THE PRUDENT INVESTOR: Why I’m ditching lousy fund managers who can’t even beat a robot! 130million was wiped off the value of Galliford Try after the construction giant admitted it would cost more than expected to complete a the 10 minute forex wealth builder of projects. 98million to cover the spiralling cost of the works, which was taken on under former boss Greg Fitzgerald who now runs housebuilder Bovis Homes. Some 80 per cent of the hit relates to two contracts in Scotland to build the Queensferry Crossing over the Firth of Forth and the Aberdeen Western Peripheral Route, a bypass around the city.
4billion Queensferry Crossing will replace the Forth Road Bridge as the main road route between Edinburgh and Fife but has been hit by a string of delays. Galliford Try chief executive Peter Truscott said the soaring cost of these two contracts was ‘regrettable’. But he added that the firm no longer takes on large infrastructure projects on fixed-price contracts that determine how much it will be paid before work begins. 46million and reduced the target price on the stock from 1930p to 1850p. 129million off the value of the company. The slump at Galliford was yet another blow to the building industry amid a backlash over the sale of new houses.
7million to deal with complaints over the quality of its homes from furious customers. 130million to resolve disputes over homes sold with leases that saw ground rents double every decade. Galliford said its housebuilding arm, Linden Homes, was ‘enjoying good trading conditions and continues to perform well’. Research group IHS Markit said its index of activity in the construction sector, where scores above 50 show growth, rose from 52. That was the best reading so far this year and ‘pointed to a solid rise in overall construction output’ last month, the report said. Tim Moore, senior economist at IHS Markit, said that Britain has seen ‘a positive start to the second quarter of 2017’ after overall growth slowed to 0. 3 per cent in the first quarter.
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