economic infrastructure continued
Defence
The Defence Investment Plan (DIP)
has provided detail over the defence
investment priorities in support of
the Strategic Defence Review
published in 2025. The plan sets
out spending plans of £22bn on
Defence Infrastructure over the
next four years.
The Defence Estate Optimisation Portfolio
is the single biggest estates change
programme in defence, and the DIP commits
to continued investment in this programme
of £2.3bn in modern, sustainable
infrastructure across key defence sites to
meet future force structure requirements.
Further areas for investment include £2.7bn
for Service families’ accommodation, £1.4bn
for single living accommodation, £1.5bn for
technical capital works, and £10.3bn for
facilities management.
Naval infrastructure is set for huge
investment (£26bn) over the next decade
which will include multi-million pound
upgrades of facilities across the UK’s
strategic bases. Air bases are in line to
receive £10bn of funding to reverse
decades of infrastructure decline.
Our response
We have a proud history of partnering
with defence clients to deliver the assets
that protect the country and enable the
UK’s Armed Forces personnel to live,
work and train.
We understand how to operate in
complex high-security environments
and have the systems, processes and
personnel to protect information and
critical assets.
We deliver projects in partnership
with the Ministry of Defence and
other defence estate suppliers, such as
Thales UK and BAE Systems.
Sources: https://www.gov.uk/government/publications/the-defence-investment-plan;
https://www.gov.uk/guidance/defence-estate-optimisation-deo-portfolio
£22bn
of investment announced.
Education
The £20bn School Rebuilding
Programme commits to rebuilding
over 500 schools and a further
250 schools will be announced
at the start of 2027.
In England, of the 64,000 buildings that
make up the school estate, 43% were built
before the 1980s and vary in age and design.
The National Audit Office (NAO)
has reported that, following years of
underinvestment, the condition of the estate
is declining, with the estimated backlog
currently standing at £13.8bn.
The Department for Education (DfE) has
launched its new £15.4bn Construction
Framework for building and refurbishing
education facilities across England. The new
framework is the longest ever procured by
the DfE, with a potential eight-year duration.
UK Special Educational Needs and/or
Disabilities (SEND) demand continues to rise
sharply, driven by increases in education,
health and care plans, and complex needs.
Over 1.8 million pupils in England have
SEND equating to 20.8% of the school
population and an increase of 5.2%
since 2025.
In February, the DfE published the
White Paper announcing £3.7bn in capital
funding to be invested between 2025-26
and 2029-30 to create 60,000 specialist
and mainstream inclusion places.
In Scotland, the condition of the school
estate is generally improving. However,
the Learning Estate Investment Programme
has set aside £2bn to build new facilities.
Our response
We are a multiple award-winning and
market-leading provider of education
facilities and play a significant role in
renewing and expanding the school’s
estate across the country, working
as a leading contractor for the DfE in
England and the Hub procurement
vehicles in Scotland.
We are at the forefront of delivery of
SEND facilities and have been involved
with 18 projects delivering Special
Schools, Additional Support Needs and
Inclusive Learning Environments to the
value of £306m over the last five years.
Sources: https://www.nao.org.uk/reports/condition-of-school-buildings/?nab=1; https://www.gov.uk/
government/publications/school-rebuilding-programme/school-rebuilding-programme
£20bn
of investment announced in
School Rebuilding Programme.
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Strategic report
Annual Report and Financial Statements 2026
Health
The NHS remains focused on the
acceleration of the “care closer to
home” agenda, and neighbourhood
health infrastructure is becoming
even more central to NHS reform.
This will see a transition from hospital to
community care, providing access to primary
care services closer to communities alongside
improved community diagnostic capability.
The focus has been supported by funding
commitments, including £750m for primary
care modernisation and the Neighbourhood
Healthcare Centre programme currently
under consultation to deliver 120 new
Centres by 2030. These programmes
reinforce the ambition to move from
treatment to prevention, expanding mental
health support and incentivising good health,
alongside achieving net zero goals.
In addition, the decade-long Health Plan,
Fit for the Future, introduces focus on
transitioning from analogue to digital and
shifting from treating sickness to prevention.
Within it, over £5bn has been identified to
support transformation priorities including
diagnostics, urgent treatment centres,
surgical hubs and emergency departments.
The 10-Year Health Plan explores the
feasibility of using new Public Private
Partnerships (PPPs) to deliver certain
types of primary and community health
infrastructure, including neighbourhood
health centres, which captures our
Investments capability.
Our response
Having been active in the sector for
the past 13 years, Galliford Try has
delivered over £1bn and more than
1,300 bed spaces across England and
Scotland for healthcare providers in
Acute, Mental Health and Community
care environments.
This long-standing experience equips us
to understand and navigate the unique
drivers and technicalities that are
part and parcel of working within
a healthcare environment.
Source: https://www.gov.uk/government/publications/10-year-capital-plan-for-health-and-social-care
£750m
for primary care modernisation.
Secure and Custodial
Prisons in England, Wales and
Scotland are in a state of crisis.
In England and Wales they are
operating at roughly 99% capacity,
with a population of over 87,000 as
of late 2025. The Government aims
to address this challenge by providing
more prison places that are clean,
decent and modern, through its
10-year Prison Capacity Strategy.
The original programme to build 20,000
places was launched in 2021, with only
6,000 places delivered. The Government has
revised the strategy to deliver the remaining
14,000 places by 2031, by committing to:
Four new prisons with 6,500 places.
6,400 places through new houseblocks on
existing prison sites.
1,000 existing cells refurbished.
Maintenance work required to bring the
prison estate to a fair condition requires
£2bn of investment.
In Scotland, new prisons in Glasgow
and Inverness will help, but not solve
the overcrowding issues. The Scottish
Government has provided £1.5bn to the
Scottish Prison Service to manage the
prison population, and £507m investment
in community justice services, to support a
move to more community based sentences
and help reduce reoffending.
Our response
Galliford Try has a long history of working
in the custodial and judicial sectors, across
prisons and courts throughout the UK.
We understand the sensitivity of
working in secure environments
and have extensive experience of
improving existing facilities and delivering
quality and security throughout the
custodial estate.
Source: https://commonslibrary.parliament.uk/research-briefings/sn05646/; https://www.gov.uk/
government/news/prison-expanded-to-create-uks-largest-jail-and-keep-public-safe
14,000
new prison places by 2031.
20
Galliford Try
Market review continued
Market opportunity
Changing regulation
Changes to fire safety
The Building Safety Act came into
law in January 2022 and sets out
safety requirements for landlords
and owners of higher-risk buildings,
resulting in a huge focus on fire
safety across both new build and
existing stock.
Our response
Oak Facades, part of our Specialist
Services businesses, provides
design, fabrication and installation
of new-build facades and cladding
fire remediation projects.
Our passive fire capability from
Oak Fire Protection has been
amalgamated with our recently acquired
Nene Valley Fire business. Together,
they are part of Galliford Try Asset
Intelligence, which delivers active fire
protection. This enables the enlarged
business to offer complete fire safety
solutions, creating a strong platform of
expertise and self-delivery capability
with growth potential.
The market represents long-term,
higher-margin annuity type revenue,
due to the requirement for repeat
services such as inspections and
ongoing asset maintenance.
Affordable homes
There is a significant need for
affordable homes across the UK.
Delivery in England reached 64,762
homes in 2024-25, the highest level
in a decade. However, this remains
significantly below the estimated
requirement of 200,000 affordable
homes per year to meet demand.
The long-term shortage of affordable
homes, coupled with increasing pressures
on housing affordability, means the sector
remains a national priority.
The Government has reaffirmed its
commitment to delivering 1.5 million homes
and is supporting the development of
new towns and strategic growth locations
across England.
The £39bn Social and Affordable Homes
Programme covering the period from 2026
to 2036, represents the largest investment
in affordable housing for a generation.
Registered Providers continue to
prioritise investment in new affordable
homes. However, viability and competing
demands, including building safety, stock
decarbonisation, regulatory compliance,
asset management and planning constraints,
continue to affect development capacity. In
response, the sector is increasingly exploring
partnership models, land-led opportunities
and alternative funding mechanisms to
unlock sites and accelerate delivery, which
captures our co-development capability.
Our response
Over the past two years, we have built
strong market access through a broad
range of contracting frameworks and
dynamic purchasing systems including,
Communities and Investment Housing
Consortium; Be First (Barking and
Dagenham); Hyde Group; Sovereign
Network Group; Homes England; and
South East Consortium. These provide
multiple routes to market with Registered
Providers, strengthening our ability
to secure opportunities aligned to our
growth plans.
Our Specialist Services businesses deliver
the remedial cladding and fire safety
improvements the sector is looking for.
We have the skills to deliver land-led
models for assembling developments,
leveraging the experience of our
Investments business in the Private
Rented Sector, to assist Registered
Provider partners.
Our experience, coupled with our
established supply chain, allows us to
deliver the mid-rise housing schemes
that are key to regeneration in our
towns and cities.
Source: https://www.gov.uk/government/statistics/affordable-housing-supply-in-england-2024-to-2025/
affordable-housing-supply-in-england-2024-to-2025
£39bn
of investment announced
by 2036.
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Strategic report
Annual Report and Financial Statements 2026
Drive for decarbonisation
and action on climate change
The UK must achieve net zero carbon
by 2050 and the Construction
Playbook calls for contracts for
construction and associated
specifications to include measurable
carbon reduction commitments.
According to the Construction Industry
Council, the built environment is responsible
for approximately 38% of global carbon
emissions. Construction therefore has
a major role to enable change.
Our response
Investing in knowledge:
we have
heavily invested in our ability to
design, build and maintain low-carbon
infrastructure and buildings through
selection of materials and construction
methodologies, operational energy
consumption and, where relevant,
end-of-life decommissioning.
Our capabilities in FM, asset optimisation
and retrofit
enable our clients to increase
the lifespan of their facilities and to
optimise their performance, including
their environmental credentials. These
skills are increasingly enabling our clients
to achieve their carbon goals.
Our approach to digitalisation
for efficiency and adoption of
new technologies, such as design
rationalisation using our BIM tools
and experience, helps us avoid
over-specification and reduce materials
consumed and waste created (page 13).
Adopting Modern Methods of
Construction
such as off-site
manufacture helps to minimise waste
and uses materials more efficiently.
It also mitigates against safety risk
and adverse weather conditions by
reducing time on site.
Market challenge
Skilled and experienced people are in high demand across the UK
Growing investment in construction
is emphasising skills shortages that
could significantly impact the delivery
of UK infrastructure.
In the 2025 Spring Statement, the
Government committed £625m in
England over four years to boost existing
training routes, ensure a sustainable flow of
skilled construction workers and support
employers to invest in training. The 2025
Spending Review specifically commits
to training up to 60,000 skilled
construction workers.
Our response
We have invested in our Employee Value
Proposition (EVP)
. Our EVP is the unique
set of benefits that our people receive
in return for the skills, capabilities and
experience they bring to our business,
so that we can promote retention and
attract the right talent. As a result, 85%
of our people recommend us as an
employer and employee churn is in line
with our objectives.
Our people-orientated culture
, including
initiatives such as agile working and
our focus on wellbeing, further support
retention and make Galliford Try a more
attractive employer, helping us to appeal
to a diverse range of employees and
broadening our pool of potential recruits.
Investment in our people’s
learning and
development ensures we have the skills
we need and is seen as an attractive
benefit to existing and potential talent.
A structured approach to succession
planning
enables us to meet the future
needs of our business with less likelihood
of disruption to operations.
Our graduate, trainee and apprentice
programmes
are voted as number one
in the industry. They enable us to build
our own talent pool. In addition, we
actively promote our industry to school
and college leavers, as well as graduates
through social media, presentations,
visits to our sites and careers exhibitions.
Our approach breaks down stereotypes
of the industry and presents it as an
important enabler of the UK’s plans for
the future.
We continue to monitor and enhance
our rewards package
, to improve our
EVP. As well as salary and bonus, this
extends to company car or car allowance,
paid volunteering days, employee
assistance programmes, private
healthcare and discount schemes.
22
Galliford Try
Market review continued
A maturing contracting
environment
We are starting to see the benefits
of the Construction Playbook,
which is driving:
A more mature contracting
environment and co-operative
approach to problem-solving and
risk, by promoting early engagement,
transparency, and clear risk
allocation between contracting
authorities and suppliers.
A culture of continuous
improvement, learning from past
projects and implementing best
practices and innovation to
enhance delivery.
A shift for Government clients
towards value-based procurement,
which considers the whole-life costs
of a project and quality outcomes.
We are encouraged by these conditions,
with strong core sector activity and
excellent framework positions that
will play to our advantage when
the Government unlocks the full
scale of the opportunity.
Our frameworks p23.
Case study
UK leading
employee advocacy
Our 2026 Employee Survey results
demonstrate that we continue to
outperform the sector and UK for
employee engagement.
Our employee advocacy score of how likely
our people are to recommend us as a great
place to work sits at 85%, compared to 74%
across the heavy construction sector and
72% across UK companies.
These results come from an excellent
participation rate of 85% with 3,688 of
our people taking part.
Specific areas where we are doing
well include safety, ethics, keeping our
people informed, treating people well,
the impact we make in our communities
and cyber security.
We continue to act on feedback and
recognise that there are areas we can
enhance further, such as systems and
processes, recognition and better
showcasing of career opportunities.
Encouragingly, these are areas in which
we are already making changes.
85%
employee advocacy score.
Case study
Example of our framework visibility and participation
Sector
2026
2027
2028
2029
2030
Environment
(Design & Build)
AMP8
AMP9
DV2
SR21/ESD
Transport
Midlands Highways Alliance +
Midlands Highways Alliance +
YORcivil 3
YORcivil 4
National Highways SDF1
National Highways SDF2
Scottish Government Civil Engineering Framework
Energy
National Grid High Voltage Direct Current civil works supply chain framework
National Grid DPS Lot 3
National Grid DPS Lot 3
National Grid QUDM Substation Framework
Defence
Government Commercial
Agency (GCA) CWAS 2
GCA CWAS 3
Defence Estate Optimisation Portfolio
Education
Department for Education Construction Framework 25
Scottish Hub Programme
Crescent Purchasing Consortium Construction & Capital Works
Commercial
& other
Constructing
West Midlands 2
Constructing West Midlands 3
Procure Partnerships
Procure Partnerships
Southern Construction
Framework (SCF) 5
SCF 6
YORbuild
Custodial
GCA
GCA
Ministry of Justice Constructor Services Framework
MOJ CSF 2
Health
NHSE ProCure23
NHSE ProCure24
NHS SBS Construction Works
NHS SBS Construction Works
Environment
(Capital
Maintenance)
AMP8
AMP9
Environment Agency Asset Operation Maintenance Response
Environment Agency Asset Operation Maintenance Response
Environment Agency MEICA
Environment Agency MEICA
Wessex Water Minor MEICA
Environment
(Water
Technologies)
Scottish Water MCC
Scottish Water MCC (DV4)
Anglian Water Operational Technology
Anglian Water
Operational Technology
Dwr Cymru Welsh Water MCC
Dwr Cymru
Welsh
Water MCC
South West Water CWQM
South West Water CWQM (AMP8)
South West
Water
CWQM
(AMP9)
FM
GCA FM Workplace
Services
GCA Facilities Management
GCA Facilities Management
Fusion21
Fusion21
Long-term PPP Hard FM and Lifecycle contracts
NHS Framework
NHS Framework
Security
CCS Framework
for Security
GCA Security Services Framework
GCA Security Services Framework
NHS SBS Security Services
NHS SBS Security Services
AMP7 & AMP8 Security Frameworks
NHS NOE CPC Specialist Estates
NHS NOE CPC Specialist Estates
Affordable
homes
Communities & Housing Investment Consortium (CHIC) Newbuild Development Framework
Homes England Dynamic Purchasing System
South East Consortium DPS
South East
Consortium DPS
BeFirst, Barking and Dagenham Construction Works
BeFirst, Barking and Dagenham Construction Works
Hyde Main Contractor Framework
Hyde Main Contractor Framework
SNG
Framework
Sovereign Network Group Development Contractor Framework
SNG
Framework
Secured
Projected
23
Strategic report
Annual Report and Financial Statements 2026
24
Galliford Try
Our strategy
Delivering Sustainable Growth
Operating sustainably
Our strategy is underpinned by our approach
to sustainability, which is to champion
a people-orientated, progressive culture,
operating in a socially and environmentally
responsible way, and deliver high-quality buildings
and infrastructure through a focus on quality and
innovation, to provide sustainable financial returns.
For more information see p32.
Revenue
Growing to
in excess of
£2.2bn,
maintaining disciplined
contract selection and
robust risk management in
resilient market sectors.
Divisional adjusted
operating margin
Increasing to
4.0%
by leveraging top line
growth, working in improved
contracting environments,
operational improvements
(quality, efficiency, digital and
technology) and accelerated
growth in higher-margin
adjacent market businesses.
Cash
Retaining a
strong
balance sheet and operating
cash generation.
Dividends
Delivering sustainable dividends
with earnings cover of
1.8x
Our targets to 2030
are as follows:
Our plan to achieve
these targets is to:
1
Grow revenue and margin in
our three core businesses
p25
2
Grow our specialist businesses in
higher-margin adjacent markets
p26
3
Re-enter the affordable
homes market
p28
4
Leverage our geographical and
client footprint across the UK
p29
5
Continue to grow earnings,
capital allocation and returns
p29
25
Strategic report
Annual Report and Financial Statements 2026
Highways
Environment
Building
Strategic priority
1
Grow revenue and margin in
our three core businesses
Why we’re pursuing this objective
There is long-term demand across our
core areas of operations, driven by historic
underinvestment in construction and
a need to:
Upgrade ageing assets and
infrastructure.
Provide resilience against climate
change.
Improve the UK’s productivity.
Stimulate the economy.
We understand these core markets and
their risk profiles. We have skilled teams
across these operations, established client
and supplier relationships and leading
framework positions which mean we can
grow our business organically and steadily,
without new risks. There is also scope
to improve our own productivity to
support growth.
There is a strong, supportive backdrop
to our plans. The Government’s
Construction Playbook is driving a
more mature contracting environment
(see Market review) by promoting
collaboration, innovation, and early
contractor involvement, which is driving
a more co-operative environment and
attitudes towards problem-solving and
risk management, where the need for
our input and skills is better understood
and valued.
Progress
Revenue growth of 3% to £1.9bn.
Profit growth of 22.6% to £41.2m.
Record order book secured at £4.3bn.
90% of our projected work for FY27 in
hand (2025: 92%) and 62% for FY28.
Thinking ahead
We will leverage our extensive
framework positions
, long-standing
client and supplier relationships, and
repeat business in regulated and public
sectors including water, defence,
education, custodial, highways and
health, to grow volumes and revenue.
Our commitment to contractual
discipline
, risk controls and our
selectivity about the work we pursue
will ensure we only take on work we can
deliver successfully and profitably.
We will continue to target multi-stage
negotiation and early involvement
(page 11) which lower the financial
risk profile of our work.
Our focus on quality, using digital tools
and Modern Methods of Construction
,
will help us do more work faster and to
a higher standard, supporting top and
bottom line growth.
Six
consecutive years of revenue
and profit growth.
See Operating review p62.
Why we’re pursuing this objective
We have highly sought-after capabilities
in higher-margin markets that are
complementary to our existing capabilities.
These adjacent markets offer a lower-risk
path to expansion where there is strong
demand (page 61) while mitigating the
risks associated with entering entirely new,
unfamiliar markets.
Across all three areas, we have the
opportunity to leverage existing client
relationships and framework positions,
our brand, national presence, established
processes, and supply chain to penetrate
new markets, and also to sell more services
to existing clients.
Why we’re pursuing capital
maintenance and optimisation
within the Environment sector
Water companies face increasing
regulatory pressure around failing
infrastructure, water scarcity, flooding,
water quality and customer bills,
which is driving demand to optimise
assets. Optimising assets is often more
cost-effective, lower risk and less carbon
intensive than building new infrastructure.
Our competency in designing and
building water assets equips us to keep
assets performing, and make them
work to their fullest potential.
Our end-to-end capability is attractive
as clients are increasingly seeking
partners who can i) deliver across
their entire asset lifecycle and ii) bring
value to long-term programmes, rather
than managing multiple suppliers and
one-off projects.
Why we’re pursuing niche
Specialist Services (fire protection,
digital infrastructure, security,
FM and facades)
In addition to the points on the left,
many of these markets are fragmented
and clients struggle to find national
contractors like us who can deliver
across their portfolio
.
Progress
We acquired Nene Valley Fire
, a passive
fire protection business and merged this
with our Oak Fire Protection business.
Together, they have become part of
Galliford Try Asset Intelligence, which
delivers active fire protection, enabling
the enlarged business to offer complete
fire safety solutions directly through an
in-house team (page 99).
We invested in a new manufacturing
facility
(see right).
Thinking ahead
While our 2030 targets do not rely on
acquisitions, we will continue to assess
acquisition opportunities in line
with our strategic priorities.
Five
acquisitions, all in higher margin
markets, from 2021 to 2026.
See page 61 for our bolt-on
acquisition opportunity.
Capital maintenance and asset
optimisation within the existing
Environment sector
Private Rented Sector (PRS)
Specialist Services
Strategic priority
2
Grow our specialist businesses in
higher-margin adjacent markets
26
Galliford Try
Our strategy continued
Galliford Try
invests in new
manufacturing facility
We have invested in a new
manufacturing facility in Keighley,
West Yorkshire to support the
expansion of our Fabrications business
at a time when the water sector
needs to deliver a high volume of
infrastructure investment.
The new 18,000 sq ft facility extends
Galliford Try Fabrications’ geographical
reach and production capacity across
access metalwork structures including
platforms, stairways, and gantries, while
enabling the business to expand into the
adjacent market of coated, fabricated
and stainless steel pipework.
The investment strengthens our ability
to support both internal businesses and
clients across the construction industry,
including water companies undertaking
the renewal of vital infrastructure
throughout the AMP8 cycle.
Greater in-house, off-site
manufacturing capability also enables
improved quality, efficiency and control
over project delivery.
The acquisition of the new site closely
follows the opening of Fabrications’
second facility in Paisley, Glasgow,
and builds on its long-standing base
in Huthwaite, Nottinghamshire,
demonstrating our commitment to
organic growth through investment.
Strategy in action
27
Strategic report
Annual Report and Financial Statements 2026
28
Galliford Try
Our strategy continued
Strategic priority
3
Re-enter the affordable
homes market
Affordable homes
Why we’re pursuing this objective
We are strategically expanding into the affordable homes
sector, targeting urban, mid- to high-rise developments rather
than houses.
We plan to achieve this by leveraging our extensive experience
in constructing apartment buildings for private sector clients,
our well-established supply chain relationships, and our regional
teams and office bases.
This expansion builds on our evolving private residential
portfolio, through which we have delivered upwards of
3,000 homes since 2020 and strengthened our reputation
for high-density urban projects.
Challenges
The affordable homes market is about 18 months behind
where we expected it to be, driven by external factors such
as planning delays, funding decisions, and regulation such as
the Building Safety Act. The market is now starting to show
signs of progress albeit supply challenges mean availability
of land is limited – see Thinking ahead.
Progress
We have been appointed by Clarion Housing Group to
construct 126 new homes for social rent at the City Place site
in Chester. The £28m contract represents our first standalone
scheme since we returned to the affordable homes sector.
We have secured places on major frameworks, including
a new £750m affordable homes framework by Sovereign
Network Group, a £3bn affordable homes framework
by The Hyde Group, the £3.2bn Communities Housing
Investment Consortium (CHIC), and the Homes England
Delivery Partner Dynamic Purchasing System.
Thinking ahead
Clients are reviewing how they can access funding and wider
collaboration with partners such as land-led partnerships to
increase supply to unlock projects. This aligns well to the skills
we are already using to deliver land-led models for assembling
developments, leveraging the experience of our Investments
business in the Private Rented Sector, to assist Registered
Providers (organisations that officially provide and manage
social housing in England).
29
Strategic report
Annual Report and Financial Statements 2026
Strategic priority
4
Leverage our geographical
and client footprint across
the UK
Aligned to strategic priorities one and two, we will continue
to leverage our extensive geographical footprint and strong
client relationships across the UK. By tapping into established
networks of clients and suppliers, as well as our experienced
regional teams, we can efficiently target and deliver growth in
our core and adjacent markets. Our national presence enables us
to make the most of resource allocation, and where appropriate,
scale operations in line with our growth goals.
Progress
Acquired a base in Northamptonshire through the acquisition
of Nene Valley Fire, which has merged with our Romford
business to expand its offering.
Opened a third manufacturing facility for our Fabrications
business (page 27).
Organically grown our Building East Midlands business across
East Anglia through increased workload, particularly in the
defence and custodial sectors.
Thinking ahead
We have mobilised a team from our Infrastructure business
to prepare for the significant roads and energy opportunities
arising in Scotland and further develop our presence, where
Galliford Try already has a strong core offering in Building
and Environment.
Our UK footprint
Strategic priority
5
Continue to grow earnings,
capital allocation and returns
Progress
We have demonstrated a trajectory of growing returns, with
circa £146m returned to shareholders from FY21 to FY26, while
investing in organic and acquisitive growth (pages 12, 60 and 61).
Thinking ahead
Coupled with our no-debt position and robust cash flow,
we will continue to deliver shareholder returns in line
with our capital allocation policy. Successful delivery of our
targets over the period to 2030 will generate cash to support
our capital allocation opportunities. In line with our policy,
we intend to maintain our sustainable dividend policy cover at
1.8x adjusted EPS and to deploy the remaining capital through
disciplined organic and acquistive re-investment or through
capital returns to shareholders.
30
Galliford Try
Our results demonstrate another year
of strong progress, confirming that
we have the right strategy, teams and
market positions to deliver continued
shareholder value.
Revenue grew 3.0% from £1.88bn to
£1.93bn in the year. Divisional adjusted
operating margin increased from 3.0% to
3.5%, showing strong progress towards our
target of 4.0% by 2030. This translates to
an adjusted profit before tax of £55.9m,
up 24.2% from last year.
Adjusted earnings per share for the year
were up at 42.4p (2025: 34.4p). Statutory
earnings per share in 2026 were 41.7p
(2025: 33.7p).
Our balance sheet remains robust with £259m
of cash at the year-end, and, importantly,
average month-end cash was £216m
compared with £179m last year. This reflects
the quality of the projects we select and how
carefully we manage them. Building on this,
we have a £25m Revolving Credit Facility
which will provide further flexibility and
resilience to our capital allocation policy.
Our balance sheet gives confidence to
our clients, suppliers and employees, and,
alongside our cash balance, we have PPP
assets of circa £37m, no bank debt and
no pension liabilities.
Our capital allocation policy is designed
to maintain a strong balance sheet while
delivering sustainable growth and returns
to shareholders, through a disciplined
approach to investment and dividend
payment. As highlighted in the Chair’s review,
we recommended a final dividend of 17.0p,
and invested in the acquisition of Nene
Valley Fire (pages 26 and 99), a higher-margin,
specialist business in an adjacent market,
in line with our growth plans.
Further information can be found in the
Financial and Operational reviews.
Delivering our Sustainable Growth
Strategy to 2030
Growing revenue and margin in
our three core businesses
Our core businesses of Building, Highways and
Environment continue to demonstrate good
progress, driving divisional adjusted operating
margin up to 3.5% (2025: 3.0%), as a result of
execution of our quality strategy in improved
contracting environments.
Our strong market positions in water,
highways, education, defence, custodial and
health are supported by local and national
Government spending plans to boost
economic growth through investment in
major infrastructure, increase resilience and
enhance the UK’s productivity. This leads to a
secure outlook with our £4.3bn (2025: £4.1bn)
long-term, high-quality, and focused order
book providing good visibility and consistency
to trading. We have already secured 90% of
revenue for the next financial year, which
reinforces our ability to be selective about
the work we take on, ensuring it meets our
stringent commercial criteria.
Growing our specialist businesses in
higher-margin adjacent markets
We set out clear intentions for our Specialist
Services as part of our wider growth strategy,
acknowledging that margin expansion from
this part of the business and from affordable
homes would be biased towards the latter
part of the strategy period, as adjacent
market volumes start to come through.
We achieved several milestones this year,
as set out in the Strategy section. We acquired
Northamptonshire-based Nene Valley Fire,
which we merged with our Oak Fire Protection
business under the Nene Valley Fire brand.
Together, they form part of Asset Intelligence,
where Galliford Try already delivers active fire
protection, enabling the enlarged business to
offer complete fire safety solutions directly
through an in-house team, nationally.
We anticipated the significant opportunity in
capital maintenance and asset optimisation in
Environment, as clients tackle the challenges
of ageing infrastructure, underinvestment,
tightening regulation and climate change.
Since 2021, we have completed four
acquisitions in this area to align to the market
opportunity. We now have a much sought
after end-to-end service capability and a
leading position in water, working with all of
the major water and wastewater companies
in the country.
Chief Executive’s review
Our excellent performance
and sixth consecutive year
of revenue and profit growth,
confirms that we are in
the right markets, and our
disciplined risk management
and high quality order book,
supported by market demand
and Government investment
are driving growth. We
continue to benefit from a
strong balance sheet and
excellent teams, and are
well placed to deliver our
2030 targets.”
Bill Hocking
Chief Executive
Focused
execution of
our strategy
£1.9bn
Revenue increased 3% to
£1.9bn in the year.
£4.3bn
We have a record £4.3bn
order book (2025: £4.1bn).
23.5p
A full year dividend of 23.5p,
up 23.7% on last year.
31
Strategic report
Annual Report and Financial Statements 2026
In the year, we built on this position by
investing in a new manufacturing facility in
Keighley, West Yorkshire, which will extend
Galliford Try Fabrications’ geographical
reach and production capacity across access
metalwork structures such as platforms,
stairways, and gantries, while enabling the
business to expand into the adjacent market
of coated, fabricated and stainless steel
pipework. These products are staples of the
industry and strengthen our ability to support
both internal businesses and external clients
as delivery grows (page 27).
Re-enter the affordable homes market
The delivery of more affordable homes, at
pace, is a key Government objective. Since
our re-entry to the market, our focus has been
to establish relationships and create a strong
pipeline to meet our plans. We marked three
successes during the year: our appointment
to a major new £750m affordable homes
framework by Sovereign Network Group;
a £3bn affordable homes framework by
The Hyde Group; and our first contract, which
is for 126 new homes for social rent at the
City Place site in Chester for Clarion Housing
Group. Viability and competing demands
continue to affect development. In response,
the sector is increasingly exploring partnership
models, land-led opportunities and alternative
funding mechanisms to unlock sites and
accelerate delivery, which captures our
co-development capability.
Leverage our geographical and
client footprint across the UK
We leverage our geographic reach and diverse
client base across the UK by sharing insights,
relationships and delivery capability across
our regions. Our national footprint provides
scale, presence and visibility into emerging
opportunities, while strong local teams
maintain close client relationships and ensure
consistent execution.
This allows us to win repeat work, enter
new markets with established credibility
and allocate resources efficiently across
our portfolio.
Continue to generate growing
shareholder returns
On 22 April 2026, we completed our third
share buyback programme, which was initiated
on 17 September 2025. Our dividend this
year increased once again, bringing our total
shareholder return for the period from
FY21 to FY26 to 413%.
As a result of the strong cash delivery in
the period and the enhanced order book,
we are announcing a further share buyback
totalling £15m over the balance of the current
financial year.
This reinforces the Group’s commitment
to delivering growing shareholder returns,
underpinned by confidence in future cash
generation and our capital allocation.
A people-orientated, progressive culture
As we deliver our plans, we must stay focused
on health and safety. While our performance
remains strong, our Accident Frequency Rate
and Lost Time Frequency Rate increased
from historic low levels achieved in previous
years. Given the low baseline, a small number
of incidents contributed to an increased
AFR of 0.06 (2025: 0.03) and LTFR of 0.17
(2025: 0.09). Analysis of the data behind
these incidents does not identify any clear
underlying trends. We nevertheless remain
committed to reinforce our systems and
processes. We are capturing learning in the
renewal of our behavioural safety programme
Challenging Beliefs, Affecting Behaviour,
which drives a safety mindset based on
awareness, training, coaching and visible
leadership. We are encouraged that 94% of
our employees believe health and safety is
our top priority.
Employee advocacy remains high, with
85% of our people recommending us as
a great place to work. In addition, we continue
to be an excellent employer for early careers,
and were ranked number one in our sector
for both apprentices and graduates by
TheJobCrowd, a scoring system based entirely
on employee feedback.
We have many initiatives that foster a strong
culture within our business. These are driven
by our Grow Together programme, described
in the People section.
Operating in a socially and
environmentally responsible way
Our Environmental, Social and Governance
(ESG) practices and performance help us
to meet clients’ procurement criteria,
support a sustainable supply chain and
make us attractive to employees. They also
demonstrate our commitment to ensuring
that our activities leave a positive legacy for
the communities in which we operate and the
natural environment. We retained our MSCI
AAA ESG rating for the fifth year, as well as
our CDP rating of B, and achieved the Green
Economy Mark by the London Stock Exchange.
Our progress is reported on pages 32 to 57.
Executive Board changes
This year, we welcomed two new members
to our Executive Board. Cliff Wheatley was
promoted to succeed Ian Jubb as Managing
Director of Building. Cliff has proven to be a
strong addition to the Executive Board and
has quickly embedded himself within the team.
His appointment has reinforced the calibre
of talent within our Group. Meanwhile,
Thomas Faulkner has taken the role of
Managing Director of Specialist Services from
Mark Baxter, who retires at the end of the year,
enabling a comprehensive transition in this
important growth area, as we planned.
We thank Mark and Ian for their
invaluable contributions.
Outlook
Our performance demonstrates that we have
the right strategy and building blocks in place,
supported by strong relationships with both
clients and suppliers, as well as a favourable
market position. This, coupled with our
high-quality pipeline of work, gives us
confidence in our ability to deliver on our
ambitions. I extend my appreciation to our
teams and partners across the supply chain,
whose dedication, mindset and energy
have been central to everything we have
accomplished so far.
Bill Hocking
Chief Executive
CEO of the Year
Bill Hocking was named CEO of
the Year at the 2026 plc Awards,
which recognise the standout leader
among FTSE100 and FTSE250
constituents. The award credits clear
vision, and strong and successful
leadership of the business.
Bill was recognised for his regard to
“the needs of customers, employees,
investors, the law, and communities”
and for successfully enacting strategy
and ensuring it is “owned throughout the
company from top to bottom”.
The process scrutinised succession planning
with long-term, sustainable financial
and societal success at its core, and ESG
considerations in company decision-making.
Galliford Try was also named a finalist for
Company of the Year, showcasing that
“success is not a short-term phenomenon”.
Culture and leadership
32
Galliford Try
Operating sustainably
Operating sustainably helps us to win
work, engage our employees, benefit
communities and the environment,
and be more efficient. Environmental,
Social and Governance (ESG) matters
are therefore integral to our strategy
and how we deliver long-term
stakeholder value.
Oversight of ESG
The plc Board has ultimate responsibility
for ESG, with day-to-day management
delegated to the Executive Board and
the ESG Committee.
The Committee meets four times a year
and is chaired by the Chief Financial Officer.
Its members include the Director of
Sustainability, senior representatives from our
operating divisions, and Support Services leads
from Supply Chain, Low Carbon Construction,
Environmental, Communities and Social Value,
Human Resources, and Pre-construction.
Stakeholder materiality assessment
Under the plc Board’s direction, we report
our progress in six areas: Health and Safety,
Our People, Environment and Climate Change,
Communities, Clients and Supply Chain.
The ESG Committee reviews the material
issues and related KPIs for different
stakeholder groups across these areas
every year, to ensure they continue to
reflect our stakeholders’ priorities.
This year, the main changes were to add new
stakeholder priorities in relation to value for
money and collaboration, and to reflect the
fact that some priorities in relation to carbon
reduction, equity, diversity and inclusion,
and human rights, while still important, are
now just expected. The updated priorities
are summarised on the page on the right.
Policies
Our BMS defines our approach to all key
operations and sets out the standards we
must adhere to. It contains our Sustainability
Policy, as well as our policies and processes
relating to each of the six areas listed
above. Using the BMS ensures consistency,
governance, control and effective risk
management, by mitigating issues at source.
We also communicate our policies via our
Code of Conduct, new starter inductions
and training, including refresher modules.
Recognition in the year
During the year, we maintained MSCI’s highest
ESG rating of AAA for the fifth consecutive
year. MSCI’s ratings assess a company’s
resilience to long-term ESG risks, scoring
on an industry-relative scale from AAA to
CCC based on their business model. We also
maintained our CDP score of B and were
included in the London Stock Exchange
Green Economy cohort for the second
consecutive year.
Sustainable
Growth to 2030
Revenue
>2.2bn
Divisional adjusted
operating margin
4.0%
Health and safety
Environment &
climate change
Our people
Communities
Clients
Supply chain
.
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Increasing
shareholder returns
Strong
balance sheet
Sustainability underpins our strategy
33
Strategic report
Annual Report and Financial Statements 2026
Stakeholder materiality assessment
Our key ESG ratings
AAA
B
Management
(Taking co-ordinated
action on climate issues).
The Green Economy Mark
recognises companies that derive
at least 50% of their revenue from
green products and services.
Sustainability pillars
Priorities
Key stakeholder groups
Clients
Investors
Employees
Supply chain
Communities
Regulators
Health
and safety
Page 34
Physical health and safety
Mental health and wellbeing
Our people
Page 38
Equity, diversity and inclusion
Human rights
Talent, development
and retention
Environment
and climate
change
Page 42
Carbon emissions
Waste
Water
Biodiversity
Communities
Page 46
Employment
Economic growth
Disadvantaged or
underrepresented groups
Community engagement
Clients
Page 50
Innovation and efficiency
Energy efficiency of
built assets
Quality, governance
and compliance
Value for money
Supply
chain
Page 54
Responsible sourcing
Fair payment
Collaboration
Relative importance
High
Moderate
Low
Movement in the year
Increased
Unchanged
Decreased
New
34
Galliford Try
Health and safety
Our objective is to prioritise health, safety and
wellbeing, and ensure no harm to anyone linked with
our operations. We achieve this by prioritising our
Lead Indicators, our behavioural safety programme
Challenging Beliefs, Affecting Behaviour (CBAB),
and our wellbeing initiative, Be Well.
Key UN sustainable
development goals
35
Strategic report
Annual Report and Financial Statements 2026
Ambition
FY26
FY25
FY24
0.04
0.03
0.06
No harm
0.06
Accident Frequency Rate
(AFR)
Ambition
FY26
FY25
FY24
0.14
0.09
0.17
No harm
0.17
Lost Time Frequency Rate
(LTFR)
Performance in the year
Accident Frequency Rate (AFR) and Lost
Time Frequency Rate (LTFR) are the industry
standard measures of safety performance:
AFR measures injuries resulting in more
than seven days away from work or those
specified by the Reporting of Injuries,
Diseases and Dangerous Occurrences
Regulations (RIDDOR).
LTFR measures incidents that result in
more than a day away from work.
Both metrics are calculated per 100,000
hours worked. Our commitment extends to
all people across our sites and offices, so the
AFR and LTFR include our own employees,
subcontractor employees and visitors.
Our AFR and LTFR increased from historic
low levels achieved in previous years. Given
the low baseline, a small number of incidents
contributed to an increased AFR of 0.06
(2025: 0.03) and LTFR of 0.17 (2025: 0.09).
Analysis of the data behind these incidents
does not identify any clear underlying
trends. We nevertheless remain committed
to reinforce our systems and processes
and capture learning in the renewal of our
behavioural safety programme. Across our
business units, 12 out of 21 recorded an AFR
of zero (2025: 13 out of 21). There were no
fatalities in the year (2025: nil).
36
Galliford Try
Health and safety continued
Lead Indicators
Our AFR and LTFR enable us to measure
and benchmark past performance. We use
Lead Indicators to drive improvement in
safety culture and behaviour. These span
leadership, communication, competence,
culture, contractors and planning, allowing
us to proactively manage health and safety
and ensure we focus on the factors within
our control. The indicators are reported
monthly to the Executive Board and at
business unit level.
During the year, we worked with the
Group HS&E Forum to strengthen our
suite of Lead Indicators and replace those
where we consistently achieve 100%
compliance, to ensure we are targeting
areas for improvement. These areas focus
on our planning in advance, ensuring key
risks are identified and reviewed prior to
works commencing.
In addition, we have introduced verification
of selected measures from each business,
through our internal audit team.
Highlights from the period include:
Conducting 1,675 director tours
(2025: 1,654) and 60,468 Safe Behaviour
Discussions (2025: 97,264). These provide
visible leadership and are a powerful way
for management to promote and maintain
safe behaviours on site, by engaging with
teams to reaffirm positive behaviour and
constructively challenge any potential
non-compliance.
100% of Site Safety and Environmental
Reviews (SSERs) confirmed that senior
project team four-week plan meetings
are being conducted, demonstrating the
ongoing commitment to put safety at the
heart of project delivery.
90% of SSERs had positive ratings on all
four of our ‘back to basics’ assessments –
right person, right planning, right tools
and equipment, and right workplace.
Other activities
Reviewing our behavioural safety programme
Our behavioural safety programme, CBAB, has
been a core part of creating our strong safety
culture since 2012. The programme recognises
that most safety incidents occur because of
individual actions and aims to change people’s
beliefs and behaviours, to keep everyone safe.
We have started a full review of CBAB, with
the intention of using the behavioural safety
mindset to enhance our performance in closely
linked areas, such as quality, wellbeing and
environmental. This will help ensure we do
the right thing in all aspects of our work. We
will retain the tried and trusted principles that
have served us well since we created CBAB,
while refreshing our approach with new topics
and learning from recent incidents.
Preventing service strikes
Accidental damage to services such as gas, water
and electrical utilities is an industry-wide critical
safety risk. In February 2026, we held Service
Avoidance Week, to enhance our focus on
prevention using safety stand downs, targeted
training sessions, audits, toolbox talks, and visits
from Senior Leadership, including the members
of the Executive Board. Daily ‘lunch and learns’
drew up to 800 attendees and an app was built
as a permanent source of information, provided
straight to our colleagues’ phones.
Key supply chain partners were invited to
our sessions, which sparked debate around
behavioural change and how innovation
can support safer practices across our
industry. This type of discussion helps us
to challenge ourselves and continually
improve safety standards.
To reinforce our approach, we have since
launched a new module in our award-winning
Choose the Safe Path virtual reality training,
filmed on a Galliford Try site. The interactive
and immersive training helps participants to
understand the risks and the actions they
should take to avoid an incident.
30%
decrease in service strikes
following our campaign.
Case study
37
Strategic report
Annual Report and Financial Statements 2026
Enhancements to our BMS
Our HS&E BMS has a strong foundation and
plays a critical role in protecting people, the
environment and the communities we work
with and keeping the business compliant.
As the organisation grows and diversifies,
we want to ensure the processes within our
BMS remain suitable, robust and aligned to
new operational requirements.
In June 2026, we held a Group-wide summit,
bringing together a team of senior leaders from
across the business to help shape how our
HS&E BMS evolves. The discussions covered:
How the HS&E BMS is working in practice.
How clear and usable it is for people who
rely on it daily.
How well it supports confident,
proportionate decision-making.
How it scales across different
delivery models.
Where there is potential for pressure
and friction.
How the HS&E BMS needs to evolve to
remain clear, usable and proportionate.
Enhancing our monitoring approach
In 2026, we updated our monitoring standard,
which sets out our approach to monthly site
inspections and audits. This ensures our HS&E
advisors are rigorously focused on the critical
risks that could cause serious injuries, fatalities
or environmental incidents. These include
working at height and falling objects, plant
pedestrian interface, lifting, electrical,
services and water management.
In addition to external audits including
those from BSI, we have also increased the
number of audits we carry out to 23, having
trained many of our HS&E team members in
internal audit.
Focusing on health and wellbeing
Health and wellbeing remain at the heart
of our culture, with a continued focus on
creating a supportive environment where
our people can thrive. Our Wellbeing Lead
plays an active role in shaping industry-wide
improvements, chairing the Build UK Drug
and Alcohol Working Group and working
collaboratively with the DIO MPP Mental
Health and Wellbeing Forum to improve
access to wellbeing support across the defence
sector. We have also contributed to the wider
industry agenda through involvement in the
consultation process for the new Joint Code
of Practice for Mental Health in Construction,
helping to influence best practice and drive
higher standards of mental health support
across the sector. Through these partnerships
and initiatives, we continue to strengthen
our commitment to supporting the physical,
mental and emotional wellbeing of our
workforce and supply chain.
What’s next?
We will:
Launch the updated CBAB programme.
Work with the business units to ensure
the BMS remains fit for purpose, as the
Group grows.
Galliford Try
38
Our people
Our objective is to create a
progressive, people-orientated
and inclusive culture that enables
individuals to reach their potential.
Key UN sustainable
development goals
39
Strategic report
Annual Report and Financial Statements 2026
Performance in the year
Employee advocacy
Employee advocacy is a powerful indicator
of how engaged employees are, measuring
how likely they are to recommend our
business as a great place to work.
At Galliford Try, this is driven by our
Employee Value Proposition (EVP) ‘Grow
Together’ which delivers on our pledge to
be a people-orientated, progressive
employer driven by our values and combines
the unique selling points that differentiate
us as an attractive company to work for.
Grow Together is shaped by our Employee
Forum (page 101), feedback from our
employee survey, insights from working
sessions from all levels in our business,
data and analytics as well as best practice.
In our 2026 Employee Survey, we achieved
an employee advocacy score of 85%,
compared to a sector average of 74% and
UK average of 72%. This is the fourth year
in a row that we have outperformed the
sector and wider UK industries. Our
engagement score, which is made up of
a number of factors including employee
motivation, commitment to our vision and
pride in the company, was also above the
sector average at 72%. This compares to
63% for both the construction sector and
UK companies.
Data-led insights like this demonstrate
we are earning a place as a destination
employer, not only within the industry but
across the UK.
Gender diversity
Employing more women in our business is
key to accessing diverse skills and talent.
This year, the proportion of women stands
at 23.8% (2025: 23.0%). We continue to
prioritise increasing the number of women
in our organisation, by:
implementing policies and practices that
support women;
providing career development
opportunities to retain and advance
women; and
developing our culture to ensure women
choose to have long-term careers at
Galliford Try.
Many of these initiatives both support our
objective to increase the number of women
who come into our organisation and form
part of our broader actions in relation to
equity, diversity and inclusion, which are
outlined in following sections.
Ambition
FY26
FY25
FY24
10.2%
10.1%
10.4%
>9%
10.4%
Early careers as a %
of total employees
Ambition
FY26
FY25
FY24
22.5%
23.0%
23.8%
YoY
increase
23.8%
Women as a % of total employees
as at 30 June
Ambition
FY26
FY25
FY24
87%
87%
85%
>80%
85%
Employee advocacy
Gender
Women
Men
plc Board
2
4
Senior grades
(A-D)
94
647
Total company
1,029
3,273
Since 2020, we have reduced our mean gender
pay gap from 28.8% to 23.3%, and our median
gender pay gap from 32.2% to 27.0%.
Early careers
We continue to target early careers as a
way of improving diversity and inclusivity,
by attracting diverse groups to our business
and then supporting them with structured
development programmes and career paths
to progress to senior levels. Early careers roles
represent 10.4% of our total workforce
(2025: 10.1%). To promote gender diversity
and inclusion within our early careers talent
pool, we are collaborating with careers
platforms HigheriN and Gradcracker to
develop targeted recruitment initiatives.
These campaigns are designed to attract
a balanced and diverse pool of female
candidates, ultimately enhancing our overall
candidate mix and contributing to a more
representative workforce.
For the third time, we received a Platinum
Award through The 5% Club’s Employer
Audit Scheme, which recognises the UK’s
best employers of apprentices, graduates
and degree placement students. The award
reflects our approach to inclusion and
social mobility, the quality of training and
development, and future growth of ‘earn
as you learn’ opportunities.
In addition, this year we have retained our
position as one of the UK’s best employers
for Early Careers, achieving the number one
spot for both apprentices and graduates in
the Construction and Civil Engineering
sectors in this year’s JobCrowd rankings.
Other activities
Inclusive Leadership capability
We were awarded Silver accreditation by
Clear Assured, the Equity, Diversity and
Inclusion (EDI) platform, for demonstrating
strategic commitment to EDI procedures,
and active engagement of leadership in the
promotion of EDI.
All leadership teams in Galliford Try including
Executive Board, Divisional Boards and
Business Unit Boards have participated in
Inclusive Leadership sessions designed to
widen and constructively challenge knowledge
of how EDI influences business performance,
including self-evaluations and action points.
During 2026, we continued to cascade the
training throughout the business, making
progress with delivering the sessions to the
next layer of leadership roles.
Active bystander
We delivered active bystander workshops
for all our people, having commenced roll-out
in 2025.
The workshops are designed to increase
the representation and retention of
underrepresented groups in the workplace, by
equipping employees to recognise, challenge
and prevent inappropriate behaviours, bias,
exclusion and discrimination, while fostering
a more inclusive, respectful and supportive
working environment.
Data collected following the sessions shows
a 13% increase in attendees’ confidence to
intervene when they see something they feel is
wrong. The workshops are now mandatory for
all new employees, as part of their induction.
Flexible and agile working
We offer a flexible and agile approach to
work, through arrangements such as job
shares, compressed hours, sabbaticals, remote
working and return to work programmes.
This enables our people to build careers while
balancing their personal needs, preferences
and circumstances. All our roles are advertised
with the option of flexible and agile working,
and our managers start from a point of saying
‘yes’ to an agile working request.
Agile working applies to all our people but it
can be a particularly effective way to attract
and retain more women.
Our people continued
GTPlus – a new
rewards platform
In response to employee feedback,
we launched ‘GT Plus’ – a new and
improved employee discounts portal
that provides a wider range of savings,
offers, cashback and an improved user
experience, plus access to Galliford Try
reward and benefit information.
Case study
40
Galliford Try
Supporting career development
Our Careers without Compromise approach
provides clarity on how to build a successful
career development plan, the resources and
roles that the individual,and the role the line
managers and the business play in enabling
plans to become reality. Our Career Paths give
our people an in-depth view of different routes
they can take to progress their careers within
Galliford Try. Success Factors outline the key
technical and behavioural skills required,
which can easily be translated into Personal
Development Plans. This approach enables
our people to gain the full benefit of our
programmes and tailor their learning to their
needs and aspirations.
In addition to these initiatives, our self-service
Learning and Development portal, The GT
Academy, gives our people access to a
wider variety of development opportunities
and self-assessments, at any time and
from anywhere.
Promoting internal mobility
Supporting our people to move to new roles
in Galliford Try helps us to retain and develop
talent, accommodate people’s changing needs
regarding location or working patterns, and
increase employee satisfaction, productivity
and engagement. We therefore continue
to promote ‘Explore’, our internal mobility
programme and have made 45 appointments
in the year.
Continuing our commitment to
Ex-Military personnel
Ex-Forces personnel bring valuable skills
to our business and we are committed to
supporting their successful transition into
civilian careers. Our Ex-Military programme
has received Gold in the Defence Employer
Recognition Scheme, the highest honour for
organisations that demonstrate support to
the Armed Forces Community.
We are also proud to have maintained our
position as one of the UK’s Top 50 Employers
of Veterans, as part of the prestigious GREAT
British Employers of Veterans programme.
This annual ranking celebrates organisations
that demonstrate a strong and sustained
commitment to supporting former service
personnel, reservists and military families.
Resourcing
We continue to develop our approach to
resourcing, enabling us to attract the best
talent with a range of backgrounds and
experience. During the year we launched
an improved recruitment process, including
a two-stage interview. This starts with a
values-based interview, followed by a technical
capability assessment, to further reinforce our
inclusive culture. We look forward to reporting
our progress across all areas next year.
What’s next?
As part of Grow Together, we will:
Continue our journey to achieving
Gold status under Clear Assured.
Continue to embed our inclusive culture,
by continuing to upskill leaders and our
workforce, and enhancing our approach
to inclusive recruitment.
Launch our Menopause Action Plan,
supporting career development for all
women at all levels.
Further promote GTPlus.
Neurodiversity
Celebration Week
Neurodiversity Celebration Week aims to
challenge stereotypes and misconceptions
about neurological differences, transform
how neurodivergent individuals are
perceived and supported, and create more
inclusive and equitable cultures.
This year, our activities included a
presentation to 500 employees on
neurodiversity, which generated a high
level of engagement and feedback.
Our business units also ran local events,
bringing together clients and suppliers
for powerful and thought-provoking
neurodiversity discussions.
Case study
41
Strategic report
Annual Report and Financial Statements 2026
Environment and
climate change
Our objectives are to adopt sustainable resourcing
and consumption practices and take measures to
mitigate carbon emissions and climate change,
to protect our environment and biodiversity.
Key UN sustainable
development goals
42
Galliford Try
Performance in the year
We report our carbon and energy data
in calendar years. The following section
therefore describes our carbon and energy
performance for the calendar year 2025
unless otherwise stated. The disclosures
required under Streamlined Energy and
Carbon Reporting can be found in the
Directors’ Report on page 129, along
with information on our methodology
and external verification.
Our greenhouse gas emissions performance
is highly important to us and our clients,
who expect us to support them in meeting
their own carbon-reduction objectives.
Carbon management is therefore part of
our BMS, giving us a consistent approach
across the Group and setting the minimum
expectations for every project.
Climate change mitigation and adaptation
also presents significant opportunities. For
example, our Environment business helps
clients to increase the capacity and resilience
of water and sewerage systems, while many
of the buildings we construct must meet
clients’ energy efficiency targets or stringent
environmental accreditation standards. In
June 2026, we received the London Stock
Exchange’s Green Economy Mark for the
second consecutive year, maintaining our
place in a select cohort of businesses deriving
at least 50% of their revenues from activities
that benefit the environment.
Scope 1 and 2 carbon emissions
Our Scope 1 emissions predominantly relate
to fuel use in company cars and vans, and
on-site plant and equipment. Our Scope 2
emissions relate to consumption of electricity
across our sites and permanent offices,
as well as charging of electric and plug-in
hybrid electric vehicles (PHEVs).
As almost all our purchased electricity is
renewable, we use market-based Scope 2
emissions within our headline Scope 1 and
2 emissions KPI. This also aligns with our
science-based target, which reflects market-
based Scope 2 emissions. In 2025, our total
Scope 1 and 2 emissions increased by 8.1% on
a market basis and by 9.0% on a location basis.
Scope 1 emissions from company cars and
vans have continued to fall, with a 2.6%
reduction in 2025. This overall reduction
is the net effect of lower mileage in petrol
and diesel company cars, offset by an
increase in fuel consumption in our diesel
van fleet, due to growth in our Infrastructure
businesses. The reduction in company car
mileage is largely the result of a refinement
in our expenses system which now allows us
to accurately distinguish between mileage
claims relating to company cars and mileage
claims relating to personal vehicles where
the driver receives a cash allowance. This
change has resulted in c762 tCO
2
e that would
previously have been reported in Scope 1
now being reported under business travel
(Scope 3). We have now largely completed
the transition of our company car fleet to
EVs and PHEVs , which made up 99.7%
of our company cars as at 30 June 2026.
Ambition
FY26
FY25
FY24
95.3%
96.0%
96.1%
100%
96.1%
Waste diverted from landfill
Ambition
FY26
FY25
FY24
10,486
14,811
16,145
42%
reduction
by 2030
1
16,145
Scope 1 and 2 carbon emissions
(market-based) (CO
2
e tonnes)
Ambition
FY26
FY25
FY24
7,128
8,874
8,703
42%
reduction
by 2030
2
8,703
Verified Scope 3 carbon emissions
(CO
2
e tonnes)
Ambition
FY26
FY25
FY24
17.7
12.4
22.8
YoY
reduction
22.8
Waste intensity
(tn/£100k revenue)
1
42% reduction by 2030, based on 2021 baseline.
2
42% reduction in total scope 3 by 2030, based on 2021 baseline.
Strategic report
43
Annual Report and Financial Statements 2026
Emissions relating to the use of diesel on our
sites increased 17.0% to 10,747 tonnes CO
2
e
(2024: 9,185 tonnes CO
2
e) in the year. This
was driven by the growth in our Infrastructure
businesses, which are more reliant on off-grid
temporary power generation. We have also
seen an increased need for off-grid power
generation in some of our Buildings projects,
where connections to the electricity grid
have been delayed.
We remain committed to our net zero
route map ambition to achieve diesel-free
construction by 2035. To support the
achievement of this ambition, we have:
Mandated that all diesel generators over
a certain size must be part of a hybrid
system, incorporating battery storage.
This allows the generators to run at
maximum efficiency but for less time,
resulting in lower diesel consumption.
Successfully deployed our first
hydrogen-powered generator,
as described in the case study below.
Introduced quarterly fuel reports, which
give us a better understanding of our usage
down to a project level. This is enabling us
to identify areas for targeted improvement
and gives ownership to the business units.
Our Scope 2 emissions reduced by 8.2%
on a location basis, and by 5.1% on a market
basis. The reduction in emissions is the
net effect of a 7% increase in electricity
consumption, resulting from increased EV
charging, offset by a reduction in both the
location-based and market-based emissions
factor for UK electricity.
Our policy is for all electricity we procure
directly to be renewable. In 2025, we
purchased 91.1% of our electricity on
renewable tariffs (2024: 90%). Even though
we have renewable contracts, reducing our
electricity use is still the right thing to do,
as it lowers costs for us and reduces pressure
on the grid.
At around half of our offices, we are recharged
by our landlords for the electricity we use.
Although this energy may be renewable,
we are unable to evidence this because we
do not have contracts with the suppliers and
therefore we do not treat this consumption
as renewable energy in our calculation of
market-based emissions.
Our emissions intensity
We measure our emissions intensity in tonnes
of carbon dioxide equivalent (tCO
2
e) per
£100,000 of revenue in the corresponding
calendar year. This takes account of our
business growth and helps us to assess our
underlying emissions performance.
In 2025, our Scope 1 and 2 (market-based)
emissions intensity increased by 8.4% to
0.86 (2024: 0.79), reflecting the growth of our
Infrastructure businesses which have more
carbon-intensive operations.
Our net zero targets
Our target is to achieve net zero for Scopes 1
and 2 by 2030. While this target does not meet
the requirements of the Science Based Targets
initiative (SBTi) Net-Zero Standard because it
does not include Scope 3 emissions, it reflects
the core principles of that standard. Our
approach is to reduce emissions in line with
a 1.5°C pathway, and any residual emissions
remaining at the target year will be neutralised
using high-quality carbon removal solutions.
Despite the recent increases in our Scope 1
and 2 emissions, we have reduced them by
47% since 2012 and by 55% on a like-for-like
basis, adjusting for acquisitions, disposals and
improvements to methodology.
Meeting our 2030 target is very challenging in
a rapidly growing business, in an industry with
emissions that are hard to abate. However, this
target remains important to us as it sets our
ambition and drives improvement actions.
We are required to review our science-based
targets by 2028. The SBTi has reviewed its
Corporate Net Zero Standard and the revised
standard acknowledges the difficulties faced
by high-growth companies. We see this as an
opportunity to refine our targets, so they take
into account growth while continuing to drive
ambitious actions on emissions reduction.
Verified Scope 3 emissions
We include certain categories of Scope 3
emissions within the external verification
process, where we have sufficiently reliable
source data. For example, we use business
travel expense claims and information on
employee commuting to calculate emissions
using a distance-based method.
Our verified Scope 3 emissions reduced by
1.9% to 8,703 tonnes CO
2
e (2024: 8,874
tonnes CO
2
e).
The reduction was driven by a 1,072 tCO
2
e
reduction in emissions relating to employee
commuting, which was offset by a 918 tCO
2
e
increase in emissions relating to business
travel. This increase was largely the result of
being able to distinguish between company
cars and personal vehicles more accurately
as outlined above.
Environment and climate change continued
Hydrogen power trial:
reducing reliance on diesel
We trialled a green hydrogen fuel cell generator on the
A5036 Park Lane project for National Highways to test
a viable, zero-emission alternative to traditional diesel
generators, which remain a major contributor to emissions
on construction projects.
The hydrogen system powered the site compound and
EV charging points, using green hydrogen produced from
renewable energy. This enabled the project to significantly
reduce fuel-related emissions while maintaining reliable
day-to-day site operations and also delivered quieter
operation, no technical issues and reduced maintenance
requirements, demonstrating that low-carbon temporary
power can be practical as well as environmentally beneficial.
Case study
Two
tonnes
CO
2
e per week saved.
42%
This trial supports our
target to reduce emissions
by 42% by 2030.
44
Galliford Try
Full Scope 3 emissions
In 2022, we estimated our full Scope 3
emissions, using a spend-based approach
supported by the GHG Protocol Corporate
Accounting and Reporting Standard for
initial carbon footprinting. This gave us the
following insights:
Scope 3 emissions represent circa 98% of
our total carbon footprint.
Emissions relating to the materials and
subcontracted services that go into our
projects represent circa 96% of our total
carbon footprint.
Concrete and steel are by far the largest
source of emissions, due to the volume
we use and their high carbon intensity.
The spend-based methodology has significant
weaknesses. For example, it does not
distinguish between steel produced using
fossil fuels and electric arc furnace steel, which
has a carbon saving of up to 77%. We do not
therefore report our spend-based estimated
full Scope 3 emissions, as we continue to focus
on developing a quantity-based approach.
We have introduced mandatory reporting
across our sites, which covers all fuel, concrete,
steel, electricity and water procured by us
and by our subcontractors. This is giving us a
clearer picture of the quantities used, although
we have further to go to improve the quality
of data. In the meantime, we have provided
education and training to help make the right
procurement decisions and to ensure they are
recorded accurately.
We continue to work with suppliers to
encourage greater availability of lower-carbon
products and take part in the Low Carbon
Concrete Group, an industry initiative to
reduce the environmental impact of this
key material.
Waste
Our waste intensity increased from
12.4 tonnes per £100,000 of revenue in
calendar year 2024 to 22.8 tonnes per
£100,000 of revenue in calendar year 2025.
The increase is largely driven by a number of
large infrastructure projects where the nature
of the project meant that excavated material
could not be re-used on site and had to be
recycled off-site. Waste continues to be an
area of focus, with increased use of Modern
Methods of Construction, especially off-site
manufacture, which can reduce the volumes
of waste produced. Our focus on Right first
time also reduces waste, by enabling greater
accuracy of materials required.
We also manage our waste streams to
maximise recycling and minimise waste to
landfill, with 96.1%% of our waste diverted
from landfill (2025: 96.0%).
Other activities
Enhancing our approach to green site setup
Our green site set-up guide has been in
place for several years, helping our teams
consider the environmental impact of how
they set up a work site. In 2026, we turned
this from guidance to a mandatory process in
our BMS. Every project must now grade its
environmental plan and receives a colour-
coded rating for each element, from blue for
best practice to red, which requires Managing
Director approval to proceed. This shows
our teams where they can improve and
encourages them to consider the options
available. For example, where a site cannot
get an electricity grid connection, using
smart power controls and an optimal hybrid
generator set-up will improve its rating.
Reducing carbon through ‘One in a Million’
We continue to run this employee engagement
initiative, which we launched in 2024.
It challenges our project teams to identify
innovative ways to reduce carbon, which
they report so we can share best practice
around the Group. The target is to identify
at least one tonne of carbon savings per
£1 million of revenue on participating projects.
During 2025, 11 projects identified potential
carbon savings of 3,673 CO
2
e, equivalent to
12 tonnes per £1 million of revenue.
Developing our carbon data lake
We continue to develop our carbon data lake,
in support of our carbon reporting needs.
The data lake holds data in a wide variety of
formats, from unstructured data contained in
images to structured data in spreadsheets and
databases. We have developed a number of
dashboards that leverage the data lake and will
continue to develop the suite of reports, as we
expand the number of data sources included.
CDP scoring shows our continued progress
We continue to participate in the CDP, a global
disclosure system for organisations to manage
their environmental impacts. This year we
achieved a B rating for the third year running,
showing our sustained commitment to climate
transparency and action.
Importantly, our latest submission shows
improvement in eight of the 16 assessment
categories, with 11 categories now rated
B or higher. These improvements reflect
our increasing maturity in areas such as risk
management, collaboration and transparency,
demonstrating that although our overall score
remains unchanged, our climate approach
continues to strengthen year on year.
Biodiversity
We understand the need and our legal
responsibility to protect biodiversity in
our design and construction activities.
Our delivery teams engage with our specialist
environmental teams at the earliest phase
of projects, to identify and manage risks,
minimise our impact throughout the project
lifecycle and implement opportunities for
positive change. We engage with our specialist
supply chain to undertake preliminary
ecological and Biodiversity Net Gain (BNG)
assessments, building these outputs into our
project design and delivery. Where necessary,
we produce project-specific species protection
plans. We also undertake training and
awareness for our people and supply chain,
covering protected species, habitats, BNG
and invasive species.
Biodiversity campaign
To raise awareness of biodiversity and its
importance to our work, we ran a week-long
campaign during the year. This focused
on BNG and encouraging nature through
volunteering opportunities, as well as a
competition for the best biodiversity example.
What’s next?
We will continue to:
Encourage and capture carbon
reduction opportunities through our
One in a Million initiative.
Develop our carbon data lake and improve
carbon reporting across all scopes.
Develop carbon supply chain engagement
plans for all construction business units.
Develop our offsetting strategy, in support
of our net zero targets.
We will also review and update our
science-based targets, to align with the
revised SBTi Corporate Net Zero Standard.
45
Strategic report
Annual Report and Financial Statements 2026
Communities
Our objective is to make a positive
impact in the communities where
we operate, by delivering greater
social value and improving lives.
Key UN sustainable
development goals
Galliford Try
46
Performance in the year
Social and Local Economic Value (SLEV)
Delivering positive social value outcomes is
a key part of our business model. This is both
the right thing to do and important for our
clients. In particular, we align every project
with the mandated 10% minimum weighting
for social value in central Government
procurement contracts.
We use the Thrive platform to provide
a rigorous, data-driven framework for
recording, measuring, and reporting social
value outcomes. This end-to-end solution
supports every stage of our social value
journey, from initial bid planning to final
delivery, ensuring all evidence is auditable,
verified and fully aligned with Government
standards. In addition to allowing us to report
on social value using the Impact Evaluation
Standard, we can create our own metrics that
align with our business and project needs.
This approach:
Is aligned with the UK Social Value
Model, ensuring compliance with public
procurement requirements.
Provides robust, evidence-based
estimates of social value for tenders,
bids and reporting.
Helps us report and promote the positive
impacts we have made in the communities
in which we operate.
Thrive also includes a local needs analysis
tool, which helps our bid teams to
understand the social issues that are most
prominent in the area around a project.
This allows us to target the outcomes we
are looking to deliver and ensure they align
to local priorities.
We report SLEV generated by projects over
£5m that completed during the year. On this
basis, we delivered £527m of SLEV in the
year, with 79% of projects exceeding our
benchmark of creating SLEV of at least 25%
of the project value.
Ambition
FY26
FY25
FY24
79%
83%
79%
>60%
79%
% of completed projects delivering >25%
Social and Local Economic Value (SLEV)
as a % of contract value
Ambition
FY26
FY25
FY24
42.9
43.9
44.5
>39
44.5
1
Considerate Constructors Scheme
(CCS) performance
1 See overleaf.
Strategic report
47
Annual Report and Financial Statements 2026
Considerate Constructors Scheme (CCS)
CCS scores and benchmarks construction
sites on their positive impact within their
locality. We maintained a high average score
of 44.5 (2025: 43.9) out of 50, outperforming
our ambition of 39 and the industry average
of 41.2
1
. Our project teams received three
Gold, three Silver and 11 Bronze awards at this
year’s CCS National Site Awards, reflecting our
teams’ ongoing commitment to setting high
standards across all areas of site operations.
We are a member of the CCS Social
Impact Group, which has been formed
to help standardise social impact and
increase understanding, engagement and
communication of social value for the supply
chain and stakeholders.
Other activities
We recognise the need to attract the next
generation of talent into the industry,
through initiatives such as mentoring and
Open Doors. Charitable and volunteering
activities are also valuable for employee
retention and engagement.
Mentoring the Next Generation
Mentoring the Next Generation is our flagship
initiative designed to inspire young women to
pursue careers in construction by connecting
them with female mentors from across our
business. Now entering its third year, the
programme offers students practical guidance
on developing workplace communication
skills, identifying career goals, and building
confidence through CV writing, interview
preparation and interactive activities.
Our expansion demonstrates the
programme’s success:
Pilot phase:
launched with 66 students
across five schools.
Year 2:
expanded to 12 schools and
147 students.
Year 3:
scaled further with an additional
six schools, bringing our total reach to
18 partner schools and circa 220 students.
By continuously integrating feedback,
we are currently pursuing formal Industrial
Cadets accreditation. This will provide
silver standard certification for the quality
of our STEM-related work experience,
ensuring our impact is both measurable
and industry-recognised.
Open Doors
We took part in Build UK’s Open Doors
initiative again this year, with 411 students
visiting 14 of our sites and offices around
the country.
Open Doors delivers high-impact site visits,
showcasing the industry’s potential to the
next generation. It gives attendees the
opportunity to see how a live site operates,
including how we work alongside our supply
chain. Ham Baker Engineering also took
part in Open Doors for the first time, with
a factory tour showcasing its engineering
and manufacturing processes.
Volunteering and charitable donations
One of the most tangible ways in which we
create a positive legacy is through staff and
supply chain volunteering their time and
resources to support community projects
and causes. We encourage all employees
to take up to two days of paid leave to
undertake voluntary activities.
During the year, our staff recorded 7,540
hours of volunteering time. As it is difficult to
capture all volunteering time, including that of
our supply chain partners, we believe the true
amount is significantly higher.
To embed a volunteering culture, volunteer
days are incorporated into our graduate and
trainee programmes. This includes requiring
our graduates to sign up to become STEM
ambassadors, joining a national network
of volunteers who bring real-life examples
of STEM careers into schools, colleges and
universities across the UK. We increased our
STEM ambassador community from around
60 colleagues to more than 100, which has also
supported the growth of our Mentoring the
Next Generation initiative.
In addition to volunteering hours, we donated
time, materials and money to the value of
£526,002 (2025: £470,000) to charitable
and community causes. Beneficiaries include
CRASH, the UK construction industry charity
for the homeless, which we have been a patron
of for 27 years. During the year we worked
with CRASH to receive regular notifications
of its forthcoming projects, which we can
circulate around our business. This has allowed
us to donate time from our experts, such
as architects and project managers, to help
CRASH implement its projects effectively.
During FY26, we established a Supply Chain
Social Value Working Group to facilitate
collaborative partnerships with our suppliers.
This initiative enables the joint donation
of funding and materials to high-impact
community causes.
What’s next?
We will:
Deliver and continue to grow our
Mentoring the Next Generation
programme.
Communities continued
1
CCS changed their scoring methodology in April 2026 from absolute scores to a percentage score. The average score reported relates to the nine months to
31 March 2026. In FY27, we will report the average percentage score in line with the new methodology and define a revised target that continues to align with
outperforming industry benchmarks.
48
Galliford Try
Delivering Social Value
at RAF Leeming
Our community-led approach at RAF Leeming provides
meaningful and measurable social value by benefiting service
personnel and their families, while extending outreach to local
organisations to align with local needs.
Two employment opportunities have been created
for military spouses
, supporting both immediate income
and longer-term career progression.
Work experience opportunities
have supported a military
dependent to transition into construction.
T Level placements
have been provided for a student and
a career changer undertaking a Level 3 qualification.
11 apprenticeships
have been supported including one
a degree apprenticeship.
A bespoke Carbon Assessor course
,
delivered with the
Supply Chain Sustainability School, has provided green skills
training, while engagement with the on-base primary school
has promoted biodiversity through practical initiatives.
£6.9m
social value equivalent.
Case study
49
Strategic report
Annual Report and Financial Statements 2026
Clients
Our objective is to deliver superior
buildings and infrastructure, with
a better social footprint for clients,
through a focus on innovation,
digitalisation and quality.
Key UN sustainable
development goals
50
Galliford Try
Ambition
FY26
FY25
FY24
92%
92%
90%
>85%
90%
% of full year planned revenue secured
at the start of the financial year
Performance in the year
Repeat business and revenue visibility
Our performance depends on our ability
to understand clients’ priorities, provide
technical expertise to solve their challenges
and deliver high-quality solutions for them. In
doing so, we develop long-term relationships
and generate a high level of repeat business.
At 30 June 2026, 92% of our order book
was repeat business (30 June 2025: 93%),
showing our continued success in meeting
clients’ needs. Our order book gives us
excellent visibility of our revenue, with
90% of FY27 revenue and 62% of FY28
already secured.
Other activities
Strategic partnering through frameworks
Our strong client relationships and
reputation for delivering quality outcomes
enable us to secure places on key
frameworks, which are vehicles for the
public and regulated sectors to procure
projects in a collaborative manner.
Frameworks are our preferred route to
market, as they provide us with greater
certainty and the ability to act strategically.
Key benefits include:
Aligned objectives with acceptable risk.
Established and well-understood
terms and conditions, with predictable
behaviour.
Transfer of knowledge from project
to project, creating an environment
of continuous improvement and
value for money.
Efficient and streamlined
procurement processes.
The development of long-term,
collaborative strategic relationships.
Long-term visibility of the
opportunity pipeline.
At the year end, 91% of our order book was
in frameworks (30 June 2025: 90%).
Ambition
FY26
FY25
FY24
93%
93%
92%
>80%
92%
% of repeat business in our order book
51
Strategic report
Annual Report and Financial Statements 2026
Delivering quality
Delivering projects for our clients that are
right first time, every time, is key to developing
long-term relationships, securing repeat
business and reducing our carbon footprint.
Quality is therefore central to our Sustainable
Growth Strategy.
Our Quality policy summarises the processes
within our BMS and provides an overview
of our approach to delivering right first time.
Our quality processes are supported by using
ViewPoint, Fieldview and other digital tools to
ensure compliance and capture data, to drive
continuous improvement.
Our culture and behaviours underpin our
approach, centred on learning and continuous
improvement, coupled with the integration of
digital technologies, systems and processes to
enhance performance, drive efficiencies and
provide confidence in the quality of the assets
we construct.
Collaboration
Collaboration is a key part of our business
model. We are accredited to ISO 44001
Collaborative Business Relationship
Management, recognising the role it plays in
enabling effective long-term relationships and
delivering sustainable value across complex
programmes. Our contracting approach
targets clients who share our collaborative
approach, with 99% of our work secured via
multi-stage negotiation or early involvement.
The approach enables our teams to identify
innovation opportunities, improve buildability,
reduce risks and improve outcomes for
everyone involved. This collaborative form
of tendering includes target cost/cost plus,
two-stage tendering and negotiated tendering,
and ensures our team and our supply chain
are involved at an early stage of a project to
develop solutions that provide high-quality
outcomes for our clients. See page 11 for
more information on the tendering processes
clients adopt.
In FY26, we joined the Executive Network of
the Institute for Collaborative Working (ICW).
This reinforces our long-standing commitment
to structured collaboration and collaborative
best practice across our projects. Through
the ICW Executive Network, we contribute
practical, real-world insight to a cross-sector
community of senior leaders from public,
private and third-sector organisations. We
are engaged in the ICW Highways Forum,
supporting shared learning and leadership
dialogue to drive better outcomes for clients,
supply chains and communities.
Financial strength and capacity
Galliford Try’s financial strength is a critical
factor for our clients and our supply chain.
It encourages our clients to contract with us
and allows us to select the best supply chain,
which in turn gives us the capacity to respond
to the programmes of work coming through.
What’s next?
We will:
Maintain and develop our presence
on frameworks.
Maintain our ISO 44001 accreditation, in
support of our collaborative relationships
with our clients and supply chain.
Clients continued
Our investment period from 2025
to 2030 sees our biggest ever
upgrade in Thames Water’s history.
We will be investing over £20bn into
our improvement works to reduce
leaks, reduce pollution and improve
water quality.
A project like Bracknell STW relies
on many facets of engineering.
Because Galliford Try has access
to expertise from companies such
as Lintott and Ham Baker, as well
as the core business, we’re able to
deliver the projects with one team
responsible for all of the project.
Working in long-term arrangements
means that we’re able to plan works
in a strategic programme-based
manner rather than focusing on
individual projects. That also gives
us additional efficiencies in our
programme of investment.”
Ben Sebastian-Green
Head of Delivery for Thames Water
Scan to watch the video.
Case study
Deploying end-to-end
capability to prepare
Bracknell STW for
future demand
Adding more capacity to existing
water or sewage treatment works,
and installing new process treatments
to provide improved reliability and
operational resilience is typical of the
work we do in water to help clients
increase the lifespan of their assets.
At Bracknell Sewage Treatment Works
(STW), our programme has spanned
two Asset Management Plans (AMPs),
to improve the facility’s ability to treat
increasing volumes of sewage and meet
new regulations.
Phase one focused on essential
upgrades to enhance performance,
efficiency, electrical and
communications systems to provide
a temporary uplift to capacity. Phase
two is introducing advanced treatment
technology to introduce new treatment
capability and compliance standards.
52
Galliford Try
We’ve got challenges,
we’ve got opportunity
and we need a partner
like Galliford Try who can
help us unlock those.”
Tim McMahon
Managing Director for Water
Southern Water
Scan to watch the full interview.
Q&A
Tim McMahon, Managing Director for Water,
Southern Water discusses the challenges facing
the regulated water companies and where
Galliford Try is helping to meet those challenges
Q
What are the main pressures
facing the water sector in terms
of estate renewal?
A: We have a lot of pressures facing the water
industry at the moment. The biggest one by
far is the size of the capital programme that
we need to deliver – over £100bn between
2025 and 2030.
That’s about three times bigger than what
we’ve been doing over the last five years.
So that ramp up, at pace, and having to deliver
it more efficiently than ever, is a really big
challenge for us as a sector.
Q
How is the nature of the work
changing from AMP7 to AMP8/9
and beyond?
A: The size and scale of our programme is very
different from AMP7 to AMP8. We’ve seen
massive reductions in our capital programme
historically. Really AMP7 was just sticking
plasters if I’m quite honest. It was lots of little
things to keep the asset base performing to
improve the performance that we needed
to achieve. There were some big projects
but my biggest project in AMP7 was £40m.
My largest one this time around is nearly
10 times that size and therefore we need to
do things in a different way. We need to work
to programmes and not projects.
Q
How do you anticipate
your relationship with
Galliford Try evolving over
the next investment period?
A: This AMP period, we have moved our
approach into a partnership model, and we
want to take that even further forward – and
what that means is we’ve got problems, we’ve
got challenges, we’ve got opportunity and we
need a partner like Galliford Try who can help
us unlock those.
It’s making our programmes much more
effective and efficient going forward
and delivering customer benefit quicker,
environmental benefit quicker, and that’s
where a clever company like Galliford Try
can really help challenge our thinking.
The water sector probably isn’t as innovative
as it could be. We need partners who can help
challenge our thinking to unlock that benefit
going forward.
That’s why we’ve put in the left shift approach
in our contractual model, which effectively
means Galliford Try can get more reward,
more gain if they can start projects earlier
in the life cycle and seize opportunities for
themselves, and that creates opportunity
for us.
53
Strategic report
Annual Report and Financial Statements 2026
Supply chain
Our objective is to align our supply chain
with our culture and create collaborative
relationships that deliver best practice,
innovation and sustainable outcomes for
clients, communities and the environment.
Key UN sustainable
development goals
54
Galliford Try
Performance in the year
Aligned supply chain
We develop collaborative, long-term
relationships with our supply chain partners
through our Advantage through Alignment
(AtA) programme. We support Aligned
partners by sharing our working practices,
values and vision, and by giving them access
to our CBAB behavioural safety programme,
as well as BIM training and continuing
professional development.
AtA has been in place for a decade. We
refreshed it in FY26 and relaunched it at
our Supply Chain Conference (page 56),
with new materials and a broadened offer
for Aligned partners across four key areas of:
Sustainable relationships.
Enhanced performance.
Stronger collaboration.
Growing together.
Our core trades spend with Aligned
subcontractors in the year was 56%
(2025: 59%).
Supplier payment
Maintaining our supply chain’s financial
resilience is a key priority and our target is to
pay 95% of supply chain invoices within 60
days. We continue to outperform this target,
with 97.2% of invoices paid within 60 days in
FY26 (2025: 96.9%). The average days to pay
remains low at 27 days (2025: 26 days).
We take part in the Fair Payment Code,
which has Gold, Silver and Bronze Award
categories, underpinned by fair payment
principles. We have achieved the Bronze
Award, which is for companies that can
demonstrate they are paying at least 95%
of all invoices within 60 days, in line with
our target.
Ambition
FY26
FY25
FY24
61%
59%
56%
70-80%
56%
% of business unit core trades spend
with Aligned subcontractors
Ambition
FY26
FY25
FY24
95.6%
96.9%
97.2%
>95%
97.2%
Prompt payment – % of invoices paid
within 60 days
55
Strategic report
Annual Report and Financial Statements 2026
Leveraging our Enterprise Resource Planning
(ERP) platform
One of our objectives is to use our Oracle
ERP platform to increase the efficiency and
effectiveness of our procurement processes.
During FY26, we introduced a procurement
dashboard, which enables us to monitor
supplier order values and analyse our spend
across different product categories, to identify
areas for further review. We are continuing
to digitalise our procurement and supply
chain management processes, which will
include implementing a new commercial
reporting platform to support our
subcontractor management.
Supporting our supply chain with
cyber security
Robust cyber security is essential for
the resilience of our supply chain and an
increasing area of focus for our clients. We
therefore actively promote cyber essentials
accreditation with our supply chain, including
through our prequalification questionnaires.
Where supply chain partners do not have
accreditation, we look to understand their
plans for achieving it, making clear the
importance to us and our clients. Cyber
security was also a key topic at our Supply
Chain Conference and in the business units’
own supply chain roadshows during the year.
Developing our residential sector supply chain
The affordable homes sector is an important
growth market for us and we have continued
to develop our supply chain to support our
strategy. This has included leveraging our
existing supply chain partners where their
products are directly transferable, such as
for external doors and roofing, as well as
sourcing new products such as kitchens
and bathroom pods. These are complete,
preassembled units that we can install rapidly,
with consistent quality and less waste due to
their offsite manufacture.
Streamlining supplier onboarding
During FY26, we went live with our new
supplier onboarding system, which aligns
to the Common Assessment Standard
prequalification process. This helps our
subcontractors achieve compliance to
standards, and mitigate risks across 13 key
areas. To achieve certification, subcontractors
only need to evidence their compliance once
a year on the online portal. The new system
has significantly reduced the amount of time
we need to spend assessing new supply chain
partners, as well as making the process quicker
and simpler for them. It also aligns us with the
UK Government’s recommended standard
for construction procurement, in public sector
procurement projects exceeding £5.337m.
Supplier performance monitoring
During FY26, we piloted our new supplier
performance monitoring framework, to
drive greater consistency across the Group
and provide better insights on supply chain
performance. The process is supported by
an online platform that provides full
transparency, automation and control of
performance across our supply chain. With our
Infrastructure and Environment businesses
having both tested the new system on live
projects, our Building business is now running
trials. Our intention is to roll it out across the
Group in the coming months.
Supply Chain Sustainability School
The Group is a partner to the Supply Chain
Sustainability School, which is a leading online
resource for businesses within the built
environment supply chain, aiming to upskill
the workforce and improve the understanding
of best practice in sustainability. Our Group
Supply Chain and Procurement Director is a
member of the school’s Board. During the year,
our suppliers completed 4,297 of the school’s
e-learning modules.
What’s next?
We will continue to:
Progress our digitalisation and use of data,
to enhance the efficiency and effectiveness
of our procurement processes and supply
chain management.
Promote and support the take up of
cyber essentials accreditation by our
supply chain partners.
Develop our supply chain in the residential
sector, to support the growth of our
affordable homes business.
Supply chain continued
Engaging our supply
chain at our national
conference
In January 2026, over 300 key supply
chain partners and subcontractors joined
leaders from across Galliford Try for
our National Supply Chain Conference.
The event provided attendees with a
clear view of the Group’s vision and their
essential role in driving shared success.
The key topics included:
our Sustainable Growth Strategy;
the importance of health and safety;
updates on supply chain performance
and our AtA programme;
the fundamentals of operational
excellence;
our approach to carbon reduction;
enhancing cyber security;
creating the right culture for growth;
and
an in-depth look at the structure,
priorities and pipelines of each business
unit, and a deeper insight into what we
do at Galliford Try.
The conference concluded with a Q&A
and reflections on the themes of the day.
The discussions, insights and ideas shared
throughout the conference showcased
the commitment across our network to
continuous improvement, innovation and
a culture that enables everyone to thrive.
300+
attendees.
Case study
56
Galliford Try
Human rights and
modern slavery
Ensuring human rights
We are committed to upholding human rights
and take steps to prevent slavery and human
trafficking in our business and supply chain.
We fully support all UK legislation for human
rights, recognising modern slavery and human
trafficking to be the most significant human
rights risks to UK construction businesses.
Key UN sustainable
development goals
Action and performance
We have established a Modern Slavery
Working Group to identify and oversee
the actions taken to minimise the risk of
forced labour and modern slavery within
our operations and supply chain.
Some of the key actions we take include:
Reviewing our Modern Slavery
Act Policy annually and overseeing
compliance through the Ethics
and Compliance Committee and
Executive Board.
Prohibiting forced labour through
our Code of Conduct and making
modern slavery training available
to employees.
Verifying direct employees’ right to
work in the UK before employment
is formally offered.
Requiring preferred labour suppliers
to confirm right-to-work checks,
no work-finding fees and procedures
to reduce forced labour risk.
Auditing preferred labour suppliers
through our supplier management
arrangements to check appropriate
labour practices are in place.
Providing a confidential
whistleblowing route for employees
and third parties to raise modern
slavery concerns.
During the year, we updated our
Modern Slavery Statement to provide
greater detail on our policies, procedures
and controls, and to align our disclosure
with the six areas set out in the UK
Government’s updated Transparency in
Supply Chains guidance: organisational
structure and supply chains, policies,
due diligence, risk assessment and
management, monitoring and evaluation,
and training.
Anti-bribery and corruption
Policy and management
On joining, and every three years, all
employees must complete an online
course regarding the Bribery Act.
Twice a year, every business unit
managing director and head of support
function is required to sign a declaration
that their respective teams are aware
of the policy and the Code of Conduct,
comply with their contents, and that
any issues have been reported.
57
Strategic report
Annual Report and Financial Statements 2026
58
Galliford Try
The Group delivered another year of strong
growth, resulting in significantly improved
profitability, margin, cash and dividends,
together with incremental capital returns over
the 12-month period.
Revenue
Revenue for the year was up 3.0% to
£1,931.1m (2025: £1,875.2m), driven by strong
performance in Highways and a successful
transition to AMP8 in Environment, both part
of Infrastructure.
Building revenue declined marginally to
£951.0m (2025: £964.7m) due to some
delayed public sector preferred bidder
conversions, which move some revenue into
next year. We also continue to expand the
capabilities of our FM operations, providing
high-quality building maintenance services
as well as focusing on decarbonising existing
buildings through retrofit and other measures.
Infrastructure’s revenue was up by 7.7% to
£971.6m (2025: £902.5m) driven by a very
strong year in our Highways division which
delivered three major projects open for traffic
including the £198m Carlisle Southern Link
Road, the £91m A47 Blofeld Scheme and the
£105m Melton Mowbray Distributor Road.
The performance of Highways more
than offset the flattening impact of the
Environment division transitioning from
AMP7 to AMP8.
While Infrastructure revenues are expected
to moderate in FY27 following completion of
major Highways projects, improved terms in
AMP8 frameworks and growth in higher value
activities are expected to support further
margin progression.
Investments’ revenue of £8.5m was up 6.3%
on the previous year (2025: £8.0m).
Our total revenue growth over the six years
has totalled more than 70% with a CAGR of
circa 11% since 2021.
See Operating review p62.
Adjusted operating profit
The Group’s adjusted operating profit was up
21.9% to £49.5m (2025: £40.6m) reflecting
the Group’s focus on commercial contract
selection and operational delivery.
The combined divisional adjusted operating
margin improved by 53bps to 3.5% (2025: 3.0%).
The Group generated net interest of £6.4m
(2025: £4.4m) reflecting active management
of higher cash balances. The Group’s adjusted
profit before tax for the year was £55.9m
(2025: £45.0m), up 24.2%, with no exceptional
items reported in FY26 (2025: nil).
Financial review
Broad based,
year on year
growth
I am very pleased to report continued
momentum with another highly encouraging
set of numbers, reflecting broad-based
growth in our business, and our sixth year
of revenue and margin growth.
We are executing our strategy effectively,
and are well positioned to deliver further
shareholder value.”
Kris Hampson
Chief Financial Officer
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Strategic report
Annual Report and Financial Statements 2026
2030 strategic growth targets (indicative).
1
See note 31 for a reconciliation of statutory numbers to Adjusted Performance Measures.
2
Adjusted items or non statutory measures.
3
Average month-end cash is a non-statutory measure the Group refers to, being the average month-end
cash balance over the financial year. The cash balance used each month is the statutory cash and
cash equivalents balance.
FY30
FY26
FY25
FY24
FY23
FY22
FY21
1,125
1,237
1,394
1,764
1,875
1,931
>£2.2bn
£1,931m
Revenue
(£m)
FY30
FY26
FY25
FY24
FY23
FY22
FY21
17.5
9.0
18.0
29.6
40.6
49.5
£49.5m
Adjusted operating profit
1,2
(£m)
FY30
FY26
FY25
FY24
FY23
FY22
FY21
20.6
12.4
22.4
35.0
45.0
55.9
£55.9m
Adjusted profit before tax
1,2
(£m)
FY30
FY26
FY25
FY24
FY23
FY22
FY21
5.8
9.5
8.7
27.3
33.7
41.7
41.7p
Earnings per share
(p)
FY26
FY25
FY24
FY23
FY22
FY21
3.3
3.7
3.4
3.8
4.1
4.3
£4.3bn
Order book
2
(£bn)
FY30
FY26
FY25
FY24
FY23
FY22
FY21
17.1
10.2
18.0
29.6
34.4
42.4
42.4p
Adjusted earnings
1,2
per share
(p)
FY30
FY26
FY25
FY24
FY23
FY22
FY21
8.0
4.7
10.5
15.5
19.0
23.5
23.5p
Full year dividend per share
(p)
FY30
FY26
FY25
FY24
FY23
FY22
FY21
5.4
11.4
10.1
19.2
44.1
55.0
£55.0m
Profit before tax
(£m)
FY30
FY26
FY25
FY24
FY23
FY22
FY21
174
164
135
155
179
216
£216m
Average month-end cash
2
(£m)
FY30
FY26
FY25
FY24
FY23
FY22
FY21
2.4
2.0
2.4
2.5
3.0
3.5
4.0
3.5%
Divisional adjusted operating margin
1,2
(%)
60
Galliford Try
Financial review continued
For a reconciliation of profit before tax to our
adjusted performance measure of adjusted
profit before tax which is a key metric for
monitoring performance of the business,
see note 31.
Within this, Building’s adjusted operating
profit of £33.1m was up 17.8% on £28.1m last
year, giving an adjusted operating margin of
3.5% (2025: 2.9%) up 57 basis points.
Infrastructure generated adjusted operating
profit of £34.3m (2025: £27.4m), representing
an adjusted operating margin up 49 basis
points to 3.5% (2025: 3.0%). Margins from
the newly-acquired businesses are in line
with target trajectory, and the Environment
business is performing ahead of the
pre-acquisition investment case.
Investments loss was £2.2m (2025: loss
of £0.4m) and central overheads were
£15.7m (2025: £14.5m), driven by inflation
and digital transformation in commercial
operating systems.
Adjusted profit before tax was up 24.2%
from £45.0m, demonstrating the continuance
of our selective approach to the projects
we work on. We are confident of our ability
to deliver further margin expansion and
increased profitability, in line with the
trajectory to reach our 2030 targets.
See Operating review p62.
Tax
The taxation charge of £13.8m (2025: £10.5m)
reflects an effective tax rate (ETR) of 25.1% for
the year to 30 June 2026 in line with guidance,
which compares to the standard effective
tax rate of 25.0%. During 2026, utilisation of
historical deferred tax trading losses fully offset
expected net corporation tax cash payments
resulting in no cash tax being paid; in 2027 cash
tax payments are expected to be in line with the
income statement tax charge.
We have a constructive and open relationship
with HMRC and look to comply with both the
letter and spirit of relevant regulations and to
pay our fair share of tax. Our tax strategy is
available on our website at www.gallifordtry.
co.uk/investors/governance-policies, as usual.
Net interest income
The Group generated net interest of £6.4m
(2025: £4.4m).
Earnings and dividends per share
The growth in profits has driven up statutory
earnings per share in 2026 to 41.7p compared
to 33.7p in 2025. Adjusted earnings per share
for the year are 42.4p up 23.1% on 34.4p
last year.
Based on the strong performance of the
Group, we have recommended an increase
of 25.9% to the final dividend at 17.0p per
share (2025: 13.5p), which is in line with our
sustainable dividend policy, and brings the
total dividend for the financial year to 23.5p
per share (2025: 19.0p), up by 23.7%. The full
year dividend in 2026 is covered 1.8 times
(2025: 1.8 times) by adjusted earnings.
At 30 June 2026, the Company had distributable
reserves of £115.8m (2025: £113.5m).
Distributable reserves is determined in
accordance with the Companies Act 2006 and
applicable UK company law requirements and
may therefore differ from retained earnings
reported in the financial statements.
Cash and working capital
Our strategy is focused on continued
revenue and margin improvement, and
our capital requirements remain low, with
strong operational cash generation through
the nature of our work.
We remain well capitalised, maintaining our
focus on disciplined cash management in line
with our key capital allocation objectives.
The Group operates with daily net cash, no
drawn bank debt facilities, and no defined
benefit pension liabilities. The average
month-end cash for the rolling 12 months
ended 30 June 2026 was £216.2m (year to
30 June 2025: £178.7m) and period-end cash
at 30 June 2026 was £259.0m (30 June 2025:
£237.6m). This demonstrates continued
robust cash management throughout the year.
We have a Revolving Credit Facility to provide
greater agility and resilience to our business.
Alongside an already strong balance sheet,
this provides an excellent platform to take
advantage of future growth opportunities.
The facility comprises £25m, which was for
an initial three-year term, with an option
to extend for a further two years, and an
accordion option of a further £10m. It is
unsecured and provided by leading clearing
banks. We have not drawn from the facility
during the current and previous financial year.
The Group has exercised the first option to
extend this facility until at least 2029.
At 30 June 2026, net working capital
employed was £274.8m (30 June 2025:
£269.1m). Total equity at the year end was
£135.2m (2025: £122.1m.)
The Group recognised a material provision in
respect of the estimated future costs that will
be incurred during a defects liability period
on a specific contract. The provision was
estimated at £13.1m with a reasonable range
of outcomes between £7.6m and £19.1m.
The Group has engaged with experts to
support the basis and range of calculations.
Given the range of reasonably possible
outcomes and the judgement involved in
determining whether a provision should be
recognised, it is considered to be a critical
accounting estimate and judgement. Further
details are provided in note 1 and note 19 to
the financial statements.
We continue to be proud of our collaborative
and open approach with all our supply chain.
We are a Bronze member of the Fair Payment
Code, with 97% of invoices paid within 60 days
and average days to pay invoices of 27 days
(2025: 26 days).
Strong operational cash leverage and tight
working capital management supported
capital allocation in the form of circa
£30.3m (2025: circa £27.5m) of cash returns
to shareholders in the period via share
buybacks and dividends.
Investments
At 30 June 2026, the Group directors’
valuation of our PPP portfolio was £37.2m
(2025: £38.6m), reflecting a blended 8.1%
discount rate (2025: 7.9%). These assets
contribute to our balance sheet strength
and generated interest income in the period
of £3.7m (2025: £3.6m).
Capital allocation and
shareholder returns
The Group’s capital allocation priorities are
unchanged. Successful delivery of our targets
over the period to 2030 will generate cash to
support our capital allocation opportunities.
In line with our policy, we intend to maintain
our sustainable dividend policy cover at 1.8x
adjusted EPS and to deploy the remaining
capital through disciplined re-investment
or share buybacks or special dividends. Our
capital allocation policy is as follows:
Invest in the business (organic and acquisitive)
Our strong cash balances and experience
mean we can allocate capital to assist the
development of our adjacent markets, as
demonstrated by our acquisitions and our
new fabrication facilities.
The Group’s approach to M&A is based on the
following precepts:
We learn from previous processes and
integrations to maximise the success of
every transaction.
We manage an active pipeline of targets
within our chosen higher margin adjacent
target sectors of:
–
Environment – water product and
maintenance specialists.
–
Building – passive and active fire services,
FM and asset security.
All deals will meet clear strategic and
financial hurdles. Discipline in deal selection
will be as rigorous as for operational
contract selection.
Paying sustainable dividends to shareholders
The Group has a dividend policy of adjusted
earnings per share covering the dividend
by 1.8 times. In addition to dividend growth
resulting from our operational performance,
this policy also reflects the low-risk nature of
the PPP asset portfolio and its annuity interest
income and provides a sustainable increase
in dividend to shareholders while retaining
capital to invest in growing the business.
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Strategic report
Annual Report and Financial Statements 2026
Returning excess cash
We continue to assess the strategic cash
requirements of the business and where
average month-end cash and PPP assets
increase above the level required, the Board
will consider making additional returns to
shareholders where this represents the best
return for shareholders. Capital returns
over the last six years, including the new
announced proposed dividend and share
buyback, total £146.3m including dividends
of £83.8m, special dividends of £12.5m and
share buybacks of £50.0m. These returns
represented circa 28% of the Group’s market
capitalisation at year end on 30 June 2026
Acquisitions
As referred to earlier in the report, we
acquired Nene Valley Fire for circa £10m,
extending our capabilities in the attractive
passive fire prevention sector. The integration
of this higher-margin bolt-on business is
progressing well, enhancing our existing
passive and active specialist fire brand,
Asset Intelligence, with trading ahead of
our pre-acquisition investment case.
The cash-funded deal has been margin
accretive from completion.
Returning excess cash
We assess the cash requirements of the
business to ensure the Group remains well
positioned to deliver on its strategy and has
sufficient funds to invest in the business.
On 22 April 2026, we completed our third
share buyback programme, announced on
17 September 2025. Under this share buyback
programme, a total of 1,957,703 ordinary
shares of 50 pence were repurchased, and
subsequently cancelled, at an average price
of approximately £5.11 per share, and a total
cost of £10m.
As a result of the strong cash delivery in the
period, record order book and strong visibility
of future revenue, we are announcing a share
buyback totalling £15m over the balance of the
current financial year.
Contingent liabilities
The directors ensure that contingent liabilities
are appropriately assessed, documented
and monitored.
More information can be found in note 27.
Internal control framework
Provision 29 is a new requirement for
publicly-listed companies to demonstrate
they have effective internal controls and risk
management processes. We have confirmed
and documented our internal controls
framework ahead of Provision 29 of the
UK Corporate Governance Code becoming
effective for our financial year ending
30 June 2027 (page 109).
Going concern and
Viability Statement
Our going concern statement, together with
further related information, can be found
in the Directors’ report on page 130. Our
Viability Statement can be found on page 85.
Critical accounting policies
and assumptions
Our principal accounting policies are set
out in note 1 to the financial statements,
together with a description of the key
estimates and judgements affecting the
application of those policies and amounts
reported in the financial statements.
We use adjusted financial performance
indicators to monitor our performance,
alongside standard measures, which are
designed to be useful to investors by
providing a balanced view of our operations.
An explanation of these measures and
reconciliations to the corresponding statutory
measures are included in note 31.
Kris Hampson
Chief Financial Officer
Bolt-on M&A opportunities
Active pipeline:
bolt-on, higher margin specialist businesses complementary to our existing capabilities and closely related to sectors
we are established in. Five acquisitions originally brought c£134m of annual revenues; expected to deliver up to £650m of annual revenues
by 2030.
Environment
Capital
maintenance
Water
Technologies
Capabilities that enhance our full
service offering to water clients using
in-house businesses.
Manufacturers of specialist products
used across water treatment facilities
and infrastructure.
Designers and installers of
electrical systems.
Providers of automation and
control systems.
Providers of maintenance services.
Specialist Services
Asset
security
Fire
protection
(passive and
active)
Hard FM
Fragmented, higher margin markets where
clients struggle to find national contractors
who can deliver across their portfolios.
Leverage the competencies and strengths
from our existing markets and apply
them here for critical mass and more
significant profits.
Target sectors
Strategic criteria
Existing or adjacent sectors.
Strong cultural fit (risk and people).
Complementary expertise/
geographies to existing operations.
Strong client relationships and
excellent frameworks.
Capabilities with barriers to entry.
Self-delivery capability.
Financial criteria
Returns exceed cost of
capital hurdles.
Strong and clean balance sheet
and order book quality.
Higher margin.
Case study
62
Galliford Try
Operating review
Strong delivery
Building
2026
2025
Revenue (£m)
951.0
964.7
Adjusted operating
profit (£m)
1
33.1
28.1
Adjusted operating
profit margin (%)
1
3.5
2.9
Order book (£m)
2,658
2,454
1
See note 31 for a reconciliation of statutory
numbers to Adjusted Performance Measures.
Building operates across the
UK, designing, constructing and
refurbishing assets in markets in the
education, defence, custodial, FM,
commercial and health sectors, as
described on page five.
Building revenue declined marginally to
£951.0m (2025: £964.7m) due to some
delayed public sector preferred bidder
conversions, which move some revenue
into next year. Notably, we delivered adjusted
operating profit of £33.1m (2025: £28.1m),
up strongly by 57bps to 3.5%, reflecting
improved bidding margins, and higher quality
project delivery.
Building won contracts and positions on
frameworks worth over £1,155m. Significant
appointments and wins include:
The new £9.5bn Crescent Purchasing
Consortium Construction and Capital
Works framework.
A £3.0bn affordable homes framework for
The Hyde Group.
Our first affordable homes scheme, a £28m
project for Clarion Housing in Chester.
The £15.4bn Department for Education
Construction Framework 25 (CF25).
The £1.5bn YORbuild Major Works 2
Framework procured by Leeds City Council.
A £750m affordable homes framework by
Sovereign Network Group.
Building’s order book stands at £2,658m,
up 8.3% versus the prior year (2025: £2,454m)
with 93% of FY27 and 60% of FY28 revenues
secured.
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Strategic report
Annual Report and Financial Statements 2026
Infrastructure
2026
2025
Revenue (£m)
971.6
902.5
Adjusted operating
profit (£m)
1
34.3
27.4
Adjusted operating
profit margin (%)
1
3.5
3.0
Order book (£m)
1,690
1,688
1
See note 31 for a reconciliation of statutory numbers
to Adjusted Performance Measures.
Our Infrastructure business, comprises
Highways and Environment – including
our water and wastewater activities, and
carries out critical engineering projects,
as described on page five.
Infrastructure’s revenue was up by 7.7% to
£971.6m (2025: £902.5m) driven by a very
strong year in our Highways division which
delivered three major projects open for traffic
including the Carlisle Southern Link Road, the
A47 Blofeld Scheme and the Melton Mowbray
Distributor Road. The performance of Highways
more than offset the flattening impact of the
Environment division transitioning from AMP7
to AMP8. Successful close out of the three
projects, and early AMP8 design fees, helped
drive divisional adjusted operating margins
up by 49bps to 3.5% and delivered adjusted
operating profit of £34.3m, up 25.2%
(2025: £27.4m). While divisional revenues
are expected to moderate in FY27 following
completion of major highways projects, improved
terms in AMP8 frameworks and growth in higher
value activities are expected to support further
margin progression.
Infrastructure won positions on frameworks worth
£973m (2025: £1,045m). These include:
The £1.0bn YORcivil Major Works 2
Framework.
Two lots on the new Wessex Water Design &
Build Contractors (Minor Works) Framework.
Phase 1 of South West Water’s (SWW)
Continuous Water Quality Monitoring
Programme.
Infrastructure’s order book is £1,690m, up 0.1%
(2025: £1,688m) with 87% of FY27 and 65% of
FY28 revenues secured.
64
Galliford Try
Operating review continued
Investments
Performance
2026
2025
Revenue (£m)
8.5
8.0
Operating loss
(£m)
(2.2)
(0.4)
Net interest
income (£m)
3.7
3.5
Directors’
valuation (£m)
37.2
38.6
Investments deliver major
developments through public-private
partnerships and co-development
opportunities in the Private Rented
Sector and affordable homes,
generating work for the wider
Group in the process.
Revenue was £8.5m (2025: £8.0m) up 6.3%
with an adjusted operating loss of £2.2m
(2025: loss of £0.4m).
At the year-end the business was preferred
bidder on five PRS schemes with a gross
development value of c£467m and potential
further opportunities in the pipeline.
At the year end, the directors’ valuation of our
Public, Private Partnerships (PPP) portfolio
was £37.2m (2025: £38.6m), which is the fair
value included in the balance sheet reflecting
loan repayments and a blended discount rate
of 8.1% (2025: 7.9%) with discount rates being
driven higher in line with governmental long
term bond rates. The valuation compared with
a value invested of £31.6m (2025: £32.6m).
The portfolio generated an annuity interest
income of £3.7m (2025: £3.6m).
Our successful completion of the £52m project, The Rise, Cardiff’s tallest building, highlights the ingenuity that
Modern Methods of Construction and digital tools bring to large-scale construction. The project, privately funded by
Lloyds Living, with Galliford Try Investments acting as the client, adopted off-site fabrication, modular integration, and
a streamlined assembly process to overcome access challenges, enhance build efficiency and ensure a consistently
high standard of quality across the development.
65
Strategic report
Annual Report and Financial Statements 2026
A high-quality
Group order book
Our order book underpins our plans
and gives us excellent medium-term
visibility of pipeline, meaning that
no part of the business needs to
take on levels of risk that fall
outside our appetite.
What makes our order book high-quality?
Our focus on core sectors increases
our understanding of contract risk,
our ability to put appropriate mitigations
in place and our ability to successfully
deliver quality projects.
We actively target and maintain
places on public sector frameworks,
as they help mitigate risk by enabling us
to work within known and established
terms and conditions and provide
pipelines of work.
At 30 June 2026, 91% of our order book
was in frameworks (2025: 90%).
At 30 June 2026, 95% of our order
book was in the public and regulated
sectors (2025: 93%), and 5% in the
private sector (2025: 7%) with carefully
selected blue-chip clients.
High visibility of the future years’
revenue gives us further confidence
to bid with the appropriate discipline
and selectivity.
Order book composition
Our order book is comprised of revenue
from secured contracts that we have not
yet completed; estimated future revenue
from projects on our frameworks where
we have been appointed preferred bidder;
and estimated revenues to be allocated
on frameworks over a two year horizon.
The estimates are driven by a combination
of our knowledge of the size of the total
framework, the clients’ planned delivery
model, and our historical experience of
what volumes are actually delivered.
A
B
C
D
E
F
Building
£2.7bn
£m
A
Defence
654
B
Custodial
711
C
Education
605
D
Commercial & other
334
E
Facilities Management
333
F
Health
21
£m
A
Environment
1,171
B
Highways
519
A
B
Infrastructure
£1.7bn
Strong visibility of workload
Order book by sector
90%
of planned revenue FY27
secured (2025: 92%).
62%
of planned revenue FY28
secured (2025: 75%).
Strategy in action
66
Galliford Try
Risk management
Effective risk management
Our ability to identify, assess and
manage risks and uncertainties is
one of the key enablers for delivering
our Sustainable Growth Strategy.
It is vital that we understand the risks
associated with every project opportunity
and ensure that we only bid for projects
that align to our risk appetite and our ability
to manage the risks. Our culture of risk
awareness enables us to identify and manage
the risks associated with operating in a
dynamic external environment. It also helps
us to identify and monitor the development
of emerging risks, including cyber risks and
the physical risks of climate change and those
associated with the transition to a
low-carbon economy (pages 72 to
75). Our approach to managing risk is
structured, pragmatic and targeted, with
key risk mitigation measures embedded
into management processes and activities.
These include:
A Business Management System with
processes and procedures designed to
give us control and confidence in
commercial decisions.
Project-level controls and management
oversight of project forecasts.
Monthly cross-disciplinary contract
review meetings on all projects.
Standardised formats for monitoring
and reporting project performance
and forecasts.
Comprehensive commercial training.
A programme of commercial ‘health checks’
to provide an independent assessment
of the project team’s reported project
performance and forecast outturn.
These activities are supported by a
governance structure that provides
oversight of key risks from the plc Board
through to individual projects.
Our risk management process
The Group’s risk management and
governance structure is designed
to facilitate both a bottom-up and
top-down view of principal and
emerging risks and is summarised
in the diagram opposite.
plc Board
The plc Board sets the risk appetite of the business and maintains oversight of
our processes for identifying, assessing, managing and reporting on principal
risks. It reviews principal and emerging risks at least three times a year.
Executive Board
The Executive Board implements the strategy and risk appetite set by the plc
Board and ensures that appropriate risk management and internal control
procedures are embedded in our operations. It reviews principal and emerging
risks at least three times a year.
Business unit Boards
They maintain a business unit risk register that records the key risks applicable
to that business, along with key mitigations and further actions required to
manage the risk. Risk registers are reviewed twice a year, with one of the reviews
facilitated by the Risk and Internal Audit team.
Project teams
They create a project Risk and Opportunity Register at the bid stage and maintain
it throughout the project life cycle. They review the risks and opportunities at
key checkpoints and as part of the monthly contract review meetings.
Executive Risk Committee
The Executive Risk Committee reviews and updates principal and emerging risks,
based on the risks reported by the business units, and considers any emerging
risks that may affect the business in the longer term. It meets three times a year.
It is chaired by the General Counsel & Company Secretary and comprises the
Chief Financial Officer, Director of Risk and Internal Audit, representatives from
Building, Infrastructure and Specialist Services, and the heads of sustainability,
procurement, HR and legal.
Reviews the adequacy and
effectiveness of our risk
management processes and
systems of internal control.
Reviews and approves statements
included in the Annual Report
concerning internal controls and
risk management, as well as the
Viability Statement.
Facilitates the identification,
reporting and management of
risk throughout the governance
structure. Provides a risk update,
including updated principal and
emerging risks, to the Executive
and plc Boards at least three times
a year.
Audit Committee
Risk and Internal Audit
67
Strategic report
Annual Report and Financial Statements 2026
Principal risks
The plc Board monitors the principal risks
at a Group level to enable the successful
execution of the Group’s strategy. This
approach ensures the plc Board focuses on
the most significant risks and the actions
being taken to manage them.
During the Risk Committee in June 2026,
we took the decision to separate Technology
from Regulatory Compliance into a standalone
principal risk in response to the increased
inherent risk in this area and the resulting
time and effort designated to it. As a result,
we have five principal risks which are:
Work winning.
Project delivery.
Resources.
Regulatory compliance.
Technology.
At business unit level, our risk management
process captures and monitors risks and
mitigations using more detailed risk themes.
These are aligned to the five principal risks
so that we can take more targeted actions to
address issues that are specific to the regions
and sectors in which they operate.
1
Work winning
Risk description
We fail to secure an appropriate
pipeline of projects to achieve our
revenue and profitability targets.
Key risk indicators
Percentage of planned revenue secured.
Percentage of order book in frameworks.
Order book by client type.
Percentage of repeat business.
Link to our operational priority areas
Quality and innovation.
Sustainable financial returns.
Risk appetite
Current risk environment
Mitigations
We achieve a moderate pipeline risk
appetite by securing a forward order book
that provides a high degree of certainty of
current year and following year revenue,
while reflecting appropriate margin,
cash and risk attributes.
We adopt a low-risk appetite for
project selection, and maintaining strict
discipline in the projects that we take on
is a fundamental element of our internal
control framework. We only accept
projects where we are confident that
we have the experience, knowledge and
supply chain to deliver effectively. We
prioritise collaborative client relationships
and robust commercial terms that support
effective risk management.
Potential causes of risk
A significant and sustained reduction
in Government investment in building
and infrastructure projects reduces
the opportunity pipeline.
Increased costs make some schemes
economically unviable, leading to delays
or cancellation of projects.
Delays to and/or reduced levels of
private sector investment, due to
macroeconomic conditions.
Failure to secure positions on key
procurement frameworks.
Failure to develop a competitive
low-carbon construction capability.
Poor-quality bid submissions.
Competitors bid at unsustainable
margins and/or clients pursue
alternative procurement strategies
moving away from the traditional
tier one contractor model.
Failure to maintain discipline in
project selection.
The pipeline in our chosen markets remains strong
with Government infrastructure spend commitments
unchanged under the new Prime Minister. Infrastructure
spend is increasing while demand grows in the
water sector.
Our growth into affordable homes will help us to increase
margins in the Building business, without taking additional
excessive risk. These projects undergo the same diligent
assessment as all other prospective projects.
Stable interest rates and reductions in longer-term
inflation forecasts to near the Bank of England’s target
are giving most clients and funders greater cost visibility,
helping prospective projects to move smoothly and
reliably from preferred bidder to agreeing contract values,
and ultimately project starts.
The only exception to this is in housing schemes outside
of London and parts of north-west England and central
Scotland where high and likely increasing bond rates are
raising the threshold for requisite returns on these kinds
of investment.
Work in the water sector is slowly ramping up as AMP7
comes to an end and AMP8 commences. It is likely that
a higher proportion of that work will come in the second
half of the AMP8 period.
The Building Safety Act has increased compliance risk and
planning timelines which has deterred some private sector
developers and investors. In the longer term, it will help to
create demand from building owners who need to comply
with regulation.
The long-term transition to low-carbon buildings and
infrastructure is creating market opportunity, including
net zero new builds and energy-efficient refurbishments
and retrofits.
Emerging risks
We innovate or adopt new technologies too early,
incurring costs associated with being an early adopter,
or too late, losing market share.
A change in UK Government at the next election creates
a short-term economic downturn (although any of the
parties most likely to form the next Government would
be expected to continue to invest significantly in the
country’s infrastructure).
Client budget pressures and regulatory change delay
prospective projects moving from preferred bidder to
agreeing contract values, and ultimately project starts.
Changes to planning policy and regulations to deliver the
UK’s net zero ambition limit our clients’ ability to pursue
new build construction schemes.
We manage the potential impact
of an economic downturn by building
a high-quality order book with
projects that meet our strict risk
profile. We concentrate on sectors
where we have core strengths and
clients with long-term growth and
profitability potential.
We focus on securing positions on
key procurement frameworks and
repeat business with key clients
through a centralised, dedicated
pre-construction team. This allows
for strategic planning, better
collaboration and reduced risk of
project failure.
Each time we bid for a contract,
we follow our internal “heat map”
process, identifying risks across a
range of criteria including the client
and its advisors, project location,
local supply chain, our technical
experience, our internal resources
and capacity, the procurement
method, contractual terms and
conditions, and price.
All contracts over £50m in value,
or which have a heightened risk
indicator on any other measure, are
reviewed by the Executive Board
prior to approval to bid. We typically
target lower-risk contract types
(page 11).
We carry out peer reviews of
bids where relevant, to ensure
robust review and challenge of
risks and assumptions and to
promote knowledge sharing
across the business.
Our adjacent markets strategy,
including PRS and the acquisitions
in our Environment and Specialist
Services businesses, expands
our target markets in a
risk-managed way.
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Risk management continued
2
Project delivery
Risk description
We fail to deliver projects safely,
on time, in agreement with
contractual terms, or to a high
quality for our clients.
Key risk indicators
RIDDOR and AFR scores (page 34).
Safety Lead Indicators, such as Director
Safety Tours and Safe Behaviour Discussions).
Forecast project margins.
Link to our operational priority areas
People-orientated, progressive culture.
Socially and environmentally
responsible delivery.
Quality and innovation.
Sustainable financial returns.
Risk appetite
Current risk environment
Mitigations
We have zero risk appetite in relation
to health, safety, and quality risks,
placing these at the forefront of all
our activities. We prioritise health
and safety above everything else and
believe that nothing is so important
that we cannot take the time to do it
safely. We strive to deliver high-quality
buildings and infrastructure for our
clients, which offer safe environments
for the occupiers and users of the
assets. We provide realistic and
transparent forecasts of project
performance, with potential risks to
programme and margins identified and
addressed before they materialise.
Potential causes of risk
Changing regulations.
Non-compliance with health and
safety regulations and/or poor
safety behaviours.
Programme delays and
cost escalation.
Poor control of client and
subcontractor variations and
claims processes.
Contractual notices not given as
per contract requirements.
Poor record-keeping and
document management.
Poor design quality and/or
co-ordination.
Acquired businesses fail to deliver
expected benefits.
Business units operate outside of
acceptable risk tolerances.
Failure to comply with quality
control procedures.
Extended periods of
adverse weather.
Poor subcontractor performance
and/or insolvency.
Unrealistic estimates, including cost
to complete, inflation estimates,
outcomes of disputes and final value
included in project forecasts.
Material unavailability and extended
lead times.
Failure to manage the adoption
of new low-carbon materials
and technology.
Health and safety remains our first priority
and all of our KPIs are well established in
the business.
There has been a small uptick in health and
safety incidents with no trends identified.
These are investigated thoroughly with
lessons learned disseminated throughout
the Company.
We have implemented Quality Lead
Indicators in process and product
quality, mirroring our approach to
health and safety.
Staff shortages and cost of living pressures
have the potential to increase the sense
of workers feeling stretched, which could
impact on safety and wellbeing.
High levels of recruitment to support
strategic growth plans require a greater
focus on employee onboarding
and training.
Although we have experienced periods
of extreme heat and intense rainfall,
they have not resulted in a significant or
widespread impact on our operations.
Additional quality checks implemented
to comply with the Building Safety Act
are becoming more efficient, with more
accurate and reliable allowances made
in construction programmes and project
teams implementing and sharing learnings
from each review.
Our acquisition strategy was enacted
successfully through the acquisition of
Nene Valley Fire (page 61 outlines our
acquisition criteria).
Emerging risks
We fail to adapt our processes to meet
clients’ requirements to have more reliable
and comprehensive data about the assets
we design and build for them.
Future global pandemics, or other
supply-side shocks, have a significant
impact on the construction industry.
Building designs and construction
methodologies fail to adapt to the physical
effects of climate change, including more
regular and more extreme weather
events, leading to reduced productivity,
programme delays and cost overruns.
Materials availability will become more
challenging when demand from the
housebuilding sector increases.
Fuel availability may become an issue
if the conflict in the Middle East continues
to limit its export through the Strait
of Hormuz.
We continue to reinforce our behavioural safety
programme Challenging Beliefs, Affecting Behaviours,
and use Lead Indicators which target no harm.
We take a values-driven approach to project delivery,
focusing on close collaboration and client satisfaction
to achieve end goals for both parties.
We undertake robust review and approval
of contractual terms, to ensure we do not sign
contracts with onerous terms (see Principal risks –
Work winning).
We apply rigorous quality control in our BMS policies
and procedures and adopt digitalisation to improve
data, quality and efficiency.
We report and monitor process and product Quality
Lead Indicators to provide additional assurance and
facilitate lessons learned about quality issues.
We maintain and adhere to relevant operational
accreditations, including ISO45001 and ISO14001.
We carry out due diligence to select competent
designers and subcontractors and use specialist
consultants at key review stages.
We provide comprehensive commercial training.
We have standardised formats for monitoring and
reporting project performance and forecasts.
We hold monthly cross-disciplinary contract review
meetings on all projects, to enable a robust assessment
of programme status, risks and commercial forecasts.
We are investing in our commercial forecasting tools to
further tighten control and to streamline the monthly
forecast creation process to give reviewers more
time and greater visibility to deepen their review and
challenge of proposed forecasts.
Our ERP systems are up to date with patches tested
and implemented each quarter, providing us with
the tools we need to mitigate financial, commercial
and HR risks.
We carry out a programme of commercial ‘health
checks’ to provide an independent assessment of the
project team’s reported project performance and
forecast outturn.
Operational controls, including health and safety site
risk assessments, are monitored through a regular
audit process.
Our Technical and Business Support Forums drive
process improvements across health and safety,
digitalisation, carbon reduction, procurement,
design management, mechanical and electrical,
and commercial activities.
Escalation processes respond promptly and
appropriately to incidents.
Principal risks
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3
Resources
Risk description
We fail to secure the right people
and other resources necessary to
deliver our projects and manage
our business.
Key risk indicators
Material and trade shortages.
Voluntary staff churn rate.
Time to hire.
Fair Payment Code performance statistics.
Average month-end cash.
Subcontractors not paying staff and
suppliers promptly.
Link to our operational priority areas
People-orientated, progressive culture.
Socially and environmentally
responsible delivery.
Quality and innovation.
Sustainable financial returns.
Risk appetite
Current risk environment
Mitigations
We have a low-risk appetite for the
risks associated with our people
and supply chain, recognising
their importance to our long-term
performance. We recruit from a
diverse talent pool, who are aligned
to our values and behaviours.
We work with financially resilient
subcontractors, suppliers and joint
venture partners who share our
values in relation to safety, quality
and sustainability.
Potential causes of risk
A small talent pool, poor
planning in our own resources,
underinvestment in people
and/or the ability to
competitively reward our people
mean we may be unable to
retain, develop and/or attract
the right staff to meet our future
needs, we mismatch our staffing
levels to peaks and troughs in
activity, or lack diversity.
Lack of high-quality capacity
in the supply chain due to the
pipeline of prospective work
outstripping supply in the
construction industry.
Subcontractor and/or
client insolvency.
Failure to comply with fair
payment practices.
Material cost inflation has started to increase again as energy
prices rise and availability diminishes due to the ongoing
conflict in the Middle East. However, we continue to take
sensible measures to secure the supply of fuel for our sites and
manage material cost inflation, such as early procurement,
supply chain engagement and risk allowances in tenders.
Lead times for bulk items such as steel and bricks are stable.
The supply chain currently tends to prefer working with us
over high-volume discounted residential housebuilders due
to our more manageable volumes.
Insolvency remains a risk, among Mechanical and Electrical
and Modern Methods of Construction subcontractors.
We manage this by being selective in who we work with,
monitoring our exposure and ensuring we pay our suppliers
promptly (page 55).
The market for talent remains competitive. Large
infrastructure schemes and a mismatch between skilled
worker supply and demand continues to drive up salaries and
increases the risk of employees leaving for higher reward
packages. Our Employee Value Proposition ‘Grow Together’
and ‘retain and gain’ people strategy are helping to engage
our employees.
Our 200+ Career Paths help employees to develop both
professionally and personally.
Our internal resourcing capability facilitates better and more
affordable recruitment, especially across standard role types.
This helps us to mitigate the increasing cost of employment.
We have high levels of employee engagement and advocacy
(page 39), and we continue to improve the way we promote
the business and develop our employee offering.
We are trialling AI tools to improve the accuracy and
efficiency of our cash forecasting.
Emerging risks
There is a generational shortage of skills, as more experienced
staff retire and are not replaced in sufficient numbers because
the construction sector cannot compete with other sectors in
attracting talent.
Potential difficulty in disseminating and engraining cultural
standards into acquired businesses – albeit our acquisition
strategy, comprehensive induction and integration plans help
with this.
Innovations in the use of technology will require us to attract
a workforce with a different set of skills.
Depletion or increased scarcity of non-renewable materials
may lead to greater volatility in prices and more regular
disruption to supply.
The drive towards net zero construction may lead to an
increased risk of defects and quality issues, as we start
to use new, low-carbon materials whose long-term
performance is unproven.
Availability of lower-carbon materials might become more
challenging, as more main contractors look to secure the
same resources.
Our HR strategy is based on best
practice principles and a strong
commitment to legal and regulatory
compliance including the regular review
of remuneration and benefits packages,
to ensure we remain competitive, as well
as focusing on wellbeing.
Our succession planning and talent
management processes enable
continuity and identification of
future leaders.
We support our people’s career
ambitions and provide them with
opportunities to progress. We promote
opportunities for internal mobility
through our Explore programme.
We operate graduate, trainee and
apprenticeship programmes to
develop our own pipeline of talent.
We develop long-term relationships
with key suppliers and subcontractors,
so we remain a priority customer
when resources and materials are in
short supply.
Our Advantage through Alignment
programme facilitates greater
engagement with our key supply
chain members and provides them
with greater visibility of our pipeline
of projects.
We are committed to paying 95% of
supply chain invoices within 60 days
and achieving the Fair Payment Code’s
Bronze standards. This is reinforced
by our strong balance sheet and net
cash position.
We carry out enhanced supply chain
checks and monitor subcontractor
financial performance and
reputational risks.
Each business unit reviews its cash
forecast weekly and monthly, and
the Group prepares a detailed daily
cash book forecast for the following
eight-week period, to highlight any risk
of intramonth fluctuations. Forecasts
are reviewed at business unit, division
and Group level.
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Risk management continued
4
Regulatory compliance
Risk description
We fail to comply with the
various legal and regulatory
regimes in which we operate,
resulting in a high-profile breach
and regulatory censure.
Key risk indicators
Number of external enforcement cases.
Link to our operational priority areas
Socially and environmentally
responsible delivery.
Quality and innovation.
Sustainable financial returns.
Risk appetite
Current risk environment
Mitigations
We have zero tolerance for
non-compliance with regulations.
We expect all employees and
subcontractors to be aware of all
regulations relevant to their role
and to comply at all times. We also
encourage our people to speak
up if they observe or suspect
non-compliance.
Potential causes of risk
Failure to update our procedures
to reflect changes to key legislation
and regulations.
Failure to provide sufficient and
effective training to all staff.
Failure to implement effective
compliance monitoring processes.
The Building Safety Act has provided
greater clarity on the requirements and
responsibilities in relation to building
safety and is driving greater quality
in construction. The Act also has the
potential for consequences in relation
to the extended period in which certain
defect claims can be made.
We have confirmed and documented
our internal controls framework
ahead of Provision 29 of the UK Corporate
Governance Code becoming effective
for our financial year ending 30 June 2027.
We commenced testing in January 2026,
so that any control failures were addressed
before the plc Board needs to complete
its effectiveness review of the Company’s
risk management and internal
controls framework.
The regulatory landscape in relation
to ESG reporting is evolving quickly
and requires us to monitor and publish
more information and comply with new
standards, such as those from the UK
Sustainability Reporting Standards.
Emerging risks
New legislation to combat climate change,
such as carbon taxes or a ban on the use of
diesel, could have a significant impact on
our operations.
Biodiversity and water use regulations may
become more stringent under a new water
industry regulator resulting in increased
compliance costs.
Payment reforms are expected to tighten
controls over supply chain payments
including a ban on retentions, a hard
60-day payment cap and mandatory
statutory interest on late payments.
UK Sustainability Reporting Standards
are planned for a phased roll-out making
climate disclosures and Scope 3 emissions
reporting mandatory from 2027 and
2028 respectively, while non-climate
sustainability disclosures are expected
to be on a “comply or explain” basis
from 2029.
Our BMS provides a structured framework of policies,
processes, activities and documents that are used to
plan and execute our business activities in a consistent
way to meet customer and regulatory requirements.
We have comprehensive policies and guidance at
every level including our Code of Conduct, mandatory
regulatory e-learning for all employees and regular
legal updates and briefings.
Fraud and corruption are mitigated through multiple
controls company-wide including an engrained
Expenses Gifts and Hospitality policy, segregation
of duties through key approvals, an anonymous and
independent whistleblowing helpline, six-monthly
compliance declarations, a Fraud Risk Register and
conflict of interest registers and authorisations.
The Ethics and Compliance Committee monitors and
oversees any changes or additions to legislation with
amendments made to policy and compliance activities
where required.
The ESG Committee governs our approach to
operating sustainably by understanding the priorities
of our key stakeholders, monitoring compliance with
all relevant legislation and reporting requirements
and helping to develop sustainability initiatives and
share best practice companywide.
The Executive Risk Committee reviews and updates
these principal and emerging risks based on the risks
reported up from the business units, and considers any
emerging risks that may have an impact on the business
in the longer term.
We have established Anti-Modern Slavery controls
including internal policies and compliance processes,
supply chain due diligence and monitoring and
training programmes.
All staff are subject to an induction and mandated to
remain up to date with regular compliance training
modules bespoke to our business.
Principal risks
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5
Technology
Risk description
We lose data and/or access to
business-critical IT infrastructure,
IT applications and information due
to cyber security attacks, outdated
or poorly integrated systems or
system outages. Also, we could
fail to adopt new technologies
quickly enough or adopt ineffective
technologies too soon.
Key risk indicators
Number of successful and unsuccessful
cyber attacks.
Link to our operational priority areas
Quality and innovation.
Sustainable financial returns.
Risk appetite
Current risk environment
Mitigations
We have a low appetite for
technology risk and non-compliance
with cyber security policies.
We invest in reliable and secure
systems that enable safe and
efficient project delivery. We
cautiously embrace innovation
such as AI tools, Modern Methods
of Construction and robotics
to help us deliver sustainable
financial returns.
Potential causes of risk
We fail to continue to invest
and improve the security,
reliability and effectiveness
of our systems.
We fail to provide sufficient and
effective cyber security training
to all staff.
A member of staff erroneously
or maliciously exposes the
company to a cyber-attack.
Failure of a third-party’s
IT cyber security controls.
We have refreshed our cyber e-learning training course
to be more realistic and consistent with the types of phishing
our staff will encounter and require employees to achieve
a 100% pass rate.
We continue to invest in cyber security surveillance tools
and in the resilience and security of our IT infrastructure.
We meet with members of our core supply chain to educate
and raise awareness of the importance of good cyber security.
Emerging risks
Reliance on subcontractors, technology vendors, and cloud
platforms exposes us to supplier breaches compromising
project systems or data.
Rapid adoption of digital tools such as BIM, cloud
collaboration tools, AI, and mobile site technologies
could outpace cyber controls.
We have multiple security tools in place
to protect and monitor our networks
and data such as scanning of email
attachments to detect and intercept
malware and phishing, anomalous
activity monitoring, automated alerting
and enhanced anti-virus for endpoints.
We have comprehensive IT policies
and guidance over key technology
risks including AI, cyber security and
disaster recovery.
It is mandatory for all staff to complete
cyber security e-learning training
annually. Failure to comply results in
systems access being revoked.
Disaster recovery and business
continuity plans are in place and are
regularly reviewed and tested, including
the performance of penetration testing
and vulnerability scanning.
We have a robust technical
due diligence process for new
IT service suppliers.
We routinely monitor our supplier
services, including those providing IT
capabilities, supported by contracts
with specific security requirements
and mandates.
Our information security standards
and procedures are accredited to the
ISO 27001 standard.
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Task Force on Climate-related Financial Disclosures (TCFD)
Accelerating our action
on climate change
We are taking action to ensure that
our business continues to adapt
and thrive in a changing climate.
The built environment is responsible for
around 40% of global carbon emissions.
As a business operating in the construction
sector, we have a responsibility to play
our part in reducing emissions. We have
reduced the carbon emissions from
our own operations (Scope 1 and 2) by
55% since 2012 and have set ambitious
targets to drive further carbon reduction
across the business. We have committed
to achieving net zero within our own
operations (Scope 1 and 2 emissions)
by 2030 and across our full value chain
(Scopes 1, 2 and 3) by 2045. In this
context, we define net zero as reducing
emissions in line with a 1.5°C pathway,
and neutralising any residual emissions
remaining at the target year using
high-quality carbon removal solutions.
The Group remains compliant with
Financial Conduct Authority (FCA)
Listing Rule UKLR 6.6.6(8)R by making
disclosures consistent with the TCFD
Recommendations and Recommended
Disclosures. In accordance with UKLR
6.6.8G, in assessing our compliance with
the recommendations, we have taken
into account the guidance for all sectors
in section C of the 2021 version of the
TCFD guidance ‘Implementing the
Recommendations of the Task Force on
Climate-related Financial Disclosures’.
We have also reviewed the other guidance
documents referred to in UKLR 6.6.9G,
and as we have published net zero targets,
we have particularly focused on the
TCFD guidance on metrics, targets and
transition plans.
Based on this guidance, we have made
disclosures that are aligned with the
TCFD core element areas of Governance,
Strategy, Risk Management and Metrics
and Targets and comply with the
11 specific recommended disclosures,
with the exception of the following
recommendation where we are
partially compliant:
Strategy recommendation b – we have
not disclosed quantitative assessment
of the potential financial impacts of the
risks and opportunities identified. See
Financial Impact section on page 76.
We have assessed the requirements
of the Companies (Strategic Report)
(Climate-related Financial Disclosure)
Regulations 2022 and consider the
disclosures we have made in relation to
TCFD to address these requirements.
Climate change considerations are
embedded into our existing governance
and risk management framework.
Therefore to avoid duplication, certain
disclosures in relation to the 11 TCFD
recommendations are included in the
relevant sections of the Annual Report,
as indicated in the table opposite. In this
section, we have provided information on
the disclosures that are not addressed in
other sections.
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Annual Report and Financial Statements 2026
TCFD pillar
Recommended disclosure
How we addressed the disclosure
Governance
Disclose the
organisation’s
governance around
climate-related risks
and opportunities.
a. Describe the Board’s oversight
of climate-related risks
and opportunities.
Governance of climate-related risks and opportunities is embedded
into our business-as-usual governance and risk management
processes and structures. This approach allows us to assess
climate-related risks and opportunities in the context of the
broader risk environment and develop pragmatic responses that
are aligned with our overall Sustainable Growth Strategy.
During the year, the plc and Executive Boards reviewed the detailed
assessments of climate-related risks and opportunities performed
by the Executive Risk Committee.
For further information on management’s role in assessing risk,
please refer to our Risk Governance framework outlined on page 66
and broader Governance framework outlined on page 90.
b. Describe management’s role
in assessing and managing
climate- related risks and
opportunities.
Strategy
Disclose the actual and
potential climate-related
risks and opportunities
on the organisation’s
businesses, strategy,
and financial planning
where such information
is material.
a. Describe the climate-related risks and
opportunities the organisation has
identified over the short, medium,
and long-term.
See ‘Our climate-related risks and opportunities’ sections on
pages 78 to 84.
b. Describe the impact of
climate- related risks and
opportunities on the
organisation’s businesses,
strategy, and financial planning.
Operating in a socially and environmentally responsible way is one
of the cornerstones of our Sustainable Growth Strategy (page 32).
See Market review on pages 16 to 23 and our Sustainable Growth
Strategy on pages 24 to 29. See also ‘Managing climate-related risks’
on page 74 and ‘Financial Impact’ on page 76.
c. Describe the resilience of the
organisation’s strategy, taking
into consideration different
climate-related scenarios, including
a 2°C or lower scenario.
We have reviewed and updated our qualitative analysis of the
effect of different climate scenarios on our climate-related risks and
opportunities. See pages 74 to 75 for an explanation of the approach
we have taken and pages 78 to 84 for our summary conclusions for
each risk and opportunity.
Risk management
Disclose how the
organisation identifies,
assesses, and manages
climate-related risks.
a. Describe the organisation’s
processes for identifying and
assessing climate-related risks.
The identification, assessment and management of climate-related
risks and opportunities is embedded within our broader risk
management structure and processes.
For further information on our risk management process,
please refer to the Principal risks section on pages 66 to 71.
b. Describe the organisation’s processes
for managing climate-related risks.
See ‘Managing climate-related risks’ on page 74.
c. Describe how processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organisation’s overall
risk management.
Climate-related risks are considered as cross-cutting risks that can
have an impact on a number of the principal risk themes we monitor
at a business unit and Group level, such as work-winning or project
delivery. For further information on our risk management process,
please refer to the Principal risks section on pages 66 to 71.
Metrics and targets
Disclose the metrics
and targets used to
assess and manage
relevant climate-related
risks and opportunities
where such information
is material.
a. Disclose the metrics used by
the organisation to assess
climate-related risks and opportunities
in line with its strategy and risk
management process.
See ‘Metrics and Targets’ section on page 77.
b. Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse gas
(GHG) emissions, and the related risks.
Information on our GHG emissions performance and net zero
targets is included in the Environment and climate change section
on pages 42 to 45.
c. Describe the targets used by
the organisation to manage
climate-related risks and opportunities
and performance against targets.
See ‘Metrics and Targets’ section on page 77.
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Task Force on Climate-related Financial Disclosures (TCFD) continued
Our climate-related risks
and opportunities
We continue to monitor our key
climate-related risks and opportunities
along with our principal and emerging
risks. The process is overseen by the
Executive Risk Committee, which meets
three times a year. The March meeting of
the Committee focuses on climate-related
risks and opportunities, which results in a
summary of the key climate-related risks
and opportunities which is reviewed by
the Executive and plc Boards.
The Executive Risk Committee uses
the Primary Climate Related Risk and
Opportunity Drivers within the CDP
framework to identify the risks and
opportunities that are most relevant to
our sector, business model and strategy.
Given the inherent uncertainty in relation
to the financial impact of each risk and
opportunity, the Executive Risk Committee
assesses materiality based on a qualitative
assessment of the nature of the risk and
opportunity and how fundamental it is
to achieving our strategic objectives.
The most significant risks and opportunities
are summarised on pages 78 to 84.
Climate-related risks are also considered
during the business unit risk review process.
This process treats climate change as a
cross-cutting risk that can have an impact
on a number of the principal risk themes we
monitor in the business unit risk registers,
such as work winning or project delivery.
Business units are required to review and
update their risk register twice a year.
Managing climate-related risks
We manage climate-related risks through
our existing strategic and operational
management processes. For example,
the risk and opportunity created by the
increased carbon reduction requirements
and expectations of clients is one of the key
drivers of our Sustainable Growth Strategy.
This is supported by operational responses,
led by the Executive Board, to deliver the
strategy. These responses include driving
innovation and adoption of new technology,
investment in new carbon reduction roles,
creation of cross-disciplinary working
groups, development of new processes
and tools, and upskilling our people and
our supply chain.
Climate scenario analysis
We continue to use the three scenarios
we developed, based on the UK Shared
Socioeconomic Pathways (UK SSPs).
The UK SSPs have been developed by
the UK Climate Resilience Programme
and are aligned to the global SSPs used
by the IPCC in its sixth Assessment Report.
We have used the UK SSPs as the basis
for our scenario analysis because they are
grounded in the socioeconomic context in
which UK Government policy and market
responses to climate change will emerge
and therefore are particularly relevant
to assessing transition risks and
opportunities. This context includes
important socio-economic drivers such
as economic development, demography,
public attitudes and international relations.
The UK SSPs are also particularly relevant
to our business model because they factor
in considerations in relation to future
investments in sectors where we have a
strategic focus, including infrastructure,
health, education, affordable homes and
green technology. The UK SSPs have
been supplemented with Representative
Concentration Pathways (RCP) scenarios
that are consistent with each SSP and
provide a recognised framework for
assessing the potential physical impacts of
climate change under different scenarios.
The key features of each scenario are
summarised in the table on page 75.
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Scenarios
UK-SSP scenario
UK-SSP1 Sustainability
UK-SSP2 Middle of the road
UK-SSP5 Fossil-fuelled development
RCP scenario
RCP2.6
RCP4.5
RCP8.5
Abstract
The policy agenda is driven by
changing societal attitudes with
greater focus on equality and
environmental protections.
The policy agenda initially does
not change significantly, but
then requires radical reform
with increased reliance on
public-private finance.
The policy agenda is driven
by a focus on strong economic
growth and maintaining energy
and food security.
Key physical features
CO
2
e emissions
Global emissions falling to
net zero around 2075.
Global emissions remain at
current levels until mid-century,
then falling but not reaching
net zero by 2100.
Global emissions triple by 2075.
Estimate of global
warming by 2100
1.8
2.7
4.4
Climate impacts
In all scenarios, the UK experiences milder, wetter winters and hotter, drier summers. More regular
extreme weather events such as heatwaves, droughts, flooding and storms are virtually certain in all
scenarios, and become more frequent and more extreme as estimated global warming increases.
Key transition features
Regulation
Strong environmental regulations
are introduced, especially in
relation to carbon emissions and
environmental protection.
More stringent land use and
planning regulations are gradually
introduced to combat the
increasing degradation of the
natural environment.
Environmental legislation is
relaxed to support the focus
on economic development.
Investment
Increase in public spending on
infrastructure with a focus on
repurposing and transformation
of infrastructure, to drive energy
efficiency and wider access to
good quality public services in
education and healthcare and
other public infrastructure.
Initially increased investment
on connectivity and transport
infrastructure, then public
spending shifts to focus on
technology to support smart
cities, vertical agriculture, etc.
Public-private partnerships result
in slightly increased investments
in education, health care and
other public infrastructure.
High levels of public spending
on infrastructure, health and
education are maintained,
funded by and in support of
economic growth.
Energy
Renewables, with significant
public and private investment
in wind and solar as well as
nuclear generating capacity.
Continued reliance on fossil
fuels, and renewables becoming
an increasing part of the energy
mix. The private sector finances
large-scale infrastructure
projects for renewable energy
(eg barrages).
Energy policy prioritises
development of North Sea
and shale gas reserves. Investment
in renewables decreases due
to lack of incentive with
renewables only remaining
when economically feasible.
We have used these scenarios to provide a qualitative assessment of how the climate-related risks and opportunities we have identified on
pages 78 to 84 may change under the different potential pathways.
In assessing the likely timeline
when risks and opportunities will
begin to have an impact on the
business, we have applied the
definitions below. Although a risk
or opportunity may have been
assessed as beginning to have
an impact in the short term, the
impact may, in some cases, extend
into the medium or long term.
Short term
(0–3 years)
Aligns to our current pipeline of
opportunities and projects and
reflects issues and trends that
are already having some impact.
Medium term
(3–10 years)
Issues or trends that are already
visible, but are not yet having
a significant impact.
Long term
(10–30 years)
Potential issues or trends that are
foreseeable, but there is a high
degree of uncertainty on how
they develop and what impact
they will have on the business.
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Resilience of our strategy
The nature and scope of our activities and
the commercial environment in which
we operate provide us with a number
of inherent advantages in terms of the
resilience of our strategy and our exposure
to climate-related risks:
We do not have significant amounts of
capital tied up in production facilities
or other assets that couId be at risk of
stranding, ie their useful economic life
being curtailed due to the transition
to a low-carbon economy.
Our operations are entirely in the UK
and therefore, while still exposed to
rising mean temperatures and more
severe weather events, we have Iimited
exposure to the climate extremes that
are predicted to have a catastrophic
impact in some regions of the world.
Our presence in sectors such as
Environment position us to deliver on
the UK’s requirement to address the
impacts of climate change, for example
through improving the capacity of our
water infrastructure to deal with more
intense rainfall events.
Our businesses are largely project
based and are geographically dispersed,
which limits our exposure to damage
to a business-critical facility due to
extreme weather.
We are not exposed to rapid and
unpredictable shifts in consumer
preferences and behaviour, as our work
is for long-term repeat clients, largely in
the public and regulated sectors.
We are not exposed to the capital
investment cost or risk associated with
developing new, low-carbon alternatives
to existing product ranges as this is
typically carried out by our supply
chain partners.
Where we have good visibility of rising
costs, these can be priced into our bids
and recovered from clients.
The qualitative scenario analysis we have
performed provides further demonstration
of the resilience of our Sustainable Growth
Strategy. The strength of existing client
relationships, our investment in developing
our low-carbon construction capability
and ongoing collaboration with our supply
chain position us well to manage the risks
and capitalise on the opportunities of
a rapid transition to a net zero economy.
In the event of a slower, or even, no
transition to net zero, there will still be
market demand for construction services,
albeit the investment drivers will have a
greater focus on climate change adaption
rather than mitigation.
Financial impact
For each of our climate-related risks and
opportunities, we have identified the
category of the potential financial impact.
Given the nature of our most significant
risks and opportunities, the potential
impacts are on the income statement and
relate to decreased or increased revenue or
decreased or increased operating costs.
We have not disclosed any quantitative
assessment of the potential financial
impacts. While we acknowledge the
importance of quantification, we also
recognise the need for such disclosures
to be meaningful and comparable.
This is currently extremely challenging
for a number of reasons:
In the absence of consistent and detailed
guidance on methodologies that
should be adopted to quantify financial
impacts, there is a risk that we adopt a
quantification methodology that is not
consistent with other reporters, resulting
in potentially misleading disclosures.
Because we are constantly responding
to the evolving expectations of clients
and the market, it is extremely difficult
to disaggregate the impact of climate-
related risks from business-as-usual risks.
Similarly, assessing the impact of risks
without mitigation is extremely difficult
because doing nothing is not an option
and the mitigation is embedded in our
business-as-usual.
Any quantification would be based
on scenarios which have been developed
for modelling purposes and therefore
do not represent forecasts of actual
financial impacts.
The risks and opportunities are
interrelated and therefore any
quantification in isolation would be
potentially misleading.
Until consistent and definitive guidance
around quantification methodologies is
available, we will continue to disclose how
each risk or opportunity could have an
impact on our financial performance and
provide a qualitative assessment of the
level of risk under different scenarios.
We have however considered the
potential for any material financial impacts,
such as asset write-downs, increased
capital investment requirements or
liabilities for environmental remediation,
and have concluded that there are no
material climate-related financial impacts
to be disclosed.
Task Force on Climate-related Financial Disclosures (TCFD) continued
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Metrics and targets
Our Greenhouse Gas (GHG) emissions reduction targets align with our validated science-based targets and recognise that as the business grows,
we need to monitor emissions intensity as well as absolute emissions, to provide a clearer picture of the impact of our emission reduction initiatives.
We classify our revenue streams using the FTSE Russell Green Revenues Classification System. This is a significant metric to help us monitor
transition risks and opportunities, as it demonstrates the extent to which we are positioned to take advantage of the transition to a low-carbon
economy and the limited reliance on non-green revenue.
Most of the metrics are existing KPIs and further information on our performance in the year is provided in the ‘Operating sustainably’ section
of the report. We will look to develop additional metrics and targets that are more closely aligned to the climate-related risks and opportunities
we have identified over the next two to three years.
Metric category
Metric
2024
2025
Target
GHG emissions
Scope 1 and 2 emissions –
market-based (tCO
2
e)
14,811
16,145
Net zero by 2030 (with a 43% reduction
compared to 2021 baseline)
Scope 1 and 2 emissions intensity
(tCO
2
e per £100K revenue)
0.79
0.86
0.60 by 2030 (43% reduction compared to
2021 baseline)
Scope 3 emissions – verified (tCO
2
e)
2
8,874
8,703
43% reduction by 2030 compared to
2021 baseline
Net zero by 2045
Full scope 3 emissions (tCO
2
e)
3
Not reported
Not reported
43% reduction by 2030 compared to
2021 baseline
Net zero by 2045
% of company car fleet that is EV or PHEV
98.1%
99.7%
100% by 2027
Tonnes of waste per £100k revenue
12.4
22.8
Year-on-year reduction.
Waste intensity
CDP Climate Change score
B
B
A
Transition
risks and
opportunities
Green revenue as a % of total revenue
67%
63%
>50%
% of Executive bonus linked to
emissions reduction
3
3%
3%
3%
Notes:
1
Scope 3 verified emissions are those emissions that have been calculated and included in the scope of the external verification.
2
Scope 3 estimated emissions are those emissions that have been estimated but not externally verified.
3
See Remuneration Committee section on page 111 onwards for details of Executive bonus performance criteria.
UK Sustainability Reporting Standards
Galliford Try recognises that TCFD-aligned disclosures have been incorporated into the UK Sustainability Reporting Standards (UK SRS),
based on ISSB standards and we will evolve our disclosures in line with the implementation timetable. Our established TCFD-aligned reporting
provides a strong foundation for this transition, reflecting robust governance and management of climate-related risks and opportunities.
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Failure to develop a competitive low-carbon construction capability
Time
horizon
Potential impact
on financial performance
Link to our
principal risks
Medium term.
Decreased revenues.
1
Work winning.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
The risk is greatest under the ‘Sustainability’ scenario, as client expectations in relation to low-carbon construction will evolve more quickly
and across more sectors, driven by increased regulation and changing stakeholder sentiment. Under the other two scenarios, this risk is
much reduced as the regulatory and market drivers will not be focusing on low-carbon construction.
Risk description and potential impact on the business
Risk mitigation
Our clients, in both the public and commercial sectors, are
increasingly required to operate low-carbon buildings and
infrastructure. They expect us to have the capability to model the
embedded and operational carbon, use lower-carbon materials
and extend the life of their existing assets through retro-fitting.
In support of this, some clients are beginning to include carbon
reduction targets within the project requirements.
Planning policies and building regulations may also move
towards ensuring that embedded and/or operational carbon
targets are incorporated into the design and construction of
buildings and infrastructure.
If, together with our supply chain, we fail to develop these
capabilities quickly enough, we may not remain competitive
and may not be able to win positions on key frameworks,
which may result in reduced revenue and profits.
We have committed to achieving net zero across our own
operations by 2030 and across all value chain operations by
2045. To do this, we have developed our Net Zero Route Map
and are taking multiple actions to achieve our carbon reduction
targets including:
Working closely with our clients to understand their carbon
reduction ambition and targets, and developing solutions to
meet those objectives.
Investment in key low-carbon construction roles.
Carbon literacy training for all staff.
More detailed role-based training for key roles.
Supply chain engagement and upskilling.
Development of carbon reduction management process
accredited to the PAS 2080 standard.
Use of carbon calculators to model embodied and
operational carbon.
Development of systems and applications to improve
carbon data and reporting.
Level of risk
High
Moderate
Low
Risk
Task Force on Climate-related Financial Disclosures (TCFD) continued
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Increased frequency of extreme weather events
Time
horizon
Potential impact
on financial performance
Link to our
principal risks
Short term.
Increased direct costs.
1
Project delivery.
2
Resources.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
In all scenarios, the UK will experience milder, wetter winters and hotter, drier summers. More regular extreme weather events such as
heatwaves, droughts, flooding and storms are virtually certain in all scenarios, and become more frequent and more extreme as estimated
global warming increases.
Risk description and potential impact on the business
Risk mitigation
A significant amount of construction activity happens outside and therefore
is exposed to the weather. The latest Met Office UK Climate Projections
(UKCP18, updated August 2022) predict warmer, wetter winters and hotter,
drier summers, along with an increase in the frequency and intensity of
extreme weather events including heatwaves, storms, intense rainfall and
flooding. Such events could disrupt our construction activities in a number
of ways:
Prolonged rainfall may lead to poor ground conditions that cause
programme delays due to the curtailment of certain activities,
especially bulk earth movement on our Infrastructure projects.
Excess moisture may require additional operational interventions
such as ground dewatering or increased ventilation in buildings
under construction.
Prolonged, extreme temperatures may require modifications to working
practices to maintain worker welfare, which may increase costs and
reduce productivity.
Intense storm events, including intense rainfall and high winds, may
damage works under construction and curtail certain activities, such
as crane lifts or earthworks, which could result in project delays and
additional costs.
High winds may increase safety risks for operatives and members of the
public, for example through tower crane or scaffold collapses or other
structures and objects becoming unsecured.
Damage to transport and utilities infrastructure caused by severe weather
may make it more difficult for staff and deliveries to get to sites.
Extreme drought conditions could result in restrictions on water usage,
which may make it impossible to maintain site welfare or restrict certain
activities, such as concrete pouring and dust suppression.
Extreme weather events in other parts of the world could lead to supply
chain disruption, resulting in product unavailability, longer lead times and
increased costs.
As extreme weather events become more frequent, we may also see clients
look to transfer risk. Traditional contractual protections, including force
majeure and ‘exceptional’ weather clauses, may become less effective.
An increase in the frequency of material damage claims may lead to higher
insurance costs.
Changes in temperature extremes can also have an impact on the resilience
of building materials and therefore determine the materials we are able to
use, which could lead to a greater number of latent defect claims. Similarly,
changes in climate may influence the heating and cooling systems that we
specify, which may increase the costs of the buildings and infrastructure
we build.
We are experienced in developing and amending site
operating procedures in response to specific health and
safety risks. Examples of adaptations we make include:
Increased provision of welfare facilities, including
access to shade, water and sunscreen during
hot weather.
Flexible working patterns to limit work in the hottest
part of the day.
Increased use of off-site and other MMC, to shorten
programmes and reduce the number of people
on site.
Similarly, we are experienced in managing the impact
of unexpected events on construction programmes
and have a number of operational and contractual
mechanisms to mitigate the risks, including:
Resequencing of activities, such as laying hard
surfaces to external areas earlier in the programme,
to reduce the potential impact of seasonal weather
patterns on operations.
Increasing the amount of dewatering activity,
to maintain ground conditions.
Staggering shifts to extend the working day.
Securing extensions of time.
Insurance cover for damage to property.
We continually assess new weather norms, including
looking at more recent history rather than longer-term
trends, and ensure that adequate risk provisions are
included in our tenders.
We remain vigilant to unreasonable risk transfer
in contracts and ensure that the terms we accept
in our client contracts are reflected in our
downstream contracts.
Level of risk
High
Moderate
Low
Risk
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Increased material costs make projects unaffordable
Time
horizon
Potential impact
on financial performance
Link to our
principal risks
Short term.
Decreased revenues due
to reduced demand for
products and services.
1
Work winning.
2
Resources.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
The risk is highest under the ‘Sustainability’ scenario, as there will be the greater urgency to transition to low-carbon energy and materials,
exacerbating the supply and demand imbalances. The extension of carbon pricing and other regulatory pricing incentives to reduce
carbon emissions is also more likely under the Sustainability scenario.
Risk description and potential impact on the business
Risk mitigation
There are a number of climate-related factors that may result in
sustained increases in materials costs in the construction sector.
This is driven by a combination of supply and demand imbalances,
as well as Government policy to incentivise carbon reduction.
Manufacturers are developing innovative, lower-carbon materials
all the time and this is vital if we are to reduce the embodied
carbon of the buildings and infrastructure we construct. However,
as new products come on to the market and establish credibility,
the unit costs tend to be higher than for more traditionally
manufactured materials.
In the short to medium term, the supply and demand imbalances
in global energy markets are likely to be sustained, as countries
manage the twin challenge of decarbonising electricity generation
and increasing security of supply. Energy prices will continue to
have a significant impact on the cost of materials with energy
intensive manufacturing processes, such as steel, concrete and
glass. In addition to the market imbalances, regulatory moves
to use carbon pricing to incentivise carbon reduction may add
further upwards pressure on the price of carbon-intensive
materials. The introduction of the UK Carbon Border Adjustment
Mechanism (CBAM) from 2027 may increase the cost of importing
carbon-intensive construction materials such as steel.
Our bidding disciplines and contractual protections largely
insulate us from the direct impact of cost increases. However,
the indirect consequence of rising construction costs could be
potential projects becoming unaffordable for our clients, leading
to a reduction in opportunities, delays in project starts or slower
adoption of lower-carbon materials, as clients have to prioritise
affordability over carbon reduction.
We mitigate this risk by:
Maintaining bidding and contracting discipline, to protect
ourselves from short-term cost inflation and maximise
cost recovery.
Using BIM and carbon calculators to optimise designs and
reduce the amount of carbon-intensive materials.
Increasing the adoption of off-site manufacture and other
MMC, to reduce costs through minimising waste and shortening
construction programmes.
Working with clients to support design solutions that minimise
the material requirements, such as transitioning from new build
to retro-fitting and refurbishment.
Level of risk
High
Moderate
Low
Risk
Task Force on Climate-related Financial Disclosures (TCFD) continued
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Failure to manage the adoption of new materials and technology
Time
horizon
Potential impact
on financial performance
Link to our
principal risks
Medium term.
Increased direct costs.
1
Project delivery.
2
Resources.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
The risk is highest under the ‘Sustainability’ scenario, as there will be greater urgency to deploy new technology, driven by regulatory
requirements and market expectations.
Risk description and potential impact on the business
Risk mitigation
As the focus on embodied carbon grows, we expect to be
increasingly required to use lower-carbon alternatives for
construction materials, especially carbon-intensive materials such
as steel, concrete and glass. There is a risk associated with adopting
new materials and using manufacturers and suppliers we have less
experience of working with previously. Without effective product
and design evaluation and robust quality assurance procedures,
there is a risk of increased defects, which in turn could result in
the professional indemnity insurance market responding through
further increases in premiums or restrictions or limitations in cover.
Similarly, to achieve our Scope 1 and 2 net zero by 2030 target,
we will have to significantly reduce (if not eliminate) our use of
diesel-powered plant and equipment. The non-diesel alternatives,
such as Hydrotreated Vegetable Oil, electricity and hydrogen, may
not be available in the volumes we require, at an equivalent cost,
or deliver sufficient safety and/or operational performance.
Our response includes:
Development and implementation of digital tools to drive
quality, such as FieldView, BIM and Dalux.
Investment in employee training, including role-specific
carbon training.
Using our Technical and Quality, Research and Development
and Supply Chain teams to evaluate new materials, plant
and equipment and other new technology, and support their
adoption across the business.
Quality alerts to share learning and information, where
potential issues with particular products have been identified.
Engaging collaboratively with the supply chain to identify and
switch to lower-carbon materials and solutions.
Level of risk
High
Moderate
Low
Risk
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Increased demand for low-carbon buildings and infrastructure
Time
horizon
Potential impact
on financial performance
Link to our
principal risks
Short term.
Increased revenues resulting
from increased demand for
products and services.
1
Work winning.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
The opportunity is greatest under the ‘Sustainability’ scenario, as client requirements and expectations in relation to low-carbon buildings
and infrastructure will evolve more quickly and across more sectors, driven by increased regulation and changing stakeholder sentiment.
Conversely, in the ‘Fossil-fuelled development’ scenario, the regulatory and market forces will be weakest and will not drive investment in
low-carbon construction.
Opportunity description and potential impact on the business
Opportunity realisation
In order to decarbonise the built environment in the UK and
meet emerging energy efficiency standards, our clients need to
either replace assets with new, more energy-efficient assets or,
increasingly, modify their assets to extend their life and improve
their energy efficiency. Demand for both new build and retrofit
of existing assets with low embodied and operational carbon
performance is likely to create a pipeline of opportunities,
particularly in sectors where we already have a strong presence
such as water, education and health.
The actions we are taking to realise the opportunities are similar to
our actions to mitigate the risk of failing to develop our low-carbon
construction capability, namely:
Working closely with our clients to understand their carbon
reduction ambition and targets and developing solutions to
meet those objectives.
Investment in key carbon reduction roles.
Use of carbon calculators to model embodied and
operational carbon.
Using our Carbon and Energy Property Pathway Assessment
tool to assess the energy efficiency of existing buildings and
model the impact of investment in improvements, such as
upgraded insulation, lighting or renewable energy.
Developing our capability to design and deliver more energy
efficient wastewater treatment processes.
Level of risk
High
Moderate
Low
Opportunity
Task Force on Climate-related Financial Disclosures (TCFD) continued
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Climate resilience and adaption
Time
horizon
Potential impact
on financial performance
Link to our
principal risks
Short term.
Increased revenues resulting
from increased demand for
products and services.
1
Work winning.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
There is likely to be high demand for climate-resilient infrastructure in all scenarios. There is already a significant demand within the water
sector, driven by political and public sentiment, and this will only increase as the physical impacts of climate changes become more severe.
Opportunity description and potential impact on the business
Opportunity realisation
As we experience more regular and more extreme weather events,
such as prolonged heatwaves and intense rainfall, there will be
a need to make our public infrastructure more resilient to the
changing climate.
This is already a significant issue for the water sector, where the
capacity of the existing sewerage and wastewater treatment
infrastructure is struggling to keep pace with the increasing
demands placed on it by more regular, intense rainfall, greater
run-off from a more built-up environment and population
growth. As a result, there is strong public and political support
for significant investment to improve the resilience of our water
infrastructure, with a particular focus on increasing wastewater
storage and treatment capacity and reducing combined sewer
overflow discharges.
There is also increasing demand for sustainable drainage solutions
to be incorporated into developments, to reduce surface water
run-off and the demand on the sewerage network.
There will also be the need to increase the resilience of water
supplies, to deal with increased demand and periods of drought,
with associated investment in water storage, transfer and
treatment infrastructure.
We are already extremely well-positioned in the water sector,
working with all the major water and sewerage companies in
England and Scotland. We have already made several strategic
acquisitions in adjacent markets, such as nmcn, MCS Control
Systems, Ham Baker and AVRS, to broaden our capability and
drive margins.
The other actions we are taking to realise the opportunities include:
Growing capacity and capability in our Environment business,
through targeted recruitment and national presence.
Working with our supply chain to develop new solutions to
address climate resilience issues, such as remote monitoring
of river quality.
Level of risk
High
Moderate
Low
Opportunity
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More efficient use of resources
Time
horizon
Potential impact
on financial performance
Link to our
principal risks
Short term.
Reduced operating costs.
1
Project delivery.
2
Resources.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
The incentives to reduce our consumption of fossil fuels, energy and other resources are likely to be much higher under the ‘Sustainability’
scenario, with higher energy prices and potential regulatory costs associated with carbon emissions. Therefore the potential cost savings
from more efficient use of resources will be greater under this scenario than under alternative scenarios, where the regulatory and market
drivers will not be as strong.
Opportunity description and potential impact on the business
Opportunity realisation
The drive to reduce carbon in our own operations also creates an
opportunity to realise the commercial benefits of greater resource
efficiency, for example through reduced levels of business travel,
lower energy and water consumption, and minimising waste.
We are already taking actions to achieve cost savings through
more efficient use of resources, with examples including:
Transitioning our company car fleet to electric and plug in
hybrid only.
Using the most energy efficient welfare and office
accommodation cabins available.
Developing baselines and targets for water consumption on
our projects.
Combining battery storage with the latest generation of diesel
generators, to minimise diesel consumption.
Level of risk
High
Moderate
Low
Opportunity
Task Force on Climate-related Financial Disclosures (TCFD) continued
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Annual Report and Financial Statements 2026
Viability Statement
As required by provision 31 of the UK Corporate Governance Code,
the plc Board has assessed the prospects and financial viability of
the Group, taking account of the Group’s current position and the
potential impact of the principal risks to the Group’s ability to deliver
its business plan. The assessment of prospects has been made using
a period of five years. The assessment of viability has been made
using a period of three years, which aligns with our budget period
and provides reasonable visibility of future revenue from the existing
order book. During the year, the Group triggered the extension
option for an additional year of the £25m (with a £10m accordion)
unsecured Revolving Credit Facility (RCF) agreement (with the
option to extend a further year if required) giving the Group more
agility and resilience. No drawdown has been made since inception;
therefore, viability has been assessed in terms of the additional
headroom against available cash reserves.
Assessment of prospects
As outlined in our Strategic Report, the long-term prospects of the
business are supported by a strategy which builds on our existing
strengths and the growth opportunities in our target markets.
Our alignment to the UK’s continued investment in social and
economic infrastructure is a fundamental driver of demand for our
services and plays to our strengths in the health, education, defence,
highways and environment markets. It is worth noting that the UK
has had one of the lowest level of Government investment of the
G7 nations in recent years and with an ageing infrastructure
footprint. It is with this context that the budget was prepared.
The budget also recognises the focus on investment in infrastructure
of the Labour Government on economic growth through
infrastructure investment, planning reform, affordable housing
delivery and energy transition. Our ability to achieve sustainable
growth within these markets is underpinned by our position on the
most significant procurement frameworks, our commitment to
supporting the decarbonisation of the built environment and our
investment in digital technologies to drive continuous improvement
in quality and productivity and therefore higher margins.
Our people remain the key to our success and our focus on attracting
and retaining a more diverse workforce as well as increasing the
proportion of apprentices and graduates help us access the skills and
expertise required to deliver on our Sustainable Growth Strategy.
Assessment of viability
The base case for the cash flow projections modelled in our
assessment of viability is the budget prepared for the three years
from 1 July 2026 which incorporates appropriate contingencies
against plausible day-to-day downside risks, primarily the Group’s
principal risks as disclosed previously. The base case shows strong
levels of average month end net cash and assumes that the Group
continues to operate without utilising the RCF.
Against this base case, we have stress-tested the latest forecasts
and modelled the impact on cash flow and liquidity of downside
scenarios related to our principal risks. The scenarios modelled and
their link to the underlying principal risks are described below.
Scenario 1 – Reduction in construction volumes
(Link to principal risks: Work winning, Technology)
Our cash performance is correlated with earnings growth and
therefore reliant on construction activity being in line with
our assumptions.
We have modelled a reduction in construction volumes and
associated monthly cash receipts offset by a proportionate
reduction in payments, relative to our base case forecast.
Scenario 2 – Deterioration in working capital
(Link to principal risks: Resources)
We have modelled the impact of a deterioration in our working
capital, which could be caused by delays in receiving payments
from clients and/or earlier payments to our supply chain.
Scenario 3 – Irrecoverable cost increases
(Link to principal risks: Project Delivery, Resources)
There is a risk of a prolonged period of materials cost inflation
and therefore we have modelled the impact of failing to fully
mitigate these cost increases on our projects.
Scenario 4 – ‘Perfect storm’
(Link to principal risks: Work winning, Technology, Resources,
Project Delivery)
We also tested the severe but plausible scenario where all of
scenarios 1–3 combine at the same time.
In addition to the scenarios above, further stress tests have been
modelled including significant delays to cash receipts to further
demonstrate the robustness of the Group’s balance sheet.
As part of the viability assessment, the Board also considered the
mitigations and interventions available to manage the impact of
one or more of the downside scenarios occurring.
The directors do not expect the emerging climate change risks to
have a significant impact in the short and medium term, particularly
given the nature of the contractual arrangements in place, although
continue to monitor this, as the Group adapts to the changing
environmental requirements and demands to deliver innovative
solutions through new technologies and methods of construction.
Based on the results of this analysis, the Board has concluded that
they have a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall due over
the three-year period of its assessment.
86
Galliford Try
Stakeholder engagement
s172(1) statement
Under Section 172 of the Companies Act 2006, directors must act in the way they consider, in good faith, would be most
likely to promote the success of the company. This statement sets out how the directors have complied with this requirement
during the year and where in the Annual Report the relevant information can be found.
Section 172 matter
Board discussions and decisions
Relevance to Section 172
Further information
a
The likely
consequences
of any decision
in the long term
Review of strategic
objectives and strategy
for each business
Considered whether the Group and
divisional strategies and capital allocation
policies remained aligned to the Group’s
purpose and long-term success, and
concluded that the strategies were
appropriate and continued to be
successfully implemented.
Our Board activities and
strategic review
p88 and 97.
Monitoring our culture
Ensured the Group has the right
executive and non-executive leadership
for long-term success.
Considered whether the Group’s culture
supports our purpose and the long-
term sustainability of the business, and
concluded that it remains appropriate and
is well-embedded throughout the Group.
Board and Senior Leadership
development
p88.
Our Board and Leadership
p94.
Culture and people
p88.
Monitoring our culture
p100.
M&A and growth
opportunities
Approved the acquisition of Nene Valley
Fire and the opening of a new factory
in Keighley.
Acquisition of Nene Valley
Fire
p97 and 99.
Organic investment in
Keighley
p97.
b
The interests of the
company’s employees
Health and safety
Discussed the challenge to improve
health and safety performance and
ways to enhance health and safety
performance within supply chains.
Health and safety
performance
p98.
Diversity and inclusion
Considered whether the people strategy
enables the Group to attract and retain
a diverse range of talent, and concluded
that the EDI initiatives were making
progress towards the Group’s objectives.
Culture of equity, diversity
and inclusion
p105.
People and
succession planning
Considered whether the Group has an
appropriate talent pipeline and concluded
that it is effectively managed.
People and succession
planning
p98.
Board engagement
with employees
Ensured the Board understood employee
issues and could effectively take them
into account in its decisions.
Board engagement with our
people
and
Employee Forum
p101.
c
The need to foster the
company’s business
relationships with
suppliers, customers
and others
Clients
Considered how the strategy would
meet clients’ needs and concluded
that it was orientated to areas of strong
client demand.
Marke
t
review
page 16 and
Clients p50.
Supply chain
Considered how to be a client of choice
for our supply chain and reinforced
this with a refresh of AtA and a supply
chain event.
Supply chain
p54.
Investor engagement
Recognised interest in water sector and
held site visits.
Environment’s site visit for
analysts and investor
s p54.
Return of capital to
shareholders
Approval of interim and
final dividend payments
Considered whether the return of capital
to shareholders would affect the Group’s
ability to invest in growth initiatives that
would also benefit clients and suppliers,
and concluded that the Group would be
able to continue to invest.
Board engagement with our
shareholders
p100.
87
Strategic report
Annual Report and Financial Statements 2026
Governance and compliance
To ensure adherence to our Code of Conduct, Galliford Try has
implemented robust governance practices:
Management declarations:
every six months, all Managing
Directors and Heads of Function are required to sign a declaration
to the Chief Executive affirming that their teams are aware of
and comply with the Code of Conduct and key policies.
Regular training:
mandatory training on key themes such as
diversity, discrimination, modern slavery, GDPR, anti-bribery
and corruption, and cyber security is provided to all employees,
reinforcing the company’s commitment to ethical conduct.
Whistleblowing mechanism:
we provide an independent
whistleblowing line, allowing individuals to report concerns
anonymously, ensuring accountability and transparency.
Further information is provided on pages 88 to 103.
Further detail on how the plc Board developed the strategy
and considered stakeholder interests is detailed in the
Governance report.
Section 172 matter
Board discussions and decisions
Relevance to Section 172
Further information
d
Impact of the
company’s operations
on the community
and the environment
Carbon and climate change
Communities and
social value
Considered the Group’s approach
to reducing its carbon emissions and
progress towards targets, and social
value. Some new measures were added
to the Annual bonus outcome.
ESG
p32, 70, 90 and 115.
Sustainability
p99.
e
The desirability
of the company
maintaining a
reputation for
high standards of
business conduct
Monitoring our culture
Whistleblowing
Ensured that the Group’s culture
continued to prioritise ethical behaviour,
strong stakeholder relationships and
long-term value creation, and concluded
that it supported the Group’s reputation
for high standards.
Culture and people
p88.
Monitoring our culture
p100.
Whistleblowing
p100 and 109.
Risk management and
internal control
Considered the effectiveness of the
Group’s risk management and internal
control systems, and concluded that
they were effective and that appropriate
measures were in place to manage and
mitigate business issues that could cause
reputational risks.
Principal risks
p66.
f
The need to act fairly
between members
of the company
Return of capital to
shareholders
Approval of interim and
final dividend payments
Considered the merits of a share buyback
for different groups of shareholders, such
as institutions and retail investors, and
concluded that while institutions would
be the primary source of shares bought
back, all shareholders would benefit from
higher earnings per share.
Approved the proposals for the interim
and final dividend.
Capital allocation to
shareholders
p98.
The Strategic report is approved by the Board of Directors and
signed on behalf of the plc Board on 17 September 2026 by
Kevin Corbett, General Counsel & Company Secretary.
Kevin Corbett
General Counsel and Company Secretary
Case study
88
Galliford Try
I am pleased to present the company’s
corporate governance report for the financial
year ended 30 June 2026, and to report on the
progress made towards delivering our 2030
targets. This year’s strong financial results, with
revenue and adjusted profit before tax up 3.0%
and 21.9% respectively, and a 3.5% divisional
adjusted operating margin, demonstrate the
company’s careful risk management, financial
monitoring and resilience, enabling us to build
continuous growth.
The Board recognises it must balance
financial performance with the needs of all
stakeholders. The ways in which the Board
engages and is influenced by our workforce
and other stakeholders can be found on
pages 100 to 101.
Board activities and strategic review
Details of key Board activities during the
financial year are outlined in this report.
Those of particular note include:
monitoring progress with our strategic
objectives to 2030;
continued investment through acquisition,
via the purchase of Nene Valley Fire &
Acoustic Ltd (Nene Valley Fire) for £10m, to
enhance our existing specialist fire business;
further investment in organic growth,
with the opening of the Keighley pipe
fabrication facility in Yorkshire to
manufacture specialist pipes for the
Environment industry;
reviewing and updating the cyber security
strategy and response; and
strengthening the Group’s equity, diversity
and inclusion (EDI) and learning and
development strategies, to support the
development of our employees.
Our capital allocation policy continues to
deliver returns to shareholders, through the
payment of a 23.5p total dividend across
the year and the completion of a third share
buyback programme.
More information regarding our strategy can be
found on pages 1 to 87.
The Board held a detailed strategic review
meeting in April 2026, to consider the
progress made towards meeting the Group’s
2030 strategic objectives, the opportunities
and challenges faced within each division,
appropriate resourcing, and the business
support teams required to ensure effective
delivery. Further information can be found
on page 96.
Board and senior leadership
developments
There were no changes to the Board during
the year and, following review, we agreed
the current Board members have the right
mix of skills, expertise and knowledge for
the future development of the company. All
directors will stand for election or re-election
at the 2026 AGM. Director biographies, their
respective responsibilities and their external
directorships are set out from page 94.
This year the focus was to continue to embed
solid, cohesive working relationships as a
Board with Kris Hampson, our Chief Financial
Officer appointed on 2 September 2024,
and to continue to oversee and support
the succession plans of the Executive Board
and the wider senior leadership team.
Ian Jubb, Executive Board member and
Managing Director of Building, retired on
30 June 2026 and was succeeded by Cliff
Wheatley. Cliff is a quantity surveyor with
over 28 years’ experience in the business and
was an internal appointment to the Executive
Board. In addition, Mark Baxter, Executive
Board member and Managing Director of
Specialist Services, is to retire in December
2026. Thomas Faulkner, a chartered civil
engineer who has over 30 years’ experience in
the industry, joined the company in September
2025 and will undergo an orderly handover of
Mark’s responsibilities. Both appointments are
excellent examples of our senior management
succession plans coming to fruition.
Culture and people
The Board continues to engage with the
Group’s employees in a number of ways,
recognising the valuable contribution a
committed and engaged workforce brings
to a company. This year, the Board visited
three sites, meeting both managers and
employees and directly discussing their
experiences of working for the company,
to help attain a better understanding of
their views. In addition, the Employee Forum,
chaired by Non-executive Director Sally Boyle,
meets twice a year to enable the Board to
hear employee views directly, including the
impact of work-related policies and processes.
A Leadership Conference was also held
with over 250 senior leaders, to provide an
update on progress with the Sustainable
Growth Strategy and help share ideas across
the business.
Chair’s review
Our determination to achieve
our strategic objectives,
underpinned by a strong
governance framework and
disciplined approach to risk,
delivers consistent growth
for all stakeholders.
Alison Wood
Chair
A proactive Board that delivers
results and consistently builds
sustainable growth
Governance
Governance at a glance
p90
Directors and
Executive Board
p94
Governance review
Our Board’s year:
Site visits and strategy
Focus areas in detail
Key Board discussions
and activities
Culture and Board
Effectiveness
UK Corporate
Governance
Code 2024 compliance
p96
p97
p97
p100
p103
Nomination
Committee report
p104
Audit Committee report
p107
Remuneration
Committee report
p111
Remuneration at a glance
p113
Directors’ Remuneration
Policy report
p114
Annual report on
remuneration
p120
Directors’ report
p128
Statement of directors’
responsibilities
p131
89
Governance
Annual Report and Financial Statements 2026
The Board reviewed the results of the
annual employee survey. One key indicator
is employee advocacy, which measures how
likely our employees would be to recommend
the business to others as a great place to
work. It is pleasing to note that this year the
Group achieved an advocacy score of 85%,
compared to a sector average of 74%. Further
information on our culture and site visits can
be found on pages 100 to 101.
With regard to EDI, the Board fully supports
the Financial Conduct Authority’s (FCA)
targets regarding gender and ethnic diversity
on Boards and within senior leadership teams.
Currently, the Board meets only one of the
three gender targets, namely for a woman to
hold at least one of the senior Board positions,
with myself as Chair and Sally Boyle as Chair of
the Remuneration Committee and, in total, the
proportion of female directors on the Board
is 33%. The Board also does not meet the
diversity target of at least one director from
a minority ethnic group. Information on our
strategies and disclosures to improve EDI
can be found on pages 105 to 106.
Stakeholder engagement
It is important the Board understands the
views of all its stakeholders and considers
their interests in its discussions and strategic
decision-making. The Board has engaged
this year with its stakeholders in a variety of
ways, including holding a site visit day with
analysts, holding a supply conference with
over 300 suppliers in attendance and inviting
key shareholders to meet me, if they wished
to do so. In addition, the executive directors
regularly meet with existing and prospective
institutional shareholders and attend investor
conferences, to meet UK and European
institutional fund holders. Such events
enable the Board to better understand our
stakeholders and help ensure the long-term
success of the company. Further information
on our stakeholder engagements can be found
on pages 100 to 101.
Board performance evaluation
This year the evaluation process for the
Board was carried out internally. After a
thorough process the conclusion overall
was that the Board continues to operate
effectively, with the directors working well
together. Further information can be found
on page 102.
Remuneration policy
The Remuneration Committee has reviewed
the Group’s existing Remuneration Policy.
The review considered the current reward
structure and bonus metrics, as well as
corporate governance and market best
practice, and engagement with shareholders
to discuss the proposed new Remuneration
Policy. The Committee determined that no
changes to the structure of the remuneration
were required; however a Total Shareholder
Return (TSR) metric has been included in the
Long Term Incentive Plan (LTIP) from 2026.
The proposed updated Remuneration Policy
will be put to shareholders at the AGM in
November 2026. Further information can
be found on pages 112 and 114.
Environment and climate change
The Board recognises the importance to the
long-term sustainability of the business of
minimising our environmental impact, as well
as managing the transition to a low-carbon
economy. We continue to prioritise investment
in people, processes and systems to enhance
the quality of our carbon measurement
and reporting, and to drive performance
improvements to reduce our carbon emissions.
Progress in the financial year includes
implementing a new digital process for
capturing our use of fuel, electricity, water,
concrete and steel on our projects, mandating
the use of battery storage where we need to
use larger diesel generators, and delivering
role-based carbon training.
Cyber security
Cyber security is taken very seriously at all
levels of the business and the Board has again
reviewed the Group’s cyber strategies, to
ensure its systems are fully protected. These
strategies include a business-wide roll out of
a change to system log-ons, continued staff
awareness with regular phishing exercises, a
presentation from an external organisation on
how to respond to a cyber attack, and a review
and update of cyber response plans to ensure
minimal disruption. The Board will continue
to monitor the risks associated with cyber
security, to ensure system protection remains
strong and is resourced appropriately.
Annual General Meeting (AGM)
The company will hold its 2026 AGM on
Thursday 12 November 2026, at the offices of
Peel Hunt LLP, 7th Floor, 100 Liverpool Street,
London EC2M 2AT at 11.00am. The Board
will be pleased to welcome shareholders,
answer questions and encourage
shareholders’ participation. If you are unable
to attend in person, please send in any
questions relevant to the AGM to the
General Counsel & Company Secretary at
On behalf of the Board, we look forward to
meeting shareholders at the AGM.
Alison Wood
Chair
90
Galliford Try
Group governance structure
Board Committees
Board
Nomination
Committee
Remuneration
Committee
Audit
Committee
Other Committees reporting to the Board
Promotes our long-term sustainable success.
Approves strategy, monitors progress, sets culture
and ensures a robust control environment, effective
risk management and good corporate governance.
Oversees financial reporting,
internal control and risk management,
external audit and whistleblowing.
Oversees Board and Committee
composition, succession planning
and the Board evaluation.
Designs Executive and senior management
remuneration and ensures workforce
remuneration supports long-term success.
Executive
Board
Executive Risk
Committee
ESG
Committee
Employee
Forum
Oversees operational
management and implements
Board-approved strategy
and policies.
Assists with monitoring
and updating the Group’s
principal, emerging and
climate-related risks.
Co-ordinates and oversees
carbon reduction initiatives,
social value practices and
stakeholder relationships.
Provides a valuable
two-way communication
channel between employees
and the Board.
Delegated authorities
The table below summarises the matters reserved for the Board and those it delegates to management, which are reviewed annually.
Matters reserved for the Board
Matters delegated to management
Group values and standards
Operational management of Group
Group strategy, business plans and annual budgets
Implementation of Group policies
Acquisitions, disposals and contracts over a prescribed value
Allocation of Group resources
Material joint arrangements
Contracts up to a prescribed value
Approval of Group policies
Management succession planning
Material changes to Group share capital
Risk management
Group borrowing facilities
Approval of circulars and financial reports
Governance at a glance
Framework, responsibilities and activities
91
Governance
Annual Report and Financial Statements 2026
Key Board responsibilities
Role
Responsibilities
Chair
Leads the Board and ensures high standards of corporate governance. Facilitates constructive Board relations
and effective contribution of non-executive directors, and ensures that directors receive accurate, timely and
clear information.
Chief Executive
Develops the Group’s objectives, strategy, budgets and strategic financial plans, and provides day-to-day
executive leadership and management of the business, including major investments, projects, proposals and bids,
managing risk, and communicating with shareholders and other stakeholders.
Senior Independent
Director
Acts as adviser and sounding board for the Chair and the other non-executive directors. Evaluates the Chair’s
performance, and is an alternative point of contact for shareholders, executive directors and senior management.
Non-executive
directors
Provide an independent view on the running of our business, governance and boardroom best practice,
overseeing and constructively challenging management’s implementation of strategy and Group performance.
General Counsel &
Company Secretary
Ensures the Board receives high-quality and timely papers, advises on all governance matters, works with the
Chair and Committee chairs to ensure the right matters are escalated to the Board and Committees at the
appropriate time, oversees Board induction and evaluation arrangements, and supports succession planning
and the recruitment of new non-executive directors.
The Board Committees’ terms of reference and detailed descriptions of the roles of the Chair, Chief Executive and Senior Independent
Director can be found on our website at: https://www.gallifordtry.co.uk/investors/governance-and-policies/.
Board priorities for 2026/27
Monitor the execution of revised strategic objectives to 2030 including:
–
Focused growth and increased margins in existing core markets;
–
Increased growth in higher-margin adjacent specialist services market;
–
Seek bolt-on acquisition opportunities to accelerate strategic delivery.
Continue to monitor financial and operational performance against budgets and forecast.
Maintain focus on strengthening and delivering a robust culture around health, safety and environmental factors.
Oversee the continued development of the Board and senior management succession planning.
Consider and implement recommendations arising from the internally facilitated Board performance evaluation.
92
Galliford Try
Governance at a glance continued
Your Board at a glance
Board skills matrix
Alison
Wood
Bill
Hocking
Kris
Hampson
Kevin
Boyd
Sally
Boyle
Michael
Topham
Business ethics and integrity
Construction
Commercial
Finance
Governance
Human resources
Strategy and risk
Board balance of roles
Executive
2
Non-executive
4
Gender diversity
Men
4
Women
2
Ethnic diversity
White
6
Ethnically diverse
0
Board tenure
0–2 years
3
3–5 years
2
6–10 years
1
As at 30 June 2026.
93
Governance
Annual Report and Financial Statements 2026
2025/26 Board and Committee meetings
attendance table
Number of meetings
(attended/scheduled)
Board
Audit
Committee
Nomination
Committee
Remuneration
Committee
Alison Wood
Chair
8/8
by invitation
2/2
3/3
Bill Hocking
Chief Executive
8/8
by invitation
by invitation
by invitation
Kris Hampson
Chief Financial Officer
8/8
by invitation
n/a
n/a
Sally Boyle
Non-executive Director
7/8
2/3
2/2
2/3
Michael Topham
Non-executive Director
7/8
3/3
2/2
3/3
Kevin Boyd
Non-executive Director
8/8
3/3
2/2
3/3
Kevin Corbett
General Counsel &
Company Secretary
8/8
3/3
2/2
2/3
1
3
2
Location of Board site visits around the UK
For further information on the Board site visits see page 96.
Around the business
The Board visited three sites to see the working conditions firsthand, view our health and
safety procedures in action, discuss employees’ experiences with them and hear from
senior leaders about the on-site working challenges they face.
1
Dolphin Square, London
2
The Rise, Cardiff
3
Sloane Street, London
94
Galliford Try
1. Alison Wood
Chair
Appointment date:
Alison joined the Board
on 1 April 2022 and was appointed as Chair
on 21 September 2022.
Skills and experience:
Substantial strategic
planning, mergers and acquisitions and business
development experience gained through a
number of roles, including Global Director of
Strategy and Corporate Development at National
Grid plc and Group Strategic Development
Director at BAE Systems plc. Extensive leadership
and governance experience, having served
as Chair, Senior Independent Director and
Remuneration Committee Chair in several FTSE
350 companies. Has a background in engineering,
economics and management and has extensive
corporate experience with international leading
engineering companies.
External appointments:
Senior Independent
Non-executive Director and Chair of the
Remuneration Committee at both Oxford
Instruments plc and at Morgan Advanced
Materials plc.
2. Bill Hocking
Chief Executive
Appointment date:
Bill was appointed as
Chief Executive on 3 January 2020.
Skills and experience:
An effective leader,
having held a range of senior leadership positions
including Chief Executive of Galliford Try plc,
Chief Executive of Galliford Try’s Construction
and Investment division, and Executive Vice
President at Skanska UK plc. Substantial
experience of strategic planning development
and implementation. Significant commercial and
operational experience and strong track record
of delivering operational and financial results.
Extremely knowledgeable about the construction
industry, with over 35 years of experience as
a civil engineer.
3. Kris Hampson
Chief Financial Officer
Appointment date:
Kris was appointed to the
Board on 2 September 2024.
Skills and experience:
Extensive strategic
development and mergers and acquisitions
expertise. Significant international financial
experience in listed B2B environments.
Broad range of strategic, financial and project
management leadership skills, having held a
number of finance roles with Rentokil Initial plc and
Ford Motor Company. A prize-winning chartered
accountant with over 20 years’ experience and a
Fellow of the Institute of Chartered Accountants.
4. Kevin Boyd
Senior Independent Director
Appointment date:
Kevin was appointed to the
Board on 1 March 2024.
Skills and experience:
Extensive listed public
company experience, helping to strengthen the
Board’s independence. Acts as a solid advisory
base to others on the Board. Strong background
both in the UK and overseas, with operational
and strategic expertise. Substantial leadership
expertise, having previously been Chief Financial
Officer of Spirax Group plc, Oxford Instruments
plc and Radstone Technology plc, as well as holding
a number of non-executive roles. A Fellow of
the Institute of Chartered Accountants and the
Institute of Engineering and Technology.
External appointments:
Chair and Non-executive
Director of Genuit Group plc. Audit Committee
Chair and Non-executive Director of Bodycote plc.
5. Sally Boyle
Non-executive Director
Appointment date:
Sally was appointed to the
Board on 1 May 2022.
Skills and experience:
Broad governance and
significant HR and remuneration expertise, along
with extensive financial services experience.
Significant leadership capabilities gained through
a range of roles, including International Head
of Human Capital Management at Goldman
Sachs and as a member of the Goldman Sachs
International Board and Management Committee.
Highly experienced and knowledgeable
employment lawyer, with UK and international
human resources expertise.
External appointments:
Non-executive Director
of Cambridge University Press & Assessment.
6. Michael Topham
Non-executive Director
Appointment date:
Michael was appointed to the
Board on 1 June 2023.
Skills and experience:
Strong strategic planning
and mergers and acquisitions experience.
Significant leadership experience gained as Chief
Executive Officer of Biffa and previously its Chief
Financial Officer and Divisional Managing Director.
A solid financial background and experienced in
delivering commercial and operational growth.
A chartered accountant, having trained with PwC.
External appointments:
Chief Executive
of Biffa. Director of the Environmental
Services Association.
Our Board
Board Committee membership
Audit Committee
Nomination Committee
Remuneration Committee
Executive Board
Chair
As at 30 June 2026.
For the Board Skills Matrix, please see page 92.
1
4
5
6
2
3
Directors and Executive Board
Our Board and Leadership
95
Governance
Annual Report and Financial Statements 2026
7. Kevin Corbett
General Counsel &
Company Secretary
Appointment date:
Kevin joined the Executive
Board on 1 February 2012 and was appointed
General Counsel & Company Secretary on
1 March 2012.
Skills and experience:
A solicitor and chartered
civil and structural engineer who has held
numerous senior leadership roles, both in the
UK and internationally, including Chief Counsel
Global for AECOM. A broad skill set of construction
and corporate law, finance, governance, strategy
and corporate secretarial practice. Extensive
knowledge and experience of dealing with
complex commercial legal matters and corporate
transactions. A trusted adviser to the Chair,
Chief Executive and Non-executive Directors.
External appointments:
Non-executive Director
of the Construction Industry Council.
8. Vikki Skene
HR Director
Appointment date:
Vikki joined the Executive
Board on 3 January 2020.
Skills and experience:
Over 20 years’ experience
as a senior HR leader, primarily in the construction
industry and holding directorship roles in both
Balfour Beatty and Galliford Try. Experienced
in the strategic development and building of
HR teams to deliver high-quality HR services to
the company and its employees. A passion for
proactively supporting learning and development,
to help employees develop their careers. Oversees
policies and processes to embed an agile and
inclusive working culture, to provide all groups
in the working population with access to roles
in construction.
9. Mark Baxter
Joint Managing Director,
Specialist Services
Appointment date:
Mark was appointed to the
Executive Board on 3 January 2020.
Skills and experience:
A chartered accountant
with a wealth of experience in the construction
industry, gained through numerous director-level
and senior commercial roles in Galliford Try and
Miller Construction. Extensive knowledge of a wide
range of government-backed finance schemes,
including public-private partnerships and private
finance initiatives, to deliver complex projects for
public sector bodies.
Excellent project management and leadership
skills, successfully delivering projects from
inception through construction, development and
into full operations. Experience of driving long-term
value over the life span of a project and developing
investment portfolios and joint venture capability.
10. David Lowery
Managing Director, Infrastructure
Appointment date:
David was appointed to the
Executive Board on 1 July 2024.
Skills and experience:
Highly accomplished
chartered construction professional and civil
engineer, with over 25 years’ national and
international industry experience across multiple
sectors. Dynamic business leader with significant
strategy development, business planning and
policy-setting skills that drive cultural and
organisational performance. Extensive experience
in leading and delivering complex major projects
with a focus on sustainable, cash-backed and
profitable outcomes. Significant operational and
commercial experience and a proven track record
of leading and developing diverse, high-performing
teams to deliver customer and shareholder value.
More recently, integrated three of the Company’s
latest acquisitions to develop specialist services for
the environment sector and support the Group’s
Sustainable Growth Strategy.
11. Thomas Faulkner
Joint Managing Director,
Specialist Services
Appointment date:
Thomas joined the
Executive Board on 15 September 2025.
Skills and experience:
Thomas is a chartered civil
engineer with 30 years’ experience in construction.
He most recently spent 10 years as UK Executive
Vice President at Skanska and has a strong
background in the infrastructure sector, covering
water, environment, highways, rail and specialist
services. He is passionate about improving digital
capability to enhance productivity and firmly
believes that early engagement through integrated,
collaborative models delivers better outcomes for
all parties.
Thomas will succeed Mark Baxter, Executive Board
member and Managing Director of Specialist
Services, taking up his new role in a phased manner,
leading to Mark’s retirement at the end of 2026.
12. Cliff Wheatley
Managing Director, Building
Appointment date:
Cliff joined the Executive
Board on 5 January 2026.
Skills and experience:
A quantity surveyor and
arbitrator with over 28 years’ experience in
construction. Joined the Group in 2008, having
been a commercial manager at Miller Construction,
with the last 15 years having been at director
level. An experienced leader promoted from
within, possessing a deep understanding of our
business, with proven skills in managing a diverse
range of complex projects and demanding clients.
Demonstrable leadership skills as a culture-setter
and communicator.
Executive Board members
New Executive Board members
The Executive Board members above are not members/directors of the plc Board. As at 1 July 2026.
7
8
9
10
11
12
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Galliford Try
Governance review
Our Board’s year
– site visits and strategy
Site visits
Board visits align the Board’s vision with operational reality, provide firsthand oversight, and foster
a stronger connection between leadership and the teams driving the business every day. During this
financial year the Board visited three Projects. See below for further information.
July 2025
Dolphin Square,
London
The Board visited Dolphin Square, which is
a landmark residential development built in
the 1930s. We are undertaking the phased
restoration and modernisation, to provide
over 1,200 high-quality private rental
apartments, enhanced amenity space and
common areas. Visiting the site enabled the
Board to review the completion of phase 1
of the restoration and discuss phase 2 with
senior management, to further understand
the project’s complexities and the innovations
being employed, and to engage with staff
to discuss health and safety practices and
training opportunities. The project later
won the Build-to-Rent Project of the
Year and Residential Project of the Year
at the prestigious Global Real Estate
Institute Awards.
October 2025
The Rise,
Cardiff
The Board visited The Rise, one of Cardiff’s
tallest buildings at 31 storeys. It will provide
272 high-quality privately-rented apartments,
ground-floor retail units and amenity spaces.
The Board met the senior management and
staff and discussed the Modern Methods
of Construction used in the build, including
using a precast concrete structure, bathroom
pods and modular service installations. The
Board also considered the quality of the work,
the sustainability of materials and working
methods, and the operational expertise in
the teams.
April 2026
30-33 Sloane Street,
London
The Board visited 30-33 Sloane Street,
London, a £53m redevelopment involving
the construction of a six-storey building
and basement to include luxury retail units,
premium office space and a rooftop restaurant
with terrace. The Board met the senior
management team and discussed ways of
achieving the highest standards of sustainable
design and construction while retaining
the historic façade, and the challenges of
working in such dense, built-up areas while
maintaining health and safety practices and
community engagement.
April 2026
Board Strategy Review
The Board held a strategy away day in April
2026 to review the Group’s 2030 strategic
objectives, confirm progress made to date,
assess forecasts, and consider opportunities
and ways of accelerating delivery.
The day covered the key market sectors
for each division, an evaluation of their
opportunities, a SWOT analysis for potential
new sectors and the Government’s funding
approach to various markets. Each Managing
Director discussed prospects, clients and the
challenges they faced, as well as ways to grow
current markets, achieve higher margins and
expand the geographical footprint.
The Board reviewed the Group’s financial
performance in detail, including modelling of
financial key performance indicators to 2030
and consideration of the macroeconomic and
political environments.
In addition, the Board reviewed other
key areas such as people and succession
planning, to ensure the Group was developing
a pipeline of people with the right skills for
future growth, as well as internal mobility,
early careers and the Mentoring the Next
Generation initiative, as described in the
People section on pages 38 to 41.
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Governance
Annual Report and Financial Statements 2026
Our Board’s year
– focus areas in detail
It does this in a variety of ways, including
holding Board and Committee meetings
throughout the year, where it is provided
with reports and presentations from the
Chief Executive, Chief Financial Officer and
other senior management, to ensure it has the
right information at the right time to enable
strategic decisions, policies and other key
updates to be fully discussed. These meetings
are complemented by regular site visits
(page 96) and meetings with investors and
shareholders, such as at the AGM.
The Chair, supported by the General Counsel
& Company Secretary, ensures the meeting
agenda is carefully structured to include
strategic and operational matters and important
standing items, such as reports on Health,
Safety and Environment (HSE), sustainability,
share price performance, market analysis and
shareholder feedback, and employee insights
and feedback. The agenda is also designed to
allow time for open discussion, which builds in
flexibility to discuss any other matters.
The Board also receives updates and in-depth
reports from external advisers on specialist
matters, as necessary.
The non-executive directors provide
independent insight gained from a breadth
of skills and experience, to support and
challenge the executive directors, and all
Board members are encouraged to continue
their own professional development to ensure
their working and best-practice knowledge
remains up to date.
Key Board discussions and activities
As described in the Section 172 of the
Companies Act 2006 statement (pages 86
and 87), the Board has regard to the interests
of key stakeholders when promoting the
long-term success of the company. The
following section provides further detail
on the key matters the Board discussed
during the year, their outcomes and the
primary stakeholders considered in the
decision-making, in line with the Group
strategy, which is set out on pages 1 to 87.
Topic
Key matters the Board considered
Outcomes or decisions
Stakeholders and S172
factors considered
Strategy and performance
Progress
against
strategic
objectives for
the year and
to 2030, in
each business.
The Group’s Sustainable Growth Strategy
to grow in core markets of Building and
Infrastructure; expand into higher-margin,
adjacent markets and affordable homes.
The Board concluded that the strategy to 2030
remained appropriate and that the Group was
making good progress towards it. No changes
were therefore required to the strategy.
A
B
C
D
E
Organic growth in all divisions, following
market sector analysis and review
for each division, with a focus on
strengthening relationships and expansion
into key market sectors, selecting the
right contracts and delivering quality,
sustainable projects to clients.
The Board agreed the disciplined approach
to market sector targeting, risk management,
contract selection and delivering quality
products with an attractive margin was in
line with delivering the core strategy.
A
B
C
D
E
Organic investment in higher-margin areas
including the opening of Environment’s
Keighley pipe fabrication facility in
Yorkshire, to manufacture specialist
pipes for the water sector.
The Board agreed this investment was in line
with the strategy to further enhance and
expand the specialist water business offering,
as well as increasing operational capability,
creating employment opportunities for local
skilled labour, and supporting the use of locally
sourced equipment and services.
A
B
C
D
E
Acquisition investment through the
purchase of Nene Valley Fire for £10m,
to enhance the specialist fire businesses
of Asset Intelligence and Oak Fire
Protection in Specialist Services.
The Board agreed the acquisition met the
criteria of the capital allocation policy, and
was in line with strategy as this specialist
bolt-on business would enhance the technical
capability and skill offering to clients, expand
the businesses’ geographic reach, help
generate higher-margin specialist work
in future, and build on inter-company
cross-selling opportunities.
A
B
C
D
E
Operational
and financial
performance,
at both
Group and
divisional level.
Reports from management including
management accounts containing
in-depth reviews of revenue, margin
and cash management.
Performance against budget and market
expectations, the reasons for any variances
and any actions management proposed.
Biannually the Board receives
analyst presentations.
The Board approved the full-year results
for 2024/25 and the half-year results
for 2025/26, as well as trading updates
throughout the period.
A
B
C
D
E
The Board is responsible for setting the Group’s strategy and overseeing its implementation by monitoring
and reviewing performance against strategic objectives, to meet the needs of key stakeholders.
Key to stakeholders and Section 172 factors considered:
People
Clients
Suppliers
Communities
Shareholders
A
Long-term consequences
of decisions
B
Interests of employees
C
Business relationships with
clients, suppliers and others
D
Impact on the community
and environment
E
Reputation for high standards
of business conduct
Topic
Key matters the Board considered
Outcomes or decisions
Stakeholders and S172
factors considered
Financial matters
Annual budget
and three-year
forecast
The resources required and in place to
achieve budget objectives.
The key drivers of revenue and margin
performance in the budget period.
The macroeconomic backdrop and
Government policy.
The Board approved the annual budget
and the related financial targets for the
year, which form part of management’s
bonus criteria, in line with an analysis of
market conditions.
A
B
C
Capital
allocation to
shareholders
via:
Impact on balance sheet strength, recognising
this gives stability and confidence to employees,
clients and suppliers.
Third share
buyback
programme
Impact on the Group’s financial performance,
including earnings per share.
Ability to continue to reinvest in the business,
both organically and through acquisitions.
Shareholder and adviser views on the
attractiveness of a capital return.
The Board approved its third
share buyback programme of up
to £10m, which was announced in
September 2025.
A
B
C
Interim and
final dividend
payments
The dividend policy and its continued
appropriateness.
The Group’s earnings and cash flow performance.
Shareholder views about the importance of
the dividend.
The Board proposed a final dividend
for 2024/25 of 13.5 pence per share
and approved the interim dividend for
2025/26 of 5.5 pence per share.
A
People and culture
Health
and safety
performance
The health and safety update from the Chief
Executive at each Board meeting, including
trends and any initiatives to enhance standards.
The annual presentation from the HSE director,
which enables the Board to conduct a deep-dive
into performance.
The Board discussed the challenge to
improve health and safety performance.
Ways to enhance health and safety
performance within supply chains
were also discussed.
B
C
D
People and
succession
planning
The Group’s Senior Leadership Team and
talent pipeline.
The skills the Group would require in the future.
Staff recruitment and training initiatives.
The Board supported the appointment
of two new Executive Board members.
The Board was satisfied the Group had
appropriate succession planning and
development in place.
A
B
Embedding
culture
Viewed working practices and heard
management and employee views first-hand
on three site visits, as well as via the
Employee Forum.
Considered employee views obtained from the
annual employee survey.
Regular reports and metrics on key areas via the
Chief Executive report and other management
meeting minutes, including health and safety, EDI
matters, financial matters, risk-related matters,
whistleblowing and business ethics.
Overview of the action plans arising
from the employee survey.
The Board considers these regular
reports when making decisions
throughout the year and to be satisfied
that the culture is aligned to the
company’s purpose, strategy and values.
A
B
E
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Galliford Try
Governance review continued
Key to stakeholders and Section 172 factors considered:
People
Clients
Suppliers
Communities
Shareholders
A
Long-term consequences
of decisions
B
Interests of employees
C
Business relationships with
clients, suppliers and others
D
Impact on the community
and environment
E
Reputation for high standards
of business conduct
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Governance
Annual Report and Financial Statements 2026
The acquisition of
Nene Valley Fire
Overview
During the year, Galliford Try acquired Nene
Valley Fire, a Northamptonshire-based
business with a focus on the Midlands and
the South, as part of the Group’s plans
to grow its higher-margin capabilities in
adjacent sectors. The business, purchased
for a £10m consideration, was deemed to
be margin-accretive from the first year.
In its decision-making, the Board
considered the following factors:
The business model, revenue and
profitability potential of the business
being acquired.
The purchase price, transaction costs,
business reputation, commercial risk
exposure, legal terms and any potential
investment needed.
How the business would complement
the Group’s existing capabilities in fire
protection and whether the proposed
business structure would be profitable.
The specific capabilities of Nene
Valley Fire including its assets,
customer relationships and technical
capabilities, as well as its geographical
presence, to assess whether they
complemented or duplicated
Galliford Try’s existing operations.
The integration approach for the
acquisition, within the context of
Asset Intelligence’s operating model
and strategic objectives, and the
need to protect business continuity,
maintain delivery performance and
progressively enhance governance
and controls over time.
Whether new controls should be
proposed and how to undertake these
in a phased and proportionate manner.
Future leadership of the business and
the business structure.
Alignment to the Group’s capital
allocation policy and M&A criteria.
Learning through experience and due
diligence from past M&A.
The following stakeholder interests
were considered:
The anticipated management resource
required to lead the integration and the
impact on the existing people within
the business.
Preserving client relationships and
delivery momentum in both businesses.
Impact on day-to-day delivery for
employees and their future as part of
Galliford Try.
Shareholder returns.
Who did the Board engage
with in making its decision?
The Board liaised with a cross-section
of stakeholder groups, including the
Managing Director of the Specialist
Services business, the General Counsel &
Company Secretary, the HR Director and
external specialist advisers, to consider
all aspects of the transaction, including
the interests of existing employees,
clients and shareholders.
Topic
Key matters the Board considered
Outcomes or decisions
Stakeholders and S172
factors considered
Sustainability
Carbon and
climate change,
including net
zero targets
The Group’s overall approach in this area.
Progress towards the 2030 reduction targets.
Received reports and presentations on
ESG matters.
Actions being taken to reduce emissions.
Reviewed the implementation of a new
digital resource on projects.
The Board is satisfied with the progress
being made on these matters.
A
D
E
Risk management and internal control
Cyber security
and IT update
Review of cyber security resources and
response plan to ensure minimal disruption.
Presentation from the Chief Information
Officer and market experts on responding
to a cyber crisis.
The Board oversaw a number of
enhancements to strengthen cyber
security, including change to system
log-ons, continuation of regular
staff phishing exercises and review
of cyber response plans and
communication strategy.
A
B
C
E
Approach to risk
and principal risk
management
Key principal risks were considered
and approved.
The Board reviewed and approved the
Group’s approach to risk management
and its principal risks.
A
E
Key to stakeholders and Section 172 factors considered:
People
Clients
Suppliers
Communities
Shareholders
A
Long-term consequences
of decisions
B
Interests of employees
C
Business relationships with
clients, suppliers and others
D
Impact on the community
and environment
E
Reputation for high standards
of business conduct
plc Board decision-making in action
100
Galliford Try
Monitoring our culture
The Board closely monitors and assesses the
Group’s culture and recognises that this is a
continuous process. The Board uses a range
of methods to engage with employees, to
develop a positive and progressive culture and
ensure that its policies, practices and desired
behaviours are aligned with and support the
delivery of its strategy, values and purpose.
This is achieved via:
Site visits:
During the financial year, the
Board visited three sites, where they met site
managers and staff, had an opportunity to
discuss the project in detail and interacted
with site employees and saw first-hand the
working operations and health and safety
procedures in place. See page 96 for
further information.
Management meetings:
As part of the site
visits, the Board met a variety of senior
managers, enabling the directors to hear their
views directly. This strengthened the Board’s
understanding of the workplace environment
and the impact of the policies and procedures
it puts in place.
Employee survey:
Each year a Group-wide
employee engagement survey is conducted,
with answers anonymised to enable full
confidentiality. The questions are similar
to past surveys, to enable comparisons
with previous years and identify trends.
The results are presented to the Executive
and plc Boards. An action plan tailored for
each business unit/function is then developed,
implemented and communicated to the staff,
with incremental reviews.
Employee Forum:
See below for
further information.
Inductions and the Code of Conduct:
‘
Doing the Right Thing’ is the Group’s formal
Code of Conduct, which outlines the values
and behaviours the Group expects of its staff
and other stakeholders. This is also a focal
point of the induction process for all new
starters, to ensure the right approach and
expectations are set and the right behaviours
become embedded. Other initiatives to
support such behaviours include management
presentations, e-learning, on-site training and
active bystander training workshops delivered
to all employees. Confidential surveys also take
place for new starters and leavers to provide
additional insight into their experiences.
Oversight and reporting:
The Board is kept
up to date with regular reports and metrics
on a range of key areas relating to culture,
through presentations and reports, and via
the Chief Executive’s regular reports and
other management meeting minutes. These
include: a health and safety report showing
key statistics, trends and any areas for
improvement; and people-related data such
as employee turnover, engagement scores
and sickness rates. Whistleblowing and
business ethics matters are also reported
and considered.
Biannually the Board receives analyst
presentations regarding the macroeconomic
environment and Government policy, to
ensure the Board is fully informed when
making policies that may impact Company
performance and staff.
Informal channels are also used, such as
the general engagement and take-up of
internal courses, feedback on Group
briefings, and questions arising from the
Chief Executive roadshow.
Board engagement with
shareholders
Our shareholders consist of global investment
funds and institutions based primarily in the
UK, as well as UK regional funds, and retail and
small private investors. In line with the Code,
the Board is committed to maintaining regular
contact and engagement with shareholders,
to ensure it has a clear understanding of
their views on the Company’s governance,
performance against strategy and other
significant matters. It does this in a variety of
ways, to reach as many current and potential
shareholders and analysts as possible.
Board information flow regarding investor
views:
The Board is kept informed on investor
relations matters through updates at Board
meetings, feedback from investor meetings,
reporting from its external investor relations
consultancy, presentations from corporate
brokers, monitoring its share price and events
in its key markets, and receiving questions
and feedback from investors and analysts
throughout the year.
In 2025, the Group commissioned an
independent perception audit of several
institutional investors and a sample of key
sell-side analysts, seeking direct feedback and
input on investor-related issues, the results of
which have been incorporated into a plan.
The Board approved this investor relations
strategy, which included: educating
stakeholders about the industry; increasing
share demand by further raising the
Company’s profile and targeting new investor
and sales desks; increasing liquidity through
extended quality sell coverage opportunities;
and increasing communication methods with
institutional shareholders, analysts and retail
shareholders, for example through site visits
to projects and increased video content.
Institutional investors and analysts:
The
Board engages directly with investors and
analysts across the financial reporting
calendar. The Chief Executive and Chief
Financial Officer regularly meet with existing
and prospective institutional shareholders and
make themselves available for conferences
and ad hoc meeting requests throughout the
financial year. Meetings were held with 59
institutional funds, including 21 shareholders
who together represented circa 36% of the
share register, as well as 38 potential investors,
with increased interest from non-holders
following the half-year results in March.
In addition, the management team attended
four investor conferences, where there was
an opportunity to meet UK and European
institutional funds. The Company’s brokers
are proactively targeting new holders and
organised non-holder investor meetings
outside of the results roadshows.
Key areas of discussion across all investor
engagement included Environment’s future
pipeline and ESG factors such as skills
availability, as well as macroeconomic
factors such as supply chain conditions,
Government spending and inflation.
Seven presentations were made to sales
teams at UK investment banks, an important
audience for ensuring the equity story is
clearly articulated to their clients.
Management has also continued to focus on
building strong regional investor relationships,
engaging with a third-party specialist advisory
business to schedule private client broker
roadshows, arranging meetings with 16 retail
investors in the year and providing further
research coverage.
Culture and Board effectiveness
Key to stakeholders:
Clients
Shareholders
People
Suppliers
Communities
Governance review continued
101
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Annual Report and Financial Statements 2026
Environment’s site visit for investors
and analysts:
Water has been an area of focus
for investors, particularly since the move to
AMP8. In response to investor feedback, a site
visit for shareholders and sell-side analysts
to key Hampshire water facilities and project
sites in May 2026 was held. Four of our top 15
holders attended, alongside all six covering
analysts. The visit provided an overview of
Galliford Try’s leading Environment business
and specifically how we are providing essential
design, build and capital maintenance services
for Southern Water, under its AMP7 and
AMP8 Frameworks.
Two site tours, facilitated by our Environment
leadership team and project management,
gave an insight into the engineering
complexities behind a major clean water
pipeline and how it interfaces with a major
water treatment works. Both schemes were
designed and built by Galliford Try, in joint
venture. At the water treatment works,
guests saw first-hand the equipment and
services our specialist Water Technologies
and Group businesses are providing on this
strategic water site, alongside infrastructure
development across the site.
Retail and prospective shareholders
:
The Board continued to run a targeted
outreach programme aimed at retail and small
private investors, who provide an important
source of liquidity for the shares. Using the
Proactive Investors platform, video interviews
with the Chief Financial Officer are posted
after each results announcement, supported
by digital content following all news updates.
The Executive Directors also present on
the Investor Meet Company platform after
each results announcement, giving retail
shareholders an opportunity to engage
directly with them.
In addition, the Board adopts a culture of
open communication with its shareholders
throughout the year, with the General
Counsel & Company Secretary ensuring
full responses are provided to appropriate
questions received.
The AGM provides a valuable opportunity
for the Board to meet shareholders in person,
answer their questions directly and provide
information regarding company performance,
strategy and policies. All shareholders are
welcome and encouraged to attend.
Board engagement
with our workforce
As a people-focused company, our employees
are one of our greatest assets and the Board
recognises the value that a progressive and
committed workforce brings to the business.
A combination of mechanisms, including the
Employee Forum, are used to engage with
the workforce and to ensure Board and staff
communications remain effective.
Employee Forum:
The Employee Forum gathers the views of
staff to strengthen the employee voice in
the boardroom, enabling the Board to hear
directly from employees on key matters,
while also gauging the impact of its employee-
related policies and processes. The Employee
Forum meets at least twice per year.
The Board has chosen one of the three
methods suggested under Provision 5 of
the Corporate Governance Code (the Code),
namely to have a designated non-executive
director to chair the Employee Forum and Sally
Boyle, our Non-executive Director and Chair
of the Remuneration Committee, undertakes
that role. Other senior leaders also attend,
including the General Counsel & Company
Secretary, HR Director and Director of
Group Communications.
Employee representatives from a range
of roles across the Company make up the
Employee Forum. Employee membership is
reviewed annually to ensure it remains fresh
and continues to appropriately represent the
workforce. The matters raised are discussed
at Executive and plc Board meetings and the
minutes of the meetings are included in the
Board packs.
During the financial year, the Forum had an
opportunity to listen to and discuss employees’
views on a range of themes, including:
Business performance:
Overview of business results
and performance.
Progress against the Group strategy in
market sectors.
Analyst views of business performance.
People updates:
Results of employee engagement survey.
Update and feedback on our People Pledge
– Grow Together.
Launch of new PDR process in Orbit.
Progress with equity, diversity and
inclusion plans.
Discussion of family-friendly policies.
Introduction of a new employee
benefits platform.
Outcomes:
Management considered employees’ views
and feedback and implemented some
key initiatives:
New rewards benefits platform
–
The introduction of a platform which
provides employees with increased access
to a range of discounts and streamlines
access to employee benefits, such as
additional annual leave purchases
and BUPA.
Board engagement with other stakeholders –
see Strategic report on pages 1 to 86.
Investor site visit – May 2026.
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Galliford Try
Board performance
review: 2026 update
and 2025 performance
evaluation
In line with the Code, the Board reviews its
own effectiveness and that of its Committees
each year. An externally facilitated review
takes place at least every third year, with the
last one in 2025. Overall, the 2026 evaluation
found the Board and its Committees were
operating effectively.
2026 Board effectiveness review
The 2026 Board evaluation was internally
facilitated by the Chair, supported by the
General Counsel & Company Secretary. It took
place during March and April 2026, with the
findings presented to the May Board meeting.
The process involved comprehensive
online questionnaires, which are specific
to each director’s Board and Committee
responsibilities. Questions were reviewed in
line with the Code and best practice, to ensure
continued relevance, and remained broadly
similar to previous evaluations to enable
comparison of results. Two new questions were
included this year, regarding cyber security and
acquisition strategy. The questionnaire also had
a commentary section, to allow the directors to
express opinions.
The questionnaires were sent securely to
each director for completion. The Chair and
General Counsel & Company Secretary then
collated and reviewed the responses.
Overall, the Board and its Committees
achieved high scores and the evaluation
confirmed the Committees are continuing
to operate effectively. The results of the
evaluation confirmed that the composition
of the Board is appropriate for the size and
structure of the business.
The 2025 Board performance review
As shown below, the Board has successfully addressed the actions arising from the
externally facilitated effectiveness review in 2025:
Recommendation
Actions taken
Composition:
Composition
and development of the
Board, both non-executive
and executive director roles,
to remain an area of focus.
The composition, skills and development of the Board
were kept under review during the year, to ensure the
Board remained fit for purpose for the future development
of the Group.
Succession:
Carefully
monitor the Group’s
management succession
planning.
The Nomination Committee undertook two six-monthly
‘deep dives’ to consider succession planning for the senior
management team. Two new members of the Executive
Board were appointed during the year, to enable an orderly
handover as current Executives retire.
Mentoring:
Further develop
the regular interaction
sessions between the Chair
and Chief Executive and the
Audit Committee Chair and
Chief Financial Officer.
The Chair and Chief Executive and the Audit Committee
Chair and Chief Financial Officer have regular
one-to-one meetings.
Stakeholders:
Consider
engaging with clients and
key suppliers through site
visits, where appropriate.
The Executive Directors met with over 300 key suppliers,
to further strengthen relations and to better understand
the challenges being faced in the industry.
KPIs:
Refresh and simplify
Board reporting together
with appropriate measures
to monitor performance.
The financial papers to the Board were reviewed and
updated, to include a revised summary schedule of KPIs,
a format change and new information.
Board topics:
Develop a
planner to include topics
identified by the Board.
A more detailed planner was developed to assist Board
agenda planning.
The Board has identified the
following areas to address
over the next financial year:
Recommendations arising from 2026
Board performance review
Board – Continue to focus on the
development of future strategy,
monitoring progress against
performance, to ensure strategic
targets to 2030 and beyond are met.
Nomination – Continue to monitor
Board composition and experience.
Consider inviting an experienced
director to speak to the Board to aid
the Board’s future development.
Audit – Continue to work and
support the internal audit team
with risk management generally.
Remuneration – Review and
consider the appropriateness
of the long-term incentive
plan performance metrics and
remuneration policy generally.
In line with best practice, the Chair
evaluates the performance of individual
directors on an annual basis. She holds
one-to-one meetings with each Board
member and the General Counsel
& Company Secretary, to discuss
their performance, contributions,
commitments and any training and
development needs.
The Chair’s performance is assessed
through the annual Board evaluation
and through a separate annual meeting
of the non-executive directors, led
by the Senior Independent Director
without the Chair present. In March
and April 2026, the Senior Independent
Director consulted all Board members
to discuss the Chair’s performance
and concluded that the Chair was
performing effectively.
Governance review continued
103
Governance
Annual Report and Financial Statements 2026
The Board confirms that during the financial year ended 30 June 2026, the Board has applied the Principles and complied with all the
Provisions of the 2024 Code. With regard to Provision 29 (the monitoring of the Company’s risk management and internal control framework
and carrying out an annual review of its effectiveness), the Company is continuing to apply the 2018 Code in this area and has a working party
in place to ensure compliance for the deadline in 2027 – see page 108 in the Annual Report.
The table below sets out where the required information can be found in this Annual Report.
Area of the code
Location
Board leadership and company purpose
Role of the Board
Pages 90-91
Purpose, values and strategy
Pages 4, 24-29, 97
Board oversight of culture
Page 100
Board decisions and outcomes
Pages 97-99
Stakeholder engagement, including
shareholders and the workforce
Pages 100-101
Workforce policies and practices
Page 101
Business model, opportunities and risks
Pages 5-13,
66-84, 109
Section 172 statement
Pages 86-87
Whistleblowing
Page 109
Division of responsibilities
Role of the Chair, Chief Executive
and Senior Independent Director
Page 91
Division of responsibilities between
the Board and management
Pages 90-91
Non-executive directors’ role
and time commitments
Pages 91, 106
Chair and non-executive
director independence
Pages 91, 106
Role of the Senior Independent Director
Page 91
Board and Committee meetings
Page 93
Role of the General Counsel
& Company Secretary
Page 91
Area of the code
Location
Composition, succession and evaluation
Board and Committee composition
Pages 94-95
Director appointments and
appointment process
Page 105
Succession planning
Page 105
Equity, diversity and inclusion
Page 89, 105
Annual Board and Committee evaluation
Pages 102,
105, 108
Role, composition and activities
of the Nomination Committee
Page 104
Director election and re-election
Page 88
Audit, risk and internal control
Internal and external audit
Page 108
Integrity of financial and narrative statements
Page 131
Fair, balanced and understandable assessment
Page 110
Risk management and internal
control framework
Page 109
Role, composition and activities
of the Audit Committee
Page 107
Directors’ responsibilities
Pages 91, 107, 131
Emerging and principal risks
Pages 66-84, 109
Effectiveness of the internal
control framework
Page 109
Viability statement and going concern
Pages 85, 130
Remuneration policy
Remuneration policy
Pages 112-119
Role, composition and activities of the
Remuneration Committee
Pages 111-112,
126
Workforce remuneration
Page 119
Non-executive director remuneration
Pages 116, 127
Remuneration consultant
Page 126
Share schemes, including post-employment
holding requirements
Pages 115,
117-123
Use of discretion, and malus and clawback
Pages 113,
116-117
Pension arrangements for executive directors
Page 115
Notice periods and terms of appointment
Pages 106, 118
UK Corporate Governance Code 2024 compliance
104
Galliford Try
N
Alison Wood
Nomination Committee Chair
December
Succession planning,
including reviewing:
–
Executive Board succession
and future organisational
design discussion;
–
senior leadership succession; and
–
employee talent pool review and
leadership succession.
Impact of Retain and Gain strategies
on the talent pipeline, including:
–
early careers resourcing;
–
digitised induction programme;
–
internal mobility programme; and
–
streamlining retention and attraction.
EDI strategies, including:
–
inclusive leadership and active
bystander workshops; and
–
increasing diversity in the
talent pipeline.
Learning and development
strategies, including:
–
delivery of research project
on barriers faced by women in
operational roles in construction;
–
resident coaching programme
roll-out; and
–
access to cross-company mentoring.
May
Succession planning
overview, including:
–
Executive Board succession
plan review;
–
leadership succession plan
refresh; and
–
key senior changes overview.
Retain and Gain update, including:
–
strengthening the talent pipeline; and
–
‘Growing Together’ strategy review.
Non-executive directors’
appointment review and Board
Committee membership.
Remuneration Committee terms of
reference review and approval.
Board and Committee internally
facilitated performance review.
Executive Board performance review.
Calendar of 2025/26 Committee activities and areas of focus
During the financial year, the Committee prioritised the areas set out below:
Nomination Committee report
2025
2026
Alison Wood
Nomination Committee Chair
Kevin Boyd
Senior Independent Director
Sally Boyle
Non-executive Director
Michael Topham
Non-executive Director
I am pleased to report on the Committee’s
activities during the year.
The Committee’s main focus was to oversee
a continuing and effective succession plan for
the Board and its senior leadership team, and
to review the future leadership development
and progress of a diverse pipeline within its
employee talent pool. This work has been
especially key given the changes to the
Executive Board membership discussed in
my review on page 88.
We have also continued to review the
Board’s composition, which has confirmed
that the Board has maintained the right
balance of skills, composition, experience
and knowledge required for the future
development of the company.
Committee composition and remit
Details of the Committee’s members can be
found on page 94. The majority of members
are independent non-executive directors,
complying with Provision 17 of the Code.
In line with best practice, the Committee
reviewed its terms of reference during the
year. These required only minor changes and
the current terms of reference can be found on
the Group’s website (www.gallifordtry.co.uk)
or by scanning the QR code below.
105
Governance
Annual Report and Financial Statements 2026
Review of the Board’s composition
There were no changes to the Board or its
Committees during the year. As at 30 June
2026, the Board comprised the Chair, three
independent non-executive directors, the
Chief Executive and the Chief Financial
Officer. All non-executive directors, including
the Chair, provide support and challenge to
the executive directors, leadership team
and senior managers as appropriate.
The Committee reviews the composition
of the Board and its Committees at least
annually, as part of the Board performance
review process. The Committee considered
the balance of the directors’ skills, experience,
knowledge and diversity of opinion, to
ensure each can continue to contribute to
the Group’s longer-term sustainable success
and that, overall, the Board remains suitable
for the Group’s structure and can effectively
deliver its strategy and objectives. The
Committee also considered the directors’ time
commitments, to ensure they can continue
to discharge their responsibilities effectively.
Given the scale and structure of the Group,
the Committee found the composition and
size of the Board and its Committees remains
appropriate for the forthcoming year.
Further details on the Board evaluation
and its outcomes can be found on page 102.
Director induction process
When a new director joins the Board, a
comprehensive induction programme is
undertaken, tailored to the individual’s skills,
knowledge and experience, and designed so
they can act effectively as soon as possible.
The programme includes independent
meetings with the Chair, Chief Executive,
General Counsel & Company Secretary, other
Board members, the Executive Board and
other senior leaders. Detailed information on
all key areas is provided including the terms of
reference of the Board and its committees, and
copies of Board packs to ensure information
regarding key areas and recent events is
passed on. The induction process is further
supported through business briefings, site
visits and introductions to external advisers.
The Board and its Committees’
performance review
The internally-facilitated performance review
concluded that the Nomination Committee
remains effective and met its performance
requirements for the financial year. The review
also resulted in a small number of actions for
the Committee to consider and undertake,
including that the Committee continue to
monitor Board composition and experience,
and that it consider inviting an experienced
director to speak to the Board to aid its future
development. Further details on the Board
evaluation and its outcomes can be found on
page 102.
Senior leadership
succession planning
Succession planning at senior levels below
the Board remained a key area of focus for
the Committee during the financial year.
The HR Director provides an update twice
a year to enable us to review current senior
positions, any key appointments or upcoming
retirements, progress with implementing
the Group’s succession plan and focus on
addressing any succession gaps by developing
internal candidates where possible. The
succession plan identifies timescales
for developing those coming forward,
through coaching, mentoring, training and
development opportunities. We also discussed
initiatives to support a diverse talent pool of
employees who demonstrate high potential
for promotion.
The Group’s Retain and Gain people strategy
was further developed this year, to ensure
employees are proactively engaged and
trained, to support their retention. Initiatives
to increase diversity across our business
included the Women in Construction research
project and the Early Careers programme,
including a scheme to mentor the next
generation, as noted in the People section
of our Strategic report on page 38.
Culture of equity, diversity
and inclusion
A key focus for the Committee is continuing
to ensure EDI is embedded in the Sustainable
Growth Strategy, to provide a supportive,
progressive and inclusive culture for all.
During the financial year, the Committee
monitored the development of the EDI
initiatives implemented last year. The
outcomes included Inclusive Leadership
workshops for all of our senior leaders,
business units and functional heads. Active
bystander workshops were also delivered to
all of the workforce and now form part of our
induction programme for new employees. A
session on ‘Navigating the multi-generational
workplace’ was also shared at the Leadership
conference, which helped managers to further
align to our development programmes.
This followed the creation of a dedicated
inclusion team within the HR function in 2023
and the Group’s continued work with Clear
Company, an EDI and culture consultancy,
which provides objective and constructive
feedback and guidance on our retention
and recruitment practices. As a result of this
progressive work we progressed from holding
a Bronze to a Silver accreditation in June 2026.
The Committee also considered an extensive
range of EDI working practices, to ensure
the Group can attract the best candidates
from as wide a section of the population as
possible. The practices include agile and hybrid
working, and supporting industry initiatives
such as the National Association of Women
in Construction and the Supplier Diversity
Group. The Group is also an accredited
Disability Confident employer.
106
Galliford Try
The results of the Women in Construction
research project, which focused on the
challenges women face in their careers,
including operational roles in construction,
have been reviewed and management are
considering ways to implement the findings.
Further information on the EDI initiatives
implemented can be found in the People
section commencing on page 38.
Statement on compliance of
Board and Committee equity,
diversity and inclusion
EDI is a key consideration when assessing the
composition of the Board and its Committees,
to ensure there are no barriers to attracting
the best candidates, developing a diverse
pipeline for succession and creating an
inclusive environment.
The Committee considers a broad definition of
diversity when setting policies and appointing
directors, which includes ethnicity, religion,
socio-economic background, gender, sexual
orientation, age, disability, partnership
status, culture, personality and professional
experience. The Committee continues to work
hard to ensure the Board is sufficiently diverse
to support its future strategic developments.
However, while the Board considers diversity
to be a key factor in its recruitment, the Board
prioritises appointments on merit, which
includes the candidate’s skills and experience.
The Board fully supports the Financial
Conduct Authority (FCA) targets for at
least 40% of Board members to be female,
for a woman to hold at least one of the
senior Board positions and for at least one
member of the Board to come from a minority
ethnic background. To collect the data for the
gender and ethnic diversity disclosures,
the Board and its senior management team
were each sent a series of questions to
complete, asking how they identify in each
of the designated categories under the
FCA Listing Rules disclosure.
The Board had complied with the two
gender-related targets from 2021 to 2024.
However, following the departure of Marisa
Cassoni in November 2024, the proportion
of female Board members fell to 33%.
The Board therefore confirms that as at
30 June 2026 (being the reference date
selected by the Board for the purposes of
this disclosure), it does not fully comply with
the UKLR 6.6.6R (9)(a) and the FTSE Women
Leaders Review, as it does not meet the target
for at least 40% of Board members to be
female. With a female Chair of the Board, the
company does comply with the requirement
that a woman must hold at least one of the
senior Board positions.
The company also does not presently meet
the UKLR 6.6.6R(9)(a)(iii) (formerly Listing
Rule 9.8.6R(9)) target to have at least one
individual on its Board from a minority ethnic
background and acknowledges that further
work is required to become more ethnically
diverse. In its most recent search for new
appointees to the Board, the Committee
expressly sought to identify candidates
from a minority ethnic background.
Directors’ time commitments
When making an appointment, the Board
takes into account other significant demands
on a director’s time, which must be disclosed
prior to appointment. Any additional external
appointments may then only be undertaken
with the Board’s written approval and if it is
considered that the director’s time and other
commitments allow.
Executive directors require the Board’s
approval to accept any external appointments
as a non-executive director and retain any
associated fees. These measures are in place
to ensure all directors have sufficient time
and capacity to focus on the work required
by the company.
Non-executive directors’ letters
of appointment
The roles and responsibilities of the
non-executive directors are specified in
their letters of appointment. The letters of
appointment are available for inspection on
request at the Group’s registered office and
will be available immediately prior to and
during the 2026 AGM.
Alison Wood
Nomination Committee Chair
Nomination Committee report continued
Board and Executive management gender identity table
As at 30 June 2026
Number
of Board
members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
Executive
management
1
Percentage
of Executive
management
1
Men
4
67
3
5
83
Women
2
33
1
1
17
1
Those included in the number in Executive management consist of those who make up the Executive Board but who are not plc Board members.
Board and Executive management ethnic identity table
White British or other White
(including minority-White groups)
6
100
4
6
100
1
Those included in the number in the Executive management column consist of those who make up the Executive Board but who are not plc Board members.
107
Governance
Annual Report and Financial Statements 2026
A
Kevin Boyd
Audit Committee Chair
September
Overview of contract
accounting judgements.
Committee review of
2025 full-year results,
including external
auditor presentation,
going concern review
and viability statement,
and approval of the
‘fair, balanced and
understandable’ process.
Review of draft 2025
annual results statement.
Review of draft external
audit opinion.
Review of internal audit
and whistleblowing
reports.
February
Overview of contract
accounting judgements.
Committee review of
2026 half-year results,
including external
auditor presentation,
going concern review
and approval of the
‘fair, balanced and
understandable’ process.
Review of draft half-year
2026 results statement.
Review of the Tax Strategy.
Provision 29 review.
Review of internal
audit and whistleblowing
reports.
May
Review and approval of
the internal audit report,
internal audit charter
and internal audit plan
2026/27.
Approval of the external
audit plan and proposed
audit fees.
Anti-money laundering
compliance update.
Provision 29 progress
review report.
Review of internal
audit and whistleblowing
reports.
Review of terms of
reference and non-audit
fee policy.
Calendar of 2025/26 Committee activities and areas of focus
Audit Committee report
2025
2026
2026
Kevin Boyd
Audit Committee Chair
Michael Topham
Non-executive Director
Sally Boyle
Non-executive Director
As Chair of the Audit Committee and on
behalf of the Board, I am pleased to present
the Audit Committee Report for the financial
year ended 30 June 2026.
Composition of the Committee
In accordance with the Code, all members
of the Audit Committee are independent
non-executive directors and have been
appointed based on their financial and
commercial expertise. Michael Topham and
I are chartered accountants and have
previously held chief financial officer roles
in listed companies, as well as various
other senior financial roles, and Sally
Boyle has significant legal and commercial
experience, both internationally and in
the UK. This combined skill, expertise and
experience ensures there is the required
level of competence among Audit Committee
members to meet their duties. Further
information on the skills, expertise and
experience of the Committee’s members
can be found on page 94. The Committee
continues to ensure each member has
sufficient knowledge and access to training
to stay up to date and contribute effectively
to the Committee’s work.
In addition to the Committee members, we
regularly invite the Chair of the Board, the
Chief Executive, the Chief Financial Officer,
the Director of Risk and Internal Audit, and
the Group Financial Controller to attend our
meetings. The General Counsel & Company
Secretary, or his delegate, acts as secretary
to the Committee and provides support as
required. The external auditor also attends
Committee meetings by invitation.
Remit and activities
The Committee held three planned
meetings during the financial year, which
it deems appropriate to its role and
responsibilities. The Committee’s delegated
authorities and calendar of prioritised work
remain in line with previous years and with
the Code’s requirements.
The Committee’s key responsibilities are:
delegated responsibility from the Board
for financial reporting;
monitoring external audit, internal audit,
risk and controls; and
reviewing instances of whistleblowing and
the Group’s procedures for detecting fraud.
The Committee also continues to meet with
the Director of Risk and Internal Audit and
the external audit teams without Executive
management present, to discuss any matters
which they may wish to raise.
In line with best practice, the Committee
reviewed and updated its terms of reference
during the financial year. The terms of
reference were refreshed to reflect the
requirements of Provision 29 of the Code,
but otherwise required only minor changes.
The current terms of reference can be found
on the Group’s website (www.gallifordtry.co.uk)
or by scanning the QR code below.
108
Galliford Try
Committee evaluation
The Committee’s operations were reviewed
as part of the internally facilitated Board
evaluation process, which concluded that the
Committee continues to operate effectively
and fulfils its remit well. The review resulted
in one action, namely to continue to work
and support the internal audit team with
risk management generally.
Please see page 102 for further information
on the Board and its Committees’
performance review.
Provision 29 preparation
In May 2024, the Committee reviewed
a report on the requirements under the
revised Provision 29 of the UK Corporate
Governance Code 2024 and agreed a plan
to achieve compliance. A working group was
tasked with scoping, project planning and
testing the operational effectiveness of our
internal controls, stress testing for resilience
and, where necessary, strengthening the
processes. The working group is chaired by
the Chief Financial Officer and consists of
senior finance and non-finance members.
It meets regularly to ensure focus and progress
against the timetable and actively engages
with external advisers.
The working group is continuing to make
good progress towards compliance for the
financial period ending 30 June 2027.
Key achievements to date include:
Identifying and briefing control owners.
Agreeing all material and key controls.
Recruiting an internal control team.
Receiving regular updates from control
owners regarding control readiness.
Introducing finance control
self-assessments.
Commencing ‘dry run’ testing, which is
now well advanced.
Work will continue throughout 2026/27,
with testing in all key control areas and
management regularly reviewing progress.
The Audit Committee will continue to
monitor the effectiveness of the working
group’s activities.
External audit
The company’s external auditor is BDO LLP
(BDO). The audit partner is Peter Latham, who
has been a partner at BDO for three years.
The appointment of BDO followed a tender
process in 2018, making this BDO’s seventh
year as auditor. A mandatory re-tender is
therefore required before the 30 June 2030
year-end audit.
During the financial year, the Committee
formally met with the external auditor as
part of the interim review, audit planning and
year-end audit findings. During the planning
phase of the audit, the Committee gave its
views on various elements including the
materiality, key risks and the associated audit
approach to those risks. The Committee meets
privately with the auditor, and the Chair of the
Committee speaks regularly with the audit
partner throughout the financial year.
Each year, the Committee assesses the
independence, objectivity and effectiveness
of the external audit process, which includes
discussing feedback from the members of
the Committee and key senior management,
and information from regulatory sources. The
Committee is satisfied that the external audit
relationship is effective and that BDO remains
sufficiently independent, in accordance with
the relevant professional ethical standards.
A resolution is to be proposed at the
forthcoming AGM to reappoint BDO
as auditor, with its terms of engagement
and remuneration to be determined by
the Committee.
Non-audit services
The Group has policies and review
mechanisms governing the provision of
material non-audit services, to safeguard the
objectivity and independence of the external
auditor. These remained in force throughout
the financial year. The policy specifies:
the types of non-audit service for which
use of the external auditor is pre-approved,
as a matter of policy;
the services for which specific approval
from the Committee is required before
the auditor is contracted; and
the services from which the external
auditor is excluded.
In respect of pre-approved services, individual
and aggregated services are limited to
£100,000 in any year. Furthermore, if the
total value of non-audit service engagements
exceeds 50% of the total Group audit fee for
the previous financial year, the Committee
must approve any subsequent non-audit-
related service engagements in excess of
£50,000. Other restrictions are also in place
that align to the ethical standards, including
limiting non-audit related fees paid to the
external auditor to no more than 70% of the
average of the fees paid to the audit firm in the
last three consecutive financial years.
During the financial year, and in line with
previous years, BDO provided a standard
non-audit-related assurance service for the
half-year review, with the fees detailed in
note 6 to the financial statements. BDO did not
provide any other non-audit services during
the period and the Committee is satisfied
that the non-audit-related assurance service
provided does not impair BDO’s independence
and objectivity.
Internal audit
Each year, the Committee monitors and
reviews the effectiveness of the internal
audit function, approves the scope of the
internal audit plan for the following year,
assesses the adequacy of the team’s resources
and oversees, and challenges as necessary,
management’s response to the findings of
internal audits.
During the financial year, the Internal
Audit team continued to deliver its agreed
internal audit plan and provided commercial
and risk management support across the
Group, at the request of the Audit Committee,
the Executive Board and senior management.
Results from the biannual commercial
health checks, based on a sample of
10-12 contracts from across the business,
are reported to the Committee. Projects
included in the commercial health checks
provide a representative mix of business
units, project values, current commercial
performance and stage of completion.
Overall, the Internal Audit function operated
effectively and contributed strongly to the
Group’s governance framework.
Audit Committee report continued
109
Governance
Annual Report and Financial Statements 2026
Risk management
The Executive Risk Committee reports
to the Executive Board and the plc Board.
It reviews the Group’s risks, assesses and
documents emerging risk themes that could
have a significant impact on our business,
and considers climate-related risks and
opportunities, in support of our Task Force
on Climate-related Financial Disclosures
(TCFD) reporting.
In line with Provision 29 of the Code, the
Board undertook an annual assessment of
the appropriateness and effectiveness of
the Group’s risk management and internal
control systems prior to approving the
full-year results. This review covers material
controls, including financial, operational
and compliance controls.
Following this review, the Committee concluded
that the system of risk management and internal
control was effective and appropriate for the
Group’s size and complexity.
For further information on risk management,
please see pages 66 to 71.
Internal control framework
The day-to-day management of our principal
risks is supported by an internal control
framework which is embedded in our
management and operational processes.
The most significant elements of the Group’s
internal control framework have remained
consistent with the previous financial year
and include the following:
Organisational structure:
Each business
unit is led by a managing director and
management team, providing a clear
hierarchy and accountabilities.
Code of Conduct:
The Group promotes
a culture of acting ethically and with
demonstrable integrity. Our ethical
standards and approach are set out in
‘Doing the Right Thing’, our Code of
Conduct. It is supported by training
modules, and its themes and importance
are communicated to new starters as
part of their induction.
Contractual review and commitments:
The Group has policies and procedures for
entering into contracts that apply across
its business units and operations and
are enforced through the Group’s legal
authorities matrix.
Operational activity:
Site operations are
performed in line with established business
management systems and processes that
incorporate all operational activities,
including health, safety and environmental
(HSE) procedures, regular performance
monitoring, quality management and
external accountability to stakeholders.
Financial planning framework:
A detailed
annual budget is prepared for each financial
year, which is approved by the Board.
This is supplemented by the Group’s
strategy to 2030.
Operational and financial reporting:
An exacting profit and cash reporting
and forecasting regime is in place across
the Group. This emphasises cash flow,
income and balance sheet reporting,
as well as HSE matters within monthly
operational reports.
Internal audit:
The Internal Audit team
develops and delivers an annual programme
of internal audits, which includes business
unit key control reviews, audits of Group
processes and other specific risk areas, and
reviews of significant change programmes.
Assurance provided by non-audit
functions:
A number of other Group
functions provide assurance in areas
including, but not limited to, HSE, legal
contract reviews and compliance, and
construction industry regulation.
Significant issues and other
accounting judgements
The Committee reviewed the integrity of
the Group’s financial statements and all
formal announcements relating to the
Group’s financial performance. This included
an assessment of each critical accounting
policy, as set out in note 1 to the financial
statements, as well as review and debate
on the following areas of significance:
Contract revenue and provisions:
In conjunction with the annual audit,
the Committee continued to review
key judgements in respect of revenue
recognition and contract provisions in
relation to certain significant long-term
construction contracts.
Contract rectification provision:
The Committee considered whether
a material rectification provision as
disclosed in the critical accounting
estimates and judgements in the financial
statements appropriately met the criteria
for a provision and was appropriately
estimated and disclosed. The Committee
also considered the levels of other
required provisions and associated
disclosures around contingent liabilities.
Going concern and viability:
The Committee considered key
commercial, economic and other risks
to the Group’s going concern status and
longer-term viability and reported to the
Board on its findings.
Significant transactions:
The Committee
has given particular consideration to
the accounting for and presentation
of individually significant transactions,
and areas where adjusted performance
measures are required to ensure that the
financial statements give a fair, balanced
and understandable view of the Group’s
performance, and that statutory measures
are equally clear and prominent.
PPP portfolio valuation:
The Committee
reviewed the discount rate used to
determine the fair value of each of the
Group’s PPP investments.
Whistleblowing
The Group has an independent and
anonymous whistleblowing procedure,
allowing any employee or third party to
confidentially raise concerns. The Committee
reviewed any whistleblowing reports at
its meetings during the year, ensuring that
the whistleblowing procedure remains
effective and that any matters reported are
appropriately investigated and resolved.
110
Galliford Try
Audit Committee report continued
Fair, balanced and understandable consideration
As requested by the Board and in line with its terms of reference, the Committee has
reviewed the 2026 Annual Report and financial statements and considered whether,
in terms of the form and content of the strategic, governance and financial information
taken as a whole, it is fair, balanced and understandable and enables shareholders
to assess the Company’s position and performance, business model and strategy.
The process was as follows:
External legal advisers review the Annual Report Governance section
draft to ensure compliance.
Management considers key judgements and significant changes,
and how such matters should be disclosed.
The General Counsel & Company Secretary and finance team ensure
that the balance of information provided is consistent with the balance
of discussions at the plc Board.
Drafts of the Annual Report are provided to the Committee members
in advance, for consideration and review.
Management prepares papers for the Committee, setting out
key judgements in preparing the Annual Report and how such
matters are disclosed.
The Committee, once satisfied the requirements have been met,
recommends that the fair, balanced and understandable review
process is approved at its September meeting.
The Board considers the Committee’s recommendation that the
fair, balanced and understandable statement be applied to the
2026 Annual Report and financial statements.
The Board approved the Committee’s recommendation that the fair, balanced and
understandable statement could be applied to the 2026 Annual Report and financial
statements, and this can be found in the Directors’ report on pages 128 to 130.
Kevin Boyd
Audit Committee Chair
111
Governance
Annual Report and Financial Statements 2026
R
Sally Boyle
Remuneration Committee Chair
July
Review of recent market
developments in executive
remuneration.
Review of LTIP metrics and
market practice trends.
Review of LTIP 2025
grant of awards.
Update on 2024/25
annual bonus forecast,
performance and
proposed 2025/26
annual bonus scheme.
Consideration of
bonus discretion and
Committee guidance.
Long Term Bonus Plan
(for roles below Executive
Board level) and interim
award 2025 proposals.
Review of draft
2025 Directors’
Remuneration report.
September
Consideration of 2025
LTIP and Annual Bonus
Plan awards.
Review of 2024/25 Long
Term Bonus Plan awards.
Review of employee
annual bonus performance
to 30 June 2025.
Approval of the
2025 Directors’
Remuneration report.
Review of Employee
Share Trust purchase
programme.
February
Remuneration and other
considerations for the
wider workforce.
Remuneration
governance updates.
2026 salary and
benefits review
(effective 1 April 2026).
Proposed 2026
Policy review.
LTIP review (including
TSR metrics).
Review of terms
of reference.
Employee Share
Trust update.
Calendar of 2025/26 Committee activities and areas of focus
Remuneration Committee report
2025
2025
2026
Sally Boyle
Remuneration Committee Chair
Alison Wood
Board Chair
Kevin Boyd
Senior Independent Director
Michael Topham
Non-executive Director
On behalf of the Board, I am pleased to present
the Directors’ Remuneration report for the
financial year ended 30 June 2026.
The Remuneration report is divided into three
parts: the Annual Statement; the Directors’
Remuneration Policy; and the Annual report
on remuneration, which sets out how the
Remuneration Policy was applied during the
financial year.
Remuneration and performance
in 2025/26
Through operational efficiency and expertise,
financial discipline, focused risk management
and committed employees, the Group has
continued to deliver a strong performance to
all its stakeholders. In line with the 2025/26
targets of the Annual Bonus Plan (ABP),
the Committee has approved payments for
the financial year at 96.4% of maximum.
For the Long Term Incentive Plan (LTIP),
the Committee has approved the vesting
of awards granted to the Chief Executive
under the LTIP in September 2023. Based
on performance up to the financial year,
100% of the September 2023 LTIP will vest
on 25 September 2026, three years after
grant. All awards are made in accordance
with the Remuneration Policy approved by
shareholders at the company’s AGM on
Friday 10 November 2023.
During the year management considered
a range of factors when determining the
average annual salary award to employees
including the economy, inflation, salary trends
and sector benchmarking, general labour
supply and business affordability, and an
average annual salary award budget of
3.25% was agreed.
The Committee has continued to apply the
recommendations of the UK Corporate
Governance Code and decisions relating
to remuneration matters are set out in
the relevant sections of this report. The
Committee confirms the changes brought in
by the 2024 UK Corporate Governance Code
relating to remuneration were implemented
during 2025.
This report has been prepared in accordance
with the relevant provisions of the Companies
Act 2006, The Companies (Directors’
Remuneration Policy and Directors’
Remuneration Report) Regulations 2025,
the Large and Medium-sized Companies and
Groups (Accounts and Reports) (Amendment)
Regulations 2013 and the Financial Conduct
Authority’s Listing Rules.
112
Galliford Try
Remuneration Policy Review
The Committee reviewed the Group’s
existing policy and the formulation of the
2026 Remuneration Policy. The review
took into account market and corporate
governance best practices and feedback from
shareholders and other key stakeholders.
The Committee considers the existing policy
and structure, comprising base salary, pension,
benefits, annual bonus and LTIP, to remain
appropriate and, as previously designed, it
is already aligned to recent developments
with best market practice, as are the current
incentive opportunities. The Committee also
took into account that the existing policy was
approved by 99.3% of shareholders who voted
at the 2023 AGM.
While this is not strictly a change to Policy,
which allows for flexibility in this area, the
Committee did determine to adjust the
performance metrics applicable to the LTIP
from 2026 onwards. Specifically, the current
month-end cash as a percentage of turnover
metric will be replaced with a measure linked
to relative total shareholder return (TSR).
The addition of the TSR metric represents
the Committee’s view that it is appropriate
to include a measure that directly rewards
against the shareholder experience; the
Committee also noted that the Group’s
immediate peers include relative TSR in their
LTIP plans. Further details of the specific
TSR metric may be found on page 113.
The Remuneration Policy will be subject to a
binding vote at the AGM on 12 November 2026.
The full policy is set out on pages 113 to 119.
Application of Remuneration Policy
in 2026/27
The key elements of how the Remuneration
Policy is being applied are set out below:
Base salaries:
The Committee continues
to monitor and review pay and conditions
across the Group and the external market.
Taking into account cost of living and
external market conditions, an overall
salary budget of 3.25% was approved for
annual staff salary increases across the
Group from 1 April 2026. Bill Hocking’s
salary was increased by 2.80% and Kris
Hampson’s salary was increased by 3.19%,
both of which are below the budgeted
average salary increase awarded across
the workforce.
Annual Bonus Plan (ABP):
The scorecard
for the Annual Bonus Plan for 2026/27
is in line with the 2025/26 scorecard and
includes updated ESG metrics. All bonus
awards will be subject to the Committee’s
discretion, taking in to account health and
safety performance, compliance with the
Prompt Payment Code and the underlying
performance of the Group. The 2026/27
targets will be disclosed as usual in the
2027 Annual Report.
LTIP:
As noted above, the Committee
agreed a change to the LTIP performance
metrics. Further details may be found on
page 113.
In addition to the vote on the Remuneration
Policy, there will be an advisory vote at the
AGM in November 2026 on the Directors’
Remuneration report.
Sally Boyle
Remuneration Committee Chair
17 September 2026
Remuneration Committee report continued
113
Governance
Annual Report and Financial Statements 2026
The following is a summary
of the Executive Directors’
remuneration in 2025/26
and proposed application
of the approved Remuneration
Policy (Policy).
Remuneration Policy and framework
Our approach to remuneration and our
Policy are set out on pages 114 to 119 of this
report. The elements of executive directors’
remuneration are:
Fixed element:
Comprises base salary,
taxable benefits (such as a company car or
cash equivalent allowance, private medical
and permanent health insurance, and life
assurance), and contribution to a pension.
Variable element:
Annual bonus, which
incentivises and rewards the achievement
of stretching annual targets (both financial
and non-financial) that support the Group’s
annual and strategic objectives, with two
thirds of any bonus earned in excess of
50% of salary required to be deferred into
restricted shares.
Long-term element:
The LTIP incentivises
the achievement of sustained long-term
financial and operational performance over
a three-year performance period. Any share
awards that vest are subject to a two-year
holding period.
For information on the executive directors’
actual remuneration in 2025/26 see table
on page 120.
Variable pay outcomes
Annual bonus payments for 2025/26
The annual bonus payments made to the Executive Directors are summarised in the table below.
Director
Maximum
bonus
(% of salary)
1
Achieved
bonus
(% of salary)
1
Cash
£000
Shares
£000
Bill Hocking
120%
115.7%
385
234
Kris Hampson
100%
96.4%
257
121
1
See page 121 for further information.
LTIP outcomes
Vestings relating to 2023 to 2026 performance
The LTIP awards granted to Bill Hocking on 25 September 2023 were based on 75% underlying EPS performance and 25% on average month-end
cash as a percentage of annual turnover in the final year to 30 June 2026. The September 2026 vesting is summarised below:
Stretch EPS
condition
Actual EPS
performance
Stretch
average
month-end
cash
1
condition
Actual
average
month-
end cash
1
performance
% Vesting
Value of
award vesting
£000
2
Bill Hocking
34.5p
41.7p
10%
11.2%
100%
1,646
1
As a percentage of annual turnover.
2
Estimated based on the average share price over the three months to 30 June 2026.
Application of the 2026 Policy in 2026/27
Element
Bill Hocking
Kris Hampson
Base salary
£550,000
£404,500
Pension
8%
8%
ABP
Maximum bonus opportunity of 120% of salary for the Chief Executive and 100% of salary for other executive directors.
LTIP
Award of up to 150% of salary.
Performance targets
Adjusted EPS 66.7%: The target adjusted EPS to be achieved in the final year of the performance period (1 July 2028 to
30 June 2029) is 63.7p. Achieving 57.3p would generate 25% vesting and 70.0p would generate 100% vesting on
a straight-line basis.
Relative total shareholder return (33.3%). Measured relative to the constituents of the FTSE 250 excluding investment
trusts, the financial services sector and natural resources companies. Achieving median performance would generate
25% vesting and performance at or above upper quartile would generate 100% vesting on a straight-line basis.
Holding period
Any vested LTIP shares must be held for two years after vesting (after payment of tax).
Malus and clawback
Malus and clawback apply in circumstances of error, material misstatement, misconduct, reputational damage or
corporate failure as a result of poor risk management.
Remuneration at a glance
114
Galliford Try
The main objectives of the Group’s
Remuneration Policy are to:
ensure that remuneration packages
are appropriately positioned and structured
to promote a Sustainable Growth Strategy
for all stakeholders and which takes
into account pay and conditions and
market practice;
engender an inclusive and progressive
culture, which enables all individuals to
reach their potential and positions
Galliford Try as an employer of choice;
deliver a significant proportion of total
executive pay through performance-related
remuneration and in shares; and
ensure the achievement of strong
and sustained long-term financial and
operational performance, with no reward
for failure.
The increased importance of ESG and
climate-related factors to the strategy of the
Group and all its stakeholders means the
proposed 2026 Policy continues to be shaped
by environmental, social and governance
factors, and includes the ESG and climate-
related performance targets which were
added to the Executive team’s ABP from 1 July
2022 to encourage responsible ESG behaviour.
Furthermore, recognising that even
well-designed incentives cannot cater for
all eventualities, should any unforeseen
issues arise that would make any payments
unjustifiable, the Committee may use its
discretion to address such outcomes by
adjusting payments. Any use of such discretion
would be fully disclosed in the Annual report
on remuneration.
The Committee operates clawback provisions
within both the ABP and LTIP, which facilitate
the retrieval of payments made to directors
and executive management in circumstances
of error, material misstatement, misconduct,
and for awards from 2025/26 in respect of
reputational damage or corporate failure
as a result of poor risk management.
The 2026 Policy
As part of the 2026 Policy review, the
Committee consulted with our largest
shareholders and proxy voting agencies.
Strategy, culture and pay philosophy across
the Group, best practice and governance
developments were all taken into account
when formulating the proposed changes to
the current policy. After a comprehensive
and full review, and taking into account
changes implemented during the last three
years and the strong support (99.3%) for the
policy at the 2023 AGM, it was agreed there
were no key changes to the 2026 Policy to be
implemented. A summary of the 2026 Policy
is outlined below.
The current policy was subject to a binding
shareholder vote at the 2023 AGM of Galliford
Try Holdings plc and was approved by 99.3%
of shareholders who voted. The three-year life
of that policy will expire at the 2026 AGM and
we are required to seek binding shareholder
approval for a new Policy.
How the Remuneration Policy aligns with the UK Corporate Governance Code
The Committee has continued to apply the recommendations of the UK Corporate Governance Code and decisions relating to remuneration
matters are set out in the relevant sections of this report. The Committee confirms the changes brought in by the 2024 UK Corporate Governance
Code relating to remuneration were implemented during 2025 and further embedded in 2026.
The proposed 2026 Policy is detailed in the table below and contains no material changes to the Policy agreed in 2023.
Component and
link to strategy
Operation
Framework to assess performance and
maximum opportunity
2026 policy
changes
Salary
To provide a
competitive and
appropriate level
of basic fixed pay,
sufficient to retain,
motivate and attract
executive directors
of high calibre, able to
develop and execute
the Group’s strategy.
Normally reviewed annually, with any changes
typically taking effect from 1 April.
The Committee sets salaries at competitive
rates, taking into consideration pay and
employment conditions across the Group, the
economic environment, the responsibilities and
accountabilities of each role, the experience
of each individual, their marketability and the
Group’s key dependencies on the individual.
Reference is also made to salary levels
among relevant construction peers and
other companies of broadly similar size
and complexity.
The Committee reserves the right to reduce
salary levels (and has done so in the past)
if the circumstances warrant it.
When reviewing salaries, both Group and individual
performance are considered. While there is no
prescribed maximum, the Committee’s policy on salary
increases for executive directors is for increases to be
broadly in line with the average across the workforce,
unless there is a promotion or material change in role
or business circumstances, in which case increases may
be higher.
The Committee may also award higher increases to
new appointees to the Board where the salary on
appointment was initially set below market, subject
to strong performance and affordability.
Salaries for the year ahead are set out in the
Annual report on remuneration.
No change
Benefits
To provide
cost-effective and
market-competitive
benefits.
Benefits provided to executive directors may
include entitlements to a company car or cash
equivalent allowance, private medical and
permanent health insurance, and life assurance.
The benefits provided may be subject to
minor amendment from time to time by the
Committee and Executive Directors may
be allowed to participate in any new benefit
plan introduced for the wider workforce on
equivalent terms.
Where a director is asked to relocate, relocation
allowances or similar benefits may be provided.
Executives may also be reimbursed for any
reasonable expenses (and any income tax
payable thereon) incurred in performance of
their duties.
The cost of benefit provision varies from year to year,
depending on the cost to the Group, and there is no
prescribed maximum limit.
Benefit costs are monitored and controlled to ensure
they remain appropriate and represent a small element
of total remuneration costs.
No change
Directors’ Remuneration Policy report
115
Governance
Annual Report and Financial Statements 2026
Component and
link to strategy
Operation
Framework to assess performance and
maximum opportunity
2026 policy
changes
Pension
To provide a
contribution
towards retirement.
The executive directors may each receive
contributions to a money purchase pension
scheme or salary supplement in lieu
of company pension contributions
(or a combination of both).
The rate offered of 8% for the Chief Executive and
the Chief Financial Officer is in line with that offered
across the employee population. Any new executive
director would also receive a pension contribution in
line with the wider workforce.
No change
Annual Bonus Plan
Rewards the
achievement of
stretching annual
goals that support the
Group’s annual and
strategic objectives.
Compulsory deferral
of part of the bonus
into shares provides
alignment with
shareholders.
Executive directors and selected senior
management, subject to invitation and
approval by the Committee, may participate
in the Annual Bonus Plan.
For executive directors, two thirds of any
bonus earned in excess of 50% of salary is
required to be deferred into restricted shares.
Although beneficially held by the participants,
the restricted shares are legally retained by
the trustee of the Galliford Try Employee
Benefit Trust (EBT) for three years, and
are subject to forfeiture provisions, unless
otherwise agreed by the Committee. Subject
to continued employment, the restricted
shares are legally transferred to participants
on the third anniversary of allocation.
The Committee operates recovery and
withholding provisions within the Annual
Bonus Plan, which facilitate the retrieval of
payments made to directors and executive
management in circumstances of error,
material misstatement, misconduct,
reputational damage or corporate failure
as a result of poor risk management.
The maximum opportunity is 120% of salary for
the Chief Executive and 100% of salary for other
executive directors.
No more than half of the maximum opportunity is
earned for target performance. For financial elements,
bonuses normally start to be earned from 0% of salary
for achieving threshold performance. The Committee
may apply a higher threshold where this is appropriate
given the nature of particular performance objectives,
but this will not exceed 25% of the maximum bonus.
Vesting is dependent on achieving specified financial
(no less than 50% of the bonus) and strategic or
non-financial targets.
The Committee may, at its discretion, acting fairly and
reasonably, adjust bonus outcomes if it considers the
payout is inconsistent with the company’s underlying
performance during the year, taking into account
factors including safety and ESG.
The 2025/26 bonus target incorporates a 12% target
for ESG factors that includes: people, carbon emission,
community and supply chain metrics. For FY26, the
ESG metrics compare people, carbon, community
and have a Prompt Payment Code underpin. For the
avoidance of doubt, this can be 0% and bonuses may
not exceed the maximum levels detailed above.
Any use of such discretion would be subject to
shareholder consultation if materially to the benefit
of the executive management and detailed in the
Annual report on remuneration.
Minor change
to performance
measures
Long Term Incentive
Plan (LTIP)
Rewards the
achievement
of sustained
long-term financial
and operational
performance and is
therefore aligned with
the delivery of value
to shareholders.
Facilitates share
ownership to provide
further alignment
with shareholders.
Making of annual
awards aids retention.
Executive directors may be granted awards
under the rules of the LTIP approved by
shareholders on 29 November 2019 and
adopted by the company in January 2020.
The LTIP provides for awards of free shares
in the form of nil or nominal cost options or
conditional awards that vest dependent on
the achievement of performance conditions
and continued service.
Any share awards that vest (after allowing for
sales to cover any tax liabilities) are subject
to a two-year holding period, during which
time they cannot be sold (unless exceptional
circumstances apply).
The LTIP provides clawback and malus powers
to the Committee, which can facilitate the
retrieval of payments made to directors and
executive management in circumstances of
error, material misstatement, misconduct,
reputational damage or corporate failure
as a result of poor risk management.
Dividends may accrue on LTIP awards over
the vesting and holding periods and, subject
to the discretion of the Committee, be paid out
either as cash or shares on vesting, in respect
of the number of shares that have vested.
Performance metrics for FY26 will comprise
66.7% based on earnings per share and 33.3%
based on relative total shareholder return.
The Committee may vary the measures and targets
that are included in the plan and the weightings
between them from cycle to cycle.
Measures may be related to financial performance,
share price performance and ESG. Any material
changes to the choice of measures would be subject to
consultation with the company’s major shareholders.
The Committee may, at its discretion, acting fairly
and reasonably, adjust LTIP vesting outcomes if it
considers the payout is inconsistent with the company’s
underlying performance over the performance period.
For the avoidance of doubt, this can be to zero and
vesting may not exceed the maximum levels detailed
below. Any use of such discretion would be subject to
shareholder consultation if materially to the benefit of
the executive management and detailed in the Annual
report on remuneration.
Under the LTIP rules, the maximum value that may be
granted in any financial year to any individual is 150%
of salary.
Up to 25% of the relevant part of the award may vest
for achieving threshold performance.
Change to
performance
measures
All-employee schemes
To encourage
employee share
participation.
The Group may from time to time operate
tax-approved or other share plans (such as
an approved Save As You Earn (SAYE) scheme
for the benefit of all staff) for which executive
directors could be eligible on the same terms
as other staff.
Schemes are generally subject to the limits set
by HM Revenue & Customs (HMRC) and may be
further limited at the Committee’s discretion.
No change
116
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Directors’ Remuneration Policy report continued
Notes to the Policy table
Performance measure selection and
approach to target setting
Measures used under the ABP and LTIP
are reviewed annually to reflect the Group’s
main short- and long-term objectives and
reflect both financial and non-financial
priorities, as appropriate.
Targets applying to the ABP and LTIP are
also reviewed annually, based on a number
of internal and external reference points.
Performance targets are set to be stretching
but achievable, with regard to the particular
strategic priorities and economic environment
in a given year. Under the bonus, target
performance typically requires meaningful
improvement on the previous year’s outturn,
and, for financial measures, targets are
typically in line with market consensus.
Discretions retained by the Committee in
operating incentive plans
The Committee may make minor amendments
to the Policy for regulatory, exchange control,
tax or administrative purposes or to take
account of a change in legislation without
obtaining shareholder approval.
The Committee will operate the ABP and
LTIP according to their respective rules, the
Policy set out above and in accordance with
the Listing Rules and HMRC rules where
relevant. The Committee, consistent with
market practice, retains discretion over a
number of areas relating to the operation and
administration of these plans, subject to any
limitations set out in the rules of the applicable
plan or, in the case of executive directors,
in the Policy.
These include (but are not limited to)
the following:
who participates in the plans;
the timing of grant of an award and/or
a payment;
the size of an award and/or a payment;
the choice of (and adjustment of)
performance measures, weightings
and targets for each incentive plan in
accordance with the Policy set out above
and the rules of each plan;
discretion relating to the measurement of
performance in the event of a change of
control or reconstruction;
determination of a good leaver (in addition
to any specified categories) for incentive
plan purposes, based on the rules of each
plan and the appropriate treatment under
the plan rules; and
adjustments required in certain
circumstances (rights issues, corporate
restructuring, on a change of control and
special dividends).
Any use of the above discretions would, where
relevant, be explained in the Annual report on
remuneration and may, as appropriate, be the
subject of consultation with the company’s
major shareholders.
Component and
link to strategy
Operation
Framework to assess performance
and maximum opportunity
2026 policy
changes
Shareholding
guidelines
To ensure the
interests of the
executive directors
are aligned to those
of shareholders.
The Group’s share retention policy requires executive directors
to build and maintain a shareholding equivalent in value to at least
200% of basic salary.
Executive directors are required to retain a minimum of half the
after tax number of vested share awards (deferred bonus and LTIP)
until the guideline is met.
On leaving the company, executive directors are required to retain
the lesser of their in-post shareholding guideline and their actual
shareholding on departure for two years. This requirement applies
to shares earned from share awards granted to executive directors
following the 2020 AGM.
The Committee will assess the guideline annually and take into
account vesting levels and personal circumstances when assessing
progress against the guideline.
No change
Non-executive fees
To provide a
competitive and
appropriate level
of fees sufficient to
attract, motivate
and retain a Chair
and non-executive
directors of
high calibre.
The Chair is paid a single fixed fee. The remaining non-executive
directors are paid a basic fee.
Non-executive directors chairing a Board Committee, the Senior
Independent Director and the Chair of the Employee Forum are
paid an additional fee to reflect their extra responsibilities.
The level of these fees is reviewed periodically by the Committee
and Chief Executive for the Chair, and by the Chair and executive
directors for the non-executive directors.
Fees are set taking into consideration market levels in comparably
sized FTSE companies and relevant sector peers, the time
commitment and responsibilities of the role and the experience
and expertise required.
Non-executive directors, including the Chair, are entitled to
reimbursement of business expenses reasonably incurred in
performing their duties (and any personal tax that may
become payable).
Non-executive directors cannot participate in any of the Group’s
annual bonus or share plans and are not eligible for any pension
entitlements from the Group. The Chair is eligible to participate
in the Group’s medical assurance plan.
The Committee and the
executive directors are guided
by the general pay increase
for the broader employee
population, but on occasions may
need to recognise, for example,
changes in responsibility or time
commitments, whether on a
permanent or temporary basis.
Current fee levels are disclosed
on page 127.
No change
117
Governance
Annual Report and Financial Statements 2026
Policy on recruitment
(No material changes)
In cases where the Group recruits a new executive director, the Committee will align the new executive’s remuneration with the approved
Remuneration Policy. In arriving at a value for individual remuneration, the Committee will take into account the skills and experience of the
candidate, the market rate for a candidate of that experience and the importance of securing the preferred candidate.
The Committee also has the discretion to meet certain other incidental expenses (for example, relocation costs and travel and subsistence
payments) to secure recruitment of preferred candidates. Further details of the Recruitment Policy are set out in the table below.
Element
General policy
Specifics
Salary
At a level required to attract the most
appropriate candidate.
Discretion to pay lower base salary with incremental increases
(potentially above the average increase across the Group) as the
new appointee becomes established in the role.
Pension and benefits
In line with the policy for existing
executive directors.
In line with the Policy, pension contribution rates will be aligned with
those offered across our employee population.
Relocation expenses or allowance, legal fees and other costs relating to
recruitment may be paid as appropriate.
ABP
In line with existing schemes.
Where a director is appointed part way through a financial year, different
performance measures could be introduced to reflect the change in role
and responsibilities. The annual bonus limit remains at 120% of base salary
for a Chief Executive and 100% for other directors.
Pro-rating applies as appropriate for intra-year joiners.
Where an individual is appointed to the Board, different performance
measures from those for continuing directors may be set for the period of
time remaining in that performance year.
LTIP
In line with Group policies and
LTIP rules.
An award of up to 150% of salary may be made in accordance with the
Remuneration Policy. An award may be made in the year of joining or can
be delayed until the following year. Targets would normally be the same as
for awards to other directors.
Other share awards
The Committee may make
an incentive award to replace
remuneration forfeited by an
Executive leaving a previous employer.
The Committee will consider various factors, including the type and quantum
of award, length of performance period, and performance and vesting
conditions attached to each forfeited incentive award. The maximum payment
(which may be in addition to the normal variable remuneration) should be
no more than the Committee considers is required to provide reasonable
compensation to the incoming director.
Awards would, where possible, be consistent with the awards forfeited in
terms of structure, value, vesting periods and performance conditions.
The Committee reserves the right to award
additional remuneration in excess of the
Remuneration Policy at appointment,
exclusively to replace lost rewards or benefits.
In determining the appropriate form and
amount of any such award, the Committee
will consider various factors, including the
type and quantum of award, the length of
performance period, and the performance and
vesting conditions attached to each forfeited
incentive award. The maximum payment
(which may be in addition to the normal
variable remuneration) should be no more
than the Committee considers is required
to provide reasonable compensation to the
incoming director.
The Committee may make use of the flexibility
provided in both the Listing Rules and the
approved Remuneration Policy, to make
awards outside the existing parameters of
the LTIP.
For internal promotions to executive director
positions, the Committee’s policy is for
legacy awards or incentives to be capable of
vesting on their original terms (which may
involve participation in schemes that operate
exclusively for below-Board employees) or,
at the discretion of the Committee, they may
be amended to bring them into line with the
policy for executive directors.
For a new non-executive chair or
non-executive director, the fee arrangement
would be set in accordance with the approved
Remuneration Policy.
118
Galliford Try
Directors’ Remuneration Policy report continued
Directors’ service contracts and policy for payments to departing executive directors
The service contracts and letters of appointment for the Board directors serving as at 30 June 2026 are detailed below:
Contract date
1
Notice period
2,3
(months)
Non-executive directors
Alison Wood
1 April 2022
6
Sally Boyle
1 May 2022
6
Michael Topham
1 June 2023
6
Kevin Boyd
1 March 2024
6
Executive directors
Bill Hocking
3 January 2020
12
Kris Hampson
28 March 2024
12
1
Date shown is the director’s contract as an executive or non-executive director of the Group. Executive directors have a rolling notice period as stated. Non-executive
appointments are reviewed after three years and their appointments are subject to a rolling notice period as stated. All directors will stand for election or re-election at
the 2026 AGM.
2
There are no contractual provisions requiring payments to directors on loss of office or termination, other than payment of notice periods. The Committee may seek to
mitigate such payments where appropriate.
3
Subject to the Nomination Committee’s recommendation, the Group’s practice is to agree notice periods of no more than six months for non-executive directors and
no more than 12 months for executive directors.
The executive directors’ service contracts
and letters of appointment for the
non-executive directors are available at
the Group’s registered office and will be
available for inspection immediately prior
to and during the 2026 AGM.
For executive directors, at the Group’s
discretion, a sum equivalent to 12 months’
salary and benefits may be paid in lieu of
notice. The contracts include mitigation
provisions to pay any such lump sum in
monthly instalments, subject to offset
against earnings elsewhere. This will also
be the case for any future appointments.
An executive director’s service contract
may be terminated summarily without
notice and without any further payment or
compensation, except for sums accrued up to
the date of termination, if they are deemed to
be guilty of gross misconduct or for any other
material breach of the obligations under their
employment contract.
The Group may suspend executive directors or
put them on a period of gardening leave during
which they will be entitled to salary, benefits
and pension.
For ‘good leavers’, bonuses may be payable
pro rata for the proportion of the financial
year worked, at the Committee’s discretion.
Depending on the circumstances, the
Committee may consider additional payments
in respect of an unfair dismissal award,
outplacement support and assistance with
legal fees.
Executive Director remuneration scenarios
Illustration of application of Remuneration Policy
Remuneration (£000s)
Bill Hocking
Kris Hampson
Minimum
Target
Maximum
Max +
50% share price
Minimum
Target
Maximum
Max +
50% share price
£602
£1,345
£2,087
£2,500
£439
£944
£1,450
£1,753
100%
45%
25%
32%
26%
31%
40%
50%
29%
24%
100%
46%
21%
28%
23%
32%
42%
52%
30%
25%
Fixed pay
Annual bonus
Long Term incentives
The individualised potential Executive
reward charts have been prepared using
the following assumptions:
For minimum remuneration: Only fixed
salary, benefits and pensions payments
have been included.
For on-target remuneration: Fixed salary,
benefits and pension plus 50% payout of
the ABP and 50% of the LTIP (face value)
awards have been included.
For maximum remuneration: Fixed salary,
benefits and pension plus full payout
under the ABP and full vesting of the LTIP
(face value) awards have been included.
For maximum plus share price
growth: same values as the maximum
scenario plus a 50% increase in the
value of the LTIP (face value) awards
have been included.
Salary levels are based on those applying
on 1 April 2026 and the value of taxable
benefits is estimated based on the cost of
supplying those benefits (as disclosed) for
the year ended 30 June 2026. Executive
directors can choose to participate in all
employee share schemes on the same
basis as other employees but, for simplicity,
the value that may be received from
participating in these schemes has
been excluded.
119
Governance
Annual Report and Financial Statements 2026
Any share-based entitlements granted
to an executive director under the Group’s
share plans will be determined based on the
relevant plan rules. The default treatment
is that any outstanding awards lapse
on cessation of employment. However,
‘good leaver’ status can be applied at the
Committee’s discretion, taking into account
the individual’s performance and the reasons
for their departure.
For ‘good leavers’, LTIP awards may vest at
the normal time (other than by exception) to
the extent that the performance conditions
have been satisfied. The level of vested
awards will be reduced pro rata, based on
the period of time after the grant date and
ending on the date employment ceased
relative to the three-year performance
period, unless the Committee, acting fairly
and reasonably, decides that such a scaling
back is inappropriate in any particular case.
Deferred bonus shares of ‘good leavers’ vest
on cessation of employment.
On a change in control, LTIP awards may vest
based on the Committee’s determination
of the extent to which the performance
conditions have been satisfied based on
performance to date. The level of vested
awards will be reduced pro rata, unless the
Committee, acting fairly and reasonably,
decides to permit vesting at a higher level for
some or all awards. Deferred bonus shares
will vest in full. The overriding principle will
be to honour contractual remuneration
entitlements and determine on an equitable
basis the appropriate treatment of deferred
and performance-related elements of
remuneration, taking into account the
circumstances. Failure will not be rewarded.
External directorships
Any additional external appointments can
only be undertaken with the Board’s written
approval and if time and commitments allow.
Executive directors require the Board’s
approval to accept external appointments
as non-executive directors and retain any
associated fees.
Shareholder consultation
Where appropriate, the Committee will
consult relevant institutional shareholders
in advance of substantial changes to the
Policy or individual executive director
remuneration packages.
Wider workforce remuneration and
how the views of employees have
been taken into account
When setting pay for the executive directors,
the Committee considers remuneration
structures elsewhere in the Group, including
the overall salary increase budget and
incentive structures. The Committee also
takes into account available market sector
data obtained through benchmarking,
as well as Government policies and advice
from the Executive management team.
The total package on offer remains
competitive at all levels of the Group.
The comprehensive range of benefits includes
flexible working arrangements, a minimum
of 28 days’ holiday and the opportunity to
purchase further days, a company pension
plan, paid volunteering days, car allowance,
a regular SAYE scheme and a health insurance
plan. These wider benefits are communicated
to staff via Galileo, the company’s intranet
system, and via the Employee Value
Proposition, a summary letter to all employees
detailing the wider benefits available.
The Board does not consult employees on
executive remuneration but does ensure
it understands employee views on matters
including rewards and benefits, which are an
agenda item for the Employee Forum.
The Employee Forum, chaired by Sally Boyle,
Remuneration Committee Chair, also discusses
business updates and feedback from employee
representatives on key topics such as people
and engagement initiatives, communication
and wellbeing, as well as rewards and benefits.
The Employee Forum ensures employees
have a voice in the boardroom, strengthens
internal communications, enables employees
to offer ideas, champions change and
supports good governance. It can also act as
a representative body for communicating
with employees and obtaining feedback about
matters that may affect their employment.
Further information on the Employee Forum
can be found on page 101.
120
Galliford Try
This part of the Directors’
Remuneration report sets out
how the Remuneration Policy
was implemented over the
year ended 30 June 2026.
It will be put to an advisory
vote at the 2026 AGM. Certain
sections of this Annual report
on remuneration have been
subject to audit.
The Directors’ Remuneration report has
been prepared in accordance with The
Companies (Directors’ Remuneration
Policy and Directors’ Remuneration Report)
Regulations 2019 (applying to financial years
starting on or after 10 June 2019), the Large
and Medium-sized Companies and Groups
(Accounts and Reports) (Amendment)
Regulations 2013 and the Financial Conduct
Authority’s Listing Rules.
The auditor is required to report on the
remuneration data disclosed in the Directors’
Remuneration report section and state
whether, in its opinion, that part of the report
has been properly prepared in accordance
with relevant provisions of the Companies Act
2006 (as amended).
Directors’ remuneration and single-figure annual remuneration (audited)
The remuneration of the directors serving during the financial year, together with 2025 comparative figures, was as follows:
Salary and fees
£000
Taxable
benefits
1
£000
Pensions
2
£000
Annual bonus
8
£000
LTIP
£000
Buyout
9
Sharesave
£000
Total
remuneration
£000
2026
3
2025
2026
2025
2026
2025
2026
2025
2026
2025
4
2026
2025
2026
2025
2026
2025
Executive directors
Bill Hocking
539
524
23
24
43
42
619
605
1,646
2,096
–
–
–
–
2,870
3,291
Kris Hampson
5
395
320
16
9
28
21
378
305
–
–
58
36
–
–
875
691
Non-executive directors
Alison Wood
197
192
–
–
–
–
–
–
–
–
–
–
–
–
197
192
Sally Boyle
65
56
–
–
–
–
–
–
–
–
–
–
–
–
65
56
Michael Topham
53
51
–
–
–
–
–
–
–
–
–
–
–
–
53
51
Kevin Boyd
72
63
6
–
–
–
–
–
–
–
–
–
–
–
–
72
63
Former directors
Marisa Cassoni
7
–
27
–
–
–
–
–
–
–
–
–
–
–
–
–
27
1
Includes the value of benefits such as car allowance and medical insurance. Adjusted figure for 2025 to take account of new car benefit scheme.
2
This is a salary supplement paid to the directors in lieu of direct pension contributions.
3
On 1 April 2026 salaries for the non-executive directors increased by 3.0%. The salary for Bill Hocking increased by 2.80% and the salary for Kris Hampson increased
by 3.19%. This is below the average salary budgeted increase across the workforce of 3.25%.
4
The 2022 LTIP awards vested on 24 September 2025. The LTIP figures reported in 2025 and the corresponding single figure for that year were based on an estimated
share price, being the average share price over the three months to 30 June 2025. These have now been updated with the actual value at vesting of £2,096,077 for
Bill Hocking using the share price as at the date of vesting of £4.97.
5
The salary, benefits, pension and bonus paid to Kris Hampson are pro-rated annual amounts to reflect that he joined on 2 September 2024.
6
On 14 November 2024, Kevin Boyd became the Senior Independent Director, following the resignation of Marisa Cassoni, and it was agreed that the Senior
Independent Director fee be increased from £5,065 to £9,545 from November 2024, to align with the Chairs of Board Committees fee. This increased by 3% to
£9,831 on 1 April 2025.
7
Marisa Cassoni resigned from the Board on 28 November 2024.
8
The annual bonus figure quoted is the total bonus including the deferred share element associated with the performance conditions in that year. The annual bonus is
calculated on salaries as at 1 July 2025. See page 115 for further explanation of the rules relating to the Annual Bonus Plan.
9
The buyout figures are the value paid to Kris Hampson as compensation for the forfeited benefits from his previous employer. See page 123 for further information.
Annual report on remuneration
121
Governance
Annual Report and Financial Statements 2026
2026 Annual bonus outcome (audited)
For the financial year ended 30 June 2026, the annual bonus measures, targets, weightings and performance are set out in the table below.
Senior management were subject to similar targets, which were applied to their respective business performance.
Measure
Performance target
Weighting
Threshold (% of
maximum bonus)
On-target (% of
maximum bonus)
Maximum (% of
maximum bonus)
Actual
performance
Payout %
of bonus
maximum
Adjusted full-year Group profit before tax
1
45%
£43.6m
(0%)
£45.9m (22.5%)
£52.8m
(45%)
1
£55.9m
45%
Adjusted half-year Group profit before tax
1
15%
£19.5m
(0%)
£21.7m
(7.5%)
£25.0m
(15%)
£24.7m
14.4%
Group cash management
20%
95% of budget
(10%)
100% of budget
(10%)
110% of budget
(20%)
>110%
20%
Construction order book
8%
83.0% secured
(0%)
85.0% secured
(4%)
87.0% secured
(8%)
90% secured
8%
ESG
2
:
Employee: based on employee advocacy
3%
<80%
(0%)
>80%
(3%)
>80%
(3%)
85%
3%
Carbon emissions: based on annual reduction
of Scope 1 and 2 emissions (market-based)
3%
5% reduction
(0%)
7.5% reduction
(1.5%)
10% reduction
(3%)
9%
increase
0%
Community: based on CCS score
3%
<38
(0%)
>38
(3%)
>38
(3%)
44.5
3%
Supply chain: payment of supply chain invoices
within 60 days
3%
<95%
(0%)
>95%
(3%)
>95%
(3%)
97.2%
3%
Health and safety: based on discretionary
assessment of H&S performance
Underpin
Discretional
adjustment
Total payout (% of maximum bonus)
100.0%
10%
54.5%
100%
96.4%
1
See note 31 to the financial statements for further information.
2
The ESG metrics are aligned to the Group’s published strategy with the targets based on industry guidelines, averages or the Group’s stated ambition.
The Group achieved a strong performance against targets set at the start of the financial year. Taking into account the Group’s profitability and
enhanced dividends to shareholders, the Committee determined that the bonus level produced by the scorecard of 96.4% is an appropriate reward
given the Group’s operational and financial performance. This treatment is consistent with that applied for all participants of the ABP. The ABP
2024/25 bonus target in 2024 onwards incorporated a 12% target for ESG factors, which include people, carbon emission, community and supply
chain metrics. Under the approved Policy, the Committee may, at its discretion, acting fairly and reasonably, adjust bonus outcomes if it considers
the payout is inconsistent with the Group’s performance during the year, taking into account factors including safety and ESG. In considering bonus
awards, the Committee took the Group’s health and safety performance and ESG initiatives into consideration. The Group achieved an overall
Accident Frequency Rate (AFR) of 0.06 for 2025/26 (AFR for 2024/25: 0.03), with 12 of the 21 business units achieving an AFR of zero during the year.
The Committee determined that, in respect of the year to 30 June 2026, the resulting annual bonus awards were as follows:
Salary as at
1 July 2025
(£000)
On-target
bonus
(% of salary)
Maximum
bonus
(% of salary)
Actual bonus
payable for
2025/26
(£000)
Cash
(£000)
Shares
(£000)
Bill Hocking
535
115.7%
120%
619
385
234
Kris Hampson
392
96.4%
100%
378
257
121
Two thirds of the bonus earned in excess of the 50% of salary threshold is required to be deferred into restricted shares. Although beneficially
held by the participants, the allocated restricted shares are legally retained by the Employee Share Trust and are subject to forfeiture provisions,
unless otherwise agreed by the Committee. Subject to continued employment, the restricted shares are legally transferred to participants on the
third anniversary of allocation. Recovery provisions apply at any time within the three-year period post-vesting or payment of cash bonuses in
circumstances or error, material misstatement, misconduct, reputational damage or corporate failure as a result of poor risk management.
122
Galliford Try
LTIP awards vesting in September 2026 (audited)
The LTIP awards granted to Bill Hocking on 25 September 2023 were based on 75% underlying EPS performance and 25% on average month-end
cash as a percentage of annual turnover over the three years to 30 June 2026. In total, 100% of the maximum award was vested as a result of the
performance achieved. The Committee was satisfied that this outcome reflected the true performance of the Group and no discretion was applied.
The awards will be subject to a two-year post-vesting holding period in accordance with the existing Remuneration Policy. More details on each of
the performance conditions are set out below.
Threshold
EPS
condition
(25% vesting)
Stretch EPS
condition
(100%
vesting)
Actual
performance
Threshold
average
month-
end cash
1
condition
(25% vesting)
Stretch
average
month-
end cash
1
condition
(100%
vesting)
Actual
performance
1
% of overall
award
vesting
Value of
award
vesting
2
(£000)
Element
of value
attributable
to share
growth
2
(£000)
Bill Hocking
28.6p
34.5p
41.7p
8%
10%
11.2%
100%
1,646
901
1
As a percentage of annual turnover.
2
Estimated based on the average share price over the three months to 30 June 2026.
Directors’ share plan interests (audited)
Outstanding awards held by Bill Hocking and Kris Hampson during the year are detailed in the table below.
Director
Plan
Grant date
Share price
at grant
Number
of awards
outstanding
at 1 July
2024
Granted
Vested
Lapsed
Number
of awards
outstanding
at 30 June
2026
Value of
awards
vested during
financial year
Actual or
anticipated
vesting date
Bill
Hocking
LTIP
1
23.09.22
£1.61
442,546
–
421,746
20,800
–
£2,096,078
23.09.25
ABP
2
28.09.22
£1.60
133,875
–
133,875
–
–
£673,391
28.09.25
LTIP
25.09.23
£2.36
315,572
–
–
–
315,572
–
25.09.26
ABP
3
27.09.23
£2.349
46,462
–
–
–
46,462
–
27.09.26
LTIP
4
08.10.24
£3.23
241,486
–
–
–
241,486
–
08.10.27
ABP
4,5
10.10.24
£3.228
63,982
–
–
–
63,982
–
10.10.27
LTIP
24.09.25
£4.97
–
161,468
–
–
161,468
–
24.09.28
ABP
4,5
24.09.25
£4.90
–
46,976
–
–
46,976
–
24.09.28
Kris
Hampson
LTIP
4
08.10.24
£3.23
176,470
–
–
–
176,470
–
08.10.27
LTIP
24.09.25
£4.97
–
118,309
–
–
118,309
–
24.09.28
ABP
6
24.09.25
£4.90
–
20,105
–
–
20,105
–
24.09.28
1
Awards are based on a maximum percentage of salary. The number of shares shown in the table represents the maximum number of shares, ie 150% of salary.
2
In accordance with the rules of the Annual Bonus Plan, the average of the company’s closing share price for the five business days following (and including)
the announcement of the annual results on 21 September 2022 was 160 pence.
3
In accordance with the rules of the Annual Bonus Plan, the average of the company’s closing share price for the five business days following (and including)
the announcement of the annual results on 27 September 2023 was 234.90 pence.
4
The 2021–2024 Long Term Incentive Plan award and the 2021–2023 Annual Bonus Plan grant were due to vest on 23 September 2024, however, vesting was
postponed following the delay in announcing the 2024 full-year financial results (originally planned to be announced on 19 September 2024). These results were
announced on 3 October 2024, enabling these awards to be calculated and vest on 8 October 2024.
5
In accordance with the rules of the Annual Bonus Plan, the average of the company’s closing share price for the five business days following (and including)
the announcement of the annual results on 3 October 2024 was £3.228.
6
In accordance with the rules of the Annual Bonus Plan, the average of the company’s closing share price for the five business days following (and including)
the announcement of the annual results on 24 September 2025 was £4.90.
Payments to former directors
There were no payments made to former directors in the year.
Annual report on remuneration continued
123
Governance
Annual Report and Financial Statements 2026
Remuneration arrangements for the Chief Financial Officer, including compensation for forfeited awards
Full details of the remuneration arrangements for Kris Hampson, appointed Chief Financial Officer on 2 September 2024, can be found on
page 118 of the 2025 Annual Report. These include details of the buyout arrangements to compensate Kris for awards forfeited on resignation
from his previous position.
Under these arrangements, Kris was entitled to a second buyout payment assessed to be worth £58,160.98 based on the vesting percentage,
dividend equivalents and share price of the former employer. This amount will be delivered in Galliford Try shares in October 2026.
Awards granted during the year (audited)
On 24 September 2025, the following conditional LTIP awards were made to Bill Hocking and Kris Hampson.
Director
Date of grant
Number of
shares awarded
Basis of award
Share price used
to determine level
of award £
Face value £
Bill Hocking
24 September 2025
161,468
150% of base salary
£4.97
802,496
Kris Hampson
24 September 2025
118,309
150% of base salary
£4.97
587,996
The performance conditions attached to these awards made in September 2025 are as follows:
Date of grant
Performance conditions
September 2025
Vesting of up to 75% of the award is based on underlying EPS. 25% of the element will vest for 41.4p, increasing to 100%
vesting on a straight-line basis if 50.6p underlying EPS is achieved during the final year of the three-year performance
period (1 July 2027 to 30 June 2028).
Vesting of up to 25% of the award is based on average month-end cash as a percentage of annual turnover in the year
ending 30 June 2026. 8% would generate 25% of the element vesting and 10% would generate 100% vesting on
a straight-line basis.
Any shares that vest will be subject to a two-year post-vesting holding period, in accordance with the Remuneration Policy.
Malus and clawback apply at any time within a three-year period post-vesting, in the case of material misstatement,
misconduct, reputational damage or corporate failure as a result of poor risk management.
Directors’ share interests (audited)
As at 30 June 2026, the directors held the following beneficial, legal and unvested ABP interests in the Group’s ordinary share capital.
Measure
Legally owned
1
LTIP
(unvested)
Deferred
bonus awards
(unvested)
Total
% of salary held
under share
ownership
guidelines
2
30.6.26
30.6.25
30.6.26
Executive directors
Bill Hocking
1,363,604
1,069,126
718,526
157,420
2,239,550
1,455%
Kris Hampson
11,294
6,250
294,779
20,105
326,178
169%
Non-executive directors
Alison Wood
–
–
–
–
–
n/a
Sally Boyle
–
–
–
–
–
n/a
Michael Topham
–
–
–
–
–
n/a
Kevin Boyd
12,000
8,000
–
–
12,000
n/a
1
Either held by the individual or connected persons.
2
Under the current Remuneration Policy, the share ownership guideline for executive directors is 200% of base salary.
124
Galliford Try
The graph shows the TSR for Galliford Try shares over the last 10 financial years. It shows the value to 30 June 2026 of £100 invested in Galliford Try
on 30 June 2016 compared with the value of £100 invested in the FTSE All-Share Index, this being a broad-market index of which the company has
been a constituent over the full period shown.
The closing mid-market quotation for the company’s shares on Monday 30 June 2026 was 526.00p. The high and low during the year were
577.00p and 411.50p.
The total gross remuneration of the Chief Executive and the percentage achieved of the maximum ABP and LTIP awards are shown in the table
below for the past 10 financial years.
2017
1
2018
2019
2
2020
3
2021
2022
2023
2024
2025
2026
Total remuneration (£000)
1,043
1,448
824
660
1,027
1,937
2,429
1,951
3,291
2,870
Annual bonus (% of maximum)
46.3%
86.5%
57.0%
36.7%
100.0%
100.0%
70.4%
93.4%
97%
96.4%
LTIP (% of maximum)
16.5%
36.6%
16.5%
–
–
89%
97.2%
88.2%
95.3%
100%
1
Peter Truscott was appointed Chief Executive on 1 October 2015 and stepped down as Chief Executive and from the Board on 26 March 2019.
2
Graham Prothero was appointed Chief Executive on 26 March 2019, succeeding Peter Truscott. He stepped down from the Board and as Chief Executive following
the successful completion of the sale of the housebuilding divisions to Vistry Group plc on 3 January 2020.
3
Bill Hocking was appointed Chief Executive on 3 January 2020. A full-year remuneration figure based on the aggregate paid to Bill and Graham is shown here to
aid comparison.
Annual report on remuneration continued
Source: S&P Capital IQ.
Total Shareholder Return (TSR) Graph
Value (£) (Rebased)
0
400
200
600
1,200
1,000
800
Jun
25
Jun
26
Jun
24
Jun
23
Jun
22
Jun
21
Jun
20
Jun
19
Jun
18
Jun
17
Jun
16
Galliford Try
FTSE All Share
125
Governance
Annual Report and Financial Statements 2026
CEO pay ratios
Under Option B (gender pay data), three employees have been identified as the best equivalents to represent the lower, median and upper quartiles.
Option B provides a clear methodology involving fewer adjustments to calculate full-time equivalent earnings.
Year
Method
CEO single figure
All UK
employees
Lower quartile
Median
Upper quartile
2019/20
Option B
£660,587
Ratio
24:1
15:1
9:1
Total pay
£27,407
£43,165
£74,351
Salary
£25,500
£35,249
£61,057
2020/21
Option B
£1,026,671
Ratio
27:1
19:1
14:1
Total pay
£37,399
£54,374
£73,385
Salary
£36,134
£43,781
£66,927
2021/22
Option B
£1,936,788
Ratio
62:1
36:1
26:1
Total pay
£31,128
£53,976
£73,920
Salary
£27,875
£44,720
£62,275
2022/23
Option B
£2,428,970
Ratio
66:1
45:1
31:1
Total pay
£36,562
£54,444
£79,638
Salary
£29,411
£48,003
£65,950
2023/24
Option B
£1,950,670
Ratio
44:1
35:1
27:1
Total pay
£44,125
£55,120
£72,918
Salary
£42,272
£49,554
£66,725
2024/25
Option B
£2,844,086
Ratio
73:1
50:1
35:1
Total Pay
£38,913
£57,037
£80,968
Salary
£36,223
£53,608
£73,550
2025/26
Ratio
68:1
47:1
33:1
Total Pay
£42,454
£60,578
£86,338
Salary
£39,011
£55,920
£74,077
The Chief Executive figure includes earnings from the Long-Term Incentive Plan. Long-term incentives are operated for the most senior Group
employees only, namely those responsible for strategy development and execution. The payouts from such plans are expected to be volatile from
cycle to cycle.
The Committee is comfortable that the resulting calculations are representative of pay levels at the respective quartiles and that the applicable
relativities are appropriate given the profile of the workforce.
Relative importance of spend on pay
2024/25
2025/26
Change
Total overall spend on pay (£m)
320.9
2
355.4
43.8m
Dividends (£m)
17.5
20.3
2.8m
Share buyback (£m)
10.0
10.0
0 m
Group corporation tax charge (£m)
1
10.7
14.0
3.3m
Effective tax rate (%)
1
23.9
25.0
1.1pts
1 Adjusted tax.
2
Previously disclosed as 311.6.
The equivalent total overall spend on pay in 2025/26 is disclosed in note 4 to the financial statements. The total overall spend on pay equates to
average remuneration per staff member of £81,399 per annum as at 30 June 2026 (2025: £74,697, previously disclosed as £72,533).
126
Galliford Try
Composition of the Remuneration
Committee and attendance
In addition to the Chair, Sally Boyle, the
other Committee members were Alison
Wood, Michael Topham and Kevin Boyd. The
General Counsel & Company Secretary acts
as Secretary to the Committee. The Chief
Executive has a standing invitation to attend all
Committee meetings. The HR Director attends
meetings at the invitation of the Committee.
No director, the General Counsel & Company
Secretary or HR Director is present when
their own remuneration is being considered.
Attendance at Committee meetings is shown
in the table on page 93.
The Committee is governed by formal terms
of reference agreed by the Board and is
composed solely of non-executive directors.
The terms of reference were reviewed during
the year and are available on the Group’s
website (www.gallifordtry.co.uk).
Remuneration advice and advisers
The Committee is informed of key
developments and best practice in the field
of remuneration and obtains advice from
independent external consultants, when
required. Mercer Limited (Mercer) was
the Committee’s remuneration consultant
throughout the year. Fees paid to Mercer
during the financial year were £17,320
(2025: £19,233).
Mercer does not provide any other services
to the Group, although Mercer is part of
Marsh & McLennan Companies, a subsidiary
of which, Marsh JLT Specialty Limited,
provides insurance broking services to the
Group. The Committee is satisfied that
these services do not impinge on Mercer’s
independence. Furthermore, Mercer is a
signatory to the Remuneration Consultants
Group Code of Conduct, which requires that
its advice be objective and impartial.
The General Counsel & Company Secretary
also advises the Committee as necessary and,
where appropriate, makes arrangements for
the Committee to receive independent legal
advice at the request of the Chair.
Employee Share Trust and dilution
The Employee Share Trust (EST) is the primary
mechanism by which shares required to satisfy
the Executive incentive plans are provided.
Following the announcement of the 2025
full-year results in September 2025, the annual
review of the number of shares held by the EST
was carried out and it was agreed there were
currently sufficient shares in place.
As at 30 June 2026, the EST held 2,124,586
ordinary shares in the capital of the company
(2.11%) (2025: 3,066,609 shares). Under the
terms of the Trust Deed, the Trust may only
hold up to a maximum of 5% of the issued
shares in the company.
During the financial year, 688,466 new
shares were issued arising from share
scheme-related activities under the SAYE
share option scheme. As at 30 June 2026,
the total number of shares outstanding
under the SAYE share option scheme was
2,751,851. The Group has complied with
the dilution guidelines of the Investment
Association (Guidelines).
Applying the Guidelines, the Group has
used 5.57% of the ‘10% headroom in
10 years’ rule and, on the basis that the Group’s
practice is that all awards granted pursuant to
discretionary plans are satisfied using shares
purchased in the market, the Group has not
used any of the headroom against the ‘5% in
10 years’ rule for discretionary plans.
Shareholder voting on the
Directors’ Remuneration report
The Committee takes account of annual
shareholder voting trends in connection
with the Directors’ Remuneration report.
Votes cast in support of the annual advisory
resolution to approve the Directors’
Remuneration report during the past five
AGMs are shown in the chart below.
Votes cast
(%)
2021
2022
2023
2024
2025
99.89%
0.11%
0.14%
5.12%
0.08%
0.03%
99.86%
94.88%
99.92%
99.97%
Votes for
Votes against
The Board will continue to engage with
shareholders to ensure their views are fully
understood and considered and can be taken
into account by the Committee in the future.
The Committee and Board are grateful to
shareholders for the strong support provided.
The current Policy was approved by 99.3% of
shareholders who voted at the 2023 AGM and
the advisory vote on the Annual report
on remuneration was supported by 94.88%.
Forward-looking implementation
of policy
Base salaries
The 2026/27 salary review was completed in
April 2026. The Committee carefully reviewed
pay, benefits and other conditions across the
Group. Taking into account market conditions,
peer group comparisons and the Group’s
overall performance, the overall pay budget
increased by 3.25%. With effect from
1 April 2026, Bill Hocking’s and Kris
Hampson’s annual salary increased from
£535,000 to £550,000, and £392,000 to
£404,500, an increase of 2.80% and 3.19%
respectively, these increases being below the
average pay increase across the workforce.
ABP
For the financial year to 30 June 2027, the
Committee has determined that the existing
bonus structure remains appropriately aligned
to corporate strategy. It will therefore remain
in its current form, with an opportunity of
120% of salary for the Chief Executive, and
100% for other executive directors.
Bonus outcomes will be subject to overall
Committee discretion, taking into account
factors including health and safety and the
underlying performance of the Group. The
Committee intends to continue to include ESG
annual bonus measures in 2026/27 aligned
to the Group’s strategy on ESG, with an ESG
target in total of 12%. The ESG measures will
include metrics on the order book, employees,
carbon, community and the supply chain.
LTIP
Any award granted to the executive
directors in 2026 will be within the approved
Remuneration Policy and based on
performance metrics measured over
a three-year performance period to
30 June 2029, as follows:
Adjusted EPS (66.7%). 25% of the
EPS element will vest if underlying EPS is
57.3 pence, increasing to 100% vesting on a
straight-line basis if 70.0 pence is achieved.
Relative TSR (33.3%). Measured relative
to the constituents of the FTSE 250
excluding investment trusts, the financial
services sector and natural resources
companies. 25% of the TSR element will
vest if performance is at median, increasing
to 100% vesting on a straight-line basis if
performance is at or above upper quartile.
Annual report on remuneration continued
127
Governance
Annual Report and Financial Statements 2026
Chair and non-executive directors’ fees
The Committee determined that the Chair’s fee for 2026/27 would be increased by 3.00%. In addition, and following a review of the non-executive
directors’ fees by the Board, it was agreed that the non-executive directors’ fees would also increase by 3.00%.
Accordingly, the annual fees effective from 1 April 2026 are as follows:
2026
2025
Increase/
Change %
Chair
£201,773
£195,896
3.00%
Non-executive directors
Base fee
£53,843
£52,275
3.00%
Additional fees:
Senior Independent Director
1
£10,126
£9,831
3.00%
Chairs of Board Committees
£10,126
£9,831
3.00%
Chair of Employee Forum
£5,079
£4,931
3.00%
1
On 14 November 2024 Kevin Boyd became the Senior Independent Director, following the resignation of Marisa Cassoni, and it was agreed that the Senior
Independent Director fee be increased from £5,065 to £9,545 from November 2024, to align with the Chairs of Board Committees fee. This increased by 3% to
£9,831 on 1 April 2025.
For and on behalf of the Board
Sally Boyle
Remuneration Committee Chair
17 September 2026
128
Galliford Try
The directors present their
Annual Report and audited
financial statements for the
Group for the financial year
ended 30 June 2026.
Principal activities
Galliford Try is a trading name of Galliford Try
Holdings plc, a leading UK construction group,
which has an equity securities (commercial
companies) category listing and whose shares
are traded on the main market of the London
Stock Exchange. The Group operates as
Galliford Try and Morrison Construction and
carries out building and infrastructure projects
with clients in the public, private and regulated
plc, registered in England and Wales with
company number 12216008, is the Parent
company of the Group.
More detailed information regarding the
Group’s activities is provided on pages 1 to 87.
The Group’s subsidiaries and joint ventures are
shown in note 32 to the financial statements.
Strategic report
The Strategic report can be found on pages
1 to 87. It contains an indication of the
directors’ view on likely future developments
in the Group’s business. In addition, and in
accordance with the Companies, Partnerships
and Groups (Accounts and Non-Financial
Reporting) Regulations 2016, the Strategic
report contains information on employees,
social and environmental matters, human
rights and anti-corruption and anti-bribery
matters, as well as a description of the Group’s
policies and where these are located.
In accordance with section 414CZA of
the Companies Act 2006, the Strategic
report contains a Section 172 (1) statement
describing how directors have had regard to
the matters set out in Section 172 (1) (a) to (f)
of the Companies Act 2006 when performing
their duty under Section 172. Please refer to
pages 86 to 87.
The Annual Report and financial statements
use financial and non-financial key
performance indicators wherever possible
and appropriate.
Corporate governance report
The Corporate governance report on pages 88
to 103 is the corporate governance statement
for the purposes of the Financial Conduct
Authority (FCA) Disclosure Guidance and
Transparency Rule 7.2.1.
Dividends
On 4 March 2026, the Board declared an
interim dividend of 6.5p per share, which was
paid to shareholders on 10 April 2026. The
Board has proposed a final dividend of 17.0p
per share. Subject to approval by shareholders,
this will be paid on 4 December 2026 to
shareholders on the register at 6 November
2026, resulting in a total dividend in 2026 of
23.5p per share. Dividend cover is expected to
be 1.8 times earnings.
Please refer to pages 60 to 61 for an overview of
the Group’s capital structure and funding.
Share capital, authorities
and restrictions
The company has one class of ordinary share
capital, with a nominal value of 50 pence. The
ordinary shares rank pari passu in respect of
voting and participation and are traded on the
Main Market of the London Stock Exchange.
At 30 June 2026, the company had
100,872,031 ordinary shares in issue. Votes
may be exercised at general meetings of the
company by members in person, by proxy or
by corporate representatives (in relation to
corporate members). The company’s Articles
of Association (the Articles) set a deadline
for submitting proxy forms (electronically
or by paper) of not less than 48 hours, taking
no account of any part of a day that is not a
working day, before the time appointed for
holding the general meeting or the adjourned
meeting (as the case may be).
The directors are authorised at the AGM each
year to issue shares, to allot a limited number
of shares in the company for cash other than
to existing shareholders, and to make market
purchases of shares within prescribed limits.
The current authorities will expire at the
AGM in November 2026. Resolutions to
be proposed at the AGM will renew these
authorities, which are explained in the Notice
of 2026 AGM sent separately to shareholders.
The company issued 688,466 shares following
the exercise of options under the company’s
Sharesave Scheme. To the date of this report,
the company has purchased 1,957,703 shares
as part of the share buyback programme that
commenced in September 2025. All of these
shares were cancelled and the share buyback
programme was closed on 22 April 2026.
There are no restrictions on transferring the
company’s shares, except for certain shares
held by the Employee Share Trust (EST),
which are restricted during the performance
periods of relevant Group share plans.
Directors and persons discharging managerial
responsibilities are also periodically restricted
in dealing in the company’s shares under
the Group’s share dealing policy, reflecting
the requirements of the FCA Market Abuse
Regulation. In certain specific circumstances,
the directors are permitted to decline to
register a transfer in accordance with the
Articles. There are no other limitations on
holdings of securities, and no requirements to
obtain the approval of the company, or other
holders of shares in the company, prior to the
share transfer. The company is not aware of
any agreements between holders of shares
that may restrict the transfer of shares or
voting rights.
There are no shares carrying specific rights
relating to control of the company. The EST
holds shares in the company in connection
with Group share plans that have rights
relating to control of the company that are
not exercisable directly by the employee.
The EST abstains from voting in respect of
these shares. The EST currently holds 2.11%
of the issued share capital of the company for
the purposes of satisfying employee share
options or share awards.
Articles of Association
The Articles, adopted pursuant to a resolution
passed on 5 November 2019, set out the
company’s internal regulations and define
various aspects of its constitution, including
the rights of shareholders, procedures for
appointing and removing directors, and the
conduct of directors and general meetings.
In accordance with the Articles, directors
can be appointed or removed either by the
Board or shareholders in a general meeting.
Amendments to the Articles require
shareholder approval by passing a special
resolution in a general meeting. Copies of
the Articles are available by contacting the
General Counsel & Company Secretary at
the registered office.
Directors’ report
129
Governance
Annual Report and Financial Statements 2026
Significant direct and
indirect holdings
As at 30 June 2026, being the date of this
Annual Report, the Group had been made
aware of the following beneficial interests
in 3% or more of the company’s ordinary
share capital:
Shareholder
Interest
% capital
JP Morgan Asset
Management (UK)
Limited
10,109,198
10.08%
Aberdeen
Group plc
5,453,761
5.34%
Premier Miton
Group plc
5,081,707
4.97%
J O Hambro
Capital
Management
Limited
5,019,421
4.97%
Between 1 July 2026 and the date of this
report, the following change to the significant
direct and indirect holdings information
was received:
Shareholder
Interest
% capital
JP Morgan Asset
Management (UK)
Limited
10,145,419
10.06%
Aberforth
Partners LLP
4,664,466
4.62%
Change of control provisions
All the Group’s share plans contain provisions
relating to a change of control. The respective
plan rules permit outstanding awards to vest
on a proportional basis and then become
exercisable in the event of a change of control,
subject to the satisfaction of any performance
conditions and Remuneration Committee
approval. Other than in relation to share
schemes as described above, the Group
has not entered into any agreements with
its directors or employees that provide for
compensation for loss of office or employment
in the event of a takeover or change of control
of the Group.
The agreements governing the Group’s joint
ventures all have appropriate change of
control provisions, none of which is significant
in the context of the wider Group.
Directors’ interests and indemnities
Summary biographies of the directors of the
company as at 30 June 2026 are on pages
94 to 95. The directors’ interests in the
company’s share capital are set out on page
123 and details of executive directors’ service
contracts and non-executive directors’ letters
of appointment can be found on page 118.
The Group operates a formal procedure for
disclosing, reviewing and authorising directors’
actual and potential conflicts of interest, in
accordance with the Companies Act 2006.
In addition, the Board reviews and authorises
conflicts of interest, as necessary, on an
annual basis.
The Group maintained Directors’ and
Officers’ Liability insurance on behalf of the
directors and General Counsel & Company
Secretary throughout the financial year.
In addition, individual qualifying third-party
indemnities are provided to the directors and
General Counsel & Company Secretary, that
comply with the provisions of section 234 of
the Companies Act 2006 and were in force
throughout the year and up to the date of
signing this Annual Report.
Significant agreements
There are no persons with which the Group
has contractual or other arrangements that
are essential to its business.
Political donations
The Group’s policy is to avoid making political
donations of any nature and none were
made during the financial year. The Group
notes the wide application of Part 14 of the
Companies Act 2006, but does not consider
the construction industry bodies of which it is
a member to be political organisations for the
purposes of the Act.
Emissions
Details of the Group’s greenhouse gas
emissions for the financial year can be
found on pages 42 to 45 and are included by
reference in this report.
Streamlined energy and
carbon reporting (SECR)
The data included in the table below,
together with the Scope 1 and 2 emissions
intensity ratio disclosed on page 44 covers
the reporting requirements detailed in the
Companies (Directors’ Report) and Limited
Liability Partnerships (Energy and Carbon
Report) Regulations 2018. As we report our
carbon and energy data in calendar years, the
following section represents our carbon and
energy performance for the calendar years
2024 and 2025.
Emissions source
Emissions tCO
2
e
Calendar
year
2025
Calendar
year
2024
Emissions from
combustion of
gas (Scope 1)
123
168
Emissions from
combustion of fuel
for transport
purposes (Scope 1)
3,853
3,956
Emissions from fuel
oil supplies ie diesel
consumed (Scope 1)
10,747
9,185
Fugitive emissions
from office facilities
ie air conditioning
systems (Scope 1)
0
4
Emissions from
purchased
electricity (Scope 2,
location-based)
1,853
2,018
Emissions from
purchased
electricity (Scope 2,
market-based)
1,422
1,497
Emissions from fuel
and energy-related
activities (Scope 3)
4,051
4,067
Emissions from
business travel
(Scope 3)
1,900
982
Emissions from
employee commuting
(Scope 3)
2,752
3,825
130
Galliford Try
Methodology and conversion factors
Carbon dioxide equivalent emissions (tCO
2
e)
are calculated using the GHG Protocol
Corporate Accounting and Reporting Standard
and the UK Government GHG Conversion
Factors and Methodology for company
reporting 2025. The emissions included in
the table have been externally verified to the
ISO 14064-3 greenhouse gas statements
standard by the Carbon Trust. Emissions
cover all those arising from our fleet, gas and
electricity in all offices and sites, and all other
fuel used directly (for example diesel on site)
including our share of emissions from joint
ventures. Where data is obtained in litres
used and distance travelled, these conversion
factors have been used to convert to kWh.
Annual energy usage
Our total energy use, calculated from
Department for Environment, Food and Rural
Affairs (Defra) 2025 conversion factors, for all
our UK activities increased by 10% in 2025 to
76,850,990 kWh (2024: 69,555,598 kWh).
The increase in energy usage in 2025 is driven
by a circa 13.5% increase in the volume of
diesel used on our projects. As outlined in
more detail on pages 43 to 45, this reflects
high rates of growth in our Infrastructure
and Environment businesses, which have the
highest intensity of diesel use.
Energy consumption is calculated using the
same reporting boundary (operational control)
that we use to calculate our carbon emissions.
This increase reflects the growth of the
business, but has been minimised by energy
efficiency measures, including the transition
to renewable energy.
Creditor payment policy
The Group’s policy is to agree payment
terms contractually with suppliers and
subcontractors, ensure the relevant terms
of payment are included in contracts, and
to abide by those terms when satisfied that
goods, services or assets have been provided
in accordance with the agreed contractual
terms. Following the discontinuation of the
Prompt Payment Code in October 2024,
the Group applied for membership of the
Fair Payment Code, and was awarded the
Bronze award in May 2025. This contains,
among other things, commitments to treat our
supply chain fairly and pay 95% of our supply
chain invoices within 60 days, which we have
consistently achieved. Our standard payment
terms are a maximum of 45 days.
Important developments during
the year
As announced on 17 September 2025 the
Group launched a share buyback programme
for up to a maximum of £10m consideration,
which was completed on 22 April 2026.
See page 128 for more information.
Going concern
In accordance with the Financial Reporting
Council’s Guidance on Risk Management,
Internal Control and Related Financial and
Business Reporting published in 2014, the
requirements of the Code and Listing Rule
6.6.6(3), the Directors have conducted a
rigorous and proportionate assessment of
the Group’s ability to continue in existence
for the foreseeable future. This has been
reviewed during the financial year and the
Directors have concluded that there are no
material uncertainties that may cast significant
doubt on the Group’s ability to continue as a
going concern. Furthermore, the Group has
adequate resources and visibility as to its
future workload, as explained in this Annual
Report. As a result, the Directors are satisfied
that the Group has adequate resources to
meet its obligations as they fall due for a
period of at least 12 months from the date
of approving these financial statements and,
accordingly, is able to adopt the going concern
basis in preparing these financial statements.
AGM
The 2026 AGM will be held at Peel Hunt
LLP, 7th floor, 100 Liverpool Street, London,
EC2M 2AT on 12 November 2026 at 11.00am.
The Notice convening the AGM, sent to
shareholders separately, explains the items
of business that are not of a routine nature.
Further information on arrangements for the
AGM and voting instructions will be set out
fully in the Notice of AGM and Form of Proxy.
Fair, balanced and understandable
In accordance with the principles of the
Code and as further described on page 110,
the Group has arrangements in place to
ensure that the information presented in
this Annual Report is fair, balanced and
understandable. The directors consider,
on the advice of the Audit Committee, that
the Annual Report, taken as a whole, is fair,
balanced and understandable and provides
the information necessary for shareholders
to assess the Group’s performance, position,
business model and strategy.
Approval of report
This Directors’ report, the Strategic report,
the Corporate Governance report and
Directors’ Remuneration report were
approved by the Board of Directors on 2026.
For and on behalf of the Board
Kevin Corbett
General Counsel & Company Secretary
17 September 2026
Directors’ report continued
131
Governance
Annual Report and Financial Statements 2026
The directors are responsible
for preparing the Annual Report
and the financial statements in
accordance with applicable law
and regulations.
Company law requires the directors to
prepare financial statements for each financial
year. Under company law the directors have
prepared the Group and Parent Company
financial statements in accordance with
UK-adopted International Accounting
Standards. Under company law, the directors
must not approve the financial statements
unless they are satisfied that these give a true
and fair view of the state of affairs of the
Group and Parent Company and of the profit
or loss of the Group and Parent Company
for that period.
In preparing the financial statements, the
directors are required to:
select suitable accounting policies and then
apply them consistently;
make judgements and accounting estimates
that are reasonable and prudent;
state whether they have been prepared
in accordance with UK-adopted
International Accounting Standards
and with the requirements of the
Companies Act 2006; and
prepare the financial statements on
the going concern basis, unless it is
inappropriate to presume that the
Group and Parent Company will
continue in business.
The directors are responsible for keeping
adequate accounting records that are
sufficient to show and explain the Group and
Parent Company’s transactions and disclose
with reasonable accuracy at any time the
financial position of the Group and Parent
Company and enable them to ensure that
the financial statements and the Directors’
Remuneration Report comply with the
Companies Act 2006 and, as regards the
Group financial statements, Article 4 of the
IAS Regulation. They are also responsible
for safeguarding the assets of the Group and
the Parent Company and hence for taking
reasonable steps for the prevention and
detection of fraud and other irregularities.
The directors are responsible for the
maintenance and integrity of the Group
and Parent Company’s website. Legislation
in the UK governing the preparation and
dissemination of financial statements may
differ from legislation in other jurisdictions.
The directors consider that the Annual
Report and Financial Statements, taken as
a whole, is fair, balanced and understandable
and provides the information necessary for
shareholders to assess the Group and Parent
Company’s performance, position, business
model and strategy.
Each of the directors, whose names and
functions are listed on pages 94 and 95,
confirms that to the best of their knowledge:
the Parent Company financial statements,
which have been prepared in accordance
with UK-adopted International Accounting
Standards, give a true and fair view of the
assets, liabilities, financial position and
profit of the Parent Company;
the Group financial statements, which
have been prepared in accordance with
UK-adopted International Accounting
Standards, give a true and fair view of the
assets, liabilities, financial position and
profit of the Group; and
the Strategic report contained on pages 1 to
87 includes a fair review of the development
and performance of the business and the
position of the Group and Parent Company,
together with a description of the principal
risks and uncertainties that it faces.
In the case of each director in office at the date
the Directors’ Report is approved:
so far as the director is aware, there is
no relevant audit information of which
the Group and Company’s auditors are
unaware; and
they have taken all the steps that they
ought to have taken as a director in order
to make themselves aware of any relevant
audit information and to establish that the
Group and Company’s auditors are aware
of that information.
This confirmation is given and should be
interpreted in accordance with section 418
of the Companies Act 2006.
For and on behalf of the Board
Bill Hocking
Chief Executive
17 September 2026
Statement of directors’ responsibilities
Forward-looking statements
Forward-looking statements have been made by the directors in good faith using information up until the date on which they approved this
Annual Report. Forward-looking statements should be regarded with caution due to uncertainties in economic trends and business risks.
The Group’s businesses are generally not affected by seasonality.
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Independent auditor’s report
to the members of Galliford Try Holdings plc
Report on the audit of the financial statements
Opinion
In our opinion:
the financial statements give a true and fair view of the state of
the Group’s and of the Company’s affairs as at 30 June 2026 and
of the Group’s profit and the Group’s and the Company’s cash flows
for the year then ended;
the Group financial statements have been properly prepared in
accordance with UK adopted international accounting standards;
the Company financial statements have been properly prepared in
accordance with UK adopted international accounting standards and
as applied in accordance with the provisions of the Companies Act
2006; and
the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006.
We have audited the financial statements of Galliford Try Holdings plc
(the ‘Company’) and its subsidiaries (the ‘Group’) for the year ended
30 June 2026 which comprise of the following:
Consolidated income statement;
Consolidated statement of comprehensive income;
Balance sheets;
Consolidated and Company statements of changes in equity;
Statements of cash flows; and
Notes 1 to 32 to the financial statements including material
accounting policy information.
The financial reporting framework that has been applied in their
preparation is applicable law and UK adopted international accounting
standards and as regards the Company financial statements, as applied
in accordance with the provisions of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards
on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of
our report. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Independence
We remain independent of the Group and the Company in accordance
with the ethical requirements that are relevant to our audit of the
financial statements in the UK, including the FRC’s Ethical Standard
as applied to listed public interest entities, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard
were not provided to the Group and the Company and we remain
independent of the Group and the Company in conducting our audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
Directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation
of the Directors’ assessment of the Group and the Company’s ability
to continue to adopt the going concern basis of accounting included:
We considered the principal risks identified by the Directors that
are associated with the Group’s activities, business environment and
wider economic and macro-level risks. We assessed these against our
views of the risks, based on our understanding of the business and its
performance in the year ended 30 June 2026.
We tested the integrity and mathematical accuracy of management’s
forecast model and assessed its consistency with approved budgets.
We assessed the appropriateness of the Group’s cash flow forecasts
in the context of the Group’s secured ongoing contracts, the secured
new work and forecast potential work which were agreed to the
Board approved forecasts.
We obtained and evaluated the Directors’ downside sensitivities,
which included delays to construction resulting in reduced volume of
work, a deterioration in working capital and also assessed the impact
of materials and labour price inflation. As part of these sensitivities,
management included a severe but plausible downside scenario
combining the sensitivities mentioned which we critically evaluated.
We have performed our own sensitivities which included reducing
cash inflows based on reduced margins and delaying unsecured
revenue, assessing their effect on the going concern assessment.
As part of these, we determined the break-even point which involved
aggregating the impact of the sensitivities noted.
We obtained and assessed management’s covenant calculations for
the year to check the Group was compliant and further evaluated
forecast covenant compliance and headroom calculations.
We assessed the actual cash performance against forecasts for
the current financial year and post year end to evaluate the
Directors’ accuracy and reliability of the forecasts prepared.
We evaluated the adequacy of the disclosures within the
Directors’ report in relation to the specific risks posed, the
scenarios the Directors have considered and conclusions made.
Based on the work we have performed, we have not identified any
material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the Group and the
Company’s ability to continue as a going concern for a period of at least
twelve months from when the financial statements are authorised
for issue. However, because not all future events or conditions can be
predicted, this statement is not a guarantee as to the Group and the
Company’s ability to continue as a going concern.
In relation to the Group’s reporting on how it has applied the
UK Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the Directors’ statement in the
financial statements about whether the Directors considered it
appropriate to adopt the going concern basis of accounting in
preparing the financial statements.
Our responsibilities and the responsibilities of the Directors with
respect to going concern are described in the relevant sections of
this report.
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133
Financial information
Annual Report and Financial Statements 2026
Overview
2026
2025
Key audit matters
Revenue and profit recognition
for construction contracts
X
X
Defects liability provision
in relation to a legacy
infrastructure contract
X
X
Materiality
Group financial statements as a whole
£6.8m (2025: £5.7m) based on 0.35%
(2025: 0.3%) of revenue
An overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding of
the Group and its environment, the applicable financial reporting
framework and the Group’s system of internal control. We identified
and assessed the risks of material misstatement of the Group financial
statements including with respect to the consolidation process.
We then applied professional judgement to focus our audit procedures
on the areas that posed the greatest risks to the group financial
statements. We continually assessed risks throughout our audit,
revising the risks where necessary, with the aim of reducing the group
risk of material misstatement to an acceptable level, in order to provide
a basis for our opinion.
Components in scope
The Group comprises 50 legal entities which are predominantly
grouped into divisions based on the nature of their operations.
Although each division includes multiple legal entities, they have their
own distinct management structure, common business characteristics,
commonality of information systems, controls and financial reporting
framework. Group management, and ultimately the Board, monitor
the position and performance of the Group on a divisional basis.
Accordingly, these divisions were considered to be components for
the purpose of the audit. In addition, there are a number of distinct
legal entities that fall outside of these divisions, being the Company
and other legal entities providing services across the Group. These
were also determined to be separate components.
Based on our scoping assessment, twelve components were identified,
which are considered unique due to their specific characteristics.
For components in scope, we performed further audit procedures to
obtain sufficient appropriate evidence, these included:
procedures on the entire financial information of the component,
including performing substantive procedures and tests of operating
effectiveness of controls; or
procedures on one or more classes of transactions, account balances
or disclosures
Procedures performed at the component level
Procedures were performed on the entire financial information of
three components, comprising of the Buildings, Environment and
Highways components. Procedures were performed on one or more
classes of transactions, account balances or disclosures for four other
components. Risk assessment procedures were performed on the
remaining components.
The Group engagement team has performed all procedures directly
and has not involved component auditors in the Group audit.
Procedures performed centrally
The group operates a centralised IT function that supports IT processes
for certain components. This IT function is subject to specified
risk-focused audit procedures, predominantly the testing of the
relevant IT general controls and IT application controls.
Disaggregation
The financial information relating to Group risks is highly disaggregated
across the group. We took a centralised approach to responding to these
risks. We performed procedures at the component level in relation to
these risks in order to obtain comfort over the residual population of
group balances.
How Climate change affected the scope of our audit
The Group has determined that climate change does not currently
have a material impact on its operations. Our work on the assessment
of potential impacts of climate-related risks on the Group’s operations
and financial statements included:
Enquiries and challenge of management to understand the actions
they have taken to identify climate-related risks and their potential
impacts on the financial statements and adequately disclose
climate-related risks within the annual report;
Our own qualitative risk assessment taking into consideration the
sector in which the Group operates and how climate change affects
this particular sector; and
Review of the minutes of Board and Audit Committee meetings
and other papers related to climate change and performed a risk
assessment as to how the impact of the Group’s commitment as
set out in the Annual Report may affect the financial statements
and our audit.
We challenged the extent to which climate-related, including the
expected cash flows from the initiatives and commitments have
been reflected, where appropriate, in the Directors’ going concern
assessment and viability assessment.
The management disclosures on pages 72-84 form part of the Strategic
report. Our responsibilities in relation to these disclosures are described
in the relevant section of this report and our procedures on these
disclosures therefore consisted solely of considering whether they are
materially inconsistent with the financial statements or our knowledge
obtained from the audit or otherwise appear to be materially misstated.
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Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the
current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, including
those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing the efforts of the engagement
team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
Key audit matter
How the scope of our audit responded to the risk
Revenue and
profit recognition
for construction
contracts
Note 1 on page
147 to the financial
statements gives
further detail
regarding the
estimates and
judgements made
by the Group in
this regard and the
accounting policy
for construction
contracts.
Refer to Note 3
in relation
to Revenue.
For long term construction contracts,
the Group recognises revenue over
time and measures progress based on
the input method by considering the
costs incurred to date, relative to the
total estimated forecast costs, applied
to the estimated forecast revenue.
This process involves significant
estimation in relation to the outcome
of both the total costs to complete
the contract as well as the final
contract value.
These estimates can materially impact
the revenue and profit recognised, as
well as contract assets and liabilities.
In a number of the Group’s construction
contracts there are assumptions
regarding amounts contractually due
from customers. Contract assets can
include variations and claims which
have not been certified or formally
agreed but have been assessed by
management as highly probable of not
reversing, in accordance with IFRS
15. Judgement is therefore required
to determine revenue that meets this
recognition criteria, and that significant
estimates are appropriately disclosed.
In addition, there are some downstream
claims against subcontractors and
designers which are only recognised
once they are considered to be virtually
certain of recovery, in accordance
with IAS 37 – Provisions, Contingent
Liabilities and Contingent Assets.
Once the recognition criteria are
considered to be met, significant
judgement is required to determine
the amounts to be recognised.
The Group has to forecast total
costs expected and then allocate
between the amount incurred on
the contract to the end of the
reporting period and the proportion
to complete in future periods. The
assessment of the total costs to be
incurred requires estimation.
Having considered the above we
determined that construction contract
revenue and profit recognition along
with other related contract balances
have an inherently high degree of
estimation uncertainty with a range of
possible outcomes and hence we have
treated these areas and the associated
disclosures as a Key Audit Matter.
Control Environment
We obtained an understanding of and evaluated management’s processes
and controls for ensuring construction contracts with customers meet the
requirements of IFRS 15.
We evaluated the design and implementation, and tested operating effectiveness,
of the key controls over revenue, profit margin, costs to complete and stage of
completion on construction contracts.
Contract Selection
We focused our work on the contracts we considered to have the greatest
estimation uncertainty, identified using a number of selection criteria including
magnitude, movements in the year, unagreed variations or claims above
a determined threshold or other known issues.
For each of the contracts selected, we carried out the following detailed testing
in relation to contract overview, forecast revenue, forecast costs to complete
and stage of completion:
Contract Overview
We obtained an understanding of the contract, its performance obligations and
performance to date by reviewing the initial contract with the customer and holding
discussions with commercial teams and other management, as applicable.
Forecast Revenue
We agreed the contract value included in forecast total revenue to contractual
agreements, supplemental agreements and agreed variations.
For unagreed amounts, we challenged management’s assessment of the expected
recovery of variations, claims and compensation events from customers, to
determine the basis on which the associated revenue was considered to be highly
probable of not reversing. We obtained evidence of historic success rates and
evidence of amounts agreed post year end to support management’s assessment
as applicable.
We obtained and reviewed relevant legal correspondence relating to these claims
and variations and, where necessary, discussed the progress of legal disputes with
the Group’s internal legal team and external legal advisors.
We compared revenue recognised with amounts applied for and amounts certified
by clients. We then understood any difference between these values.
We agreed the amounts received to bank where possible. Where the balance had
not been received into bank, we considered the recoverability of the balance by
reviewing correspondence with the customer.
We re-performed the key calculations behind the margin applied, the stage of
completion and associated profit, and therefore revenue recognised, as well as
contract assets and liabilities.
We assessed the recoverability of contract assets by comparing to the post year end
external certification of the value of work performed, and the payment received
post year end.
We challenged the judgements or estimates made by discussing them
with the project teams as well as senior operational, legal, commercial and
financial management.
Independent auditor’s report continued
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135
Financial information
Annual Report and Financial Statements 2026
Key audit matter
How the scope of our audit responded to the risk
Revenue and
profit recognition
for construction
contracts
(continued)
Forecast costs to complete and stage of completion
We obtained a breakdown of costs to date and forecast costs to complete,
agreeing totals back to the year-end cost-value reconciliation (CVR).
We performed a review of forecast costs by type included within the cost-value
reconciliation (CVR) and analysed the stage of completion of each cost type
to determine whether costs are progressing in line with the overall stage of
completion. We challenged management where costs were not in line with our
expectations and obtained supporting documentation as applicable.
We corroborated a sample of forecast costs for significant subcontractor packages
to documentary evidence. Where the subcontractor projected total costs
significantly differed from the total forecast costs in the contract forecast,
we challenged management and obtained supporting evidence for the
differences as applicable.
We enquired with commercial Directors regarding variances between the input
method calculated stage of completion and external certified value. We assessed
judgements and estimates made by the Directors in determining forecast costs
and the remaining contingency on a project, for the possibility of a material
misstatement, and obtained corroborating evidence to support the positions taken.
We compared the percentage of forecast costs that have been procured to the
overall forecast costs and challenged management where there were substantial
costs yet to procure as this presents a greater risk. We corroborated a sample of
un-procured subcontractor costs to documentary evidence.
We challenged the assumptions made by management in respect of estimated
recoveries from subcontractors and designers included in the forecast, to
determine whether these could be considered virtually certain of recovery.
We obtained evidence such as signed agreements or the latest correspondence
that underpinned management’s assumptions and also considered the existence
of any contradictory evidence.
We discussed with management to understand and challenge other areas of
judgement taken including anticipated completion dates and the impact of any
delays, whether there are any disputes with third parties on the contract and the
reason for any movements in forecasts from tender/prior year to 30 June 2026.
We obtained corroborating evidence for the explanations provided.
We tested a sample of costs incurred in the year and ensured that they had
been accurately recorded and correctly allocated to the relevant project.
We tested a sample of accrued subcontractor costs to the year-end
subcontractor applications and a sample of other accrued costs to applicable
supporting documentation.
Other
Where appropriate we reviewed legal correspondence and expert advice obtained
by management in respect of the judgements and estimates and, where necessary,
spoke directly with management’s experts who had provided this advice.
We remained alert for any contradictory evidence or indicators of understatement
of forecast costs or overstatement of revenue while performing our audit
procedures, including site visits, cost testing and payments testing.
We challenged the judgements or estimates made by discussing them
with the project teams as well as senior operational, legal, commercial and
financial management.
We performed a stand back review on the key judgements and estimates on each
contract to assess if sufficient appropriate audit evidence had been obtained.
From the latest available contract information post year end, we compared
the forecast out-turn across all contracts to the reported year end positions.
We challenged management on any significant movements and considered
whether changes should be considered in the year end position.
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Key audit matter
How the scope of our audit responded to the risk
Revenue and
profit recognition
for construction
contracts
(continued)
Residual Contract Testing
For contracts that didn’t meet the selection criteria, we carried out targeted testing
on a sample basis which included:
Obtaining an understanding of the contract and its key terms through inspection
of the executed customer contract.
Agreeing forecast revenue to contractual agreements, supplementary
agreements and approved variations.
For unagreed variations, claims and compensation events, challenging
management’s assessment of recoverability and the basis for recognising
associated revenue. We assessed whether recognition was highly probable of
not reversing and, where relevant, corroborated management’s assessment
through review of historical recovery rates and amounts agreed post year end.
Reconciling revenue recognised with amounts applied for and amounts certified
by clients, agreeing the amounts received to bank. Where the balance had not
been received into bank, we considered the recoverability of the balance by
reviewing correspondence with the customer.
Corroborating a sample of forecast costs relating to significant subcontractor
packages to supporting documentation. Where forecast costs differed
significantly from subcontractor projections, we challenged management and
obtained supporting evidence for the differences.
Comparing the proportion of forecast costs procured at year end to total
forecast costs and challenging management where a significant proportion
of costs remained unprocured, as these contracts are subject to greater
estimation uncertainty.
Corroborating a sample of significant unprocured subcontractor costs to
supporting documentation, including tender returns, quotations and other
available evidence.
Site Visits
We visited a sample of sites across the business. We inspected the physical progress
of the sites and discussed progress with personnel working on the specific sites,
particularly those outside of finance such as individuals in commercial and project
management roles. Where sites were selected for audit testing, we considered
whether the information obtained from the site visit was consistent with the
information obtained from audit testing.
Disclosures
We considered the adequacy of the disclosures in the financial statements in
relation to specific contracts and also the disclosures in respect of significant
judgements and estimates in line with applicable accounting standards.
Key observations
We consider that the estimates and judgements made by management in respect
of construction contract revenue and profit recognition, and the associated
disclosures to be reasonable.
Independent auditor’s report continued
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Financial information
Annual Report and Financial Statements 2026
Key audit matter
How the scope of our audit responded to the risk
Defects liability
provision in
relation to a legacy
infrastructure
contract
Note 1 on page
147 to the financial
statements gives
further detail
regarding the
estimates and
judgements made
by the Group in
this regard.
Note 1 on page
150 to the financial
statements
provides the
accounting policy
for provisions.
Refer to Note
19 in relation to
provisions.
The Group regularly enters into
construction contracts which include
defect rectification warranty periods
which are typically up to three years
in length. A provision is established to
cover the expected cost of rectification
work and is utilised as defects are
identified and works are performed.
Included within the rectification
provision of £61.0m at 30 June 2026
is a provision of £13.1m in respect
of a single infrastructure contract,
which the Group delivered as part of
a joint arrangement with two other
contractors, where the total defects
obligation period under the contract
is twelve years. As at 30 June 2026,
there were 5 years of the primary
defect obligation remaining.
Given the length of the defect period
in comparison to those typically
entered into by the Group, and
the associated assumptions that
management has made in estimating
the provision, there is a high degree
of estimation uncertainty associated
with this provision. The estimation
uncertainty and assumptions required
may also impact the Directors ability
to make a reliable estimate of the
provision and, therefore, whether
the IAS 37 ‘Provisions, Contingent
Liabilities and Contingent Assets’
recognition criteria are met, or
alternatively, whether it should be
disclosed as a contingent liability.
In addition, in deriving the estimate,
the Directors have used a panel
of experts (external and internal),
who identified, a potential range of
outcomes, being £7.6m to £19.1m,
which is greater than our materiality
for the financial statements as a
whole. Therefore, we considered this
provision to be a key audit matter.
We obtained management’s assessment paper on whether the recognition criteria
of IAS 37 were met and whether a provision should be recognised in respect of
this contract. We assessed this against the requirements of IAS 37. As part of our
assessment, we validated the existence of the legal obligations with respect to the
defect requirements through reviewing key terms of the contract.
We also obtained a report prepared by management’s expert as to whether the
recognition criteria were met. We assessed their competence and objectivity
by examining the work they were required to perform and their professional
qualifications and experience. We considered whether their assessment provided
any contradictory evidence to management’s own assessment as well as our own.
We obtained an understanding of and assessed management’s process for the
quantification of the provision, including:
the analysis of specific cost estimates for known, identified rectification
works; and
the estimation of lifetime costs expected during the defect period.
We challenged management’s assessment of expected lifetime costs, and therefore
the remaining provision for yet to be identified defects, prepared by drawing
information from a panel of experts.
We evaluated the competence, objectivity and sufficiency of management’s panel
of experts that were utilised in the estimation of expected lifetime costs and the
resulting provision by examining the work they performed, their professional
qualifications and experience.
Management’s assessment continues to be supported by the opinions of its panel
of experts (both external and internal). Based on our understanding of these
opinions, obtained through previous discussions, and considering additional
evidence obtained in the current year, we developed independent expectations of
defects incurred on similar types of contracts and assessed whether management’s
assessment was within a supportable range.
In assessing the appropriateness of cost estimates, we assessed if the costs
underpinning the accounting provision represent managements and the experts
best estimate of expected expenditure, based on the current extent of defect
expenditure incurred as well as any known risks identified but not yet remediated.
We considered expenditure incurred on defects to date. Through independent
research and our understanding of the views provided by management’s panel of
experts, we assessed the expected timing and magnitude of defect costs over the
contractual defects period. Using this information, we developed an estimate of the
expected lifetime defect costs and evaluated whether this indicated any evidence
contrary to the provision recorded by management.
We assessed the integrity of the underlying data and formulae used in developing
the estimate. We also assessed the mathematical accuracy of management’s
calculations for the various elements of the provision.
Disclosures
We considered the adequacy of the disclosures made, with particular focus on the
range of potential outcomes and areas of estimation uncertainty and challenged
management in regard to their proposed disclosures against the requirements of
the applicable standards.
Key observations:
We consider the estimates, judgements and associated disclosures made by
management in respect of the estimation of the provision to be reasonable.
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Our application of materiality
We apply the concept of materiality both in planning and performing
our audit, and in evaluating the effect of misstatements. We consider
materiality to be the magnitude by which misstatements, including
omissions, could influence the economic decisions of reasonable
users that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the probability that
any misstatements exceed materiality, we use a lower materiality level,
performance materiality, to determine the extent of testing needed.
Importantly, misstatements below these levels will not necessarily
be evaluated as immaterial as we also take account of the nature of
identified misstatements, and the particular circumstances of their
occurrence, when evaluating their effect on the financial statements
as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows:
Group financial statements
Company financial statements
2026
2025
2026
2025
Materiality
£6.8m
£5.7m
£3.1m
£3.0m
Basis for determining materiality
0.35% of revenue
0.3% of revenue
1% of total assets
1% of total assets
Rationale for the
benchmark applied
Taking into account the Group’s operations and
the sector in which it operates, we considered
what would represent a stable basis for determining
materiality and benchmarked the resulting materiality
level against that of peer companies as a proportion
of revenue.
Based on this we have set Group materiality at
0.35% (2025: 0.30%) of Group revenue.
The increase in the materiality percentage applied
reflects the audit team’s professional judgement,
taking into account the nature and scale of the
Group’s operations, together with the results of
our risk assessment.
We have set Company materiality at the lower of
1% (2025: 1%) of total assets and 95% (2025: 95%)
of Group materiality.
We chose total assets as the benchmark as the
Company does not trade and we believe this to be of
most interest to the users of the financial statements.
Performance materiality
£4.2m
£3.6m
£2.3m
£1.9m
Basis for determining
performance materiality
On the basis of our risk assessment, together with our
assessment of the Group’s overall control environment
and history of adjustments, our judgement was that
overall performance materiality of the Group should
be set at 62.5% (2025: 62.5%) of materiality.
On the basis of our risk assessment, together with
our assessment of the Company’s overall control
environment and history of adjustments, our
judgement was that overall performance materiality
of the Company should be set at 75% (2025: 62.5%)
of materiality.
Rationale for the
percentage applied for
performance materiality
We determined performance materiality based on our risk assessment procedures, together with our
assessment of the Group’s and Company’s overall control environment, the number of components and the
history of audit adjustments identified in the previous audits.
Component performance materiality
For the purposes of our Group audit opinion, we set performance
materiality for each component of the Group, apart from the Company
whose materiality and performance materiality are set out above,
based on a percentage of between 64% and 95% (2025: 66% and 95%)
of Group performance materiality dependent on a number of factors
including size and our assessment of the risk of material misstatement of
those components. Component performance materiality ranged from
£2.7m to £4.0m (2025: £2.3m to £3.5m).
Reporting threshold
We agreed with the Audit Committee that we would report to them all
individual audit differences in excess of £337,000 (2025: £282,000).
We also agreed to report differences below this threshold that, in our
view, warranted reporting on qualitative grounds.
Other information
The Directors are responsible for the other information. The other
information comprises the information included in the Annual Report
other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the course
of the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are required
to report that fact.
We have nothing to report in this regard.
Independent auditor’s report continued
139
Governance
Annual Report and Financial Statements 2026
139
Financial information
Annual Report and Financial Statements 2026
Corporate governance statement
The UK Listing Rules sourcebook requires us to review the Directors’
statement in relation to going concern, longer-term viability and that
part of the Corporate Governance Statement relating to the Company’s
compliance with the provisions of the UK Corporate Governance Code
specified for our review.
Based on the work undertaken as part of our audit, we have concluded
that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements,
or our knowledge obtained during the audit.
Going concern and
longer-term viability
The Directors’ statement with regards to the appropriateness of adopting the going concern basis of
accounting and any material uncertainties identified set out on page 130;
The Directors’ explanation as to their assessment of the Group’s prospects, the period this assessment
covers and why the period is appropriate set out on page 85; and
The Directors’ statement on whether they have a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities set out on page 85.
Other Code provisions
Directors’ statement on fair, balanced and understandable set out on page 110;
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out
on page 66;
The section of the annual report that describes the review of effectiveness of risk management and internal
control systems set out on page 109; and
The section describing the work of the audit committee set out on page 107.
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies Act 2006
and ISAs (UK) to report on certain opinions and matters as described below.
Strategic report and
Directors’ report
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Strategic report and the Directors’ report for the financial year for which
the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors’ report have been prepared in accordance with applicable
legal requirements.
In the light of the knowledge and understanding of the Group and the Company and its environment
obtained in the course of the audit, we have not identified material misstatements in the Strategic report
or the Directors’ report.
Directors’ remuneration
In our opinion, the part of the Directors’ remuneration report to be audited has been properly prepared in
accordance with the Companies Act 2006.
Matters on which
we are required to
report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the Company, or returns adequate for our audit have not
been received from branches not visited by us; or
the Company financial statements and the part of the Directors’ remuneration report to be audited are not in
agreement with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Statement of directors’ responsibilities,
the Directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view,
and for such internal control as the Directors determine is necessary
to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for
assessing the Group’s and the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors either
intend to liquidate the Group or the Company or to cease operations,
or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these
financial statements.
However, the primary responsibility for the prevention and detection of
fraud rests with both those charged with governance of the Company
and management.
140
Galliford Try
140
Galliford Try
Extent to which the audit was capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws
and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are
capable of detecting irregularities, including fraud is detailed below:
Non-compliance with laws and regulations
Based on:
Our understanding of the Group and the industry in which
it operates;
Discussion with management and those charged with governance
internal legal counsel, Audit Committee; and
Obtaining an understanding of the Group’s policies and procedures
regarding compliance with laws and regulations.
we considered the significant laws and regulations to be, but not limited
to, UK adopted international accounting standards, Companies Act
2006, UK tax legislation, UK Listing Rules.
The Group is also subject to laws and regulations where the
consequence of non-compliance could have a material effect on
the amount or disclosures in the financial statements, for example
through the imposition of fines or litigations. We identified such
laws and regulations to be the health and safety legislation, data
protection legislation, employment law, the Fire Safety Act 2021
and the Building Safety Act 2022.
Our procedures in respect of the above included:
Enquiries of management whether there were any litigations
and claims;
Enquiries of the legal team of the Group and the Company;
Review of minutes of meetings of those charged with governance
for any instances of non-compliance with laws and regulations;
Review of correspondence with regulatory and tax authorities for
any instances of non-compliance with laws and regulations;
Review of financial statement disclosures and agreeing to
supporting documentation;
Involvement of tax specialists in the audit; and
Review of legal expenditure accounts to understand the nature
of expenditure incurred.
Fraud
We assessed the susceptibility of the financial statements to
material misstatement, including fraud. Our risk assessment
procedures included:
Enquiries with management and those charged with governance,
the Audit Committee as well as internal audit regarding any known
or suspected instances of fraud;
Obtaining an understanding of the Group’s policies and procedures
relating to:
– Detecting and responding to the risks of fraud; and
– Internal controls established to mitigate risks related to fraud.
Review of minutes of meetings of those charged with governance
for any known or suspected instances of fraud;
Discussion amongst the engagement team as to how and where
fraud might occur in the financial statements;
Performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud; and
Considering remuneration incentive schemes and performance
targets and the related financial statement areas impacted by these.
Based on our risk assessment, we considered the areas most susceptible to
fraud to be management override of controls that are otherwise operating
effectively through inappropriate journal entries, existence of revenue
recognition over construction contracts and bias in key estimates.
Our procedures in respect of the above included:
Testing journal entries throughout the year, which met defined
risk criteria, by agreeing to supporting documentation;
Testing a sample of the residual population of journals not meeting
the defined risk criteria by agreeing to supporting documentation;
Involvement of forensic specialists in the fraud risk
assessment procedures;
Assessing significant estimates made by management for bias
with the significant judgements and estimates in particular those
related to contract accounting and provisions; and
Testing a sample of contracts for accuracy of estimation where
revenue is recognised over time (refer to KAMs above).
We also communicated relevant identified laws and regulations and
potential fraud risks to all engagement team members who were all
deemed to have appropriate competence and capabilities and remained
alert to any indications of fraud or non-compliance with laws and
regulations throughout the audit.
Our audit procedures were designed to respond to risks of material
misstatement in the financial statements, recognising that the risk of
not detecting a material misstatement due to fraud is higher than the
risk of not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery, misrepresentations
or through collusion. There are inherent limitations in the audit
procedures performed and the further removed non-compliance with
laws and regulations is from the events and transactions reflected in
the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Other matters which we are required to address
We were appointed by the members on 13 November 2025 to audit
the financial statements for the period ended 30 June 2026.
Our total uninterrupted period of engagement is 7 years, covering the
periods ended 30 June 2020 to 30 June 2026.
Our audit opinion is consistent with the additional report to the
audit committee.
Use of our report
This report is made solely to the Company’s members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
Company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body,
for our audit work, for this report, or for the opinions we have formed.
In due course, as required by the Financial Conduct Authority
Disclosure Guidance and Transparency Rule 4.1.15R – 4.1.18R,
these financial statements will form part of the Electronic Format
Annual Financial Report filed on the National Storage Mechanism of
the FCA in accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s
report provides no assurance over whether the Electronic Format
Annual Financial Report has been prepared in compliance with
DTR 4.1.15R – DTR 4.1.18R.
Peter Latham
(Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
17 September 2026
BDO LLP is a limited liability partnership registered in England and
Wales (with registered number OC305127).
Independent auditor’s report continued
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
141
141
Notes
2026
£m
2025
£m
Revenue
3
Cost of sales
(1,756.9 )
(1,723.7 )
Gross profit
Administrative expenses
(125.6 )
(111.8 )
Operating profit
Finance income
5
Finance costs
5
(3.5 )
(4.5 )
Profit before income tax
6
Income tax expense
7
(13.8 )
(10.5 )
Profit for the year
Earnings per share
Basic
Profit attributable to ordinary shareholders
9
Diluted
Profit attributable to ordinary shareholders
9
The notes are an integral part of the consolidated financial statements.
Consolidated income statement
for the year ended 30 June 2026
Galliford Try
Galliford Try
142
142
Notes
2026
£m
2025
£m
Profit for the year
Other comprehensive expense:
Items that may be reclassified subsequently to profit or loss
Movement in fair value of PPP and other investments
15
(0.4 )
(1.9 )
Total items that may be reclassified subsequently to profit or loss
(0.4 )
(1.9 )
Other comprehensive expense for the year net of tax
(0.4 )
(1.9 )
Total comprehensive income for the year
The notes are an integral part of the consolidated financial statements.
Consolidated statement of comprehensive income
for the year ended 30 June 2026
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
143
143
Notes
Group
Company
30 June 2026
£m
30 June 2025
£m
30 June 2026
£m
30 June 2025
£m
Assets
Non-current assets
Intangible assets
10
–
–
Goodwill
11
–
–
Property, plant and equipment
12
–
–
Right-of-use assets
13
–
–
Investments in subsidiaries
14
190.3
189.7
PPP and other investments
15
–
–
Deferred income tax assets
21
0.8
0.7
Total non-current assets
191.1
190.4
Current assets
Trade and other receivables
16
–
–
Current income tax assets
–
–
Cash and cash equivalents
17
116.0
113.5
Total current assets
116.0
113.5
Total assets
307.1
303.9
Liabilities
Current liabilities
Trade and other payables
18
(609.6 )
(609.1 )
–
–
Lease liabilities
13
(22.5 )
(22.7 )
–
–
Current income tax liabilities
(0.1 )
–
–
Provisions for other liabilities and charges
19
(63.9 )
(48.6 )
–
–
Total current liabilities
(696.1 )
(680.4 )
–
–
Non-current liabilities
Lease liabilities
13
(25.3 )
(31.1 )
–
–
Total non-current liabilities
(25.3 )
(31.1 )
–
–
Total liabilities
(721.4 )
(711.5 )
–
–
Net assets
307.1
303.9
Equity
Share capital
23
50.4
51.1
Share premium
23
2.2
1.6
Other reserves
25
138.7
137.7
Retained earnings
25
(56.1 )
(68.3 )
115.8
113.5
Total equity attributable to owners of the Company
307.1
303.9
The profit for the Parent Company for the year was £32.0m (2025: £30.1m).
The notes are an integral part of the consolidated financial statements.
Bill Hocking
Kris Hampson
Galliford Try Holdings plc
Chief Executive
Registered number: 12216008
Balance sheets
Galliford Try
Galliford Try
144
144
Notes
Ordinary
shares
£m
Share
premium
£m
Other
reserves
£m
Retained
earnings
£m
Total
shareholders’
equity
£m
Consolidated statement
At 1 July 2024
(75.6 )
Profit for the year
Other comprehensive expense
(1.9 )
(1.9 )
Total comprehensive income for the year
Transactions with owners:
Dividends
8
(17.5 )
(17.5 )
Purchase of own shares
25
(12.3 )
(12.3 )
Share-based payments
24
Tax relating to share-based payments
Issue of shares
23
Cancellation of shares
23, 25
(1.3 )
At 30 June 2025
(68.3 )
Profit for the year
Other comprehensive expense
(0.4 )
(0.4 )
Total comprehensive income for the year
Transactions with owners:
Dividends
8
(20.3 )
(20.3 )
Purchase of own shares
25
(14.3 )
(14.3 )
Share-based payments
24
Tax relating to share-based payments
Issue of shares
23
Cancellation of shares
23, 25
(1.0 )
At 30 June 2026
(56.1 )
Company statement
At 1 July 2024
52.0
0.8
136.4
110.4
299.6
Profit for the year
–
–
–
30.1
30.1
Total comprehensive income
–
–
–
30.1
30.1
Transactions with owners:
Dividends
8
–
–
–
(17.5)
(17.5)
Share-based payments
24
–
–
–
0.5
0.5
Purchase of own shares
25
–
–
–
(10.0)
(10.0)
Issue of shares
23
0.4
0.8
–
–
1.2
Cancellation of shares
23, 25
(1.3)
–
1.3
–
–
At 30 June 2025
51.1
1.6
137.7
113.5
303.9
Profit for the year
–
–
–
32.0
32.0
Total comprehensive income
–
–
–
32.0
32.0
Transactions with owners:
Dividends
8
–
–
–
(20.3)
(20.3)
Share-based payments
24
–
–
–
0.6
0.6
Purchase of own shares
25
–
–
–
(10.0)
(10.0)
Issue of shares
23
0.3
0.6
–
–
0.9
Cancellation of shares
23, 25
(1.0)
–
1.0
–
–
At 30 June 2026
50.4
2.2
138.7
115.8
307.1
Consolidated and Company statements of changes in equity
for the year ended 30 June 2026
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
145
145
Notes
Group
Company
2026
£m
2025
£m
2026
£m
2025
£m
Cash flows from operating activities
Profit for the year
32.0
30.1
Adjustments for:
Income tax expense/(credit)
7
(0.1)
(0.3)
Net finance income
5
(6.4 )
(4.4 )
–
–
Profit before finance costs and taxation
31.9
29.8
Depreciation, amortisation and impairment of non-current assets
10, 12 & 13
–
–
Dividends received from subsidiary undertakings
(32.0)
(29.8)
Share-based payments
–
–
Net cash generated from/(used in) operations before changes in
working capital
(0.1)
–
Increase in trade and other receivables
16
(17.1 )
(14.3 )
–
–
Decrease in trade and other payables
18
(2.0 )
(12.2 )
–
–
Increase in provisions
19
–
–
Net cash generated from/(used in) operations
(0.1)
–
Interest received
–
–
Interest paid
(3.5 )
(4.5 )
–
–
Income tax received
–
–
Net cash generated from/(used in) operating activities
(0.1)
–
Cash flows from investing activities
Decrease/(increase) in amounts due from joint ventures
(6.1 )
–
–
PPP loan repayments
15
–
–
Acquisition of business combinations, net of cash acquired
29
(8.1 )
–
–
Dividends received from subsidiary undertakings
32.0
29.8
Proceeds from disposal of subsidiary undertakings
–
–
Acquisition of property, plant and equipment
12
(1.2 )
(2.4 )
–
–
Net cash (used in)/generated from investing activities
(3.6 )
(5.3 )
32.0
29.8
Cash flows from financing activities
Repayment of lease liabilities
13
(23.3 )
(21.2 )
–
–
Purchase of own shares
25
(14.3 )
(12.3 )
(10.0)
(10.0)
Dividends paid to Company shareholders
8
(20.3 )
(17.5 )
(20.3)
(17.5)
Net proceeds from issue of ordinary share capital
23
0.9
1.2
Net cash used in financing activities
(57.0 )
(49.8 )
(29.4)
(26.3)
Net increase in cash and cash equivalents
2.5
3.5
Cash and cash equivalents at 1 July
17
113.5
110.0
Cash and cash equivalents at 30 June
17
116.0
113.5
Statements of cash flows
for the year ended 30 June 2026
Galliford Try
Galliford Try
146
146
Notes to the financial statements
incorporated, listed and domiciled in the UK , and registered under the
laws of England and Wales . The address of the registered office is
its listing on the London Stock Exchange.
that is the currency of the primary economic environment in which the
The consolidated and Company financial statements have been
prepared on a going concern basis. The Group’s business activities,
together with the factors likely to affect its future development,
performance and position are set out in the Viability Statement
(on page 85) and the Strategic Report.
As at 30 June 2026 , the Group had substantial cash balances, no drawn
loan facilities, no defined benefit pension liabilities and a strong forward
secured order book. The directors regularly review the working capital
requirements of the Group while considering downside sensitivities.
The Group’s forecasts have been prepared in the context of the current
economic conditions and additionally, the directors have considered
a range of downside sensitivities (as discussed in detail in the Viability
Statement on page 85). Even in the severe but plausible downside
scenario, the Group is forecast to continue to meet its obligations and
remain cash positive for a period of at least 12 months from the date
the financial statements are authorised for issue.
After making enquiries and considering the factors and sensitivities
outlined above for a range of scenarios, the directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future being a period of at
least 12 months from the date the financial statements are authorised
for issue. Thus, they continue to adopt the going concern basis of
statements and the Company financial statements have been prepared
in accordance with UK-adopted International Accounting Standards and
with the requirements of the Companies Act 2006, under the historical
cost convention, as modified by the revaluation of PPP and other
ended 30 June 2026 but did not have a material effect on the Group:
Amendments to IAS 21 to clarify the accounting when there is a lack
that are not yet effective or have not been endorsed. The Group has
chosen not to adopt these early.
IFRS 18 Presentation and Disclosure in Financial Statements
Amendment to IFRS 9 and IFRS 7 – Classification and Measurement
of Financial Instruments
Annual improvements to IFRS – Volume 11
IFRS 18, which replaces IAS 1 Presentation of Financial Statements,
primarily introduces new requirements for the presentation of the
income statement and the classification of income and expenses.
The Group is in the process of determining the impact of applying
IFRS 18 which is not expected to be material. IFRS 18 is effective for
accounting periods beginning on or after 1 January 2027 and the
Group will report its first annual financial statements in accordance
with IFRS 18 for the year ended 30 June 2028.
Besides the presentational changes arising from the adoption of
IFRS 18, no other new accounting standard or amendment is expected
The Group financial statements incorporate the results of Galliford Try
Holdings plc, its subsidiary undertakings and the Group’s share of the
results of joint arrangements. Subsidiaries are all entities over which
the Group has control. The exposure or right to variable returns from its
involvement with an investee, and the ability to influence those returns,
are considered when assessing whether the Group controls another
entity. Subsidiaries are fully consolidated from the date on which control
is transferred to the Group, until the date that control ceases.
The acquisition method of accounting is used to account for the
acquisition of a business by the Group. The cost of an acquisition is
measured at the fair value of the assets transferred, equity instruments
issued and liabilities incurred or assumed at the date of exchange.
Costs directly attributable to the acquisition are expensed to the
income statement. The identifiable assets acquired and liabilities
and contingent liabilities assumed in the business combination are
measured initially at their fair values at the acquisition date, irrespective
of any non-controlling interest. The excess of cost of acquisition over
the fair value of the Group’s share of the identifiable net assets acquired
is recorded as goodwill. If the fair value of the Group’s share of the
identifiable net assets is in excess of the cost of the acquisition,
the gain on bargain purchase is recognised as a credit through the
income statement.
Inter-company transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Unrealised
losses are also eliminated but considered an impairment indicator of
the asset transferred. Accounting policies of acquired subsidiaries are
changed where necessary, to ensure consistency with policies adopted
by the Group.
In addition to total performance measures, the Group discloses
additional information including adjusted performance and adjusted
earnings per share. The Group believes that this additional information
provides useful information on underlying trends. This additional
information is not defined under international accounting standards and
may therefore not be comparable with similarly titled profit measures
reported by other companies. It is not intended to be a substitute for,
or superior to, international accounting standards measures of profit.
The Company has elected to take the exemption under section 408 of
the Companies Act 2006 to not present the Parent Company income
As reported in the TCFD disclosures starting on page 72, and the
principal risks starting on page 67, the directors, in preparing the
financial statements, have considered the risks and potential impact
of climate change to the Group. It is unlikely that these risks will have
a material financial impact in the short (between one and two years)
and medium (between three and 10 years) term, particularly given the
nature of the contractual arrangements in place.
There has been no material impact identified on the financial reporting
judgements and estimates. The Directors considered the impact of
climate change in respect of the following principal areas:
contract judgements made on the Group’s construction contracts;
going concern and viability of the Group over the next three years;
cash flow forecasts used in the impairment assessments of
non-current assets including the intangible assets and goodwill; and
carrying value and useful economic lives of property, plant
and equipment.
As current legislation stands, there is no material impact expected
from climate change. The Directors are however aware of the
ever-changing risks attached to climate change and will continue to
monitor this, particularly regarding any judgements on construction
contracts, impairment reviews and going concern in preparation of
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
147
147
1 Accounting policies
continued
The preparation of the consolidated financial statements requires
management to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of assets,
liabilities, income and expenses. Critical judgements are those
management has made when applying its material accounting policies,
whereas critical estimates are assumptions and estimates made at
the end of the reporting period that have a significant risk of resulting
in a material adjustment to the carrying amounts of assets and liabilities
within the next financial year.
The estimates, judgements and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis
of making estimates and judgements about the carrying value of assets
and liabilities which are not readily apparent from other sources. Actual
results may differ from these estimates and judgements. The estimates,
judgements and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates and judgements are recognised
in the period in which the estimate or judgement is revised if the revision
affects only that period, or in the period of revision and future periods if
the revision affects both current and future periods.
Material estimates and judgements are made in particular with regards
to establishing the following policies:
(i) Revenue and profit recognition for long-term contract accounting
(judgement and estimate)
In order to determine the profit and loss that the Group is able to
recognise on its construction contracts in a specific period, the Group
has to estimate the outcome of both the total costs to complete the
contract and the final contract value. The Group has to allocate total
costs of the construction contracts between the amount incurred on
the contract to the end of the reporting period and the proportion to
complete in a future period. The assessment of the total costs to be
incurred and final contract value requires a degree of estimation.
Contract modifications are recognised when the Group considers they
have been approved (which also includes consideration of whether
enforceable rights exist in the contract). The estimation of final contract
value includes the assessment of the recovery of variations, claims and
compensation events (contract modifications). The estimate made is
constrained in accordance with IFRS 15 so that it is highly probable not
to result in a significant reversal of revenue in the future. Where the
change in scope results in an increase to the work to be performed
that is distinct and reflects the stand-alone selling price of the distinct
good/service, it is treated as a separate contract. This is assessed on
a contract specific basis.
The Group recognises recoveries of claims from clients as revenue
where clear entitlement has been established which can require
judgement, such as through dispute-resolution processes. This includes
the recovery of costs (such as delays to the contract programme)
to the extent it is highly probable not to result in a significant reversal
of revenue in the future.
The estimation of costs to complete is based on all available relevant
information such as procured packages and management experience
and includes estimation of final accounts and any potential maintenance
and defect liabilities. Recoveries resulting from actual or potential claims
against subcontractors are accounted for in accordance with IAS 37 and
are recognised only when they meet the virtually certain threshold.
Group management has established internal controls to review and
ensure the appropriateness of estimates made on an individual contract
basis, including any necessary contract provisions. As with most large,
complex construction projects, there is an element of estimation
uncertainty over costs to complete and final account settlements.
This is, however, reduced by the experience of the management team
and the controls that we have in place. The settlement of these final
accounts may give rise to an over or under-recognition of profit or loss
and associated cash flows, which could be material.
As at 30 June 2026, the Group’s contract assets, contract liabilities
and contract provisions amounted to £283.6m, £140.7m, and
£63.9m (2025: £295.9m, £124.7m and £48.6m) respectively as set
out in notes 16, 18 and 19. The Group has considered the nature of
the estimates involved in deriving these balances and concluded that
it is possible, on the basis of existing knowledge, that outcomes within
the next financial year may be different from the Group’s assumptions
applied as at 30 June 2026 and could require a material adjustment to
the carrying amounts of these assets and liabilities in the next financial
year. However, due to the level of uncertainty, combination of cost
and income variables and timing across the Group’s large portfolio of
contracts at different stages of their contract life, it is impracticable to
provide a quantitative analysis of the aggregated judgements that are
applied at a portfolio level.
The Group’s five largest unagreed variations and claims positions at the
year-end are summarised in aggregate below.
2026 |
2025 |
|
£m |
£m |
|
Overall contract value (including total |
||
estimated end of contract variations |
||
and claims) |
331.1 |
506.0 |
Revenue in the year |
91.2 |
170.9 |
Total estimated end of contract |
||
variations and claims |
62.8 |
90.2 |
These items include estimation uncertainty, with a range of reasonably
possible outcomes of £62.8m to £74.8m (2025: £90.2m to £121.3m).
These five positions represent the most significant estimates of revenue.
The total estimated end of contract variations and claims of
the subsequent five largest positions is £17.0m (2025: £26.9m).
In respect of contract assets of £283.6m (2025: £295.9m) and in
assessing receivable provisions calculated on an expected loss basis,
the Group has recorded a provision of £nil (2025: £nil).
It is unclear whether the outstanding uncertainties will be resolved
within the next 12 months.
(ii) Rectification provision – Infrastructure contract
(judgement and estimate)
The Group regularly engages in contracts with general or defect
warranty rectification requirements, typically less than three years.
Within the pool of open warranty period contracts, the Group built,
as part of joint operation with two other partners, a single infrastructure
scheme under a contract that included various defect warranty
obligations, with the longest obligation lasting up to 12 years.
At 30 June 2026, there remained five years (2025: six years) of the
longest warranty liability period remaining.
This is the only contract the Group has that has a general defect
warranty period of this length. The contractual nature of the defect
warranty liability and the completion of the scheme are the obligating
events and the Group, as part of the joint operation, has remediated
items since completion and has other known issues ongoing that will
likely result in future cash outflows, though the timing and quantum
remain uncertain. The Group also believes that there will be further
unknown but probable cash outflows relating to as yet unknown items
as scheduled inspections of various structural elements of the scheme
are completed that have a potentially material range of outcomes.
Management has applied judgement in assessing whether the criteria
for recognising a provision under IAS 37 has been met.
The Group has provided £13.1m (2025: £13.1m) against future
defect costs and this represents management’s best estimate of
potential future payments associated with the warranty rectification
responsibilities. The provision requires a limited number of significant
estimates and assumptions by management, with a significant level of
estimation risk as a result arising from the level of defects and associated
cost that may arise. Management estimates the reasonable range of
estimates to be between £7.6m and £19.1m (2025: £7.3m and £19.2m)
at 30 June 2026. During the year £0.1m and £nil (2025: £0.1m and
£1.3m) of the opening provision of £13.1m (2025: £14.6m) was utilised
and released respectively, with additions of £0.1m (2025: £nil) made in
the year.
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Notes to the financial statements continued
1 Accounting policies
continued
Management has sought input from external experienced industry
figures and industry bodies to support the provision it has made but
the outcome will depend on actual experience and defects arising.
(iii) Exceptional items (judgement)
Exceptional items are items of financial performance which the
Group believes should be presented separately on the face of the
income statement, to assist in understanding the underlying financial
performance achieved by the Group. Determining whether an item
is exceptional requires judgement. The exceptional items meet the
Group’s definition of exceptional, being significant irregular income
and/or expense, that the Group believes assists the users of the
accounts by disclosing separately. There were no exceptional items
during the years ended 30 June 2026 and 30 June 2025.
Other accounting estimates
The Consolidated Financial Statements include other areas of
accounting estimates that do not meet the definition of significant
accounting estimates or accounting judgements under IAS 1.
The recognition and measurement of certain material assets and
liabilities are based on assumptions and/or are subject to longer-term
uncertainties as follows:
(i) PPP and other investments measured at fair value through other
comprehensive income (estimate)
At 30 June 2026, £37.2m (2025: £38.6m) of PPP and other investments
were classified as financial assets measured at fair value through other
comprehensive income. In the operational phase, the fair value of these
financial assets is measured at each reporting date by discounting the
future value of the cash flows allocated to the financial asset. Individual
discount rates have been used which equate to an overall blended
discount rate of 8.1% (2025: 7.9%), which reflects the rates typically
experienced in the marketplace. A 0.5% increase/reduction in the
discount rate would result in a corresponding decrease/increase in the
value of the investments recorded in the balance sheet of approximately
Material accounting policies
Exceptional items are significant irregular items of income
and/or expense including taxation which the Group believes
should be separately disclosed in the income statement, to assist in
understanding the underlying financial performance achieved by the
Group, by virtue of their nature or size. Examples of items which may
give rise to disclosure as exceptional items include gains and losses
on the disposal of businesses and property, plant and equipment,
significant unanticipated losses on contracts, cost of restructuring and
reorganisation of businesses, cost of ERP system implementations,
The Group’s reporting segments are based on the types of services
provided. Operating segments with similar economic characteristics
have been aggregated into reportable segments which reflect the
nature of the services provided by the Group. The business segmental
reporting reflects the Group’s management and internal reporting
structure. Segmental results include items directly attributable to the
segment, as well as those that can be allocated on a reasonable basis.
Revenue is recognised when the Group transfers control of goods
or services to customers. Revenue comprises the fair value of the
consideration received or receivable net of rebates, discounts and
value-added tax. Where consideration is subject to variability, the
Group estimates the amount receivable based on the most likely
amount. Typically, the main factor that impacts the revenue constraint
is the Group’s experience with similar modifications and previous
negotiations/historical success with the same client. Where there is
a limited history of success, the constraint applied is typically greater.
This assessment is carried out on a contract specific basis. Revenue
recognised is constrained to the amount which is highly probable not to
result in a significant reversal in future periods. The Group also assesses
whether the costs incurred on a project depict an appropriate measure
of progress, and constrain revenue accordingly.
Intercompany revenue is eliminated. Revenue also includes the Group’s
proportion of work carried out under joint operations.
Where a modification to an existing contract occurs, the Group assesses
the nature of the modification and whether it represents a separate
performance obligation required to be satisfied or whether it is a
modification to the existing performance obligation.
Revenue for the Group’s continuing operations is recognised as follows:
Construction services
Revenue comprises the value of construction services transferred
to a customer during the period. The results for the period include
adjustments for the outcome of contracts, including jointly controlled
operations, executed in both the current and preceding years.
Fixed price contracts – substantially all of the revenue recognised
is calculated based on total costs incurred as a proportion of total
estimated costs to complete (input method), applied to the estimated
final value and is recognised over time. The estimated final value
includes variations, compensation events and certain claims (contract
modifications) where it is highly probable that there will not be a
significant reversal. Provision will be made against any expected loss as
soon as it is identified. For certain contracts where the value delivered
to the customer can be directly observed or measured, the Group
recognises revenue over time on the output method. The value is based
on payments from customers on a contractual schedule of value that
reflects the timing and performance of service delivery (reference to
milestone reached, units delivered or work certified).
Cost-reimbursable contracts – revenue is recognised based upon
costs incurred to date plus any agreed fee and is recognised over time.
Where contracts include a target price, consideration is given to the
impact on revenue of the mechanism for distributing any savings or
additional costs compared to the target price. Any revenue over and
above the target price, which could include variations and compensation
events, is recognised once it is highly probable that there will not be
a significant reversal in the future.
Facilities management – management services and facilities
management contracts typically represent a single performance
obligation. Revenue is recognised over time as control passes to the
customer and is typically measured on a straight-line basis as this
is considered to be a reliable estimate of the pattern of transfer to
the customer.
Investments – Development fees and land sales on co-development
private rental schemes represent a performance obligation that is
recognised at a point in time when control is deemed to pass to the
customer (on financial close).
The business additionally provides management services and project
manages developments under Management Service Agreements
(MSA) or separate development arrangements. Revenue for these
services is typically recognised over time as and when the service is
delivered to the customer.
Recoveries from claims against third parties
The recognition of expected reimbursements resulting from certain
third-party claims such as against the supply chain or through insurance
recoveries is accounted for in accordance with IAS 37 Provisions,
Contingent Liabilities and Contingent Assets. This requires recovery
Grants (including research and development expenditure credits)
are recognised when there is reasonable assurance that the Group will
comply with the conditions attaching to them and the grants will be
received. The grants are recognised in the income statement over the
periods necessary to match them with the related costs which they are
Finance income and cost is recognised on a time proportion basis,
using the effective interest method. Finance cost also includes the
Financial information
Governance
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149
149
1 Accounting policies
continued
Current income tax is based on the taxable profit for the year.
Taxable profit differs from profit before taxation recorded in the
income statement because it excludes items of income or expense that
are taxable or deductible in other years or that are never taxable or
deductible. The liability for current tax is calculated using rates that have
been enacted, or substantively enacted, by the balance sheet date.
Deferred income tax is provided using the balance sheet liability
method, providing for all temporary differences between the carrying
amount of assets and liabilities for financial reporting purposes and
the amounts used for taxation purposes, with the exception of the
initial recognition of goodwill arising on an acquisition. Deferred tax is
measured at the tax rates that are expected to apply in the periods in
which the timing differences are expected to reverse, based on rates and
laws that have been enacted or substantively enacted by the balance
sheet date.
A deferred tax asset is only recognised when it is more likely than
not that the asset will be recoverable in the foreseeable future out of
taxable profits from which the underlying temporary differences can
be deducted.
Deferred income tax is provided on temporary differences arising on
investments in subsidiaries and associates, except where the timing
of the reversal of the temporary difference is controlled by the Group
and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred income tax assets and liabilities are offset
when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when there is an intention to settle
the balances on a net basis.
Deferred income tax is charged or credited through the income
statement, except when it relates to items charged or credited through
the statement of comprehensive income or to equity, when it is charged
or credited there.
The Group has applied the mandatory exception to recognising and
disclosing information about deferred tax assets and liabilities related
Goodwill arising on consolidation represents the excess of the fair value
of the consideration given over the fair value of the net assets acquired.
It is recognised as an asset and reviewed for impairment at least annually
or when there is a triggering event, by considering the net present
value of future cash flows. For purposes of testing for impairment,
the carrying value of goodwill is compared to its recoverable amount,
which is the higher of the value in use and the fair value less costs to sell.
Any impairment is charged immediately to the income statement.
Goodwill is allocated to Cash Generating Units (CGUs) for the purpose
of impairment testing. The allocation is made to those CGUs or groups
of CGUs that are expected to benefit from the business combination in
Intangible assets can include brands, customer contracts and customer
relationships acquired on acquisition of subsidiary companies, and
computer software developed by the Group. The intangible assets
are reviewed for impairment when there is a triggering event.
Intangible assets are stated at cost less accumulated amortisation
and impairment. Cost is determined at the time of acquisition as being
directly attributable costs or, where relevant, by using an appropriate
valuation methodology.
Intangible assets are amortised over the following periods:
(a) Customer contracts and relationships – on a straight-line basis over
up to 10 years.
(b) Computer software – once the software is fully operational,
All property, plant and equipment are stated at cost less accumulated
depreciation and impairment. Cost includes expenditure that is directly
attributable to the acquisition of the items. Land and buildings comprise
mainly offices.
Depreciation is calculated to write off the cost of each asset to its
estimated residual value over its expected useful life. Freehold land is
not depreciated. The annual rates of depreciation on cost, applied on
a straight-line basis, are as follows:
Freehold buildings |
2% |
Plant and machinery |
15% to 33% |
Fixtures and fittings |
10% to 33% |
In addition to systematic depreciation, the book value of property,
plant and equipment is written down to estimated recoverable
amounts should any impairment in the respective carrying values be
identified. The asset residual values, carrying values and useful lives
are reviewed on an annual basis and adjusted if appropriate at each
balance sheet date.
Repairs and maintenance expenditure is expensed as incurred, on an
The Group applies IFRS 11 to all joint arrangements. Investments in joint
arrangements are classified as either joint ventures or joint operations,
depending on the contractual rights and obligations of each investor.
A joint venture is an entity over which the Group has joint control
and rights to the net assets of the entity. The Group’s interest in joint
ventures is accounted for using the equity method. Under this method
the Group’s share of profits or losses after taxation of joint ventures is
included in the consolidated income statement and its interest in their
net assets is included in investments in the consolidated balance sheet.
A joint operation is a joint arrangement that the Group undertakes
with third parties, whereby those parties have rights to the assets and
obligations of the arrangement. The Group accounts for joint operations
by recognising its share of the results and net assets under each relevant
line item in the consolidated income statement and consolidated
PPP and other investments are non-derivatives that are either
designated in this category or not classified in any of the other
categories. They are included in non-current assets unless management
intends to dispose of the assets within 12 months of the balance sheet
date. On initial recognition, the asset is recognised at cost.
The Group applies equity accounting for its investments in PPP/PFI
entities. These investments are treated as associates as the Group has
significant influence over them. On initial recognition, the investments
in these entities are recognised at cost, and the carrying amounts are
increased or decreased to recognise the Group’s share of the profit or
loss of the PPP/PFI entities after the date of acquisition. The Group’s
share of the investments’ profits or losses is recognised in the profit or
loss net of any impairment losses. Distributions received reduce the
carrying amount of the investments.
The debt element of the Group’s PPP/PFI entities is accounted for under
IFRS 9 ‘Financial Instruments’ with fair value movements recorded in
other comprehensive income and with recycling of gains and losses
through the income statement. Tax is recognised on the movements in
other comprehensive income, where we expect the recycling to attract
a tax charge/credit to the income statement. This reflects the fact that
the Group has a demonstrable track record of investing in PFI assets
as part of an overall construction procurement strategy, with a view
to churning these investments on a regular basis. Management has
reviewed the classification of PPP investments and considers that the
business model continues to be hold to collect and sell. The investments
therefore continue to be held at fair value through other comprehensive
income. Any provision for impairment of PPP is established based on
an expected credit loss model (general approach, as detailed under
impairment of financial assets). The amount of any loss is recognised in
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Notes to the financial statements continued
1 Accounting policies
continued
In accordance with IFRS 16, leases are recognised as a right-of-use asset
and a corresponding liability at the date at which the leased asset is
available for use by the Group, except for short-term leases (defined as
leases with a lease term of 12 months or less) and leases for low-value
assets. Each lease payment is allocated between the liability and finance
cost. The finance cost is charged to profit or loss over the lease term
at a constant periodic rate of interest on the remaining balance of the
liability. The right-of-use asset is depreciated over the lease term on a
straight-line basis, unless the useful life of the asset is shorter than the
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost, using the effective interest method,
less provision for impairment. A provision for impairment of trade
receivables is established based on an expected credit loss model
(simplified approach, as detailed under impairment of financial assets).
The amount of the loss is recognised in the income statement through
administrative expenses unless presented separately.
When a trade receivable is uncollectible, it is written off against the
impairment provision for trade receivables. Subsequent recoveries of
amounts previously written off are credited against costs in the income
statement. Short-term trade receivables do not carry any interest and
are stated at their amortised cost, as reduced by appropriate allowances
IFRS 9 establishes a model for recognition and measurement of
impairment in financial assets. Loans and receivables and contract
assets apply the ‘Expected Credit Losses’ (ECL) model. All other assets
are classified and measured at fair value, with movements going through
the income statement or other comprehensive income. Expected
credit losses are recognised and measured according to one of three
approaches – a general approach (12 months ECL), a simplified approach
(lifetime ECL) or the ‘credit adjusted approach’. The Group has taken
the practical expedient to apply a simplified ‘provision matrix’ for
calculating expected losses. The provision matrix is based on an entity’s
historical default rates over the expected life of the trade receivables
and is adjusted, where relevant, for forward-looking estimates. For
large one-off balances where there is no historic experience, analysis is
Cash and cash equivalents are carried in the balance sheet at nominal
value. For the purposes of the cash flow statement, cash and cash
equivalents comprise cash at bank and in hand, including bank deposits
with original maturities of three months or less. Bank overdrafts met
the requirement for offsetting in the balance sheet and have been offset
Trade payables and other payables are recognised initially at fair value
and subsequently measured at amortised cost, using the effective
Provisions for liabilities and charges are recognised when, as a result
of past events, the Group has a present legal or constructive obligation,
it is probable that an outflow of resources will be required to settle the
obligation and the amount has been reliably estimated. Provisions are
not recognised for future operating losses.
Provisions are measured at the present value of the expenditures
expected to be required to settle the obligation, using the pre-tax rate
that reflects current market assessments of the time value of money
and the risks specific to the obligation. The increase in the provision
For defined contribution schemes operated by the Group, amounts
Own shares held by the Galliford Try Employee Share Trust (the ‘Trust’)
are included in the Group financial statements as a deduction from
retained earnings. The charge made to the income statement for
employee share awards and options is based on the fair value of the
award at the date of grant, spread over the performance period.
Where such shares subsequently vest to the employees under the
terms of the Group’s share option schemes or are sold, any
The Group operates a number of equity-settled, share-based
compensation plans. The fair value of the employee services received
in exchange for the grant of the options is recognised as an expense
over the vesting period. The total amount to be expensed over the
vesting period is determined by reference to the fair value of the options
granted, excluding the impact of any non-market vesting conditions
such as growth in earnings per share. Non-market vesting conditions
are included in assumptions about the number of options that are
expected to vest.
At each balance sheet date, the Group revises its estimates of the
number of options that are expected to vest. It recognises the impact
of the revision to original estimates, if any, in the income statement,
with a corresponding adjustment to equity.
The proceeds received net of any directly attributable transaction
costs are credited to share capital (nominal value) and share premium
when the options are exercised. The grant by the Company of options
over its equity instruments to the employees of subsidiary undertakings
in the Group is treated as an increase in the cost of the investment
Final dividend distribution to the Company’s shareholders is recognised
as a liability in the Group’s financial statements in the period in
which the dividends are approved by the Company’s shareholders.
Equity instruments, such as ordinary share capital, issued by the
Company are recorded at the proceeds received net of directly
attributable incremental issue costs. Consideration paid for shares
The Company’s investments in subsidiaries are recorded in the
Company’s balance sheet at cost less any impairment. The directors
Segmental reporting is presented in the consolidated financial
statements in respect of the Group’s business segments, which are
the primary basis of segmental reporting. The business segmental
reporting reflects the Group’s management and internal reporting
structure. Segmental results include items directly attributable to the
segment, as well as those that can be allocated on a reasonable basis.
As the Group has no activities outside the UK, segment reporting is
not required by geographical region.
The Chief Operating Decision-Makers (CODM) have been identified
as the Group’s Chief Executive and Chief Financial Officer. The CODM
review the Group’s internal reporting in order to assess performance
and allocate resources. Management has determined the operating
segments of the Group to be Building, Infrastructure, Investments and
Central (primarily representing central overheads).
The CODM assess the performance of the operating segments
based on a measure of adjusted earnings before finance income and
costs, amortisation, exceptional items and taxation. This measurement
basis excludes the effects of non-recurring expenditure from the
operating segments, such as restructuring costs and impairments
when the impairment is the result of an isolated, non-recurring event.
Interest income and expenditure are included in the result for each
operating segment that is reviewed by the CODM. Other information
provided to them is measured in a manner consistent with that in the
financial statements.
Financial information
Governance
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Annual Report and Financial Statements 2026
151
151
2 Segmental reporting
continued
Income statement
Building | Infrastructure | Investments | Central | Total | |
Year ended 30 June 2026 | £m | £m | £m | £m | £m |
Revenue | 951.0 | 971.6 | 8.5 | – | 1,931.1 |
Adjusted operating profit/(loss) (note 31) | 33.1 | 34.3 | (2.2) | (15.7) | 49.5 |
Finance income | – | 0.2 | 3.7 | 6.0 | 9.9 |
Finance costs | (1.2) | (1.9) | – | (0.4) | (3.5) |
Adjusted profit/(loss) before taxation (note 31) | 31.9 | 32.6 | 1.5 | (10.1) | 55.9 |
Amortisation of intangible assets | – | (0.9) | – | – | (0.9) |
Profit before tax | 31.9 | 31.7 | 1.5 | (10.1) | 55.0 |
Income tax charge | (13.8) | ||||
Profit for the year | 41.2 |
Building | Infrastructure | Investments | Central | Total | |
Year ended 30 June 2025 | £m | £m | £m | £m | £m |
Revenue | 964.7 | 902.5 | 8.0 | – | 1,875.2 |
Adjusted operating profit/(loss) (note 31) | 28.1 | 27.4 | (0.4) | (14.5) | 40.6 |
Finance income | – | 0.2 | 3.6 | 5.1 | 8.9 |
Finance costs | (1.4) | (2.0) | (0.1) | (1.0) | (4.5) |
Adjusted profit/(loss) before taxation (note 31) | 26.7 | 25.6 | 3.1 | (10.4) | 45.0 |
Amortisation of intangible assets | – | (0.9) | – | – | (0.9) |
Profit before tax | 26.7 | 24.7 | 3.1 | (10.4) | 44.1 |
Income tax charge | (10.5) | ||||
Profit for the year | 33.6 |
Inter-segment revenue is eliminated from revenue above. In the year to 30 June 2026, this amounted to £144.6m (2025: £121.1m) for continuing
operations, of which £0.1m (2025: £1.6m) was in Building, £65.7m (2025: £73.6m) was in Infrastructure, £55.1m (2025: £24.5m) was in Investments
and £23.7m (2025: £21.4m) was in central costs.
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Notes to the financial statements continued
2 Segmental reporting
continued
Balance sheet |
||||||
Building |
Infrastructure |
Investments |
Central |
Total |
||
30 June 2026 |
Notes |
£m |
£m |
£m |
£m |
£m |
Goodwill and intangible assets |
40.0 |
65.2 |
– |
– |
105.2 |
|
Net cash |
17 |
106.4 |
104.6 |
(6.9) |
54.9 |
259.0 |
Non reported segmental net liabilities |
(229.0) |
|||||
Net assets |
135.2 |
|||||
Total Group liabilities |
(721.4) |
|||||
Total Group assets |
856.6 |
|||||
Building |
Infrastructure |
Investments |
Central |
Total |
||
30 June 2025 |
Notes |
£m |
£m |
£m |
£m |
£m |
Goodwill and intangible assets |
40.0 |
57.0 |
– |
– |
97.0 |
|
Net cash |
17 |
143.1 |
115.0 |
(7.0) |
(13.5) |
237.6 |
Non reported segmental net liabilities |
(212.5) |
|||||
Net assets |
122.1 |
|||||
Total Group liabilities |
(711.5) |
|||||
Total Group assets |
833.6 |
|||||
Other segmental information |
||||||
Building |
Infrastructure |
Investments |
Central |
Total |
||
Year ended 30 June 2026 |
Notes |
£m |
£m |
£m |
£m |
£m |
Contracting revenue |
951.0 |
971.6 |
– |
– |
1,922.6 |
|
Total depreciation |
12 & 13 |
8.6 |
14.7 |
0.4 |
0.9 |
24.6 |
Share-based payments |
24 |
0.3 |
0.5 |
0.6 |
2.8 |
4.2 |
Amortisation of intangible assets |
10 |
– |
0.9 |
– |
– |
0.9 |
Building |
Infrastructure |
Investments |
Central |
Total |
||
Year ended 30 June 2025 |
Notes |
£m |
£m |
£m |
£m |
£m |
Contracting revenue |
964.7 |
902.5 |
– |
– |
1,867.2 |
|
Total depreciation |
12 & 13 |
9.0 |
13.3 |
0.3 |
0.9 |
23.5 |
Share-based payments |
24 |
0.8 |
0.6 |
0.4 |
1.6 |
3.4 |
Amortisation of intangible assets |
10 |
– |
0.9 |
– |
– |
0.9 |
Financial information
Governance
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153
153
Nature of revenue streams
(i) Building and Infrastructure segments
Our Construction business operates nationwide, working with clients predominantly in the public and regulated sectors. Projects include the
construction of assets (with services including design and build, construction only and refurbishment) in addition to the maintenance, renewal,
upgrading and managing of services across utility and infrastructure assets.
Revenue stream |
Nature, timing of satisfaction of performance obligations and significant payment terms |
Fixed price |
A number of projects within these segments are undertaken using fixed-price contracts. |
Contracts are typically accounted for as a single performance obligation; even when a contract (or multiple combined |
|
contracts) includes both design and build elements, they are considered to form a single performance obligation as the |
|
two elements are not distinct in the context of the contract given that each is highly interdependent on the other. |
|
The Group typically receives payments from the customer based on a contractual schedule of value that reflects the |
|
timing and performance of service delivery. Revenue is recognised over time (the period of construction) based on an input |
|
model (reference to costs incurred to date). The Group also recognises revenue over time on the output method based on |
|
payments from customers on a contractual schedule of value that reflects the timing and performance of service delivery |
|
(reference to milestone reached, units delivered or work certified). Uncertified amounts are presented as contract assets. |
|
No significant financing component typically exists in these contracts. |
|
Cost-reimbursable |
A number of projects within these segments are undertaken using cost-reimbursable/target-price (possibly with |
a pain/gain share mechanism) contracts. |
|
These projects are often delivered under frameworks. Individual performance obligations under the framework |
|
are normally determined at a project level, however, projects are combined where appropriate. Where projects are |
|
combined, the Group constrains revenue and calculates any pain/gain mechanism at the combined level. |
|
The Group typically receives payments from the customer based on actual costs incurred. Revenue is therefore |
|
recognised over time (the period of construction) based on an input model (reference to costs incurred to date). |
|
Uncertified amounts are presented as contract assets. |
|
No significant financing component typically exists in these contracts. |
|
Facilities management* |
Contracts undertaken within the Building segment that provide full life-cycle solutions to clients, are accounted for |
as a single performance obligation, with revenue recognised over time and typically on a straight-line basis. |
*
Facilities management represents around 5% of the total Building segment turnover.
(ii) Investments segment
Our Investments business specialises in managing construction through to operations for major building projects through public private
partnerships and co-development opportunities. The business leads bid consortia and arranges finance, as well as making debt and equity
investments (which are recycled).
Revenue stream |
Nature, timing of satisfaction of performance obligations and significant payment terms |
Investments |
The Group has investments in a number of Public-Private Partnerships (PPP) Special Purpose Vehicles (SPVs), delivering |
major building and infrastructure projects. |
|
Development fees and land sales on co-development private rental schemes represent a performance obligation that is |
|
recognised at a point in time when control is deemed to pass to the customer (on financial close). |
|
The business additionally provides management services and project manages developments under Management Service |
|
Agreements (MSA) or separate development arrangements. Revenue for these services is typically recognised over time |
|
as and when the service is delivered to the customer. |
Galliford Try
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154
154
Notes to the financial statements continued
3 Revenue
continued
Disaggregation of revenue
The Group considers the split of revenue by operating segment to be the most appropriate disaggregation. All revenue in the year has been derived
from performance obligations settled over time (2025: all revenue over time).
Revenue on existing contracts, where performance obligations are unsatisfied or partially unsatisfied at the balance sheet date, is expected to be
recognised as follows:
2029 |
||||
2027 |
2028 |
onwards |
Total |
|
Revenue – year ended 30 June 2026 |
£m |
£m |
£m |
£m |
Building |
723.3 |
218.4 |
57.6 |
999.3 |
Infrastructure |
629.1 |
237.3 |
34.5 |
900.9 |
Total Construction |
1,352.4 |
455.7 |
92.1 |
1,900.2 |
Investments |
2.7 |
2.3 |
23.6 |
28.6 |
Total transaction price allocated to performance obligations yet to be satisfied |
1,355.1 |
458.0 |
115.7 |
1,928.8 |
2028 |
||||
2026 |
2027 |
onwards |
Total |
|
Revenue – year ended 30 June 2025 |
£m |
£m |
£m |
£m |
Building |
736.6 |
180.1 |
56.4 |
973.1 |
Infrastructure |
500.3 |
176.3 |
52.4 |
729.0 |
Total Construction |
1,236.9 |
356.4 |
108.8 |
1,702.1 |
Investments |
3.1 |
2.7 |
24.4 |
30.2 |
Total transaction price allocated to performance obligations yet to be satisfied |
1,240.0 |
359.1 |
133.2 |
1,732.3 |
Any element of variable consideration is estimated at a value that is highly probable not to result in a significant reversal in the cumulative
Employee benefit expense during the year
Group |
Company |
||||
2026 |
2025 1 |
2026 |
2025 |
||
Notes |
£m |
£m |
£m |
£m |
|
Wages and salaries |
280.6 |
258.3 |
– |
– |
|
Social security costs |
36.9 |
30.2 |
– |
– |
|
Other pension costs |
33.7 |
29.0 |
– |
– |
|
Share-based payments |
24 |
4.2 |
3.4 |
– |
– |
Total |
355.4 |
320.9 |
– |
– |
1
During the current year it was identified that certain comparative employee expenses had been reported based on cash payments rather than the value of services
provided. Comparative information has been restated accordingly. The adjustment had no impact on profit or cash flows.
All employees are entitled to join the Galliford Try Pension Scheme, a defined contribution scheme established as a stakeholder plan, with
a Company contribution based on a scale dependent on the employee’s age and the amount they choose to contribute. Since 1 July 2013,
all non-participating and newly employed staff have been auto-enrolled into the separate stakeholder plan and are entitled to increase their
contribution rates in line with existing members. Since 1 April 2009, the Group has operated a pension salary sacrifice scheme, which means
that all employee pension contributions are paid as employer contributions on their behalf.
All pension costs in the current and prior years were in respect of the Group’s defined contribution schemes. Of the total charge, £17.4m
(2025: £16.0m) and £16.3m (2025: £13.0m) were included, respectively, within cost of sales and administrative expenses.
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
155
155
4 Employees and directors
continued
Average monthly number of people (including Executive and Non-executive Directors) employed
Group |
Company |
|||
2026 |
2025 |
2026 |
2025 |
|
Number |
Number |
Number |
Number |
|
By business: |
||||
– Building |
1,369 |
1,358 |
– |
– |
– Infrastructure |
2,736 |
2,680 |
– |
– |
Construction |
4,105 |
4,038 |
– |
– |
Investments |
60 |
58 |
– |
– |
Central |
201 |
200 |
6 |
6 |
Total |
4,366 |
4,296 |
6 |
6 |
The key management personnel comprise the Executive Board and Non-executive Directors. The remuneration of the key management personnel
of the Group is set out below in aggregate for each of the categories specified in IAS 24, Related Party Disclosures. Further information about
the remuneration of individual directors, including any interests in the Company’s shares, is provided in the audited part of the Directors’
Remuneration report.
2026 |
2025 |
|
£m |
£m |
|
Salaries and short-term employee benefits |
6.1 |
4.7 |
Retirement benefit costs |
0.3 |
0.3 |
Share-based payments |
3.1 |
2.1 |
Total |
9.5 |
7.1 |
2026 |
2025 |
|
Group |
£m |
£m |
Finance income on bank deposits |
6.1 |
5.2 |
Finance income from PPP investments and joint ventures |
3.8 |
3.7 |
Finance income |
9.9 |
8.9 |
Finance costs on lease liabilities |
(3.3) |
(3.5) |
Other finance costs |
(0.2) |
(1.0) |
Finance costs |
(3.5) |
(4.5) |
Net finance income |
6.4 |
4.4 |
The following items have been included in arriving at profit before income tax:
2026 |
2025 |
||
Notes |
£m |
£m |
|
Employee benefit expense |
4 |
355.4 |
320.9 |
Total depreciation |
12 & 13 |
24.6 |
23.5 |
Amortisation and impairment of intangible assets |
10 |
0.9 |
0.9 |
Repairs and maintenance expenditure on property, plant and equipment |
1.5 |
1.5 |
In addition to the above, the Group incurs other costs classified as cost of sales relating to labour, materials and subcontractors’ costs.
Galliford Try
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156
156
Notes to the financial statements continued
6 Profit before income tax
continued
During the year, the Group obtained the following services from the Group’s auditor at costs as detailed below:
2026 |
2025 |
|
£m |
£m |
|
Fees payable to the Company’s auditor for the audit of Parent Company and consolidated financial statements |
0.2 |
0.2 |
Fees payable to the Company’s auditor for other services: |
||
The audit of financial statements of the Company’s subsidiaries |
1.9 |
2.2 |
Audit-related assurance services |
0.1 |
0.1 |
Total other services |
2.0 |
2.3 |
Total |
2.2 |
2.5 |
The audit of financial statements of the Company’s subsidiaries for 2025 includes an amount in respect of additional costs related to the 2024 audit.
2026 |
2025 |
||
Group |
Notes |
£m |
£m |
Analysis of expense in year |
|||
Current year’s income tax |
|||
Current tax |
7.3 |
4.6 |
|
Deferred tax |
21 |
6.4 |
6.2 |
Adjustments in respect of prior years |
|||
Current tax |
0.5 |
– |
|
Deferred tax |
21 |
(0.4) |
(0.3) |
Income tax expense |
13.8 |
10.5 |
|
Tax on items recognised in other comprehensive income |
|||
Tax recognised in other comprehensive income |
– |
– |
|
Total tax expense |
13.8 |
10.5 |
The total income tax charge for the year of £13.8m (2025: £10.5m) is in line with (2025: lower than) the expected charge based on the standard rate
of corporation tax in the UK of 25.0% (2025: 25.0%). The differences are explained below:
2026 |
2025 |
|
£m |
£m |
|
Profit before income tax |
55.0 |
44.1 |
Profit before income tax multiplied by the standard corporation tax rate in the UK of 25.0% (2025: 25.0%) |
13.8 |
11.0 |
Effects of: |
||
Expenses not deductible for tax purposes |
0.2 |
– |
Non-taxable income |
(0.1) |
(0.2) |
Adjustments in respect of prior years |
0.1 |
(0.3) |
Other |
(0.2) |
– |
Income tax expense |
13.8 |
10.5 |
The Group is within the scope of OECD Pillar Two rules. The rules are designed to ensure a minimum effective tax rate of 15% across each country
of operation.
The rules were enacted into UK law in July 2023 and were effective from 1 July 2024 to the Group. Due to the Group trading only in the UK,
there was no significant impact as a result of the implementation of the rules, however the Group continues to review any potential implications
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
157
157
2026 |
2025 |
|||
pence per |
pence per |
|||
Group and Company |
£m |
share |
£m |
share |
Previous year final |
13.8 |
13.5 |
11.9 |
11.5 |
Current year interim |
6.5 |
6.5 |
5.6 |
5.5 |
Dividend recognised in the year |
20.3 |
17.5 |
||
The following dividends were declared by the Company in respect of each accounting period presented:
2026 |
2025 |
|||
pence per |
pence per |
|||
£m |
share |
£m |
share |
|
Interim |
6.5 |
6.5 |
5.6 |
5.5 |
Final |
17.1 |
17.0 |
13.8 |
13.5 |
Dividend relating to the year |
23.6 |
23.5 |
19.4 |
19.0 |
The directors are proposing a final dividend in respect of the financial year ended 30 June 2026 of 17.0 pence per share (2025: 13.5 pence per share),
bringing the total dividend in respect of 2026 to 23.5 pence per share (2025: 19.0p pence per share). The final dividend will absorb approximately
£17.1 m (2025: £13.8 m) of equity. Subject to shareholders’ approval at the AGM to be held on 12 November 2026, the dividend will be paid on
Basic and diluted earnings per share (EPS)
Basic EPS is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year, excluding those held by the Trust, which are treated as cancelled.
Under normal circumstances, the average number of shares is diluted by reference to the average number of potential ordinary shares held
under option in the year. The dilutive effect amounts to the number of ordinary shares which would be purchased using the aggregate difference in
value between the market value of shares and the share option price. Only shares that have met their cumulative performance criteria are included
in the dilution calculation. The Group has two classes of potentially dilutive ordinary shares: those share options granted to employees where the
exercise price is less than the average market price of the Company’s ordinary shares during the year, and the contingently issuable shares under
the Group’s long-term incentive plans. A loss per share cannot be reduced through dilution, hence this dilution is only applied where the Group
has reported a profit.
The earnings and weighted average number of shares used in the calculations are set out below.
2026 |
2025 |
|||||
Weighted |
Weighted |
|||||
average |
Per share |
average |
Per share |
|||
Earnings |
number of |
amount |
Earnings |
number of |
amount |
|
£m |
shares |
pence |
£m |
shares |
pence |
|
Basic EPS |
||||||
Earnings attributable to ordinary shareholders |
41.2 |
98,876,195 |
41.7 |
33.6 |
99,627,362 |
33.7 |
Basic EPS – Adjusted (note 31) 1 |
||||||
Adjusted earnings attributable to |
||||||
ordinary shareholders |
41.9 |
98,876,195 |
42.4 |
34.3 |
99,627,362 |
34.4 |
Effect of dilutive securities: |
||||||
Options |
n/a |
4,392,345 |
n/a |
n/a |
4,668,120 |
n/a |
Diluted EPS |
41.2 |
103,268,540 |
39.9 |
33.6 |
104,295,482 |
32.2 |
Diluted EPS – Adjusted (note 31) 1 |
41.9 |
103,268,540 |
40.6 |
34.3 |
104,295,482 |
32.9 |
1
Galliford Try
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158
158
Notes to the financial statements continued
Customer |
||||
contracts and |
Computer |
|||
relationships |
software |
Total |
||
Group |
Notes |
£m |
£m |
£m |
Cost |
||||
At 1 July 2024 |
18.7 |
11.5 |
30.2 |
|
Disposals |
– |
(10.9) |
(10.9) |
|
At 30 June 2025 |
18.7 |
0.6 |
19.3 |
|
Additions |
29 |
1.0 |
– |
1.0 |
At 30 June 2026 |
19.7 |
0.6 |
20.3 |
|
Accumulated amortisation and impairment loss |
||||
At 1 July 2024 |
(14.4) |
(11.5) |
(25.9) |
|
Amortisation in year |
(0.9) |
– |
(0.9) |
|
Disposals |
– |
10.9 |
10.9 |
|
At 30 June 2025 |
(15.3) |
(0.6) |
(15.9) |
|
Amortisation in year |
(0.9) |
– |
(0.9) |
|
At 30 June 2026 |
(16.2) |
(0.6) |
(16.8) |
|
Net book amount |
||||
At 30 June 2026 |
3.5 |
– |
3.5 |
|
At 30 June 2025 |
3.4 |
– |
3.4 |
|
At 30 June 2024 |
4.3 |
– |
4.3 |
All amortisation charges in the year have been included in administrative expenses. Computer software relates to the Group’s reporting systems.
Group |
Notes |
£m |
Cost |
||
At 1 July 2024 and 30 June 2025 |
93.6 |
|
Additions |
29 |
8.1 |
At 30 June 2026 |
101.7 |
|
Accumulated impairment loss |
||
At 1 July 2024, 30 June 2025 and 30 June 2026 |
– |
|
Net book amount |
||
At 30 June 2026 |
101.7 |
|
At 30 June 2025 |
93.6 |
|
At 30 June 2024 |
93.6 |
Goodwill is allocated to the Group’s CGUs identified according to business segment. The goodwill is attributable to the following business segments:
2026 |
2025 |
|
£m |
£m |
|
Building |
40.0 |
40.0 |
Infrastructure |
61.7 |
53.6 |
101.7 |
93.6 |
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
159
159
11 Goodwill
continued
Goodwill is tested for impairment at least annually. The recoverable amount of a CGU is determined based on value in use calculations.
These calculations use pre-tax cash flow projections based on future financial budgets approved by the Board, based on past performance and
its expectation of market developments. The key assumptions within these budgets relate to revenue and the future profit margin achievable,
in line with our strategy and targets as set out in the Strategic report. Future budgeted revenue is based on management’s knowledge of actual
results from prior years and latest forecasts for the current year, along with the existing secured works and management’s expectation of the
future level of work available within the market sector. In establishing future profit margins, the margins currently being achieved are considered
in conjunction with expected inflation rates in each revenue and cost category. In Building and Infrastructure, the margins currently being achieved
are expected to increase in line with the strategy set out in the Strategic report.
Cash is monitored on a daily, weekly and monthly basis for the purposes of managing both treasury and the business as a whole. Details of the
Group’s treasury management are included within the Financial review in the Strategic report of the Annual Report. The assumptions used
are reviewed regularly and differences between forecast and actual results are closely monitored, with variances being investigated fully.
The knowledge gained from this past experience is used to ensure that the future assumptions used are consistent with past actual outcomes
and are management’s best estimate of the future cash flows of each business unit.
Cash flows beyond the budgeted three-year period are extrapolated using an estimated growth rate within each segment. The growth rate used is
the Group’s estimate of the average long-term growth rate for the market sectors in which the CGU operates. Furthermore, sensitivity analysis has
been undertaken on each goodwill impairment review, by changing the discount rates, profit margins, growth rates and other variables applicable to
each CGU, and the results are noted below.
The pre-tax discount rates for each CGU are noted below.
Building CGU
A pre-tax discount rate of 12.8% (2025: 13.2%) in Building has been applied to the future cash flows, based on an estimate of the weighted average
cost of capital (WACC) of that division.
A long-term growth rate of 2.0% (2025: 2.0%) per annum has been applied to the budgeted cash flows (reflecting the Board-approved budget
operating margins and working capital cash flows) into perpetuity and these assumptions result in the recoverable value of this CGU being
significantly in excess of the carrying value of the CGU assets.
The Building CGU is not sensitive to changes in key assumptions and management does not consider that any reasonable possible change in any
single assumption or combination of reasonable possible changes in assumptions would give rise to an impairment of the carrying value of goodwill
and intangibles.
Infrastructure CGU
A pre-tax discount rate of 12.8% (2025: 13.1%) in Infrastructure has been applied to the future cash flows, based on an estimate of the weighted
average cost of capital of that division.
A long-term growth rate of 2.0% (2025: 2.0%) per annum has been applied to the budgeted cash flows (reflecting the Board-approved budget
operating margins and working capital cashflows) into perpetuity and these assumptions result in the recoverable value of this CGU being
significantly in excess of the carrying value of the CGU assets.
The Infrastructure CGU is not sensitive to changes in key assumptions and management does not consider that any reasonable possible change
in any single assumption or combination of reasonable possible changes in assumptions would give rise to an impairment of the carrying value of
Galliford Try
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160
160
Notes to the financial statements continued
Land and |
Plant and |
Fixtures |
||
buildings |
machinery |
and fittings |
Total |
|
Group |
£m |
£m |
£m |
£m |
Cost |
||||
At 1 July 2024 |
3.3 |
1.4 |
4.8 |
9.5 |
Additions |
1.4 |
0.1 |
0.9 |
2.4 |
Disposals |
– |
– |
(1.1) |
(1.1) |
At 30 June 2025 |
4.7 |
1.5 |
4.6 |
10.8 |
Additions |
0.9 |
0.8 |
0.1 |
1.8 |
Disposals |
– |
– |
(0.8) |
(0.8) |
At 30 June 2026 |
5.6 |
2.3 |
3.9 |
11.8 |
Accumulated depreciation |
||||
At 1 July 2024 |
(1.0) |
(0.2) |
(3.0) |
(4.2) |
Charge for the year |
(0.4) |
(0.5) |
(0.8) |
(1.7) |
Disposals |
– |
– |
1.1 |
1.1 |
At 30 June 2025 |
(1.4) |
(0.7) |
(2.7) |
(4.8) |
Charge for the year |
(0.4) |
(0.3) |
(0.7) |
(1.4) |
Disposals |
– |
– |
0.8 |
0.8 |
At 30 June 2026 |
(1.8) |
(1.0) |
(2.6) |
(5.4) |
Net book amount |
||||
At 30 June 2026 |
3.8 |
1.3 |
1.3 |
6.4 |
At 30 June 2025 |
3.3 |
0.8 |
1.9 |
6.0 |
At 30 June 2024 |
2.3 |
1.2 |
1.8 |
5.3 |
There has been no impairment of property, plant and equipment during the year (2025: £nil).
This note provides information for leases where the Group is a lessee.
The Company holds no leases.
Land and |
Plant and |
Motor |
||
buildings |
machinery |
vehicles |
Total |
|
Cost |
£m |
£m |
£m |
£m |
At 30 June 2025 |
19.1 |
16.0 |
56.6 |
91.7 |
At 30 June 2026 |
18.4 |
13.1 |
61.9 |
93.4 |
Accumulated depreciation |
||||
At 30 June 2025 |
(6.7) |
(8.4) |
(25.5) |
(40.6) |
At 30 June 2026 |
(8.5) |
(6.1) |
(33.5) |
(48.1) |
Net book amount |
||||
At 30 June 2026 |
9.9 |
7.0 |
28.4 |
45.3 |
At 30 June 2025 |
12.4 |
7.6 |
31.1 |
51.1 |
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
161
161
13 Leases
continued
Lease liabilities
2026 |
2025 |
|
£m |
£m |
|
Current |
22.5 |
22.7 |
Non-current |
25.3 |
31.1 |
Total lease liabilities |
47.8 |
53.8 |
Movement in Lease liabilities from financing activities
Interest |
||||||
payments |
||||||
(presented |
||||||
Opening |
Financing |
New |
Interest |
as operating |
Closing |
|
balance |
cash flows |
leases |
expense |
cash flows) |
balance |
|
£m |
£m |
£m |
£m |
£m |
£m |
|
2025 |
53.0 |
(21.2) |
22.0 |
3.5 |
(3.5) |
53.8 |
2026 |
53.8 |
(23.3) |
17.3 |
3.3 |
(3.3) |
47.8 |
The consolidated income statement shows the following amounts relating to leases for continuing operations:
2026 |
2025 |
|
£m |
£m |
|
Depreciation of right-of-use assets: |
||
– Land and buildings |
2.7 |
2.5 |
– Plant and machinery |
5.3 |
5.7 |
– Motor vehicles |
15.2 |
13.6 |
Interest expense (included in finance cost) |
3.3 |
3.5 |
Expense relating to short-term leases (included in cost of sales and administrative expenses) |
20.4 |
16.8 |
Expense relating to leases of low-value assets that are not shown above as short-term leases |
||
(included in administrative expenses) |
2.3 |
1.2 |
Total expenses |
49.2 |
43.3 |
The total cash outflow for leases in the year to 30 June 2026 was £26.6m, of which £3.3m was included in net interest expense – note 5
(2025: £24.7m and £3.5m respectively).
Maturity of contractual undiscounted future lease payments:
Land and |
Plant and |
Motor |
||
buildings |
machinery |
vehicles |
Total |
|
As at 30 June 2026 |
£m |
£m |
£m |
£m |
Less than 1 year |
2.8 |
3.3 |
16.4 |
22.5 |
Between 1 and 5 years |
7.0 |
4.4 |
16.5 |
27.9 |
More than 5 years |
5.7 |
– |
– |
5.7 |
Total |
15.5 |
7.7 |
32.9 |
56.1 |
Land and |
Plant and |
Motor |
||
buildings |
machinery |
vehicles |
Total |
|
As at 30 June 2025 |
£m |
£m |
£m |
£m |
Less than 1 year |
3.1 |
4.6 |
15.0 |
22.7 |
Between 1 and 5 years |
8.1 |
3.6 |
21.2 |
32.9 |
More than 5 years |
6.9 |
0.1 |
– |
7.0 |
Total |
18.1 |
8.3 |
36.2 |
62.6 |
Galliford Try
Galliford Try
162
162
Notes to the financial statements continued
2026 |
2025 |
|
Company |
£m |
£m |
Cost |
||
At 1 July |
189.7 |
189.2 |
Additions |
0.6 |
0.5 |
At 30 June |
190.3 |
189.7 |
Aggregate impairment |
||
At 1 July |
– |
– |
At 30 June |
– |
– |
Net book value |
||
At 30 June |
190.3 |
189.7 |
The carrying value of investments was reviewed and no impairment indicator was identified.
The subsidiary undertakings that principally affected profits and net assets of the Group were:
Galliford Try Construction Limited
Galliford Try Infrastructure Limited
1
Galliford Try Investments Limited
Galliford Try Facilities Management Limited
Galliford Try Services Limited
Galliford Try Limited
2
1
Incorporated in Scotland.
2
Shares owned directly by the Company.
Unless otherwise stated, each subsidiary has a 30 June year-end, operates as a construction company, is incorporated in England & Wales and 100%
of ordinary shares and voting rights are held by the Group. Galliford Try Services Limited operates as central administration company to the Group.
2026 |
2025 |
|
Group |
£m |
£m |
At 1 July |
38.6 |
41.8 |
Disposals and subordinated loan repayments |
(1.0) |
(1.3) |
Movement in fair value |
(0.4) |
(1.9) |
At 30 June |
37.2 |
38.6 |
These comprise debt and equity investments in PPP/PFI investments (joint ventures and associates) over which the Group has significant influence.
Debt investments at fair value through OCI
The debt element of the investments represents over 99% of the total portfolio balance and is held at fair value. The fair value reflects a blended
discount rate of 8.1% (2025: 7.9%). A 0.5% increase/reduction in the discount rate would result in a corresponding decrease/increase in the value
of the investments recorded in the balance sheet of approximately £1.3m (2025: £1.3m).
No material financial assets are past their due dates (2025: £nil), and the directors expect an average maturity profile in excess of 10 years.
Further disclosures relating to financial assets are set out in note 22.
The expected credit loss (ECL) was assessed to be minimal and accordingly no ECL recognised.
During the year, there were no additions (2025: £nil) to the Group’s PPP/PFI investments and subordinated loans of £1.0m (2025: £1.3m)
were repaid. Of the total fair value movement in the year of £0.4m (2025: £1.9m), all of it relates to the movement in the fair value of the
PPP/PFI investments (2025: £1.9m) and has been recorded through other comprehensive income.
The Group has commitments of £nil (2025: £nil) to provide further subordinated debt to its investments.
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
163
163
15 PPP and other investments
continued
Equity accounted investments
The Group applies equity accounting to the equity element of its PPP/PFI investments. As the predominant value to the Group is within the debt
element, £nil (2025: £nil) has been recognised through equity accounting. The joint ventures and associates have non-profit distribution agreements
or restrictions on timing and quantum of distributions being made.
The material joint ventures (due to their shareholding and/or issuing listed debt) are disclosed within this note. The net assets disclosed in the income
statement and balance sheet extracts below are not recognised as part of the investment in joint ventures. The information disclosed reflects the
amounts presented in the financial statements or management accounts of the relevant joint ventures and associates and not the Group’s share of
those amounts.
The Group has an investment in Space Scotland Limited which it considers to be a material joint venture by virtue of the companies it is a shareholder
of. Space Scotland Limited holds the Group’s investments in several of the PPP/PFI entities to which this note relates. The individual entities are not
considered to be material to the Group. The income statement and balance sheets for Space Scotland Limited is £nil (2025: £nil).
Aberdeen Roads (Finance) Plc |
Aberdeen Roads Limited 1 |
|||
2026 |
2025 |
2026 |
2025 |
|
Income statement – extracts |
£m |
£m |
£m |
£m |
Revenue 2 |
– |
– |
(1.2) |
(2.1) |
Depreciation and amortisation |
– |
– |
– |
– |
Finance income |
21.6 |
22.4 |
28.0 |
29.0 |
Finance expense |
(21.6) |
(22.4) |
(21.6) |
(22.4) |
Income tax expense |
– |
– |
– |
– |
Profit (100%) |
– |
– |
– |
– |
Other comprehensive expense |
(0.4) |
(1.2) |
– |
– |
Total comprehensive expense (100%) |
(0.4) |
(1.2) |
– |
– |
Group’s share of profit and total comprehensive expense |
(0.1) |
(0.4) |
– |
– |
Dividends received by the Group during the year |
– |
– |
– |
– |
Balance sheet – extracts |
||||
Cash and cash equivalents |
0.4 |
0.7 |
29.8 |
28.7 |
Other current assets |
– |
– |
5.3 |
4.8 |
Current assets |
0.4 |
0.7 |
35.1 |
33.5 |
Non-current assets |
478.9 |
496.2 |
490.5 |
505.9 |
Current external borrowings – bank/listed bonds |
(18.7) |
(19.1) |
– |
– |
Other current liabilities |
(2.9) |
(3.1) |
(47.2) |
(43.7) |
Current liabilities |
(21.6) |
(22.2) |
(47.2) |
(43.7) |
Non-current external borrowings – bank/listed bonds |
(416.1) |
(430.6) |
– |
– |
Other non-current liabilities |
(40.7) |
(42.9) |
(478.4) |
(495.7) |
Non-current liabilities |
(456.8) |
(473.5) |
(478.4) |
(495.7) |
Net assets (100%) |
0.9 |
1.2 |
– |
– |
1
Material due to their shareholding and/or issuing listed debt.
2
Revenue includes a deduction for the non-profit distribution model (NPD) surplus.
The Group’s share of PPP and other investments’ external bank funding was £208.1m at 30 June 2026 (2025: £221.1m). The Group’s share of
these entities’ other external funding consists of £63.5m (2025: £64.1m) of listed bonds. These balances are non-recourse to the Group.
Details of related party transactions with joint ventures and associates are given in note 28. The Group’s shareholding in each joint venture and
Galliford Try
Galliford Try
164
164
Notes to the financial statements continued
Group |
|||
2026 |
2025 |
||
Notes |
£m |
£m |
|
Current assets: |
|||
Trade receivables |
72.0 |
47.2 |
|
Less: provision for impairment of receivables |
(0.4) |
(0.4) |
|
Trade receivables – net |
71.6 |
46.8 |
|
Contract assets |
20 |
283.6 |
295.9 |
Amounts due from joint ventures and associates |
1.8 |
6.9 |
|
Research and development expenditure credits |
5.3 |
5.1 |
|
Other receivables |
14.5 |
9.9 |
|
Prepayments |
21.9 |
24.0 |
|
398.7 |
388.6 |
The Company has no trade and other receivables (2025: £nil).
Retentions will be collected in the normal operating cycle of the Group and are therefore shown as a current asset. It is expected that £42.9m
(2025: £47.8m) will be collected within 12 months from the balance sheet date.
The Group has no significant capitalised contract costs.
Provisions for impaired receivables have been included in administrative expenses in the income statement. Amounts charged to the impairment
provision are generally written off when there is no expectation of recovering additional cash.
The other classes within trade and other receivables do not contain impaired assets.
The maximum exposure to credit risk at the reporting date is the book value of each class of receivable mentioned above, along with the Group’s
cash and cash equivalents. The Group does not hold any collateral as security.
Management believes that the concentration of credit risk with respect to trade receivables is limited, due to the Group’s customer base being
large, unrelated and predominantly within the public and regulated sectors.
customers for whom there is no recent history of default and there are no indications that they will not meet their payment obligations in respect of
the trade receivables recognised in the balance sheet that are past due and unprovided. The ageing analysis of these trade receivables is as follows:
2026 |
2025 |
|
£m |
£m |
|
Number of days past due date |
||
Less than 30 days |
6.2 |
5.1 |
Between 30 and 60 days |
1.4 |
3.7 |
Between 60 and 90 days |
0.7 |
0.7 |
Between 90 and 120 days |
2.3 |
0.7 |
Greater than 120 days |
1.9 |
2.0 |
12.5 |
12.2 |
As of 30 June 2026, trade receivables were considered for impairment based on management’s judgement and review of the trade receivables
listings. The amount provided for these balances was £0.4m (2025: £0.4m). The allocation of the provision is as follows:
2026 |
2025 |
|
£m |
£m |
|
Number of days past due date: |
||
Greater than 120 days |
0.4 |
0.4 |
0.4 |
0.4 |
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
165
165
Group |
Company |
|||
2026 |
2025 |
2026 |
2025 |
|
£m |
£m |
£m |
£m |
|
Cash at bank and in hand and per the statement of cash flows |
259.0 |
237.6 |
116.0 |
113.5 |
Cash at bank above includes £27.8m (2025: £23.0m), being the Group’s share of cash held by jointly controlled operations. The Group has no bank
borrowings or loans.
Net cash excludes IFRS 16 lease liabilities (note 13).
Cash and cash equivalents and bank overdrafts are presented on a net (offset) basis. In 2016, the IFRS Interpretations Committee released an
update in respect of IAS 32 ‘Financial instruments: presentation’ specifically in relation to offsetting and cash pooling. This clarified that in order to
offset bank account balances, an entity must have both a legally enforceable right and an intention to do so. The Group’s bank arrangements and
facilities with both HSBC Bank plc and Barclays Bank plc provide the legally enforceable right to offset and the Group demonstrated its intention
Group |
|||
2026 |
2025 |
||
Notes |
£m |
£m |
|
Trade payables |
77.3 |
124.9 |
|
Contract liabilities |
20 |
140.7 |
124.7 |
Other taxation and social security payable |
50.0 |
48.1 |
|
Other payables |
3.5 |
2.8 |
|
Accruals |
338.1 |
308.6 |
|
609.6 |
609.1 |
The Company has no trade and other payables (2025: none).
All payables are unsecured. Retentions will be paid in the normal operating cycle of the Group and are therefore shown as a current liability.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as
Provisions for other liabilities and charges
Onerous |
|||
contracts |
Rectification |
Total |
|
Group |
£m |
£m |
£m |
At 1 July 2024 |
(1.5) |
(34.7) |
(36.2) |
Utilised |
0.5 |
11.4 |
11.9 |
Released |
– |
1.3 |
1.3 |
Additions |
– |
(25.6) |
(25.6) |
At 30 June 2025 |
(1.0) |
(47.6) |
(48.6) |
Utilised |
0.6 |
2.5 |
3.1 |
Released |
0.2 |
12.0 |
12.2 |
Additions |
(2.7) |
(27.9) |
(30.6) |
At 30 June 2026 |
(2.9) |
(61.0) |
(63.9) |
Onerous contract provisions are made on loss-making contracts the Group is obliged to complete.
Rectification provisions are made for potential claims and defects for remedial works against work completed by the Group, and include provisions
for dilapidations on premises the Group occupies.
As at 30 June 2026 £13.1m (2025: £13.1m) of provision related to one contract. Further details are provided in the critical accounting estimates and
judgements. The remaining balance of the provision relates to a number of immaterial balances. Due to the level of uncertainty, combination of cost
and income variables and timing across the remaining portfolio of contracts, it is impracticable to provide a quantitative analysis of the aggregated
judgements that are applied at a portfolio level and therefore management has not given a range of expected outcomes.
Due to the nature of the provisions, the timing of any potential future outflows is uncertain, however they are expected to be utilised within the
Group’s normal operating cycle, and accordingly are classified as current liabilities. Of the total provisions, £51.9m (2025: £36.0m) is likely to
be utilised within 12 months, with the remainder utilised in more than 12 months. The impact of discounting is not material.
The Group regularly engages in contracts with general or defect warranty rectification requirements, typically less than three years. Within the
pool of open warranty period contracts, the Group built, as part of a joint operation with two other partners, a single infrastructure scheme under
a contract that included various defect warranty obligations, with the longest obligation lasting up to 12 years.
Galliford Try
Galliford Try
166
166
Notes to the financial statements continued
19
Provisions for other liabilities and charges
continued
At 30 June 2026, there remained five years (2025: six years) of the longest warranty liability period remaining. This is the only contract the Group
has that has a general defect warranty period of this length. The contractual nature of the defect warranty liability and the completion of the scheme
are the obligating events and the Group, as part of the joint operation, has remediated items since completion and has other known issues ongoing
that will likely result in future cash outflows, though the timing and quantum remain uncertain.
The Group also believes that there will be further unknown but probable cash outflows relating to as yet unknown items as scheduled inspections
of various structural elements of the scheme are completed that have a potentially material range of outcomes. The Group has provided £13.1m
(2025: £13.1m) against future defect costs and this represents management’s best estimate of potential future payments associated with the
warranty rectification responsibilities. The provision requires a limited number of significant estimates and assumptions by management,
with a significant level of estimation risk as a result arising from the level of defects and associated cost that may arise.
Management estimates the reasonable range of estimates to be between £7.6m and £19.1m at 30 June 2026 (2025: between £7.3m and £19.2m).
During the year £0.1m and £nil (2025: £0.1m and £1.3m) of the opening provision of £13.1m (2025: £14.6m) was utilised and released respectively,
with additions of £0.1m (2025: £nil) made in the year. Management has sought input from external experienced industry figures and industry bodies
to support the provision it has made.
Contract assets and liabilities are included within ‘trade and other receivables’ and ‘trade and other payables’ respectively on the face of the balance
sheet. Where there is a corresponding contract asset and liability in relation to the same contract, the balance shown is the net position. The timing
of work performed (and thus revenue recognised), billing profiles and cash collection results in trade receivables (amounts certified to date and
unpaid), contract assets (uncertified amounts where revenue has been recognised) and contract liabilities (customer advances and deposits where
no corresponding work has yet been performed), being recognised on the Group’s balance sheet.
The reconciliation of the Group opening to closing contract balances is shown below:
2026 |
2025 |
|||
Contract |
Contract |
Contract |
Contract |
|
asset |
liability |
asset |
liability |
|
£m |
£m |
£m |
£m |
|
At 1 July |
295.9 |
(124.7) |
290.5 |
(131.3) |
Revenue recognised in the year |
1,884.1 |
47.0 |
1,819.5 |
55.7 |
Net cash received in advance of performance obligations being fully satisfied |
– |
(63.0) |
– |
(49.1) |
Transfers in the year from contract assets to trade receivables |
(1,896.4) |
– |
(1,814.1) |
– |
30 June |
283.6 |
(140.7) |
295.9 |
(124.7) |
Revenue allocated to performance obligations that are unsatisfied at 30 June, is expected to be recognised as disclosed in note 3.
The Company has no contract balances (2025: none).
Deferred income tax is calculated in full on temporary differences under the liability method and is measured at the average tax rates that are
expected to apply in the periods in which the timing differences are expected to reverse.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current
income tax liabilities. The net deferred tax position at 30 June was:
Group |
||
2026 |
2025 |
|
£m |
£m |
|
Deferred income tax assets |
5.9 |
11.6 |
Deferred income tax liabilities |
(1.1) |
(0.6) |
Net deferred income tax |
4.8 |
11.0 |
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
167
167
21 Deferred income tax
continued
The movement for the year in the net deferred income tax account is as shown below:
Group | ||
2026 | 2025 | |
£m | £m | |
At 1 July | 11.0 | 17.9 |
Current year’s deferred income tax – expense taken to income statement | (6.4) | (6.2) |
Current year’s deferred income tax – credit taken to equity | 0.1 | 1.2 |
Adjustment in respect of prior years – credit taken to income statement | 0.4 | 0.3 |
Transfer to current tax assets | – | (2.2) |
Acquisition of subsidiaries | (0.3) | – |
At 30 June | 4.8 | 11.0 |
All remaining material tax losses have now been recognised.
Movements in deferred income tax assets and liabilities during the year are shown below:
The Company has a deferred tax asset of £0.8m relating to timing differences on share-based payments (2025: £0.7m).
Deferred income tax assets
Share-based | ||||
payments | Tax losses | Other 1 | Total | |
Group | £m | £m | £m | £m |
At 1 July 2024 | 1.1 | 14.8 | 2.6 | 18.5 |
Credit/(expense) in respect of current year taken to income statement | 0.1 | (5.9) | (0.4) | (6.2) |
Credit/(expense) in respect of prior years taken to income statement | – | 0.5 | (0.2) | 0.3 |
Net transfer (from)/to current tax income tax asset | – | (2.3) | 0.1 | (2.2) |
Credit in respect of prior years taken to equity | 1.2 | – | – | 1.2 |
At 30 June 2025 | 2.4 | 7.1 | 2.1 | 11.6 |
Credit/(expense) in respect of current year taken to income statement | 0.3 | (6.1) | (0.5) | (6.3) |
Credit in respect of prior years taken to income statement | – | 0.5 | – | 0.5 |
Credit in respect of current year taken to equity | 0.1 | – | – | 0.1 |
At 30 June 2026 | 2.8 | 1.5 | 1.6 | 5.9 |
1
Deferred tax assets included in the ‘Other’ category relate predominantly to future income tax deductions available from IFRS transition adjustments in respect of
IFRS 15 and IFRS 9 which are expected to be utilised over the next three years in line with the requirements of tax legislation.
The Company has a deferred tax asset of £0.8m (2025: £0.7m) relating to share-based payments.
Deferred income tax liabilities
Accelerated | Intangible | ||
tax | assets | ||
depreciation | acquired | Total | |
Group | £m | £m | £m |
At 1 July 2024 and 30 June 2025 | – | (0.6) | (0.6) |
Expense in respect of current year taken to income statement | – | (0.1) | (0.1) |
Expense in respect of prior years taken to income statement | (0.1) | – | (0.1) |
Acquisition of subsidiaries | – | (0.3) | (0.3) |
At 30 June 2026 | (0.1) | (1.0) | (1.1) |
Galliford Try
Galliford Try
168
168
Notes to the financial statements continued
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk and interest rate risk),
credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Group’s financial performance. Financial assets and liabilities are offset and the net amount reported
when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and
settle the liability simultaneously.
The Group and Company operate within financial risk policies and procedures approved by the Board. It is, and has been throughout the year,
the Group’s policy that no trading in financial instruments shall be undertaken. The Board provides written principles for overall risk management,
as well as written policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments
and non-derivative financial instruments, and investment of excess liquidity. The Group’s financial instruments principally comprise cash and
cash equivalents, borrowings, receivables, payables and PPP and other investments that arise directly from its operations and its acquisitions.
The Company’s financial instruments comprise of cash and cash equivalents.
The Group is funded by ordinary shares, retained profits and its strong net cash position (refer to notes 17, 23 and 25). The Group’s and
Company’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, in order to provide returns
for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. The Group has
a £25m (with a £10m accordion option) Revolving Credit Facility (RCF) as further explained below. The facility provides flexibility to support
Financial risk factors
(a) Market risk
(i) Foreign exchange risk
All material activities of the Group take place within the UK and consequently there is little direct exchange risk, other than payments to overseas
suppliers who require settlement in their currency. If there is any material foreign exchange exposure, the Group’s policy is to enter into forward
foreign currency contracts. The Group and Company have no material currency exposure at 30 June 2026 (2025: nil).
(ii) Price risk
Other than a residual interest in equity securities, the Group and Company are not exposed to equity or commodity price risk.
(iii) Interest rate risk
The Group’s income and operating cash flows are substantially independent of changes in market interest rates.
The Group’s interest rate risk arises from movement in cash and cash equivalents as well as interest on any borrowings which can affect net finance
income and cashflow. As noted below, in 2025 the Group entered into a £25m RCF with an initial three-year term. Amounts drawn under the facility
bear interest at a floating rate based on the Sterling Overnight Index Average (SONIA) plus a fixed margin. As at 30 June 2026, the Group had not
Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, deposits and borrowings with banks and financial
institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. The Group does not hold any
debt facilities. Further details of credit risk relating to trade and other receivables are disclosed in note 16. No credit limits were exceeded during
the reporting period, and management does not expect any material losses from non-performance of any counterparties, including in respect of
receivables not yet due. The Group’s maximum exposure to credit risk at the end of the reporting period is the carrying amount (book value) of each
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities as well as an appropriate level of undrawn
committed facilities. The Group finances its operations through its cash reserves and ongoing retained profits. During the year to 30 June 2026,
the Group triggered the option to extend the £25m RCF by a further year. The facility provides greater agility and resilience, which alongside an
already strong balance sheet, provides an excellent platform to take advantage of future growth opportunities. Management monitors rolling
forecasts of the Group’s liquidity reserve on the basis of expected cash flow. This is generally carried out at local level in the operating companies of
the Group, in accordance with practices and limits set by the Group. On a daily basis throughout the year, the bank balances or gross overdrafts in all
the Group’s operating companies are aggregated into a total cash figure, in order that the Group can obtain the most advantageous interest rate.
In accordance with IFRS 9 ‘Financial Instruments’, the Group has reviewed all contracts for embedded derivatives that are required to be separately
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
169
169
22 Financial instruments
continued
Where market values are not available, fair values of financial assets and financial liabilities have been calculated by discounting expected future
cash flows at the prevailing interest rate.
Primary financial instruments held or issued to finance the Group’s operations:
2026 | 2025 | ||||
Book value | Fair value | Book value | Fair value | ||
Notes | £m | £m | £m | £m | |
Financial liabilities: | |||||
Current financial liabilities measured at amortised cost | 18 | 418.9 | 418.9 | 436.3 | 436.3 |
Financial assets: | |||||
PPP and other investments | 15 | 37.2 | 37.2 | 38.6 | 38.6 |
Current assets measured at amortised cost | 16 | 376.8 | 376.8 | 364.6 | 364.6 |
Cash and cash equivalents | 17 | 259.0 | 259.0 | 237.6 | 237.6 |
Prepayments are excluded from the financial assets measured at amortised cost; and statutory liabilities, contract liabilities and provisions are
excluded from financial liabilities measured at amortised cost noted above. A maturity analysis of the Group’s non-derivative financial liabilities is
given in note 18.
Borrowing facilities
In March 2025, the Group entered an RCF agreement with a syndicate of three banks – Barclays, Lloyds Banking Group and the National Bank of
Kuwait. The facility provides the Group committed borrowing capacity of £25m for a term of three years, maturing in March 2028. The agreement
includes the following features:
An option to extend the facility by up to two years, subject to lender approval (the first option to extend by a further year was triggered
and agreed in the year), and
An accordion option, allowing the Group to request an increase in total commitment by a further £10m, subject to lender consent
and documentation.
As at 30 June 2026, the Group had not drawn any amounts under the facility. The RCF remains undrawn since inception and provides additional
liquidity headroom.
The facility bears interest at a variable rate linked to SONIA plus a margin, with commitment fees payable on the undrawn portion. The agreement
includes customary financial covenants and undertakings, which the Group was in full compliance with as at the reporting date. The RCF is unsecured.
Fair value estimation
Specific valuation techniques used to value financial instruments are defined as:
Level 1 – Quoted market prices or dealer quotes in active markets for similar instruments.
Level 2 – The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise
the use of observable market data and rely as little as possible on entity-specific estimates.
Level 3 – Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments.
The fair value of other investments is set out in note 15.
The following table presents the Group’s assets and liabilities that are measured at fair value at 30 June:
2026 | 2025 | |||
Level 3 | Total | Level 3 | Total | |
£m | £m | £m | £m | |
Assets | ||||
Fair value through other comprehensive income | ||||
– PPP and other investments | 37.2 | 37.2 | 38.6 | 38.6 |
Total | 37.2 | 37.2 | 38.6 | 38.6 |
There were no transfers between levels during the year.
Galliford Try
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170
170
Notes to the financial statements continued
22 Financial instruments
continued
Valuation processes
A review of the long-term UK gilt rates, Bank of England base rates, UK inflation and other external market data (including the secondary market)
for disposals is considered as part of the valuation process, which is ultimately agreed at the Executive Board, plc Board and Audit Committee.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using
valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on
entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. If one or
more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Fair value measurements using significant unobservable inputs (Level 3)
2026 | 2025 | |
£m | £m | |
At 1 July | 38.6 | 41.8 |
Movement in fair value | (0.4) | (1.9) |
Disposals and subordinated loan repayments | (1.0) | (1.3) |
Closing balance | 37.2 | 38.6 |
The fair value is derived via a discounted cash flow. The key assumptions used in Level 3 valuations include the expected timing of receipts, credit risk
and discount rates. The typical repayment period is 10-15 years and the timing of receipts is based on historical data. The fair value of the portfolio
reflects a blended discount rate of 8.1% (2025: 7.9%) and is based on current market conditions. The sensitivity to discount rates is set out in note 15.
Ordinary shares and share premium
Ordinary | Share | |||
Number of | shares | premium | Total | |
Group | shares | £m | £m | £m |
At 1 July 2024 | 103,975,786 | 52.0 | 0.8 | 52.8 |
Allotted under share option schemes | 856,343 | 0.4 | 0.8 | 1.2 |
Cancellation of shares | (2,690,861) | (1.3) | – | (1.3) |
At 30 June 2025 | 102,141,268 | 51.1 | 1.6 | 52.7 |
Allotted under share option schemes | 688,466 | 0.3 | 0.6 | 0.9 |
Cancellation of shares | (1,957,703) | (1.0) | – | (1.0) |
At 30 June 2026 | 100,872,031 | 50.4 | 2.2 | 52.6 |
Ordinary | Share | |||
Number of | shares | premium | Total | |
Company | shares | £m | £m | £m |
At 1 July 2024 | 103,975,786 | 52.0 | 0.8 | 52.8 |
Allotted under share option schemes | 856,343 | 0.4 | 0.8 | 1.2 |
Cancellation of shares | (2,690,861) | (1.3) | – | (1.3) |
At 30 June 2025 | 102,141,268 | 51.1 | 1.6 | 52.7 |
Allotted under share option schemes | 688,466 | 0.3 | 0.6 | 0.9 |
Cancellation of shares | (1,957,703) | (1.0) | – | (1.0) |
At 30 June 2026 | 100,872,031 | 50.4 | 2.2 | 52.6 |
The Company does not have a limit on the authorised capital and does not hold any shares in treasury.
Number of shares refers to 50p ordinary shares, which are authorised, issued and fully paid. There are no shares authorised and issued but not
fully paid.
On 17 September 2025 the Group launched its third share buyback programme of up to a maximum of £10.0m of Company shares. As at 30 June 2026
the Group had completed the share buyback programme with a total of 1,957,703 shares repurchased at an average price of approximately
£5.11 per share, The repurchased shares represented approximately 1.9% of issued share capital and were subsequently cancelled.
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
171
171
The Group operates performance-related share incentive plans for Executives, details of which are set out in the Directors’ Remuneration report,
as well as long term bonus plans for certain employees and a Group wide sharesave schemes. The total charge for the year before tax relating to
employee share-based payment plans was £4.2m (2025: £3.4m), all of which related to equity-settled share-based payment transactions.
Savings-related share options
The Company operates an HMRC approved sharesave scheme, under which employees are granted an option to purchase ordinary shares in
the Company at up to 20% less than the market price at grant, in three years’ time, dependent on their entering into a contract to make monthly
contributions into a savings account over the relevant period. These funds are used to fund the option exercise. This scheme is open to all employees
meeting the minimum employment period. No performance criteria are applied to the exercise of sharesave options.
The options were valued using the binomial option-pricing model. The fair value per option granted and the assumptions used in the calculation
are as follows:
Employee |
||||||||||
turnover |
||||||||||
Shares under |
Share price |
Exercise |
Contract |
Expected |
Option life |
Risk-free |
Dividend |
before |
Fair value |
|
Grant date |
option |
at grant date |
price |
date |
volatility |
(years) |
rate |
yield |
vesting |
per option |
14.04.23 |
180,576 |
174p |
137p |
01.06.23 |
54% |
3 |
3.6% |
4.5% |
10% |
67p |
12.04.24 |
769,451 |
244p |
201p |
01.06.24 |
30% |
3 |
4.2% |
4.5% |
10% |
61p |
03.04.25 |
859,908 |
341p |
296p |
01.06.25 |
31% |
3 |
3.8% |
4.1% |
10% |
83p |
02.04.26 |
941,916 |
499p |
428p |
01.06.26 |
31% |
3 |
4.2% |
3.7% |
10% |
131p |
The expected volatility is based on historical volatility in the movement in the share price over the past three years up to the date of grant (or since
incorporation of the Company in January 2020). The expected life is the average expected period to exercise. The risk-free rate is the yield on
zero-coupon UK Government bonds of a term consistent with the assumed option life. A reconciliation of savings-related share awards over the
year to 30 June 2026 is shown below:
2026 |
2025 |
|||
Weighted |
Weighted |
|||
average |
average |
|||
Number |
exercise price |
Number |
exercise price |
|
Outstanding at 1 July |
2,703,109 |
213p |
2,806,642 |
158p |
Awards |
957,350 |
428p |
951,335 |
296p |
Forfeited |
(144,421) |
233p |
(123,330) |
170p |
Cancelled |
(67,933) |
249p |
(66,407) |
178p |
Expired |
(7,788) |
217p |
(8,788) |
132p |
Exercised |
(688,466) |
139p |
(856,343) |
135p |
Outstanding at 30 June |
2,751,851 |
304p |
2,703,109 |
213p |
Exercisable at 30 June |
188,527 |
146p |
134,149 |
144p |
The weighted average fair value of awards granted during the year was 131p (2025: 83p). There were 688,466 share options exercised during the
year ended 30 June 2026 (2025: 856,343) and the weighted average exercise price at the date of exercise was 139p (2025: 135p). The weighted
average remaining contractual life is one year and 10 months (2025: two years and nil months).
Performance-related long-term incentive plans
The Group operates performance-related share incentive plans for Executives, details of which are set out in the Directors’ Remuneration report.
The awards that vest are satisfied by the transfer of shares for no consideration. The outstanding options were valued using a Black-Scholes model.
The fair value per option granted and the assumptions used in the calculation are as follows:
Vesting |
||||||
Shares under |
Share price at |
period/option |
Fair value |
|||
Grant date |
option |
grant date |
life (months) |
Risk-free rate |
Dividend yield |
per option |
23.09.23 |
987,710 |
225p |
36 |
4.3% |
4.7% |
195p |
08.10.24 |
1,040,245 |
322p |
36 |
3.9% |
4.8% |
279p |
24.09.25 |
776,211 |
500p |
36 |
3.8% |
3.8% |
446p |
Galliford Try
Galliford Try
172
172
Notes to the financial statements continued
24 Share-based payments
continued
The expected volatility is based on historical volatility in the movement in the share price of the Company and its comparator group and the
correlations between them over the past three years. The expected life is the average expected period to exercise. The risk-free rate is the yield on
zero-coupon UK Government bonds of a term consistent with the assumed option life. A reconciliation of performance-related share awards over
the year to 30 June is shown below:
2026 |
2025 |
|
Number |
Number |
|
Outstanding at 1 July |
3,397,239 |
3,533,585 |
Granted |
776,211 |
1,040,245 |
Exercised |
(1,369,284) |
(1,037,753) |
Forfeited |
– |
(138,838) |
Outstanding at 30 June |
2,804,166 |
3,397,239 |
Exercisable at 30 June |
– |
– |
The weighted average fair value of awards granted during the year was 446p (2025: 279p). There were 1,369,284 options exercised during the
year ended 30 June 2026 (2025: 1,037,753). The weighted average remaining contractual life is one year and two months (2025: one year and
two months).
Annual bonus plan – deferred shares
Executive Directors are eligible to participate in the Company’s annual bonus scheme. The scheme rules dictate that two thirds of any bonus earned
in excess of 50% of the base annual salary is deferred into restricted shares for three years. Participants must remain in employment to receive the
restricted shares, but there are no other associated performance conditions.
A reconciliation of performance-related share awards over the year to 30 June is shown below:
2026 |
2025 |
|
Number |
Number |
|
Outstanding at 1 July |
593,796 |
725,969 |
Granted |
154,683 |
159,345 |
Exercised |
(330,436) |
(291,518) |
Outstanding at 30 June |
418,043 |
593,796 |
Exercisable at 30 June |
– |
– |
The weighted average remaining contractual life is one year and five months (2025: one year and nil months). The fair value of the awards is the
closing share price on the date of grant.
Long term bonus plan – deferred shares
Certain members of the Group are eligible to participate in the Company’s long-term bonus plan. The scheme rules dictate that up to half of the
bonus earned is awarded in restricted shares. The shares are restricted for a period of 12 months. Participants must remain in employment
to receive the restricted shares, but there are no other associated performance conditions.
A reconciliation of performance-related share awards over the year to 30 June is shown below:
2026 |
2025 |
|
Number |
Number |
|
Outstanding at 1 July |
159,526 |
129,136 |
Granted |
83,957 |
159,526 |
Exercised |
(159,526) |
(123,453) |
Forfeited |
– |
(5,683) |
Outstanding at 30 June |
83,957 |
159,526 |
Exercisable at 30 June |
– |
– |
The weighted average remaining contractual life is three months (2025: three months). The fair value of the awards is the closing share price on the
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
173
173
Other reserves and retained earnings
Other | Retained | ||
reserves | earnings | ||
Group | Notes | £m | £m |
At 1 July 2024 | 136.4 | (75.6) | |
Profit for the year | – | 33.6 | |
Dividends paid | 8 | – | (17.5) |
Share-based payments | 24 | – | 3.4 |
Tax relating to share-based payments | – | 2.0 | |
Movement in fair value of PPP and other investments | 15 | – | (1.9) |
Purchase of own shares | – | (12.3) | |
Cancellation of shares | 1.3 | – | |
At 30 June 2025 | 137.7 | (68.3) | |
Profit for the year | – | 41.2 | |
Dividends paid | 8 | – | (20.3) |
Share-based payments | 24 | – | 4.2 |
Tax relating to share-based payments | – | 1.8 | |
Movement in fair value of PPP and other investments | 15 | – | (0.4) |
Purchase of own shares | – | (14.3) | |
Cancellation of shares | 1.0 | – | |
At 30 June 2026 | 138.7 | (56.1) |
The Company and Group’s other reserves relate to a merger reserve amounting to £132.2m (2025: £132.2m) and a capital redemption reserve of
£6.5m (2025: £5.5m).
The purchase of own shares represents shares purchased by the Galliford Try Employee Share Trust of £nil (2025: £nil) and other share-related
transactions of £4.3m (2025: £2.3m), in addition to £10.0m (2025: £10.0m) purchased by the Company as part of the share buyback announced in
September 2025 and completed within the year.
Other | Retained | ||
reserves | earnings | ||
Company | Notes | £m | £m |
At 1 July 2024 | 136.4 | 110.4 | |
Profit for the year | – | 30.1 | |
Dividends paid | 8 | – | (17.5) |
Share-based payments | – | 0.5 | |
Purchase of shares | 14 | – | (10.0) |
Cancellation of shares | 1.3 | – | |
At 30 June 2025 | 137.7 | 113.5 | |
Profit for the year | – | 32.0 | |
Dividends paid | 8 | – | (20.3) |
Share-based payments | – | 0.6 | |
Purchase of shares | 14 | – | (10.0) |
Cancellation of shares | 1.0 | – | |
At 30 June 2026 | 138.7 | 115.8 |
The cumulative amount of goodwill arising on acquisition and written off directly against reserves is £9.5m (2025: £9.5m).
At 30 June 2026, the Galliford Try Employee Share Trust (the Trust) held 2,124,586 (2025: 3,066,609) Galliford Try Holdings plc shares.
The nominal value of the shares held is £1.1m (2025: £1.5m). During the year nil shares were acquired (2025: nil) and a further £4.3m (2025: £2.3m)
was paid in relation to other share-related transactions with 857,908 (2025: 694,382) shares transferred during the year. The cost of funding and
administering the Trust is charged to the income statement in the period to which it relates. The market value of the shares at 30 June 2026 was
Galliford Try
Galliford Try
174
174
Notes to the financial statements continued
The Group had no commitments for subordinated debt to joint ventures or other investments at 30 June 2026 (2025: £nil), nor any commitment for
The Group has surety bonding facilities and bank guarantees. These are supported by counter indemnities given by the Company and certain
subsidiaries in the Group in the normal course of business. Utilisation of the bonding and guarantee facilities totalled £144.1m at 30 June 2026
(2025: £154.9m). It is not expected that any material liabilities will arise.
Disputes arise in the normal course of business, some of which lead to litigation or arbitration procedures. While the outcome of disputes and
arbitration is never certain, the directors believe that the resolution of all existing actions will not have a material adverse effect on the Group’s
financial position.
Where the Group has received such claims, the directors have made provision in the financial statements when they believe it is probable a liability
exists and it can be reliably estimated, but no provision has been made where the Group’s liability is considered only possible or remote. This is
based on the best estimates of future costs to be incurred after assessing all relevant information and taking legal advice where appropriate.
The Group has currently assessed a pool of non-fire safety-related claims that meet the contingent liability threshold for disclosure. These claims
are of a similar nature with a collective range of between £nil and £2.2m (2025: £nil and £12.0m). The Group’s assessment of liability and estimates
of future costs could change in the future. Although the Group has appropriate insurance arrangements in place that should mitigate any significant
exposure, the recognition thresholds under IAS 37 would mean a liability could be recognised before a corresponding asset.
The continuing evolution of Government legislation and guidance, such as the Building Safety Act and its implications for cladding solutions used
on historical contracts, also creates ongoing uncertainty that the Group manages.
The Group is tracking a pool of three fire safety claims which meet the definition of contingent liabilities under IAS 37. Management do not consider
it is practicable to value the pool because of the lack of supporting evidence from the claimants and the length of time it takes for these cases
to evolve and for any reliable quantum, if any, to be established. Factors include the complexity of the building projects in question, the many
suppliers involved in the supply chain and the potential for reimbursement from subcontractors. The Group believes it has strong legal positions
with contractual support on all the cases, however, at this time, it cannot fully rule out that material settlements may result. Should this be the case,
management expects there will be recovery from the supply chain, designers or insurers that can be full or partial.
Transactions between the Group and its related parties are disclosed as follows:
Group
Sales to | Amounts owed by | |||
related parties | related parties | |||
2026 | 2025 | 2026 | 2025 | |
£m | £m | £m | £m | |
Trading transactions | ||||
Related parties | 82.6 | 69.4 | 32.4 | 39.4 |
Interest and dividend income | ||
from related parties | ||
2026 | 2025 | |
£m | £m | |
Non-trading transactions | ||
Related parties | 6.1 | 4.0 |
Sales to related parties (all of which are to joint ventures and associates) are based on terms that would be available to unrelated third parties.
Amounts owed by related parties consist predominantly of subordinated debt within the PPP and Other Investments portfolio, that if held to
maturity would be due over the next 24 years (2025: 23 years). These receivables are unsecured, with interest rates varying between a range of
9% and 12% (2025: 9% and 12%). Payables are due within one year (2025: one year) and are interest free.
Company
Transactions between the Company and its subsidiaries which are related parties, which are eliminated on consolidation, are disclosed as follows:
Interest and dividend income | ||
from related parties | ||
2026 | 2025 | |
£m | £m | |
Non-trading transactions | ||
Subsidiary undertakings | 32.0 | 29.8 |
The Company has provided performance guarantees in respect of certain operational contracts entered into between joint ventures and
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
175
175
On the 27 February 2026, the Group acquired 100% of the share capital of Nene Valley Fire and Acoustic Limited (“Nene Valley”), an experienced
provider in the passive fire protection sector. The addition of Nene Valley will complement the Group’s existing active fire protection operations,
enabling the enlarged business to offer complete fire safety solutions in-house and access wider market opportunities.
Consideration for the acquisition of Nene Valley was £9.4m, comprising £8.8m settled in cash and an estimated £0.6m payable one year after the
completion date, subject to the finalisation of certain procedures in accordance with the conditions of sale. The goodwill of £8.1m arising from the
acquisition is primarily attributable to the technical proficiency of the acquired workforce and the strategic opportunities from supplementing this
acquired skill base with the Group’s existing expertise.
The following table summarises the provisional consideration and fair value of the assets acquired and liabilities assumed.
£m |
|
Recognised amounts of identifiable assets acquired and liabilities assumed |
|
Property, plant and equipment (including right-of-use assets) |
0.7 |
Intangible assets |
1.0 |
Trade and other receivables |
1.7 |
Cash and cash equivalents |
0.7 |
Trade and other payables |
(1.6) |
Corporation tax liability |
(0.3) |
Lease liabilities |
(0.6) |
Deferred tax liability |
(0.3) |
Total identifiable net assets |
1.3 |
Goodwill |
8.1 |
Total |
9.4 |
Consideration |
|
Cash paid and deferred |
9.4 |
Total |
9.4 |
The acquisition contributed £2.9m of revenue and a profit before tax of £0.4m in the period to 30 June 2026. If the acquisition had taken place at
Events after the reporting date
On 17 September 2026, the Group announced a further share buyback programme of up to a maximum of £15m, details can be found in the
Throughout the Annual Report and Financial Statements, the Group has presented financial performance measures which are used to manage the
Group’s performance. These financial performance measures are chosen to provide a balanced view of the Group’s operations and are considered
useful to investors as they provide relevant information on the Group’s performance. They are also aligned to measures used internally to assess
business performance in the Group’s budgeting process and when determining compensation. An explanation of the Group’s financial performance
measures and appropriate reconciliations to its statutory measures are provided below.
Providing clarity on the Group’s adjusted performance measures
The Group has included this note and the enclosed explanations and reconciliations with the aim of providing transparency and clarity on the
measures adopted internally to assess performance. The APMs adopted by the Group are also commonly used in the sectors it operates in. This
additional information is not defined under international accounting standards and may therefore not be comparable with similarly titled profit
measures reported by other companies. It is not intended to be a substitute for, or superior to, international accounting standards measures of profit.
The Board believes that disclosing these performance measures enhances investors’ ability to evaluate and assess the underlying financial
performance of the Group’s operations and the related key business drivers.
Measuring the Group’s performance
The following measures are referred to in this report:
Statutory measures
Statutory measures are derived from the Group’s reported financial statements, which are prepared in accordance with UK adopted International
Accounting Standards and in line with the Group’s accounting policies, which can be found in note 1.
The Group’s statutory measures take into account all of the factors, including exceptional items which are not considered to reflect the ongoing
underlying performance of the Group.
Galliford Try
Galliford Try
176
176
Notes to the financial statements continued
31 Adjusted performance measures
continued
Adjusted performance measures
In assessing its performance, the Group has adopted certain non-statutory measures that reflect the underlying performance of the Group.
These typically cannot be directly extracted from its financial statements but are reconciled to statutory measures below:
a) Adjusted performance
The Group adjusts for certain significant irregular (exceptional) items which the Board believes assist in understanding the performance achieved
by the Group as this reflects the underlying and ongoing performance of the business. A reconciliation of the statutory measure to the adjusted
measure is provided in the following tables. The exclusion of exceptional items as well as the amortisation of acquired intangibles seeks to reflect the
underlying and ongoing performance of the business with a consistent methodology across all the adjusted performance measures. The adjusting
items and associated tax impacts that the Group has recognised are shown below.
2026 | 2025 | |
£m | £m | |
Amortisation of acquired intangible assets | (0.9) | (0.9) |
Loss before tax | (0.9) | (0.9) |
Associated tax credit on items above | 0.2 | 0.2 |
Total | (0.7) | (0.7) |
A reconciliation of the statutory measure to the adjusted measure is provided in the following tables.
b) Adjusted operating profit/(loss) and operating margin
The Group presents operating profit excluding exceptional items and the amortisation of acquired intangible assets as this reflects the ongoing
performance of the business, which is referred to as adjusted operating profit/(loss). Operating margin reflects the ratio of adjusted operating
profit/(loss) and revenue. This differs from the statutory measure of operating profit which includes exceptional items and the amortisation of acquired
intangible assets. Divisional adjusted operating margin is the combined adjusted operating margin of the Building and Infrastructure segments.
A reconciliation of the statutory measure to the Group’s performance measure is shown below, based on continuing operations:
Building | Infrastructure | Investments | Central | Total | |
£m | £m | £m | £m | £m | |
Year ended 30 June 2026 | |||||
Statutory operating profit/(loss) | 33.1 | 33.4 | (2.2) | (15.7) | 48.6 |
exclude: amortisation of acquired intangible assets (note 10) | – | 0.9 | – | – | 0.9 |
Adjusted operating profit/(loss) | 33.1 | 34.3 | (2.2) | (15.7) | 49.5 |
Revenue | 951.0 | 971.6 | 8.5 | – | 1,931.1 |
Adjusted operating margin | 3.5% | 3.5% | n/a | n/a | 2.6% |
Year ended 30 June 2025 | |||||
Statutory operating profit/(loss) | 28.1 | 26.5 | (0.4) | (14.5) | 39.7 |
exclude: amortisation of acquired intangible assets (note 10) | – | 0.9 | – | – | 0.9 |
Adjusted operating profit/(loss) | 28.1 | 27.4 | (0.4) | (14.5) | 40.6 |
Revenue | 964.7 | 902.5 | 8.0 | – | 1,875.2 |
Adjusted operating margin | 2.9% | 3.0% | n/a | n/a | 2.2% |
c) Adjusted profit before tax
The Group uses a profit before tax measure which excludes exceptional items and amortisation of acquired intangible assets as noted above,
whereas the statutory measure includes both.
A reconciliation of the statutory measure to the Group’s performance measure is shown below, based on continuing operations:
2026 | 2025 | |
£m | £m | |
Statutory profit before tax | 55.0 | 44.1 |
exclude: amortisation of acquired intangible assets | 0.9 | 0.9 |
Adjusted profit before tax | 55.9 | 45.0 |
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
177
177
31 Adjusted performance measures
continued
d) Adjusted earnings per share
In line with the Group’s measurement of adjusted performance, the Group also presents its earnings per share on the same adjusted basis as
adjusted profit before tax. This differs from the statutory measure of earnings per share which includes both exceptional items and amortisation
of acquired intangible assets.
A reconciliation of the statutory measure to the Group’s performance measure (post-tax) is shown below, based on continuing operations:
| 2026 |
2025 |
|||||
Weighted |
Weighted |
|||||
average |
average |
|||||
Earnings |
number of |
EPS |
Earnings |
number of |
EPS |
|
£m |
shares |
pence |
£m |
shares |
pence |
|
Statutory results |
41.2 |
98,876,195 |
41.7 |
33.6 |
99,627,362 |
33.7 |
exclude: amortisation of acquired intangible assets |
0.7 |
n/a |
n/a |
0.7 |
n/a |
n/a |
Adjusted earnings per share |
41.9 |
98,876,195 |
42.4 |
34.3 |
99,627,362 |
34.4 |
In accordance with section 409 of the Companies Act, the following is a list of all of the Group’s undertakings as at 30 June 2026. Galliford Try Limited
is the only subsidiary undertaking held directly by the Company.
Shareholding |
||
(direct or |
||
Entity name |
Registered office or principal place of business |
indirect) |
AVRS Systems Limited |
Avrs Systems Ltd, Lonning End, Ponsonby, Seascale, Cumbria, |
100% |
England CA20 1BU |
||
Construction Holdco 1 Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Construction Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try (Water) Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Asset Intelligence Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Building 2014 Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
Galliford Try Construction & Investments Holdings Limited 3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
|
Galliford Try Construction Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Corporate Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
Galliford Try Developments Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Digital Infrastructure Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Employment Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Facilities Management Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try HPS Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Infrastructure Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
Galliford Try Investments Consultancy Services Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Investments Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Plant Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Properties Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Secretariat Services Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Services Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT (Leeds) Lift Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT (Leicester) Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT (North Hub) Investments Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
GT (North Tyneside) Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT Camberwell (Holdings) Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT Camberwell Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try
Galliford Try
178
178
Notes to the financial statements continued
32 Group undertakings
continued
Shareholding |
||
(direct or |
||
Entity name |
Registered office or principal place of business |
indirect) |
GT Inverness Investments Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
GT TMGL Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
Ham Baker Engineering Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Kingseat Development 1 Limited |
Morrison House, Kingseat Business Park, Kingseat, Newmachar, |
100% |
Aberdeenshire, AB21 0AZ |
||
Kingseat Development 2 Limited |
Morrison House, Kingseat Business Park, Kingseat, Newmachar, |
100% |
Aberdeenshire AB21 0AZ |
||
Leicester GT Education Company Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Lintott Control Systems Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Lintott Environmental Technologies Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
MCS Control Systems Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Morrison Construction Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
Nene Valley Fire and Acoustic Ltd |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Oak Specialist Services Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Regeneco Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Try Construction Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
All subsidiary undertakings are incorporated in the UK unless otherwise specified and are included in the consolidated financial statements of the
Proportion of |
Financial |
||
Entity name |
Registered office or principal place of business |
capital held |
year-end |
Aberdeen Roads (Finance) PLC |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
33% |
31-Dec |
Aberdeen Roads Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
33% |
31-Dec |
Aberdeen Roads Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
33% |
31-Dec |
ACP: North Hub Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
31-Dec |
GBV JV Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
50% |
30-Jun |
GT Equitix Inverness Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
31-Mar |
GT Equitix Inverness Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
31-Mar |
Hub South East Scotland Limited |
8 Melville Street, Edinburgh, EH3 7NS |
50% |
31-Mar |
Space Scotland Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
83% 1 |
31-Mar |
The above entities are all incorporated in the UK and considered to be joint ventures, based on the shareholding agreements in place.
1
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
179
179
32 Group undertakings
continued
Proportion of |
||
capital held |
||
Entity name |
Registered office or principal place of business |
by class |
Aberdeen Community Health Care Village Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Alliance Community Partnership Limited |
Avondale House Suites 1b-1e, Phoenix Crescent, Strathclyde Business |
10% |
Park, Bellshill, North Lanarkshire, Scotland, ML4 3NJ |
||
ELCH DBFM Holdco Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
ELCH DBFMCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
Galliford Try Qatar LLC |
PO Box 11726 Doha, State of Qatar (incorporated in Qatar) |
49% |
Hub North Scotland (Alford) Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland (FWT) Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland (I&F) Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland (I&F) Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland (O&C) Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland (O&C) Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub South West Scotland Limited |
2 Atlantic Square, 31 York Street, Glasgow, Scotland G2 8AS |
6% |
Hub SW Cumbernauld DBFMCo Limited |
Avondale House Suites 1b-1e, Phoenix Crescent, Strathclyde Business |
6% |
Park, Bellshill, North Lanarkshire, Scotland, ML4 3NJ |
||
Hub SW Cumbernauld Holdco Limited |
Avondale House Suites 1b-1e, Phoenix Crescent, Strathclyde Business |
6% |
Park, Bellshill, North Lanarkshire, Scotland, ML4 3NJ |
||
James Gillespie’s Campus Subhub Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
James Gillespie’s Campus Subhub Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
JICC DBFM Holdco Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
JICC DBFMCo Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
KHS DBFM HoldCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
KHS DBFMCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
LBP DBFM Holdco Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
LBP DBFMco Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
Newbattle DBFM HoldCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
Newbattle DBFMCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
QHS DBFM Holdco Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
QHS DBFMCo Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
REH Phase 1 Subhub Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
REH Phase 1 Subhub Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
WCHS DBFMCo Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
WCHS DBFM Holdco Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
Urban Vision Partnership Limited |
First Floor, 2 Kingdom Street, Paddington, London, W2 6BD |
30% |
The above entities are all incorporated in the UK except Galliford Try Qatar LLC, which is incorporated in Qatar.
Galliford Try
Galliford Try
180
180
2022 | 2023 | 2024 | 2025 | 2026 | |
Continuing operations | £m | £m | £m | £m | £m |
Revenue | 1,237.2 | 1,393.7 | 1,763.7 | 1,875.2 | 1,931.1 |
Adjusted Profit before taxation | 20.6 | 22.4 | 35.0 | 45.0 | 55.9 |
Profit before taxation | 5.4 | 10.1 | 19.2 | 44.1 | 55.0 |
Tax (expense)/credit | 0.9 | (1.0) | 8.2 | (10.5) | (13.8) |
Profit after taxation attributable to shareholders | 6.3 | 9.1 | 27.4 | 33.6 | 41.2 |
Fixed assets (including IFRS 16 right-of-use assets), investments in joint | |||||
ventures, PPP and other investments | 79.4 | 90.4 | 98.5 | 95.7 | 88.9 |
Intangible assets and goodwill | 97.0 | 98.3 | 97.9 | 97.0 | 105.2 |
Net current liabilities | (43.4) | (61.4) | (68.2) | (50.5) | (38.0) |
Other long-term assets | 14.0 | 15.5 | 17.9 | 11.0 | 4.8 |
Long-term payables and provisions | (14.9) | (24.2) | (32.5) | (31.1) | (25.3) |
Net assets | 132.1 | 118.6 | 113.6 | 122.1 | 135.2 |
Share capital | 55.5 | 52.4 | 52.0 | 51.1 | 50.4 |
Share premium | – | – | 0.8 | 1.6 | 2.2 |
Reserves | 76.6 | 66.2 | 60.8 | 69.4 | 82.6 |
Shareholders’ funds | 132.1 | 118.6 | 113.6 | 122.1 | 135.2 |
Dividends per share (pence) | 8.0 | 22.5 | 15.5 | 19.0 | 23.5 |
Basic earnings per share (pence) | 5.8 | 8.7 | 27.3 | 33.7 | 41.7 |
Adjusted earnings per share (pence) | 17.1 | 18.0 | 29.6 | 34.4 | 42.4 |
Diluted earnings per share (pence) | 5.5 | 8.1 | 26.2 | 32.2 | 39.9 |
The results for 2022 and 2023 are presented on an adjusted basis in line with the results of 2024, 2025 and 2026.
Five-year record (unaudited)
Financial information
Governance
Annual Report and Financial Statements 2026
Annual Report and Financial Statements 2026
181
181
Shareholder information
Financial calendar 2026
Half year results announced | 4 March |
Full year results announced | 17 September |
Ex dividend date – final dividend | 5 November |
Final dividend record date | 6 November |
Annual General Meeting | 12 November |
Final dividend payment | 4 December |
Shareholder enquiries
The Company’s registrars are Equiniti Limited. They will be
pleased to deal with any questions regarding your shareholding or
dividend payments.
Please visit www.shareview.co.uk to update your personal information.
You can find a number of shareholder services online, including the
portfolio service which gives you access to more information on your
investments such as balance movements, indicative share prices and
information on recent dividends.
You can also register your email address to receive shareholder
information and Annual Report and Accounts electronically.
Alternatively, write to them at:
Equiniti Limited
Highdown House
Yeoman Way
Worthing
BN99 6DA
Or, call the EQ Customer Experience Centre on 0371 384 2202.
Lines open from 8.30am to 5.30pm, Monday to Friday.
Share dealing service
A telephone and internet dealing service is available through
Equiniti which provides a simple way of buying and selling Galliford Try
shares. Commission is currently 1.5% with a minimum charge of
£60 for telephone dealing and a minimum charge of £45 for internet
dealing. For telephone sales call 0345 603 7037 between 8.00am
and 4.30pm, Monday to Friday, and for internet sales log on to
www.shareview.co.uk/dealing. You will need your shareholder
reference number as shown on your share certificate. Share dealing
services are also widely provided by other organisations. The Company
is listed on the London Stock Exchange under the code GFRD and the
SEDOL and ISIN references are BKY40Q3 and GB00BKY40Q38.
Group website
You can find out more about the Group on our website
www.gallifordtry.co.uk which includes a section specifically prepared
for investors. In this section you can check the Company’s share
price, find the latest Company news, look at the financial reports and
presentations as well as search frequently asked questions and answers
on shareholding matters. There is also further advice for shareholders
regarding unsolicited boiler room frauds.
Company contact
Contact with existing and prospective shareholders is welcomed by
the Company. If you have any questions please contact the General
Counsel & Company Secretary, either at the registered office or via
email ([email protected]).
Analysis of shareholdings at 30 June 2026
% of | Number of | % of | Number of | |
Size of shareholding | holders | holders | shares | shares |
1–10,000 | 90.91% | 2,761 | 3.00% | 3,026,600 |
10,001–50,000 | 4.21% | 128 | 2.92% | 2,946,489 |
50,001–500,000 | 3.33% | 101 | 16.68% | 16,828,870 |
500,001 – highest | 1.55% | 47 | 77.40% | 78,070,072 |
Total | 100.00% | 3,037 | 100.00% | 100,872,031 |
Registered office
Galliford Try Holdings plc
Blake House
3 Frayswater Place
Cowley
Uxbridge
Middlesex
UB8 2AD
Stockbrokers
Peel Hunt LLP
Panmure Liberum Limited
Bankers
Barclays Bank PLC
HSBC Bank PLC
Lloyds Banking Group plc
National Bank of Kuwait
Registration
England and Wales 12216008
Independent auditor
BDO LLP
182
Galliford Try
182
Galliford Try
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Uxbridge
Middlesex
UB8 2AD
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