StockMarketWire.com - Construction company Galliford Try said it had experienced further delays and cost increases at a troubled road project in Scotland.

The completion date for the Aberdeen Western Peripheral Route was now expected in December, owing to increased complexity and weather delays in implementing repairs to a bridge.

The company's estimate of the final costs to complete the contract had risen by around £20m.

The final impact on Galliford Try's financial results would be determined 'more importantly' by the result of the group's significant claim, for which it said it continued to pursue constructive discussions with the client.

At the Linden homes business, meanwhile, sales rates were lower than levels achieved in the 2018 financial year.

Prices and margins,however remained in line with expectations and Galliford Try said the business was expected to achieve its targets for the full year.

'The group expects to report a FY 2019 pre-exceptional profit before tax in line with previous guidance,' Galliford Try said.

In a separate announcement, the company confirmed that it had won two places in an £8.7bn UK government six-year urban development programme.

The two places were within 'Band B' for higher-value schemes, on lot four in the South West, valued at £800m, and lot seven in the East of England, valued at £2.8bn.

'Highways is a key growth sector for our infrastructure business so this appointment is particularly significant,' chief executive Peter Truscott said.

At 1:44pm: [LON:GFRD] Galliford Try PLC share price was -14.5p at 879p



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