Galliford Try will no longer bid for large fixed-price infrastructure projects after revealing a 57% drop in profits for the year ended 30 June 2017.

The Group posted pre-tax profits of £58.7m for 2017, down from £135m last year, while revenue rose 6% from £2,670m to £2,820m this year.

The company's profits were hit by one-off charges of £98.3m, which includes £87.9m in respect of two infrastructure joint ventures; the Queensferry Crossing and Aberdeen Western Peripheral Route (AWPR) projects in Scotland.

The two schemes, which were not identified by Galliford Try, severely affected the Group's pre-tax profits.

While the Queensferry Crossing scheme is now open, the AWPR project is scheduled to be finished in mid-2018.

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Despite the losses made by its construction division, strong performances in the Linden Homes and Partnerships & Regeneration divisions helped boost Group revenue.

The company's housebuilding division increased its operating margin to 18.2% (2016; 17.5%) while operating profit is up 16% to £170.3m(2016: £147.2m).

In addition, Partnerships & Regeneration's mixed-tenure revenue increased by 23% to £82m from 594 completions (2016; £67m and 526 completions).

Peter Truscott, Chief Executive, said: "I am pleased to announce strong operating progress in the financial year, which has been supported by robust market conditions. Our reorganised management teams in Linden Homes and Partnerships & Regeneration have achieved excellent revenue and margin growth and continue to enhance their operating effectiveness as described in our strategy presentation in February.

"While the one-off costs relating to legacy contracts in Construction have impacted the reported financial performance, we remain confident in the prospects for the business, with the underlying portfolio of newer contracts performing well, and simplified and strengthened processes proving effective."

(LM/MH)