Galliford Try Holdings

Website: Galliford Try Holdings
Index: FTSE 250
EPIC: GFRD
Supersector: Construction and Materials
Sector: Construction and Materials
Subsector: Heavy Construction
Market Cap: £516.66M
Payout Frequency: Semi-Annual

Galliford Try Holdings Dividend Analysis and Summary

Declared Dividend and Key Dates

Dividend type: Interim
Dividend per share: 6.5p (up +18.2% YoY from 5.5p)
Ex-dividend date: 12/03/2026
Record date: 13/03/2026
Payment date: 10/04/2026
Coverage (H1 basis): Adjusted EPS 18.6p ? cover c.2.9x (payout c.35%)
Stated policy: sustainable dividends with earnings cover of 1.8x over the cycle

Financial Backing for the Dividend

H1 performance: Revenue +1.3% to £934.9m; adjusted PBT +20.5% to £24.7m; divisional adjusted operating margin up to 3.2% (vs 2.7%).
Balance sheet: Period-end net cash £211.7m; 12-month average month-end cash £189.9m; undrawn £25m RCF; PPP assets £38.5m generating interest income.
Visibility: Order book £4.1bn; 98% of FY26 and 80% of FY27 revenue secured.
Guidance: Revenue and adjusted PBT expected to be above the top end of current market expectations (H2 weighted).
Capital returns: Ongoing buyback up to £10m (c.£9.0m purchased by 27 Feb 2026) alongside dividends.

Dividend Sustainability and Growth Outlook

Growth trajectory: The interim dividend’s +18.2% rise broadly tracks adjusted EPS growth (+18.5% to 18.6p), consistent with the policy to increase DPS with earnings.
Coverage and cash: H1 cover of ~2.9x is comfortably above the stated 1.8x full-year target, supported by strong net cash, positive net finance income, and resilient PPP income.
Operational support: Margin progress in Building and Infrastructure, improved contracting environments, and high framework exposure provide underpin for cash generation and dividend capacity.
Outlook: Upgraded full-year expectations, multi-year revenue visibility and a disciplined capital allocation framework (invest–dividends–excess cash returns) support a progressive dividend path.

Structural or Corporate Actions Relevant to Dividends

M&A: Acquisition of Nene Valley Fire & Acoustic Limited (~£10m, cash funded) on 27 Feb 2026; expected to be margin-accretive in year one and enhance higher-margin specialist fire capabilities.
Share buyback: Third programme up to £10m launched Sept 2025; £9.0m completed by 27 Feb 2026. Reduces share count, modestly supporting per-share dividend metrics without stressing liquidity.
No demergers, share consolidations or other structural changes disclosed that would directly alter dividend policy.

Risks and Flags to Dividend Stability

Execution and margin risk: Sector operates on relatively low margins; principal risks flagged include work winning, project delivery, resources and regulatory compliance.
Legacy/warranty exposure: Rectification provisions of £52.5m (incl. one contract at £13.1m with c.6 years warranty remaining) and contingent claims (non-fire safety up to £6.6m; fire safety claims unquantified). Potential cash outflows and uncertainty warrant monitoring.
Working capital and cash flows: H1 saw cash outflows from dividends, buybacks and leases; however, strong net cash and undrawn facilities provide a buffer.
Regulated/public sector dependence: While providing visibility, spending profiles and framework terms can change with policy/budget cycles (e.g., AMP8 transition execution risk in water).
Accounting restatement: Prior IFRS 15 framework-combination restatement was non-cash; no direct impact on dividend capacity but underlines the need for continued reporting discipline.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
13/03/2025	11/04/2025	Interim	5.50p	GBX
06/11/2025	05/12/2025	Final	13.50p	GBX

Total (Annual Dividends Per Share): 19.00p

Dividend Yield = Annual Dividends Per Share (19.00p) ÷ Share Price (521p) = 3.65%

Ex Dividend Date	Payment Date	Type	Amount	Currency
12/03/2026	10/04/2026	Interim	6.5000p	GBX
06/11/2025	05/12/2025	Final	13.50p	GBX
13/03/2025	11/04/2025	Interim	5.50p	GBX
07/11/2024	05/12/2024	Final	11.50p	GBX
14/03/2024	12/04/2024	Interim	4.00p	GBX
09/11/2023	08/12/2023	Final	7.50p	GBX
05/10/2023	27/10/2023	Special	12.00p	GBX
16/03/2023	14/04/2023	Interim	3.00p	GBX
10/11/2022	09/12/2022	Final	5.80p	GBX
10/03/2022	08/04/2022	Interim	2.20p	GBX
11/11/2021	10/12/2021	Final	3.50p	GBX
11/03/2021	09/04/2021	Interim	1.20p	GBX
19/03/2020	17/04/2020	Interim	1.00p	GBX
07/11/2019	04/12/2019	Final	35.00p	GBX
14/03/2019	10/04/2019	Interim	23.00p	GBX
08/11/2018	05/12/2018	Final	49.00p	GBX
15/03/2018	06/04/2018	Interim	28.00p	GBX
26/10/2017	22/11/2017	Final	64.00p	GBX
23/03/2017	06/04/2017	Interim	32.00p	GBX
27/10/2016	23/11/2016	Final	56.00p	GBX
24/03/2016	07/04/2016	Interim	26.00p	GBX
22/10/2015	25/11/2015	Final	46.00p	GBX
19/03/2015	08/04/2015	Interim	22.00p	GBX
16/10/2014	28/11/2014	Final	38.00p	GBX
19/03/2014	09/04/2014	Interim	15.00p	GBX
16/10/2013	29/11/2013	Final	25.00p	GBX
20/03/2013	10/04/2013	Interim	12.00p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	4.000	11.500		GBX	15.500	-31.110
2023	3.000	7.500	12.000	GBX	22.500	181.250
2022	2.200	5.800		GBX	8.000	70.210
2021	1.200	3.500		GBX	4.700	370.000
2020	1.000			GBX	1.000	-98.270
2019	23.000	35.000		GBX	58.000	-24.670
2018	28.000	49.000		GBX	77.000	-19.790
2017	32.000	64.000		GBX	96.000	17.070
2016	26.000	56.000		GBX	82.000	20.580
2015	22.000	46.000		GBX	68.000	28.300
2014	15.000	38.000		GBX	53.000	43.240
2013	12.000	25.000		GBX	37.000

Number of Shares:

Payment	Paid	Amount
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