Galliford Try to pay special dividend after settling dispute
By Abigail Townsend
Date: Thursday 08 Jun 2023
(Sharecast News) - Galliford Try announced plans to return cash to shareholders on Thursday, after the construction group settled a long-running contractual dispute.
The firm said it had agreed settlement terms on a "complex and challenging" dispute, which concerned three contracts with entities owned by a major infrastructure fund, and would now receive a cash payment of £26m.
While some of the payout will be retained to invest in its growth strategy, Galliford said a "substantial" proportion would be paid out to shareholders via a special dividend of 12p per share.
It also expects to report a one-off non-cash write off of around £3m following the settlement.
Galliford officially ceased working on the contracts in 2018. Three years ago it said it had submitted various claims, valued at around £95m, after it alleged costs were impacted by client-driven changes. It has not named the entities nor the infrastructure fund that owns them.
The special dividend will be paid on 27 October, following publication of annual results.
As at 0915 BST, shares in Galliford were ahead 2% at 188.72p.
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