Final Results

Galliford Try PLC
10 September 2001

                              GALLIFORD TRY PLC



PRELIMINARY STATEMENT FOR THE YEAR ENDING 30 JUNE 2001



FINANCIAL HIGHLIGHTS



*        Turnover including share of joint ventures and associates up 25% to 
         £571 million



*        Profit before tax and exceptional items increased by 28% to £15.1
         million



*        Earnings per share before exceptional items up 21% to 5.1p



*        Final dividend of 0.9p per share making 1.4p total for the year



*        Return on shareholders funds before exceptional items of 35%



*        After exceptional merger, rationalisation and contract provision
         costs the profit before tax was £4.9 million with earnings per share of
         1.5p



OPERATIONAL HIGHLIGHTS



*        Successful merger has created greater business opportunities and
         economies of scale



*        Strong, high quality construction order book at record £419 million



*        Housebuilding sales in hand currently over 50% up on previous year



Tony Palmer, Chairman of Galliford Try, commented:



'I am very pleased with the good progress made following last September's
merger of Galliford and Try to form Galliford Try plc. We have created a
business of a size and strength to operate as a significant player in the
construction market and as a leading regional housebuilder.  The progress of
the business to date, and our strong financial base, will enable us to
continue to grow and deliver shareholder value.'



For further enquiries please contact:

David Calverley, Chief Executive         01895 855219 (020 7398 3300 on 10 Sept)

George Marsh, Deputy Chief Executive     01455 222707        '       '       '

Frank Nelson, Finance Director           01895 855226        '       '       '

Ann Marie Wilkinson, Beattie Financial   020 7398 3300





CHAIRMAN'S STATEMENT



I am very pleased to report the good progress made following the merger of
Galliford and Try to form Galliford Try plc in September 2000.



Profit before tax and exceptional items increased by 28% to £15.1 million and
earnings per share rose by 21% to 5.1p.  After exceptional items profit before
tax was £4.9 million and earnings per share were 1.5p.  Turnover, including
share of joint ventures and associates, increased by 25% to £571 million.  The
directors are recommending a final dividend of 0.9p per share, making a total
of 1.4p for the year, an increase of 7.7% on 2000.  Year end gearing was 32%,
which we expect to rise as our investment in housebuilding grows.



We have already achieved the cost and synergy savings originally identified at
the time of the merger and are optimistic that we will improve further on the
overall savings of £3 million per annum currently projected.



We suffered one disappointing setback when it became apparent that tests on a
high specification floor in a distribution depot being built at Daventry
showed that it may not have met its performance criteria.  As we announced on
26 July, we have taken a £6.5 million pre tax exceptional provision against
the potential loss on the contract.  Investigation into the cause and
liability is ongoing and positive progress is being made on the way forward.



STRATEGY

Our strategy in construction is to be market leader in delivering a complete
construction service through a partnership approach with a strong sector
focus.  In housebuilding it is to be a leading regional developer with strong
local brands, specialising in individually designed developments with an
expertise in brownfield and conversion.  Our objective is to achieve upper
quartile performance compared to our peer group in both financial and
non-financial performance.



CONSTRUCTION

We have made good progress in realising the benefits of our merger, and we are
already seeing the advantages of our new national coverage.  Construction
turnover was substantially higher at £457 million with a pre-exceptional
operating profit of £6.2 million, which represents an operating margin of
1.4%, a level that we are confident will improve as the full effect of our
synergy savings and sector focus works through.



We are delivering on the objectives set at the time of the merger,
specifically:



Enhanced service

We are providing an enhanced service to our customers.  Galliford Try now
operates nationally via five regional business units offering services from
concept to construction, project finance and facilities management.  Our
partnership approach and increased size enables us to work on both the larger
and longer term contracts increasingly sought by our customers.



Business flow

During the year we took over complete responsibility for the £63m Millennium
Point project in Birmingham, secured more work from our long-term partnership
with The All England Lawn Tennis Club at Wimbledon and were recently awarded a
£34 million project to construct a luxury hotel just off the M25 near Watford.
We retain strong relationships with businesses such as British Waterways
Board, Compass Roadside, Dwr Cymru Welsh Water, Grosvenor, John Laing Property
and Syngenta who have construction programmes that enable us to continuously
improve our service to our mutual benefit.  With other major national
contractors restructuring their construction services and moving their focus
away from our market sectors our strategy has placed us in a good position to
take advantage of such opportunities.



Market focus

We have focussed on clearly defined market sectors.  Our expertise in the
commercial and industrial sectors concentrates on office, leisure and
industrial buildings.  Our infrastructure skills encompass water engineering,
highways and railway projects.  Telecommunications provides a growing
workload, and we acquired Burton Communications, a rigging specialist, during
the year to offer a wider service to customers.



Our strong track record in the social housing, education and health
marketplaces has led to an increasing workload in the public sector,
particularly through public finance initiative and public private partnership
opportunities.  Following on from the £80m Birmingham Schools project awarded
the previous year, Galliford Try secured a pathfinder PFI project for a
further education college at Newbury in Berkshire, and has begun work on the £
10.5m construction phase.



Margin improvements and order book

Our aim is to achieve an operating margin of 2%.  We achieved a pre
exceptional operating margin of 1.4% for the year.  As the impact of our
synergy savings and better quality order book works through into production,
we are confident that our margin and quality of earnings will improve.  Our
forward order book is standing at a record level of £419 million, of which 70%
was secured through negotiation and value added criteria rather than pure
price competition.



HOUSEBUILDING

An operating profit of £12.8 million was achieved on a turnover largely
unchanged of £111 million.  781 homes were completed during the year at an
average selling price of £142,000.



Land bank and margins

We have made considerable progress in the year to improve the quality and
maintain the size of our land bank in line with our strategy for growth.  We
now have the planning consents to significantly increase production in the
coming year.  In total, our land bank stands at 2044 plots representing 2.6
years at current production levels, and in addition we have 350 acres of
strategic land holdings under option.



We currently achieve higher margins in the South East from our predominantly
urban and brownfield business with lower returns from the South West and
Eastern Counties.  We are confident that with our regional initiatives and the
cost and synergy savings our enlarged business can now deliver, we will be
able to achieve improvements on our current overall margin of 11.5%.



South East

Try Homes urban bias and focus on conversions led to 95% of production coming
from brownfield sites.  There remains significant scope for expansion around
London, and building on our successful businesses in the Thames Valley and
southern counties we have recently formed a north Thames region which we
expect to start contributing to profits in the next financial year.



South West

Two selective acquisitions were made to add to the land bank and extend the
target markets of Midas Homes.  Gerald Wood Homes, a developer of higher value
properties in attractive village locations was acquired in April, followed by
Exeter based Knapp Homes in July.  These acquisitions have added 239 plots to
our land bank.



Eastern Counties

Stamford Homes is more dependent on greenfield development to meet the market
demand.  We are looking to improve margins in this business, increase the
proportion of homes developed on brownfield sites and direct our land
acquisitions towards more urban based developments.



OUTLOOK

We expect to operate in a low inflation market over the next twelve months
with overall growth in Galliford Try's core markets but with significant
variations in particular sectors.  Better levels of growth are anticipated in
the social housing, education and health sectors driven by Government
expenditure and the continued use of PFI/PPP.  We anticipate fewer
opportunities in the commercial sector although a good market is expected in
infrastructure and utilities.



We expect house price inflation will slow from the levels of the past twelve
months but with interest rates at their lowest levels for 40 years, overall
affordability is likely to remain within acceptable parameters.  Planning
constraints and underlying demand are likely to prevent any tendency to over
supply in the market and support gradually increasing prices.



Galliford Try's construction order book at £419 million is at its highest
level ever as we enter the new financial year and the quality of the orders is
extremely encouraging.  We have an excellent level of housebuilding sales in
hand that are over 50% up on last year.  Our planned profit growth will be
driven by a combination of increasing turnover and improving margins.  Our
successful merger has given us the platform and financial strength to expand
both organically and by acquisition.  With reasonable economic conditions, we
expect to make further progress over the coming year.



Tony Palmer

Chairman

10 September 2001



CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 30 June 2001


                                                                 2001      2000
                                               Pre- Exceptional Total     Total
                                        Exceptional       Items       (restated)
                                               £000        £000  £000      £000

                                            
Turnover:
                                              
Continuing operations                       568,740           568,740   458,374

Acquisitions                                  1,933             1,933         -




Total continuing operations                 570,673           570,673   458,374

Less share of joint ventures' and           (2,115)           (2,115)   (3,872)
associates' turnover
                                            


Group turnover                              568,558           568,558   454,502



Cost of sales                             (524,400)  (6,500)(530,900) (418,751)




Gross profit                                 44,158  (6,500)   37,658    35,751



Net operating expenses - administrative
expenses                                   (28,185)  (1,996) (30,181)  (23,117)
                                           




Group operating profit:

Continuing operations                        15,726  (8,496)    7,230    12,634

Acquisitions                                    247               247         -

                                             15,973  (8,496)    7,477    12,634

Share of profits in joint ventures              218               218       337

Share of profits in associates                  228               228       148

Merger expenses                                   -  (1,716)  (1,716)         -





Profit on ordinary activities before
interest                                     16,419 (10,212)    6,207    13,119
                                             


Net interest (payable)/ receivable:

Group                                       (1,187)           (1,187)   (1,099)
                                            
Joint ventures                                   12                12      (56)
                                                 
Associates                                    (118)             (118)     (116)
                                              

                                            (1,293)           (1,293)   (1,271)



Profit on ordinary activities before
tax                                          15,126 (10,212)    4,914    11,848
                                             


Tax                                         (4,285)    2,504  (1,781)   (2,922)
                                            




Profit on ordinary activities after tax      10,841  (7,708)    3,133     8,926

                                             

Dividends                                                     (3,026)   (2,264)

                                                              





Profit for the period                                             107     6,662




Earnings per ordinary share (pence)            5.10   (3.63)     1.47      4.20

                                               


Diluted earnings per share (pence)             4.97   (3.53)     1.44      4.09



CONSOLIDATED BALANCE SHEET

At 30 June 2001
                                                              Group       Group
                                                               2001        2000
                                                               £000        £000
                                                                       restated


Fixed assets:

Intangible assets: goodwill                                     698           -

Tangible assets                                              12,032      10,908



Investments in joint ventures:

Share of gross assets                                         2,020       2,869

Share of gross liabilities                                  (1,670)     (2,541)



                                                                350         328

Investments in associates                                        81         101

Other investments                                               990         461



                                                             14,151      11,798



Current assets:

Stocks                                                          337         309

Developments                                                113,300      91,413

Debtors                                                     102,361      72,745

Cash at bank & in hand                                       22,371      11,092




                                                            238,369     175,559



Creditors: amounts falling due within one year            (196,340)   (135,341)




Net current assets                                           42,029      40,218




Total assets less current liabilities                        56,180      52,016



Creditors: amounts falling due after more than one year    (10,555)     (6,436)

Provisions for liabilities and charges                      (1,586)     (2,216)




                                                             44,039      43,364




Capital and reserves:

Called up share capital                                      10,845      10,703

Share premium account                                         1,045         519

Merger reserve                                                4,687       4,618

Revaluation reserve                                           1,919       1,923

Other reserves                                                   35         204

Profit and loss account                                      25,508      25,397




Equity shareholders' funds                                   44,039      43,364






STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the year ended 30 June 2001


                                                                   2001    2000
                                                                   £000    £000


Profit for the financial year:

Group                                                             2,844   8,727

Joint ventures                                                      179     167

Associates                                                          110      32


Total recognised gains and losses for the year                    3,133   8,926

Prior year adjustment                                           (1,908)       -


Total gains and losses recognised since last annual report        1,225   8,926

                                                                  





The reported profit for the year is not materially different from the profit
on an unmodified historical cost basis.



  CONSOLIDATED CASH FLOW STATEMENT


For the year ended 30 June 2001                               2001         2000
                                                              £000         £000



Net cash (inflow)/outflow from activities                  (7,761)       20,346



Dividends from joint ventures                                  100          144



Returns on investments and servicing of finance:

Interest received                                       195          238

Interest paid                                       (1,417)      (1,453)

Loan note interest paid                                (49)         (64)

Interest element of finance lease rentals               (6)          (6)


Net cash outflow from returns on investments and
servicing of finance                                       (1,277)      (1,285)
                                                           


Taxation                                                   (2,880)      (1,217)
                                                           


Capital expenditure and financial investment:

Purchase of tangible fixed assets                   (2,777)      (1,664)
                                                    
Sale of tangible fixed assets                            97          198
                                                         



Net cash outflow for capital expenditure and
financial investment                                       (2,680)      (1,466)
                                                           


Acquisitions and disposals:

Increase in investment in joint ventures               (95)      (1,050)
                                                       
Purchase of own shares                                (445)        (239)
                                                      
Increase in other investments                         (298)            -
                                                      
Receipts from sales of investments in associates          -          358
                                                          
Payments to acquire investments in subsidiaries       (202)      (1,350)
                                                      
Realisation of investment in joint ventures             152            -
                                                        
Realisation of other investments                          -          254
                                                          
Exceptional merger expenses                          (1,716)           -
                                                     


                                                           (2,604)      (2,027)



Equity dividends paid                                      (2,269)      (2,116)




Net cash (outflow)/inflow before use of liquid
resources and financing                                   (19,371)       12,379
                                                          


Management of liquid resources:

Decrease in short term deposits with banks                   1,222        1,151
                                                             


Financing:

Issue of ordinary share capital                         438           57
                                                        
Capital element of finance lease rental payments       (60)         (23)
                                                       
Increase/(decrease) in bank loans                    30,306      (6,246)
                                                     
Repayment of loan notes                                (34)         (50)
                                                       
Borrowings acquired with subsidiary                       -        1,350
                                                          
Funding of associated undertakings losses                 -        (117)
                                                          


                                                            30,650      (5,029)




Increase in cash in the period                              12,501        8,501





Notes to cash flow statement





1.             Analysis of changes in net debt
                                              
                                                            
                           At 1     Cash     Borrowings acquired with     At 30
                           July     flow                   subsidiary      June
                           2000                                            2001
                          £'000    £'000                        £'000     £'000


Cash at bank and in       9,870   12,501                                 22,371
hand
                        
Loan notes              (1,052)    (162)                                (1,214)
                        
Bank loans              (3,431) (30,306)                       (1,474) (35,211)

                          5,387 (17,967)                       (1,474) (14,054)

Finance lease              (90)       60                                   (30)
obligations
                          5,297 (17,907)                       (1,474) (14,084)

Liquid resources          1,222  (1,222)                                      0
Net cash/(debt)           6,519 (19,129)                       (1,474) (14,084)





2.             Reconciliation of net cash flow to movement in net debt


Increase in cash in the period                                  12,501    8,501



(Increase)/decrease in debt and lease financing               (30,408)    6,319

Borrowings acquired with subsidiary                            (1,474)  (1,350)

Reduction in short term deposits with banks                    (1,222)  (1,151)




Change in net (debt)/cash in the period                       (20,603)   12,319

Net cash/(debt) at start of period                               6,519  (5,800)




Net(debt)/cash at end of period                               (14,084)    6,519



SEGMENTAL ANALYSIS


                  Turnover                       Turnover
                 including Associates           including Associates
                associates  and joint          associates  and joint
                 and joint   ventures    Group  and joint   ventures    Group
                  ventures   turnover turnover   ventures   turnover turnover
                      2001       2001     2001       2000       2000     2000
                      £000       £000     £000       £000       £000     £000


Construction       457,299        854  456,445    347,168      1,339  345,829


Housebuilding      111,380          -  111,380    109,711      2,151  107,560


Group                1,994      1,261      733      1,495        382    1,113


Sub-total          570,673      2,115  568,558    458,374      3,872  454,502



Acquisitions in the year account for turnover of £246,000 in construction and
£1,687,000 in housebuilding.



Construction includes joint ventures' turnover of £854,000, (2000: £1,339,000)
and housebuilding includes joint ventures' turnover of £nil (2000: £
2,151,000).  The associates' turnover of £1,261,000 (2000: £382,000) is
included in group.  All turnover arises in the United Kingdom.


             Profit/(loss) before       Profit/(loss)  Net assets/(liabilities)
   exceptional items and interest              before
                                             interest
                   2001     2000       2001       2000            2001     2000
                  £'000    £'000      £'000      £'000           £'000    £'000


Construction      6,244    3,896      (452)      3,896        (13,683)  (7,662)




Housebuilding    12,810   12,102     12,810     12,102          68,751   28,185




Group           (2,635)  (2,879)    (6,151)    (2,879)           3,055   16,322




Sub-total        16,419   13,119      6,207     13,119          58,123   36,845


Net cash                                                      (14,084)    6,519
                                                              



                                                                44,039   43,364



Acquisitions in the year accounted for profit before interest of £70,000 in
construction and £177,000 in housebuilding.



The share of profits in the joint ventures relating to construction of £94,000
(2000: £271,000) and housebuilding of £17,000 (2000: £66,000) is included in
profit before interest.  The share of net assets/(liabilities) relating to the
joint ventures included in construction and housebuilding is £331,000 (2000: £
931,000) and £19,000 (2000: £122,000) respectively.



The share of profits of £228,000 (2000: £148,000) and of net liabilities of £
nil (2000: £175,000) relating to associates are included in group









NOTES TO THE PRELIMINARY STATEMENT







1.   Basis of preparation



As previously reported Galliford plc merged with Try Group PLC in September
2000 and changed its name to Galliford Try plc. The combination has been
accounted for using merger accounting.  All the figures are consolidated and
have been reviewed by the auditors. The financial information for the year
ended 30 June 2001 has been prepared on the basis of the accounting policies
of Galliford Try plc and in accordance with applicable UK accounting
standards. The year end for Try Group PLC has been changed from 31 December to
30 June.  For the year ended 30 June 2000 the audited results of Galliford plc
have been combined with six months of Try Group PLC's results for the year to
31 December 1999, which were audited and filed at Companies House, and its
interim results for the six months to 30 June 2000, which were reviewed by the
auditors.



Galliford Try plc has changed the presentation of its profit and loss account
from the Companies Act format 2 to format 1. Format 1 is used by the group's
business units for management reporting and is more widely used by other
construction and housebuilding companies.



2.        Alignment of accounting policies



There were no accounting policy changes resulting from the merger other than
the alignment of the two groups' policies in respect of revenue recognition in
the housebuilding businesses where revenue is recognised at legal completion
rather than at exchange of contracts. The effect of this on the previous year,
to 30 June 2000, has been to increase its turnover by £5,513,000 and profit by
£1,005,000.



3.        Change of accounting policy



Following the adoption of FRS18 'Accounting Policies' by the group during the
year the policy in respect of investment in PFI/PPP projects has been changed.
Previously the investment was carried until the outcome of the project was
determined. Under the new policy bid costs and investments are not carried in
the balance sheet as recoverable until the group has been appointed preferred
bidder or has received an indemnity in respect of the investment or costs. The
main effect of this change relates to the group's interest in Rapid Transport
International Limited and has been to reduce the reserves at 1 July 1999 by £
1,044,000 and the profit for the year to 30 June 2000 by £864,000 in the
construction segment. Investments have been reduced by £1,908,000 accordingly.



4.        Final dividend



Subject to approval at the Annual General Meeting to be held on 2 November
2001, the final dividend of 0.9p per share will be paid on 6 November 2001 to
shareholders on the register on 5 October 2001.