Galliford Try has revealed it is raising more than £157 million to help cover cash demands on the £745m Aberdeen Western Peripheral Route (AWPR) project.

In an announcement today, 27 march, the firm said it is bidding to generate £157.6m in funding in a 1 for 3 rights issue to help cover costs overrunning on the project following the collapse of Carillion in January.

Both Galliford Try and Balfour Beatty are now having to cover the costs on the 28-mile bypass scheme after project partner Carillion entered into liquidation.

Galliford Try said: "The Group currently has sufficient financial resources to meet its obligations, including the estimated impact of Carillion's liquidation.

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"However, this would involve diverting capital away from the Linden Homes and Partnerships & Regeneration businesses, thereby reducing their ability to capitalise on the material growth opportunities these businesses are well positioned to deliver."

Peter Truscott, Chief Executive Officer said: "Following the Group's strong financial and operational performance in the first half, with revenue growth across all three of our businesses and excellent progress against our 2021 strategy, we are pleased today to announce the terms of the Group's fully underwritten Rights Issue.

"We see excellent opportunities and demand for both our private and affordable homes businesses and our Construction business continues to benefit from the current and planned investment in the nation's infrastructure.

"The Rights Issue proceeds will strengthen the Group's balance sheet and ensure that the Group's businesses are in a position, with the appropriate capital, to deliver on their respective growth opportunities in line with the Group's stated 2021 Strategy."

(LM)