Galliford completes construction division reshuffle

Galliford Try has today (Thursday) completed the restructuring of its troubled construction business, resulting in a cost reduction of £4m per year and 170 job losses.

Under the reshuffle the group's main construction operations have been reorganised into three business units: one will be responsible for all water and rail projects and another will be responsible for all national building framework agreements and PFI projects.

The third unit will focus on private commercial and interiors work.

Galliford said the future workload for the construction division remains healthy and 76% of the £663m total reported in its interim statement has already been secured.

Costs of the changes will be within the previously announced provision of £4m.

"The action taken completes the restructuring of the construction division to enable it to deliver acceptable and sustainable profits going forward," said chief executive David Calverley.

The group recently secured a £29m arts multiplex centre in West Bromwich.