Another ‘record year’ for Galliford Try

UK housebuilder and construction group Galliford Try is claiming “another record year”, in a trading update at 30 June, 2016, with its construction division growing its revenues.

The group said it expected to report record full year results, with profit before tax in line with management’s expectations.

Also, Greg Fitzgerald will step down as non-executive chairman at the AGM on 11 November, 2016. It had been previously been announced, in September 2014, that it was his intention to retire from the group.

He will be succeeded, as planned, by Peter Ventress, currently non-executive deputy chairman and senior independent director.

Galliford Try reported that its construction division was showing “strong growth in revenue”, with a cash position of over £160 million (€189.4 million) compared to a figure last year of £173 million (€204.8 million).

It claimed a high quality order book of £3.5 billion (€4.1 billion) – a similar position to that of 30 June, 2015, predominantly in the public and regulated sectors. It said that · 82% of revenue for the new financial year was secured, compared to 88% last year.

Its Linden Homes division claimed completions, including joint ventures, of 3,078 units, up from the 2015 figure of 2,769 units. Galliford Try Partnerships saw growth in mixed tenure revenues, with contracting said to be “slightly constrained” by procurement delays following the rent reforms.

Peter Truscott, CEO of Galliford Try, said, “The group has achieved another record year, with growth across all three businesses.

“Linden Homes has seen good average sales rates, achieving 0.68 per site per week in the second half from increased average outlets of 84, and enters the new financial year with record sales exchanged and reserved of £380 million (€449.7 million).”

He added, “Construction continues to enjoy an excellent order book and has grown revenues in the year, with good margins on newer work, although the overall result is still constrained by legacy contracts.”

Following the UK referendum which voted to leave the European Union, he said “Recent political events create a backdrop of uncertainty for the new financial year.”

He said it was too early to predict specific effects on the group’s markets, but he felt the strength of underlying demand for new homes and the continuing availability of mortgage finance and the government’s Help-to-Buy scheme gave grounds for confidence in both Linden Homes and Galliford Try Partnerships.

“The late-cycle nature and public sector focus of construction are key advantages for the group,” said Truscott, “with the order book already 82% secured for the full year 2017.

“The balance of our businesses and the strength of our order books mean that we are well placed to manage the impact of this uncertainty. We are keeping the position under review and will update in more detail when we report our annual results on 14 September.”