Galliford Try

Ticker GFRD

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Market open
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Price Pence
As of 10:16 24 May 2019
Market cap. Pound sterling
590.69 million
As of 10:16 24 May 2019

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350 jobs to go at Galliford Try in £40m restructuring

a builder
Getty Images

Troubled builder Galliford Try has confirmed that its strategic review launched last month to generate cost savings of £15m a year will lead to 350 job losses across the country.

The company said the restructuring costs will lead to a £40m write-down during the year.

Graham Prothero, chief executive, said: "We have made some difficult decisions in response to the challenges faced by the Group's Construction business.

"The associated operational changes are being implemented across the business. We are confident that the decision to refocus our construction activities will deliver a more stable business for the future and support improved margins."

Construction to be scaled back

Queensferry Crossing
AFP/Getty images

Galliford Try, the housebuilding group, is undertaking a strategic review of its construction business, which is to shrink.

In a statement to the stock exchange, it said: "The board anticipates that this review will result in reduced profitability in the current year reflecting a reassessment of positions in legacy and some current contracts and the effect of some recent adverse settlements, as well as the costs of the restructure.

"The single largest element relates to the Queensferry Crossing joint venture, which has recently increased its estimated final costs on the project".

In all, the group's full year post-exceptional profit before tax will be reduced by £30m-£40m below the current consensus analysts' forecast, the company said.