Galliford Try Holdings is a British construction business that was founded in 1908 and currently employs more than 3000 people. The company has many projects on the table across different sectors that include education, defense, health, highways, environment, health, aviation, rail, commercial, urban living, investments, and facilities management.
However, although Galliford Try is one of the leading construction companies in the UK, this year was horrible for the company in terms of its share price performance. Since the beginning of the year, Galliford Try shares lost over 85%, and the share price is currently trading at lowest levels not seen since the early 90s.
But given the company’s fundamentals, Galliford Try might be trading at a discount right now. So, if you are thinking of buying shares of Galliford Try, this guide will cover everything you need to know. We’ll help you find some of the best UK stockbroker that offers shares of Galliford Try, show you the process to place a Galliford Try buying order, and analyze the share price performance.
Galliford Try Holdings is a UK company listed on the London Stock Exchange under the symbol GRFD. As such, you’ll have a selection of UK brokers offering you to buy Galliford Try shares. To make things easier for you, we have selected two of the most cost-effective UK stockbrokers that offer investors to trade shares of Galliford Try.
eToro is the largest social trading network in the UK and worldwide with over 12 million members and lots of social trading features. Founded in 2006, this broker gives access to shares from 17 stock exchanges including the LSE. As such, investors can buy and sell UK shares like Forterra, Ocado, and Galliford Try.
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Fineco Bank is a well-regulated, independent bank that is offering, in addition to banking services, investment and trading solutions. The bank, which was founded in 1999, is allowing investors to trade shares directly on the exchange or in the form of CFDs. By using CFDs, users get access to commission-free trading like eToro. However, when choosing to buy shares outright, you’ll get charged a commission of just £2.95 per side.
Fineco Banks stands out from competitors in the industry by offering a wide range of markets on advanced trading platforms. As such, investors that choose to work with Fineco Bank get access to stocks (outright and CFDs), futures, indices, currency pairs, options, ETFs, bonds, and managed portfolios. The trading can be done via one of the two platforms the broker offers, its own proprietary web-based platform and the PowerDesk platform that is one of the best trading platforms in the market.
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Galliford Try’s share price was hit hard when the Covid-19 pandemic crisis has begun in March. But even before the pandemic has started, Galliford Try was facing several changes on various fronts. At present, Galliford has a market capitalization of just £116mn, which makes it a relatively small company.
Nonetheless, Galliford Try has made somewhat of a comeback in the past month, and the company’s management has recently said it is well-positioned to emerge strongly from the downfall since the beginning of the year.
With that in mind, in this section of our guide, we take a closer look at Galliford Try’s share price history and outline some of the reasons why analysts think it’s a good long-term investment right now.
What is Galliford Try?
Galliford Try Holdings was created following a merger in 2000 between Galliford and Try. Try Group, was founded in 1908 by William S Try while Galliford was founded in 1916 during World War Two and has become one of the leading construction businesses in the UK. Following the merger, the company has made several acquisitions in order to increase its market share. In 2004, the company has acquired Morrison Construction, and in 2014 it has acquired Miller Construction business.
Generally, Galliford Try Holdings focuses on building and construction projects in various sectors. Some of the major projects of the company include the Centre Court roof at Wimbledon Tennis Center, the Museum of Liverpool, Hotel Football in front of the football ground Old Trafford, Birmingham Dental Hospital, and many more.
Since the merger between Galliford and Try in 2000, shares have been on a steady uptrend until the economic crisis in 2008. It reached its all-time high of 1867p before the crisis has begun and then its share price fell to a bottom of 280p in 2010. Between 2010-2015, Galliford Try shares rose again to 1800 levels, but since then, the share price has been falling hard.
Particularly, Galliford Try shares dropped sharply when the company sold its Linden Homes and regeneration divisions to Bovis Homes – a deal that has been completed on 3 January 2020. Following the deal, Galliford Try shares were trading with a bearish momentum caused by the negative impact of the Covid-19 pandemic. Ultimately, it reached an all time bottom level of 74.5 on 9 November.
Since early November, Galliford Try shares gained more than 50% in less than one month, rising from 75p to 107p at the time of writing. The main catalyst for the increase in Galliford Try’s share price was the announcement that it expects to return to profit this year, and thus, reinstate its dividend payment.
At the current share price, Galliford Try has a market cap of slightly above £115 million. Its price per earnings (PE) ratio currently stands at 0.36, which is below the average in the industry and indicates that the current Galliford Try share price is low relative to its earnings. The annual earnings per share (EPS) of Galliford Try is £2.89.
At the end of March, Galliford Try canceled its dividends as a result of the Covid-19 crisis. That was a necessary step although the company said at the time that it remains a well-capitalized business with no debt or bank covenants.
In November, Galliford Try announced that it expects to reinstate its dividend payments with half-year financial results. The reason for resuming paying dividends is that all projects have been fully operational since 1 July and productivity is close to normal levels during the second Covid-19 lockdown.
Galliford Try shares have plummeted this year due to the Bovid Homes’ deal in January and the economic crisis that emerged in March. However, in the past months, Galliford Try’s share price climbed over 50% and the momentum is currently in favor of bullish investors.
So, let’s take a closer look at some of the reasons why Galliford Try shares are worth considering at this valuation:
Covid 19 Vaccine Rollout Begins in the UK
Like many other companies, Galliford Try was hit hard by the coronavirus pandemic. The lockdowns have forced Galliford to close construction sites and reduce its productivity, which ultimately led to the cancelation of dividends and new measures the company had to implement. Now, as the COVID-19 vaccine starts to become a reality in the UK, Galliford shares are very likely to rise further from current levels.
Galliford Try Resume Paying Dividends
Last month when Galliford Try said it expects to return to profitability and resume its dividend payment in the first half of the fiscal year, its share price soared by over 20%. This announcement makes Galliford Try a paying dividend stock, which is a desirable product these days, considering the low-interest rates environment of the past decade.
Big Contracts Wins for Galliford Try
A number of significant contract wins are another crucial factor to consider buying Galliford Try shares. First, the company has recently won a £60 million contract in West Lothian. Then, another contract win includes a £50 million office refurbishment project at 280 Bishopsgate. In June, Galliford Try wins the £20m RAF Lossiemouth contract and then again in October, Galliford Try wins another contract on Eastern Highways Framework.
Step 3: Open an Account and Deposit Funds
Galliford Try shares can be purchased from the majority of online stock brokers operating in the UK. But before you can complete the purchase, you first need to open a trading account. The help you get started, we are now going to show you the sign-up process with eToro.
First, navigate to eToro’s site and click on the Join Now button. You’ll then see a registration form where you’ll be asked to enter your personal information and verify your identity by uploading a copy of your passport or driver’s license along with a copy of a recent financial statement or utility bill.
Next, you can fund your new trading account. eToro requires a minimum deposit of around £140 in the UK, which you can pay by debit or credit card, PayPal, Skrill, Neteller, and UK bank transfer.
Now you are ready to buy Galliford Try shares via eToro. To do that, navigate to the trading dashboard and type in Galliford Try in the search bar. Then, click on the first result that pops up.
Then, on the next page, you’ll need to click on the ‘Buy’ button.
To complete the buying process, you’ll have to place an order in the market. In the order form, you need to enter the amount that you wish to invest in Galliford Try shares with a minimum investment requirement of £40.
Overall, there’s no reason to believe that Galliford Try won’t be trading again at pre-Covid-19 levels. After all, Galliford’s balance sheet seems to be in a very good shape, and new contracts are coming in. The company has 90% revenue secured for 2021, and the group is debt free. As of June 2020, it has a net cash of £197.2mn, no balance sheet debt, and no pension liability. This data is quite impressive for a company like Galliford Try that had to struggle throughout this year due to the pandemic crisis.
As a result of its strong recovery, Galliford Try has announced in September that it plans to resume dividends once it return to profitability. This will be a big factor for investors over the long term.
As it appears to be now, Galliford Try shares might be a bargain and are trading at a fairly cheap price. And, while we cannot expect to see Galliford Try share price trading soon at the levels seen a year ago around 800p, there’s a good chance it will rise 20%-50% from current levels in the next 1-3 years.
While nobody has a crystal ball to predict the future price of stocks, Galliford Try shares seem to be a good long term investment right now. Fortunately for Galliford Try stockholders, the firm is in stable businesses and expects to continue growing. On top of that, the restart of the dividend payments and the new contract wins for Galliford Try is another reason for optimism.
If you ready to buy Galliford Try shares right now, simply click the link below to get started!
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