CONTINUING STRONG PROGRESS AND STRATEGY UPDATE TO 2018
|Group revenue ¹
|Profit before tax
|Earnings per share
|Dividend per share
|Group return on net assets ²
||+ 2.2 ppts
- Record half year results; strong progress towards the full year.
- Net debt of £85.9 million (H1 2013: £58.2 million), reflecting the planned significant increase in landbank.
- Across all businesses we continue to manage supply chain constraints.
- New £400 million five year unsecured bank facility.
- Interim dividend up 25%, continuation of our progressive dividend policy with expectation of full year dividend at 1.8x cover.
- Disciplined growth strategy to 2018 with the objective of more than doubling FY13’s profits and earnings per share.
- Linden Homes revenue up 20% to £328.2 million (H1 2013: £273.5 million) from completions of 1,300 units; 1,230 units net of joint venture partner share (H1 2013: 1,297 and 1,168 respectively).
- 13.5% Linden Homes operating margin (H1 2013: 12.4%) showing good progress against our margin enhancement programme.
- Galliford Try Partnerships business now realigned within the housebuilding division to refocus management to capture significant growth opportunities.
- Galliford Try Partnerships revenue, including both contracting and mixed tenure, up 134% to £100.9 million (H1 2013: £43.1 million) generating an operating margin of 1.9% (H1 2013: 1.2%). 59 private sales in the period.
- 17% increase in total sales currently reserved, contracted and completed across Linden Homes and Galliford Try Partnerships at £744 million (H1 2013: £638 million); strong partnerships contracting order book of £0.5 billion (H1 2013: £0.4 billion).
- Record landbank of 13,500 plots. 90% landbank secured now at current market value (H1 2013: 84% of 10,700). 100% of land secured for 2015 and 70% of land secured for 2016 with the land market remaining generally positive.
- Construction margin of 1.4% (H1 2013: 1.8%) in line with expectations in a challenging market with opportunity levels continuing to rise.
- Robust order book at £1.25 billion (H1 2013: £1.2 billion) providing high quality and diverse future revenues. 100% of projected revenue secured for the current financial year with 65% secured for 2015 (31 December 2012: 100% and 65% respectively).
- Strong cash balance of £121.5 million underlining the solid performance of the business (H1 2013: £123.0 million).
Greg Fitzgerald, Chief Executive, commented:
“The half year saw strong performance across the Group and we have been very encouraged by the start of the calendar year. Group profit for the half year is at a record high and we continue to be encouraged by the levels of future opportunities.
Housing market conditions continue to improve with Linden Homes revenue rising 20% and good progress is being made on our margin enhancement plan. In the first six months of the financial year we have secured a significant increase in our landbank and the land market remains generally positive.
As previously indicated we have realigned Galliford Try Partnerships within housebuilding so as to maximise the significant potential of our strong presence in the affordable housing market.
In construction we have increased our order book as our businesses continue to perform strongly in the current market. Whilst the market in the short term remains challenging we continue to see increased levels of opportunities and I am delighted with the new projects awarded during the period.
The Group’s performance since the start of the calendar year has been strong and we are confident of meeting the Board’s expectations for the full year. Reflecting our first half year performance and confidence in the future we have increased the interim dividend by 25% to 15.0 pence per share.
I am also delighted to announce our exciting strategy to 2018 supported by the Group’s new £400 million unsecured bank facility, which we anticipate will deliver further strong shareholder returns”.
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For further enquiries:
Galliford Try Greg Fitzgerald, Chief Executive 01895 855000
Graham Prothero, Finance Director
Tulchan Communications Christian Cowley, James Macey White 020 7353 4200
Galliford Try will hold its half year results presentation for analysts and institutional investors at 09:30 am on Wednesday 19 February 2014 at The London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. A live audio webcast will be available at www.gallifordtry.co.uk/investors with a recording available later. A video interview with Graham Prothero on the results will be available at www.gallifordtry.co.uk.
¹ ‘Group revenue’ excludes share of joint ventures of £33 million (H1 2013: £47 million). ‘Revenue’ where stated throughout this half year report includes share of joint ventures.
² Group return on net assets represents profit before tax, finance costs and amortisation compared to average net assets.
³ Comparative figures throughout this half year report have been restated for the new segmental reporting of Galliford Try Partnerships, as set out in note 3 of the financial statements.