黑洞社区

The financial hit on two of Galliford Try鈥檚 infrastructure projects in Scotland is not expected to rise above a previously stated figure of 拢98m.

There had been fears the one-off charge, which related to work the firm had done on the recently opened Queensferry Crossing (pictured, under construction) and a 58km-long stretch of road near Aberdeen, would increase as more was done on the schemes.

But in a trading announcement today, the group merely noted that 鈥減rogress on the resolution of [the division鈥檚] legacy contracts is in line with the position indicated in September 2017鈥�.

In September it had confirmed the 拢98m figure as part of its annual results presentation. Galliford Try鈥檚 construction boss Bill Hocking told 黑洞社区 at the time that some residual work may be required, leading to speculation the figure might rise, but this now appears to have been scotched by the firm.

He had confirmed that the two schemes which blew a hole in group pre-tax profits were those to build the new Queensferry Crossing near Edinburgh and a dual carriageway around Aberdeen.

The firm carried out work on the bridge in an international joint venture which included Spanish firm Dragados and German contractor Hochtief.

But its scheme further north in Aberdeen, which it is carrying out for Transport Scotland in a joint venture with Balfour Beatty and Carillion, is not scheduled to complete until the end of next year.

Hocking said he was hoping to wrap up work on the road, called the Aberdeen Western Peripheral Route, in the first half of next year.

Speaking about the 拢98m figure in September he admitted: 鈥淲e have taken a sensible management view [but] you can鈥檛 kitchen sink these things. There may be some residual work.鈥�

Both projects had been blighted by weather problems, with Hocking saying that the time lost on the bridge because of high winds 鈥渨as significantly more than anticipated鈥�.

At its AGM today, Galliford Try will tell investors it was seeing 鈥済ood market conditions鈥� across its three businesses.

Its Linden Homes operation had sales reserved, contracted or completed of 拢652m, versus 拢614m in 2016, while the order book for the Partnerships & Regeneration operation had hit a record 拢1.3bn, up from 拢873m last year.

The group鈥檚 construction business saw its order book rise from 拢3.4bn in 2016 to 拢3.6bn.

The firm was recently awarded the 拢52.5m contract to build a near-1,000 bed student accommodation facility in Coventry, along with a 拢65m deal to build an office building at the Arena Central development in neighbouring Birmingham.