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Galliford Try Warns On FY Profit; Stock Plunges

Shares of Galliford Try Plc (GFRD.L) were losing around 18 percent in the early morning trading in London after the housebuilding, regeneration and construction group on Tuesday warned on its fiscal year 2019 profit.

The company said it is undertaking a strategic review of its Construction business, which will reduce its full year post-exceptional profit before tax by 30 million pounds to 40 million pounds below the current consensus analysts' forecast.

The mean of analysts' forecasts for profit before tax for fiscal 2019 is 156 million pounds.

The review, which includes an assessment of operational progress and contract positions throughout the Construction business, will reduce the size of the business. The profitability will be reduced in the current year due to a reassessment of positions in legacy and some current contracts, the effect of some recent adverse settlements, as well as the costs of the restructure.

The majority of construction businesses continue to perform well, and the adjustments will not have a significant impact on the company's previous guidance on average net debt for the year.

Galliford Try said its Board anticipates finalising its conclusions in the next few weeks. The company will announce the details of the review along with a further update on Group trading in its scheduled statement on May 21.

In London, Galliford Try shares were trading at 595.00 pence, down 17.99 percent.

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