UK house builder Galliford Try wins £250m Ministry of Defence contract in Scotland
Housebuilding and construction group Galliford Try has won a sizeable contract with a sizeable name: the Ministry of Defence's (MoD) Next Generation Estates Framework for Capital Works Projects in Scotland, which is worth £250m.
The deal, which was landed by Galliford's Integrated Solutions business, will run for four years, netting Galliford that £250m in chunks of £12m at a time.
Why it's interesting
Galliford, a FTSE 250 housebuilder, broke profit records earlier this year, with the boom in the residential market helping along. Interestingly, this move is another step away from a purely residential base. Galliford bought Miller Construction back in July, with the aim of procuring just this sort of contract.
What Galliford said
We are delighted to have secured this opportunity, and are confident in our expertise to meet the demanding requirements of this framework. Our demonstration of innovation and flexibility, as well as Galliford Try's heavy emphasis on sustainability and energy efficiency, will stand us in a good position to deliver efficiently for this specialised market.
In short
The UK property market is looking healthy even if next year will see more modest growth. Any move to diversify, if successful, will provide a lift to Galliford.