Galliford Try plc, the housebuilding and construction group, today issues its Interim Management Statement for the period 1 January to 13 May 2014.
Greg Fitzgerald, Chief Executive,
Group has made strong progress since the start of the year particularly in
housebuilding where market conditions continue to improve. With six weeks to the year end, the Group
expects to report a profit before tax for the full year ending 30 June 2014
above the current analysts’ consensus of £89.7 million and not less than £92.0
the spring selling season Linden Homes experienced strong levels of
reservations with sales prices improving above management expectations. Our margin enhancement programme is also progressing
on plan, and the division has made further progress at the operating margin
Try Partnerships, realigned from 1 January 2014 into the
Housebuilding Division, is also experiencing strong demand for both contracting
and mixed tenure projects. We continue
to buy land at our increased hurdle rate of 22% and together Linden Homes and Galliford Try Partnerships have a record housing
landbank of 13,750 plots.
we have grown our order book and are seeing increased levels of opportunities
across the business. The division is
winning work with appropriate margin and inflation protection and continues its
focus on risk management and cash, which have been robust in the period.
of our businesses, in common with the industry, continue to experience
challenging production conditions, with supply of both labour and materials
constrained by strong demand; however these conditions are stabilising and we
continue to manage them proactively.
end net debt is expected to increase compared to June 2013 reflecting planned
higher investment in land. This is in line with our strategy, announced in
February, of disciplined growth across the Group’s businesses, against which we
are making good progress.”
- Record £1.0 billion
of sales reserved, contracted or completed across both Linden Homes and Galliford Try Partnerships, of which £790 million is
for the current financial year to 30 June 2014 (2013: £853 million and £644
- Since our last
update, the division is experiencing strong levels of activity with
reservations up 30% per outlet and sales rate per week, since 1 January 2014,
at 0.79 (2013: 0.70).
- Solid Galliford Try Partnerships contracting order book of
£0.5 billion (31 December 2013: £0.5 billion).
- Both businesses
are actively pursuing good land opportunities at our increased hurdle rate. The division currently has a record landbank of
13,750 plots of which 91% have been secured at current market values (2013: 85%
of 11,000). All plots secured for 2015
together with 75% of plots for 2016 secured.
- Improved order
book at £1.3 billion (31 December 2013: £1.25 billion).
- 80% of next year’s
revenue secured (2013: 79%).
- All business units
experiencing an increase in opportunities.
- Continuing focus
on risk management and margin.
- Cash performance
continues to be strong.
conference call for Analysts and Investors will be held at 08:00am (UK
telephone number: +44 (0)20 3139 4830
further enquiries please contact:
|Galliford Try –
||Greg Fitzgerald, Chief Executive
||Graham Prothero, Finance Director
|Tulchan Communications –
||Christian Cowley/James Macey White
||0207 353 4200
plc is a leading UK housebuilding and construction group. It is listed on the London Stock Exchange and a member of the FTSE 250. The housebuilding business – through its Linden Homes and Galliford Try Partnerships brands – sells distinctive homes to the public and affordable homes to housing associations and local authority providers. The construction business carries out building and infrastructure work across the UK with clients ranging from major Government departments through to regulated utilities and private sector companies. At the end of the last financial year to 30 June 2013, the Group generated revenues of £1.5 billion.