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14Oct93 UK: DRAX SNAGS HIT GALLIFORD.

First half results at Galliford were marred by provisions against losses on the Drax power station and a continuing deficit in the group's materials supplies division.The firm's specialist contracting division reported a £512,000 loss after meeting technical problems and variations on the first phase of an £18 million contract at Drax in Yorkshire.Galliford is working as a subcontractor for Babcock on the project, fitting the linings of flue gas vessels. Earlier this year, Babcock announced it was making a £15 million provision to cover cost overruns at the £400 million project.But George Marsh, Galliford's managing director, said he expected the second and third phases of its Drax contract - soon to get under way - to go much more smoothly.Galliford unveiled a dive in pre-tax profits to £412,000 for the half ending June (1992: £3.03 million) on a virtually unchanged turnover of £217.2 million. The total dividend proposed was slashed to 1p from 4.3p, but the group retained net cash of £10.7 million. The result was also hit by an £846,000 exceptional charge to cover rationalisation costs.Profits at the group's construction division slipped to £408,000 from £1.6 million. CONSTRUCTION NEWS