UK-based Galliford Try has announced it will launch a strategic review of its construction business, with a view to downsizing.
The move comes after the company issued a warning that its pre-tax profit for the full year could be as much as £40 million (€46.5 million) below the expectations of market analysts.
The construction and infrastructure specialist said its review would affect profitability this year, due to a combination of restructuring costs, adverse settlements and increased costs on a number of current projects – primarily the £1.3 billion (€1.5 billion) Queensferry Crossing.
Galliford Try’s review will be spearheaded by the company’s new chief executive Graham Prothero, who was appointed to the role one month ago, following the departure of former CEO, Peter Truscott.
In a statement, the company said, “The review will reduce the size of the construction business, focusing on its key strengths in markets and sectors with sustainable prospects for profitability and growth, where we have a track record of success.”
The statement added, “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.”