Galliford Try’s acquisition of nmcn’s water businesses (out of administration) for GBP1m is consistent with the recently articulated sustainable growth strategy, said Peel Hunt.

The broker has raised its June 2022E profits estimate to GBP18mln from GBP17.5mln to reflect the purchase with a first full year bumping up the 2023 numbers to GBP21mln from GBP19.7mln or 7% accretion.

There is potential for more outperformance given the new growth opportunities arising from Galliford’s strong sector record, the complementary client portfolio and synergistic activity profiles.

Buy with a 230p target price said the broker.

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