Galliford Try on track, improvement in housing market

12th May 2009 08:12

Housebuilder and contractor Galliford Try said it is on track to meet full year company expectations as the 'limited recovery in the housing market seen since the New Year continues.'However on a more cautionary note,"The economic downturn continues to have an impact, with the construction market becoming more challenging," the group said in a statement. "Despite this the group has maintained its contracting order book at £1.7bn, due to our well established strengths in both building and infrastructure markets for the public and regulated sectors, both of which continue to demonstrate resilience, and which currently represent 87% of the order book." Cash generation at its construction business remained 'excellent and in line with expectations while cost control on housebuilding continued to be effective,' the housebuilder said. Galliford says it is on track to deliver annualised savings of £25m. Commenting on the housing market, it added, "We are encouraged by the way in which the increased activity in the market since the New Year has been maintained." At the start of the week Galliford confirmed that it will buy the residential development assets of Wright (Hull) Limited for £7m.