Galliford raises cash for Aberdeen bypass

Construction giant Galliford Try is to raise just under £158 million through a rights issue to help cover costs for a major road contract in Aberdeen that it had run with Carillion.

The group said the funds would be used for the Aberdeen Western Peripheral Route (AWPR) bypass – originally a project between Galliford Try, Balfour Beatty and Carillion.

Carillion’s collapse earlier this year meant that, under the terms of the contract, the remaining joint venture partners are obliged to complete the scheme with any shortfall spread equally.

Despite completion scheduled for the summer, Scottish Economy Secretary Keith Brown recently said the opening of the bypass would be pushed back until the autumn.

Since Carillion’s collapse, more than 90 per cent of its former workers on the 28-mile Aberdeen road project have been given jobs with the two other partners in the consortium.

Announcing the rights issue yesterday, Galliford said: “The group continues to make good progress towards resolving AWPR and practical completion of the construction work is expected in summer 2018.

“The rights issue is expected to raise gross proceeds of approximately £157.6m, which the group expects to use to cover over-run costs in relation to the AWPR contract, strengthen the group’s balance sheet and ensure that the group’s businesses are in a position, with the appropriate capital, to deliver on their respective growth opportunities in line with the group’s stated 2021 strategy.” 0 Keith Brown says road set to open in late autumn