Galliford Try's half-year profits rise on improved housing market

19th Feb 2014 07:28

- Revenue and profit up 18 per cent- Dividend raised 25 per cent- On track to meet full-year expectationsUK housebuilder Galliford Try reported an 18 per cent rise in pre-tax profit to 38.1m pounds in the first half, boosted by improved housing market conditions. The company said it achieved a record half-year of results, with profit exceeding the Numis forecast of £37.7m.Group revenue jumped 18% to £803.5m and earnings per share increased 18% to 36.8p as the housing market picked up in the UK, supported by government schemes such as Help to Buy.The group's Linden Homes division saw revenue increase 20% to £328.2m following the completion of 1,300 units. Operating margins grew to 13.5% from 12.4%, in line with accelerating prices in the UK.Galliford Try Partnerships revenue, including contracting and mixed tenure, was up 134% to £100.9m as the operating margin rose to 1.9% from 1.2%.In construction, the company's order book increased to £1.25bn from £1.2bn.Construction margins, however, fell to 1.4% from 1.8% against a background of a "difficult market". In infrastructure projects, including in water, highways, flood alleviation, remediation and renewable energy markets, profit from operations fell slightly to £3.4m from £3.6m as revenue declined to £186.5m from £215.4m. The order book dropped to £515m from £626m. Margins increased to 1.8% from 1.7%.During the period Galliford secured a new £400m unsecured five-year credit facility which will be used to invest in land. The firm raised its dividend by 25% to 15p per share."The group's performance since the start of the calendar year has been encouraging and we are confident of meeting the board's expectations for the full year," the company said. RD