Galliford Try (LON: GFRD) has settled a long-running contract dispute and this is enabling the construction company to pay a special dividend of 12p a share. There could be a further payout.
The settlement covers three contracts with an infrastructure fund, and it means that Galliford Try will receive £26m in cash. However, there will be a £3m non-cash write-off relating to the settlement.
Peel Hunt estimates that Galliford Try has net cash of £230m. The dividend will be paid on 27 October and the ex-dividend date is 5 October. The dividend costs £13m.
There will be a first half update on 12 July. Peel Hunt forecasts an improvement in pre-tax profit from £19.1m to £22.5m. Last year’s final dividend was 5.8p a share and it could be raised this year. Eve with the dividend payments, net cash is expected to increase to £268m at the end of June 2024.
The share price is 8.4p ahead at 193.8p. That is less than twelve times prospective 2023-24 earnings.
