Galliford and Redrow to resume dividends

LONDON: Construction groups Galliford Try and Redrow pledged to resume shareholder payouts in fiscal 2021 as construction demand picked up following the liting of coronavirus lockdowns.

Britain’s construction industry has recovered in the past few months, helping to boost building companies’ order books.

Galliford expects to return to profitability ater two consecutive years of losses as productivity neared normal levels, sending its shares up as much as 11%.

A year-on-year increase in its order book helped Galliford secure 90% of planned revenue for 2021, and the group is focusing on improving margins by opting for smaller contracts.

Homebuilder Redrow said a record order book plus its shit away from London would produce strong operating cash flow allowing dividends to resume in 2021, subject to market conditions.

Consumer demand ater the COVID-19 pandemic has shited, prompting Redrow to focus on regional businesses with higher returns and its ‘Heritage’ suburban homes with period style features and spacious interiors.

Redrow also reported a fall in home completions, lower revenue and higher costs, sending its shares as much as 3.8% lower at 440 pence.

But the company said it completed “substantially more” homes in the first few weeks of the new financial year compared to the same period last year.

Galliford, part of London’s small-cap index, in January sold its housing divisions to Vistry Group, a move that has been paying off.