Galliford Try to deliver profit at the upper end of expectations

9th Jul 2014 09:40

Construction group Galliford Try has revealed its full-year earnings are set to be at the upper end of analysts' estimates of £93m-£95m. It said its Linden Homes housebuilding division had performed strongly on higher prices and an increased margin, with a 15% jump in private sale prices to £305,000. It also reported a strong rise in revenue from completions of 2,968 units, up from 2,806 the prior year. Within Housebuilding as a whole, the number of plots rose 23% to 13,900, a record level, 91% of which were secured at current market values. "The business continues to deliver revenues in excess of levels pre-2008," the company said, explaining this was helped by strength in both contracting and mixed tenure developments within housebuilding. "Our construction business has equally delivered a solid performance underpinned by further improvement in cash and is experiencing increased levels of new opportunities across all divisions," it added. The Construction order book was improved to £1.4bn from £1.25bn at the end of 2013, while 84% of revenue for the new financial year has been secured, compared to 82% at the same time last year. The group told investors that markets had been good across all of its regions, aided in the UK by the government's focus on maintaining stability in the housing market. A "timely interest rate [rise] should support a sustainable market in the longer term," it added. Chief Executive Greg Fitzgerald said: "We are pleased to have finished the year strongly and expect to deliver another record profit. "With a solid balance sheet, minimal debt, a record landbank in housebuilding and excellent visibility of work in construction, we are starting the new financial year in a strong position, whilst recognising that challenges remain around the supply chain and converting outline planning permission into detailed consents."Shares had fallen 0.51% to 1,176p by 09:39. NR