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Galliford Try expects record full year results

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Staff Writer | July 12, 2016
Housebuilder and construction group Galliford Try said it expects to report record full year results, with profit before tax meeting targets.
Galliford Try
Galliford Try   The strength of underlying demand for new homes
Despite the political and economic uncertainty, CEO Peter Truscott said it was "too early" to predict specific effects on its markets, but took confidence from the strength of underlying demand for new homes and the continuing availability of mortgage finance and the government's Help-to-Buy scheme for both sides of the business.

"The late-cycle nature and public sector focus of construction are key advantages for the group," he said, pointing to secure order books in both sides of the business.

"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."

For the year to June 30, the Linden Homes housebuilding arm increased completions by 11% to 3,078 with average private sales price up 2% to £335,000. It enjoyed a sales rate of 0.68 per site per week in the second half from increased average outlets of 84.

At the year-end the division had a record level of sales carried forward position up 27% at £380m, with the housing landbank standing at 11,500 plots, down from 13,550 a year before.

All plots have been secured for the new financial year's production and 84% of plots secured for the 2018 financial year. For the construction arm, revenue growth was "strong" and the period-end cash position stood at £160m down 7.5% over the year.

But there was said to be high quality order book of £3.5bn, predominantly in the public and regulated sectors, and there was 82% of revenue for the new financial year secured.