Galliford Try Holdings: A Favorite Amongst Institutional Investors

Galliford Try Holdings plc (LON:GFRD), a leading construction company in the United Kingdom, has caught the attention of institutional investors, with approximately 80% of its ownership held by these large-scale investors. This significant institutional ownership has contributed to the company's strong performance and positive outlook, making it an attractive investment option for both institutional and retail investors.

Galliford Try Holdings' strong financial performance has been a key driver of its appeal to institutional investors. In 2024, the company reported a 27.20% increase in revenue to £1.77 billion, along with a 297.80% increase in net income to £36.20 million. This robust growth, coupled with an increased dividend to shareholders, has demonstrated the company's ability to generate value for its investors.

The company's high-quality order book, valued at £3.8 billion, provides high visibility of workload and supports its confidence in the outlook. With 92% of FY25 and 70% of FY26 work already secured, Galliford Try Holdings is well-positioned to capitalize on the UK's planned and required investment in economic and social infrastructure. The company's retention of key positions on long-term public and regulated sector frameworks further bolsters its confidence in the future.

Galliford Try Holdings' dividend growth and earnings history have also contributed to its attractiveness as a long-term investment, particularly for income-oriented investors. The company reported a dividend of 0.16 GBP in 2024, representing a 47.62% increase over the previous year. Although analysts expect dividends to decrease by 3.87% for the upcoming fiscal year, the company's dividend growth history indicates a strong commitment to returning capital to shareholders.

The consensus recommendation for Galliford Try Holdings is positive, with 2 analysts recommending a "Buy" and 1 analyst recommending an "Outperform" rating as of 10-Oct-24. This positive sentiment from analysts, coupled with the company's strong financial performance and dividend growth, supports the case for investing in Galliford Try Holdings.

In conclusion, Galliford Try Holdings' strong financial performance, high-quality order book, dividend growth, and positive analyst recommendations make it an attractive investment option for both institutional and retail investors. With approximately 80% of its ownership held by institutional investors, the company has proven its ability to generate value for its shareholders and maintain a positive outlook for the future. As such, Galliford Try Holdings is a compelling choice for investors seeking exposure to the construction sector and a strong dividend yield.