Galliford Try is raising £150m to pay for big cost overruns on the Aberdeen Western Peripheral Route and a £40m hit following the collapse of joint venture partner Carillion.
The firm this morning said it planned to raise the cash from a fully underwritten share issue to meet cash commitments on the project of more than £150m.
Peter Truscott, chief executive said Galliford Try continued to make good progress in resolving both AWPR, the construction of which is expected to complete during summer 2018, and other legacy contracts.
He added that construction division would no longer undertake fixed price, all risk major projects of this nature, and has improved its tendering and project selection processes.
The firm said it had sufficient financial resources to meet its obligations, but this would involve diverting capital away from the growing Linden Homes and Partnerships & Regeneration businesses.
In the half-year results to 31 December 2017, Galliford Try delivered a pre-tax profit of £59m, despite recording a £90m loss at the construction division.
This was down to the infrastructure business plunging £77m into the red and the building business running up a £12m loss.
This was offset by strong profits at Linden Homes and the Partnership Housing business which continues to grow strongly.
from Construction Enquirer http://www.constructionenquirer.com/2018/02/14/galliford-try-to-raise-150m-after-90m-construction-loss/
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