Galliford Try quietly confident

5th Nov 2010 16:35

Housebuilding and construction group Galliford Try is remaining cautious about the economic outlook over the short term, despite solid trading in the second half of 2010.On the housebuilding side, the group saw a 14% growth in total secured sales at £312m, up from £274m in the corresponding period of last year, of which £212m is for the current financial year which runs to 30 June.Broker KBC Peel Hunt was impressed with this growth in sales, which it described as "genuine like for like growth as the business has not shifted geography or product mix in the last year."Prices achieved were slightly above management's expectations, while cancellation rates hovered around the long term average at 19%. In common with many of its peers, the company had a moan about mortgage availability.In an oblique reference to those companies in its sector wounded by public sector spending cutbacks, the company stressed that it has only a residual dependence on housing grants for developments in affordable housing.On the construction side the company's order book remained stable at £1.75bn, the same as at the same stage last year. Around 91% of anticipated revenues for the year to 30 June 2011 have already been secured, a sharp improvement on the 79% achieved by early November last year."We have a strong balance sheet and remain confident in our strategy for delivering the objectives of our expansion plan," said Greg Fitzgerald, chief executive said.