黑洞社区

Clients that put work on hold due to the Brexit vote are starting to recommit to development, according to Galliford Try鈥檚 new construction chief executive Bill Hocking.

Hocking (pictured), who joined from Skanska last September and took over running construction from Ken Gillespie this summer, said the EU referendum had impacted on four of its jobs, each worth around 拢20m-拢50m.

Of these four jobs, clients had recommitted to two of them while the other two had been cancelled, Hocking told 黑洞社区.

鈥淭here鈥檚 been a bit of a hiatus,鈥� Hocking said. 鈥淏ut it鈥檚 been very limited. Two jobs have now been confirmed to kick off again in March next year.鈥�

Hocking said it was difficult to say what the long term impact of the referendum result would be, but he was 鈥渕ore encouraged now鈥� than in the immediate aftermath, adding: 鈥淚n a year or so鈥檚 time we鈥檒l have a better idea of what Brexit will look like.鈥�

Hocking said the firm had seen no impact from the Brexit vote so far on 鈥減eople wanting to get in or out of the UK construction industry鈥�, but he said he would be 鈥渃oncerned鈥� by any attempts to tighten the immigration system, given major programmes like HS2 and Crossrail 2 are in the pipeline.

Imports are obviously more due to the drop in value of sterling. That cost pressure is coming in and we鈥檙e pricing that into our tenders now, as are our competitors

Bill Hocking

Commenting on the prospect of a drop in tender prices, as forecast by several QSs , Hocking said: 鈥淚 don鈥檛 see another crunch coming.鈥�

He added: 鈥淚mports are obviously more due to the drop in value of sterling. That cost pressure is coming in and we鈥檙e pricing that into our tenders now, as are our competitors. But I鈥檓 hoping the government will loosen its grip on fiscal policy and start spending.鈥�

In results for the year to June 2016 posted this morning, Galliford Try posted record pre-tax profit of 拢135m, up from 拢114m the previous year.

However, legacy construction jobs won in a tighter market continued to hold back profit.

Margins at the firm鈥檚 construction division - which hit 拢1.5bn revenue over the year, two years ahead of its 2018 target - sllipped back to 1.1%, down from 1.2%.

The firm said it was continuing to close out problem contracts at lower margins than its newer work and consequently this would 鈥渉old back鈥� profit this financial year as well.

Hocking said it was 鈥渄ifficult to call accurately鈥� when all the firm鈥檚 legacy jobs would close out, but said work won over the past two years was in line with the firm鈥檚 target of hitting 2% to 2.5% construction margins by 2018.

With the construction divison now having hit its 拢1.5bn revenue target, Hocking said his focus would be 鈥渕ore on the bottom line than the top line鈥� and making it a 鈥渓eaner鈥� operation.

The construction order book dipped to 拢3.5bn, down from 拢3.8bn.

Overall revenue rose 10% to 拢2.67bn, up from 拢2.43bn.

Linden Homes continued to grow, with completions up to 3,078, up from 2,769. The division鈥檚 profit margin also increased to 17.5%, up from 16%.

The firm increased its dividend 21% to 82p.

This week . Galliford Try Partnerships plans to also open a new central southern office this year.

Other major wins over the past six months include (pictured) and .

Gillespie stepped down from the board over the summer ahead of retiring next February.