Half Yearly Report

RNS Number : 8500X

Galliford Try PLC

22 February 2012

 



07:00 A.M. WEDNESDAY 22 FEBRUARY 2012

GALLIFORD TRY PLC - HALF YEAR REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2011

HIGHLIGHTS

Financial	H1 2012 to 31 Dec 2011	H1 2011 to 31 Dec 2010	Increase
·        Group revenue ¹	£746.8m	£575.9m	30%
·        Profit before tax	£32.2m	£17.0m	89%
·        Earnings per share	31.1p	14.8p	110%
·        Dividend per share	9.0p	4.5p	100%

Group

·          Confident of delivering objectives of three year housebuilding expansion plan.

·          PBT increased by 89%, EPS increased by 110%.

·          Net debt of £69.8 million in line with expectations (H1 2011: £30.7 million).

·          Disciplined housebuilding strategy focused on existing regions and market segments.

·          Enhanced dividend and continuation of progressive dividend policy.

Housebuilding

·          59% increase in total completions to a record 1,352 units: 1,216 net of joint venture partner share (H1 2011: 851 and 779).

·          11.0% housebuilding margin (excluding a significant land sale made in the period) showing further strong progress (H1 2011: 6.5%).

·          34% increase in total sales currently reserved contracted and completed at £605 million (H1 2011: £450 million), of which sales for the current financial year are up 63% at £480 million (H1 2011: £294 million) representing 78% of this financial year's projected revenue.

·          100% of plots for planned production in 2012 and 2013 now secured, with 76% of 10,700 plot land bank acquired at current market values.

Construction

·          2.2% construction margin holding up well in difficult market (H1 2011: 2.5%).

·          Continued focus on contracts with acceptable returns. Value of order book in line with expectations at £1.6 billion (H1 2011: £1.75 billion), underpinned by strength in long term frameworks for infrastructure projects.  100% of 2012 projected revenues have been secured, with 67% for 2013 (H1 2011: 100% and 61%).

·          Construction cash balance of £149 million in line with forecasts (H1 2011: £174 million).

Greg Fitzgerald, Chief Executive, commented:

"The Group is confident that it is on track to deliver all the objectives of its three year housebuilding expansion plan during the current financial year with our southern biased business performing strongly despite the general economic uncertainty.  The housing market has remained resilient and we are encouraged by the continued strength of the market during the first seven weeks of 2012. 

The spread of long term work in the Group's construction business is underpinning its strength in difficult market conditions. 

Following our rapid expansion in housebuilding the Group will continue its disciplined focus on the regions and market segments where we have proven expertise and experience, concentrated on the south of England.  This approach is expected to deliver revenue and profit growth and support an enhanced dividend and a progressive dividend policy going forward."

For further enquiries:

Galliford Try	Greg Fitzgerald, Chief Executive; Frank Nelson, Finance Director	01895 855001
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 10:30 am on 22 February 2011 at 3rd Floor Conference Centre, 250 Bishopsgate, London, EC2M 4AA.  An audio conference call will be available on 020 7136 6283, confirmation code 4190474#.  A recorded interview with Greg Fitzgerald on the results will be on the Company's website www.gallifordtry.co.uk.

¹  'Group revenue' excludes share of joint ventures of £38.1 million (H1 2011: £21.4 million).  'Revenue' where stated throughout this half year report includes share of joint ventures.

REVIEW OF STRATEGY

Three year housebuilding expansion plan creating significant value

Galliford Try set out a strategy in September 2009 to transform its housebuilding business through an expansion plan that had the objectives of a significant increase in profits and return on capital employed during the third year.  We are now half way through the third year and are confident of delivering everything that we set out to achieve. 

·      We invested the proceeds of the 2009 rights issue in land, predominantly in the south east of England.  Our land bank now stands at 10,700 plots, 76% of which have been acquired at post July 2008 prices.  We now have one of the smallest proportions of legacy land of the major housebuilders. 

·      We invested in the people and infrastructure required to double the size of the business so that it is capable of producing circa 3,000 units per annum. 

·      We are now seeing the impact of our actions in a doubling of revenues in the period, with a rising operating margin that has now reached 11% and is expected to increase further from 2012/13 onwards.

With £480 million of sales for the current financial year in hand, we are confident in the outcome for the full year.

Housebuilding - Disciplined strategy retaining southern focus

Following the strong growth achieved to date the Board intends to continue its disciplined approach to land acquisition and housebuilding in regions and market segments where we have significant expertise and experience.  The benefits of such an approach are:

·      To maintain the business as predominantly southern biased, thereby avoiding diluting the geographical strength it currently has in its existing, more robust, markets and lowering execution risk for future developments. 

·      To enable the business to preserve its Linden Homes brand position based on quality, individually designed developments, further growing its strategic land development activities, and maintaining minimal reliance on consortium or major greenfield sites.

·      To allow the business to focus on further margin improvement over volume growth, improving quality of earnings and reducing risk. 

·      To provide for an enhanced dividend and progressive dividend policy while retaining financial strength and flexibility.

Construction - Strategy unchanged

Our 2009 plan took account of construction markets that we anticipated would become more difficult as economic conditions deteriorated.  We set a clear strategy to focus on profit margin and cash performance, planning for the absolute level of our construction revenues to fall as we were not prepared to acquire work in highly competitive markets where price levels or contract conditions were unacceptable.  As we forecast, securing work has become more difficult, consequently we have rigorously maintained this strategy and will continue to do so until markets improve and we can resume growth again. 

Group - Continued growth and enhanced dividend policy

The disciplined strategy of focusing on regions and market segments where we have experience and expertise will enable the Group to become more cash generative over time. The board therefore intends to enhance its dividend and adopt a dividend policy that reflects the revised capital needs of the Group and the cash generated. These changes allow for a progressive and sustainable dividend over the longer term.  In 2012 we therefore expect the dividend to be approximately twice covered by earnings, with future dividends in line with the progressive policy outlined above.

DIVIDEND

Taking account of the Group's strong performance during the half year to 31 December 2011, and the strategy outlined above, the directors have declared an interim dividend of 9.0 pence per share (H1 2011: 4.5 pence) which will be paid on 11 April 2012 to shareholders on the register at close of business on 23 March 2012.

FINANCIAL REVIEW

Group revenue for the half year to 31 December 2011 was up 30% at £746.8 million (H1 2011: £575.9 million).  Revenue (including share of joint ventures) was up 31% to £784.9 million, the increase being primarily driven by a doubling of housebuilding revenue to £277.0 million, although there was also a 13% increase in construction revenues, primarily reflecting mid term workloads in the five year water frameworks. 

The Group achieved a profit from operations (stated before finance costs, share of joint ventures' interest and tax, exceptional items and tax) of £38.6 million, a 116% increase over the previous year, driven by increasing margins and revenues in housebuilding.  Profit before tax was up 89% at £32.2 million (H1 2011: £17.0 million), and the earnings per share for the period was up 110% at 31.1p (H1 2011: 14.8p). 

Developing and balancing a portfolio of strategic land is an integral part of our housebuilding business.  The Group therefore generates recurring revenues from land sales, which in the period included £20.8 million in respect of a significant sale of one of our strategic sites.

The results include a £3.6 million charge for the half year in respect of the March 2012 vesting of awards under the Company's Long Term Incentive Plan as previously reported in the Group's full year results for 2011.  The taxation expense of £7.1 million reflects an estimated effective rate of 22.0% (H1 2011: 28.8%) for the full financial year to 30 June 2012 as detailed in note six to this half year report.  We anticipate a similar effective tax rate will be maintained for the next few years. 

The Group maintained its strong focus on cash management throughout the period.  Net debt at 31 December 2011 was in line with our forecast of £69.8 million (H1 2011: £30.7 million), with average debt over the 12 months to 31 December 2011 of £86.0 million.  The working capital invested in land and work in progress on our housebuilding sites was in line with our forecasts at £579.3 million (H1 2011: £517.2 million) as we deliver the final year of our housebuilding expansion plan.  The construction cash balance of £149.4 million (H1 2011: £174.0 million) remains significant, albeit reducing as anticipated during the period due to the more difficult market conditions.  The Group's £325 million banking facility is in place until 2015 and the Group continues to operate well within its headroom and covenants.

HOUSEBUILDING

	H1 2012	H1 2011
Revenue	£277.0m	£152.9m
Profit from operations	£35.0m	£9.9m
Operating profit margin	11.0%*	6.5%

* excluding significant land sale

Our three year expansion plan for housebuilding, which comes to fruition this financial year, has been based on substantially growing our landbank and delivering increased unit sales from more outlets.  Halfway through the final year of the plan the increase in margin demonstrates the progress made with the underlying margin rising to 11.0%, and the total (including the margin, after overheads, of the significant strategic land sale in the period) at 12.6%.  As we continue to open new sites and complete on legacy sites, the proportion of completions from new land, on which margins are higher, will further increase. 

During the six months to 31 December 2011 we achieved a rate of sale up 36% to 0.45 unit sales per outlet per week on a 32% increase in the number of outlets, resulting in an 86% increase in actual sales reservations made compared to the same period last year.  For the first seven weeks of the second half of our financial year the rate of sale has increased to 0.57 unit sales per outlet per week.

Total housing completions are up 59% to a record 1,352 units, 1,216 net of joint venture partners share (H1 2011: 851 and 779 respectively).  The total includes 974 private and 378 affordable sales.

Our average selling price on private sales was up 17% at £239,000 (H1 2011: £204,000) reflecting an increased proportion of sales in the south east of England.  The average selling price for affordable sales was £102,000 (H1 2011: £110,000) leading to a combined average selling price of £203,000 (H1 2011: £178,000).  Cancellation levels were around the long term average at 18% (H1 2011: 20%).

Mortgage availability continues to ease.  We welcome the Government's intention to support the provision of a 95% loan to value mortgage scheme that will widen the base of potential home buyers.  We are playing our part in working on the scheme with Government, industry and lenders, and hope it can be made available in time for the spring 2012 selling season.

Our total landbank is currently 10,700 plots, up from 10,000 a year ago.  8,150 plots, or 76% of our total landbank, have been acquired under current market conditions compared to 65% a year ago.  We have secured 100% of the plots required for our next financial year (ending June 2013) and have 2,100 plots with terms agreed in the pipeline.  Our strategic land totals 1,285 acres, from which we expect to generate around 6,750 plots.

We cemented our position as a leading player in the affordable housing market during the period by securing direct funding awards totalling £17 million under the Government's 2011-2015 national affordable housing programme, one of the largest awards made to date to a private developer.

The housing market, particularly in our key geographic locations in the south of England, remained resilient from the start of the autumn selling season to the end of December, despite persistently negative economic news.  Our performance demonstrates both the ability of purchasers of our homes to secure mortgage finance as we have a low proportion of first time buyers, and the relative economic strength of the areas we have chosen to focus on. 

We are encouraged by the continued resilience of the market since the start of January 2012.  Our visitor levels per site for the first seven weeks of 2012 are 24% above the equivalent period last year, and cancellation levels are at 18%. With sales prices remaining in line with our expectations and with sales reserved, contracted and completed currently up 34% to £605 million, of which £480 million is for the current financial year (representing 78% of projected sales for the year (H1 2011: £294 million, 76%)) we are on track to deliver our plan objectives this year. 

CONSTRUCTION

	H1 2012	H1 2011
Revenue	£499.9m	£442.6m
Profit from operations	£10.9m	£10.9m
Operating profit margin	2.2%	2.5%

Revenues in the division increased as we approach peak workloads in the mid cycle of the five year asset management frameworks for our water clients and secured additional workload under those frameworks.  Our specialist telecommunications' infrastructure business has also benefited from growth in the sector.  The margin on work carried out is at a level that is in line with our expectations, although we have anticipated further reductions going forward as we work through projects secured more recently in more difficult markets.  Our focus on cash management continues, and the balance held at 31 December 2011 was £149.4 million (H1 2011: £174.0 million).

We have maintained the size of our order book at a level that provides visibility of future work while rigorously maintaining our focus on securing projects with an acceptable risk and return profile.  Our total order book is currently in line with our expectations at £1.6 billion (H1 2011: £1.75 billion) of which 42% is in the regulated sector, 44% in the public sector and 14% in the private sector.  By the start of the second half, we had secured 100% of our projected revenue for the current financial year and we currently have 67% for our next financial year (H1 2011: 100% and 61%).  We are therefore in a good position to work through the current difficult market and to grow again when markets improve.

Building

Profit from operations of £4.6 million was achieved on revenue of £199.2 million, representing a margin of 2.3% (H1 2011: £5.1 million on revenues of £216.6 million, representing 2.4%).

Galliford Try's building business serves both national and regional clients across much of the UK.  With markets becoming significantly more competitive, we have been able to take advantage of our businesses in the south of England and in Scotland where the market has remained more resilient.  In Scotland, we continue to work on significant public sector projects such as the £57 million Orkney Schools framework and the £300 million ten year framework for the Scottish NHS Trust.

In London we have handed over our major Olympic Village project.  Work continues for Marks and Spencer and, in the Midlands, we have been appointed preferred bidder for the £80 million 'Resorts World at the NEC', a major new leisure and entertainment development being developed by Genting UK in Birmingham.

The building division's order book currently stands at £534 million, compared to £631 million a year ago.

Infrastructure

Profit from operations of £5.2 million on revenue of £249.7 million represents a margin of 2.1% (H1 2011: £4.7 million on £174.4 million, representing 2.7%).

With 51% of the workload in long term frameworks, revenues during the six months reflect the peaks that occur during the mid years of the five year programmes for our water clients.  New work secured included a £35 million contract in partnership with Imtec Process, to construct two anaerobic digestion plants for Anglian water; £17 million for Scottish Water in joint venture with Black and Veatch at Meadowhead and Stevenston and £15 million for Yorkshire Water, in joint venture with AECOM Design Build, in Sheffield. 

Following the successful completion of the M74 contract in Glasgow, our four party consortium constructing the new Forth Road Crossing has made good progress during the first year of the five year contract. We have been encouraged by the Government's announcement in the autumn budget statement that it will be proceeding with the financing of a number of major infrastructure projects and are working on bringing those that are in our pipeline of potential future contracts to fruition.

The infrastructure division's order book currently stands at £877 million, compared to £919 million last year.

Partnerships

A profit from operations of £1.1 million was achieved on revenue of £51.0 million representing a margin of 2.2% (H1 2011: £1.1 million on £51.6 million, representing 2.1%).

The affordable housing contracting market is developing slowly as clients adapt to the new market rental funding base adopted by the Government.  We are progressing to plan with rolling out our affordable housing services across the UK, and are in a good position to take advantage of public land releases through our position on the Homes and Communities Agency's developer partner panel.  The order book for Partnerships is currently standing at £165 million compared to £194 million last year.

PPP INVESTMENTS

Revenue was £7.7 million on which the profit from operations was £1.1 million (H1 2011: £0.4 million on £1.3 million).  The sale of our remaining equity interest in the St Andrews health project was achieved in the period.

Galliford Try's strategy is to bid for PPP projects to create both investment opportunities and provide the ability to secure construction and maintenance contracts for the Group.  There is currently very little activity in the sector in England as the Government's review of PPP models and policies has reduced significantly the opportunities available in the immediate future.  We have a strong business in Scotland which is preparing for the forthcoming Scottish pipeline of transport, accommodation and education projects. Having secured the South East Scotland hub framework for health and other community-based projects during the previous financial year, we are currently progressing a number of opportunities through the development process. In addition, we are on the shortlist for the South West Scotland hub framework.

Our investment in renewable energy to create a portfolio of wind turbine projects has continued.  We have option agreements in place covering over 50 megawatts of power generation, and exclusive positions on a further 38 megawatts.

HEALTH, SAFETY AND ENVIRONMENT

Health and safety remains of paramount importance to Galliford Try, and the Group is committed to achieving industry leading health, safety and environmental standards.  Our systems remain accredited to both BS 18001 and ISO 14001 by regular third party independent audits.  We set ever improving targets for each financial year and during the period to 31 December 2011 the Group's rolling twelve month incident rate per 1,000 people at risk improved to 1.44 compared to 1.6 a year ago.  The accident frequency rate per 100,000 hours worked was 0.20 compared to 0.19 a year ago.  Our bespoke behavioural safety programme 'Challenging Beliefs, Affecting Behaviour' has now covered over 2,000 employees and is being further rolled out throughout 2012 to both employees and subcontractors, using a new site safety toolkit.

BOARD

We announced during the period that Frank Nelson, the Group's Finance Director, will be retiring at the end of September 2012 when he will have completed 25 years service.  Good progress is being made in the search for his successor.  Richard Barraclough, our Company Secretary and a member of our Executive Board, is retiring early after 22 years with the Group.  Kevin Corbett, who joined the Group and our Executive Board in February from AECOM Limited, where he was Chief Counsel, Global, will be appointed Company Secretary and Legal Director with effect from 1 March 2012.

OUTLOOK

The Group is confident that it is on track to deliver all the objectives of its three year housebuilding expansion plan during the current financial year with our southern biased business performing strongly despite the general economic uncertainty.  The housing market has remained resilient and the continuation of the strength of the market during the first seven weeks of 2012 is encouraging. 

The spread of long term work in the Group's construction business is underpinning its strength in difficult market conditions. 

Following our rapid expansion in housebuilding the Group will continue its disciplined focus on the regions and market segments where we have proven expertise and experience, concentrated on the south of England.  This approach is expected to deliver revenue and profit growth and support an enhanced dividend and a progressive dividend policy going forward. 

Condensed consolidated income statement

for the half year ended 31 December 2011 (unaudited)

		Half year to 31 December 2011	Half year to 31 December 2010	Year to 30 June 2011 (audited)
				Before exceptional items	Exceptional  items	Total
	Note	£m	£m	£m	£m	£m
Continuing operations
Group revenue	3	746.8	575.9	1,284.2	-	1,284.2
Cost of sales		(659.1)	(517.1)	(1,149.7)	-	(1,149.7)
Gross profit		87.7	58.8	134.5	-	134.5
Administrative expenses		(53.1)	(41.8)	(98.2)	6.6	(91.6)
Share of post tax profits from joint ventures		1.0	0.1	0.5	-	0.5
Profit before finance costs		35.6	17.1	36.8	6.6	43.4
Profit from operations	3	38.6	17.9	43.6	6.6	50.2
Share of joint ventures' interest and tax		(2.5)	(0.3)	(5.8)	-	(5.8)
Amortisation of intangibles		(0.5)	(0.5)	(1.0)	-	(1.0)
Profit before finance costs		35.6	17.1	36.8	6.6	43.4
Finance income	5	1.6	2.8	5.3	-	5.3
Finance costs	5	(5.0)	(2.9)	(7.0)	-	(7.0)
Profit before taxation		32.2	17.0	35.1	6.6	41.7
Income tax expense	6	(7.1)	(4.9)	(8.9)	-	(8.9)
Profit for the period from continuing operations		25.1	12.1	26.2	6.6	32.8
Earnings per share	7
- basic		31.1p	14.8p	32.2p		40.3p
- diluted		30.4p	14.8p	31.5p		39.4p
Dividend per share	8	9.0p	4.5p			16.0p

Condensed consolidated statement of comprehensive income

for the half year ended 31 December 2011 (unaudited)

	Note	Half year to 31 December 2011 £m	Half year to 31 December 2010 £m	Year to 30 June 2011 (audited) £m
Profit for the period		25.1	12.1	32.8
Actuarial (losses) and gains on retirement benefit obligations	10	(5.3)	9.0	12.7
Deferred tax on items taken to equity		0.5	(2.6)	(3.3)
Net (losses)/gains recognised directly in equity		(4.8)	6.4	9.4
Total comprehensive income for the period		20.3	18.5	42.2

The notes are an integral part of the condensed consolidated interim financial statements.

Condensed consolidated balance sheet 

at 31 December 2011 (unaudited)

	Note	31 December 2011 £m	31 December 2010 £m	30 June 2011 (audited) £m
Non current assets
Other intangible assets		11.1	6.4	9.0
Goodwill	9	115.0	115.0	115.0
Property, plant and equipment		8.2	9.0	8.4
Investments in joint ventures		2.6	1.7	1.9
Financial assets
- Available for sale financial assets		24.6	21.0	22.2
Trade and other receivables		40.1	46.2	44.8
Retirement benefit asset	10	1.3	-	3.2
Deferred income tax assets		5.9	8.0	5.5
Total non current assets		208.8	207.3	210.0
Current assets
Inventories		0.1	0.6	0.2
Developments		687.3	585.2	615.6
Trade and other receivables		295.8	223.9	259.9
Cash and cash equivalents (excluding bank overdrafts)	11	60.5	60.5	47.8
Total current assets		1,043.7	870.2	923.5
Total assets		1,252.5	1,077.5	1,133.5
Current liabilities
Financial liabilities
- Borrowings	11	(130.3)	(1.8)	(11.5)
- Derivative financial liabilities		(0.2)	-	(0.8)
Trade and other payables		(599.9)	(521.6)	(624.5)
Current income tax liabilities		(12.0)	(7.5)	(6.8)
Provisions for other liabilities and charges		(0.7)	(8.7)	(2.5)
Total current liabilities		(743.1)	(539.6)	(646.1)
Net current assets		300.6	330.6	277.4
Non current liabilities
Financial liabilities
- Borrowings	11	-	(89.4)	-
- Derivative financial liabilities		-	(1.4)	-
Retirement benefit obligations	10	-	(5.0)	-
Deferred income tax liabilities		(0.4)	-	-
Other non current liabilities		(37.6)	(6.5)	(29.2)
Provisions for other liabilities and charges		(2.8)	(0.5)	(3.1)
Total non current liabilities		(40.8)	(102.8)	(32.3)
Total liabilities		(783.9)	(642.4)	(678.4)
Net assets		468.6	435.1	455.1
Equity
Ordinary shares		40.9	40.9	40.9
Share premium		190.8	190.8	190.8
Other reserves		5.3	5.3	5.3
Retained earnings		231.6	198.1	218.1
Total shareholders' equity		468.6	435.1	455.1

The notes are an integral part of the condensed consolidated interim financial statements.

Condensed consolidated statement of changes in shareholders' equity

for the half year ended 31 December 2011 (unaudited)

	Note	Share  capital £m	Share  premium  £m	Other reserves  £m	Retained earnings £m	Total  equity £m
Half year ended 31 December 2011
Balance at 1 July 2011		40.9	190.8	5.3	218.1	455.1
Profit for the period		-	-	-	25.1	25.1
Other comprehensive income		-	-	-	(4.8)	(4.8)
Transactions with owners:
Dividends	8	-	-	-	(9.4)	(9.4)
Purchase of own shares		-	-	-	(2.2)	(2.2)
Share based payments		-	-	-	4.8	4.8
Balance at 31 December 2011		40.9	190.8	5.3	231.6	468.6
Half year ended 31 December 2010
Balance at 1 July 2010		40.9	190.8	5.3	186.2	423.2
Profit for the period		-	-	-	12.1	12.1
Other comprehensive expense		-	-	-	6.4	6.4
Transactions with owners:
Dividends	8	-	-	-	(7.5)	(7.5)
Share based payments		-	-	-	0.9	0.9
Balance at 31 December 2010		40.9	190.8	5.3	198.1	435.1
Year ended 30 June 2011
Balance at 1 July 2010		40.9	190.8	5.3	186.2	423.2
Profit for the period		-	-	-	32.8	32.8
Other comprehensive income		-	-	-	9.4	9.4
Transactions with owners:
Dividends	8	-	-	-	(11.2)	(11.2)
Purchase of own shares		-	-	-	(1.6)	(1.6)
Share based payments		-	-	-	2.5	2.5
Balance at 30 June 2011		40.9	190.8	5.3	218.1	455.1

The notes are an integral part of the condensed consolidated interim financial statements.

Condensed consolidated cash flow statement

for the half year ended 31 December 2011 (unaudited)

	Note	Half year to 31 December 2011 £m	Half year to 31 December 2010 £m	Year to 30 June 2011 (audited) £m
Cash flows from operating activities
Continuing operations
Profit before finance costs		35.6	17.1	43.4
Adjustments for:
Depreciation and amortisation		1.6	1.5	3.3
Profit on sale of investments and available for sale financial assets		(2.6)	(1.5)	(1.1)
Profit on sale of available for sale financial assets		-	-	(0.1)
Share based payments		4.8	0.9	2.5
Share of post tax profits from joint ventures		(1.0)	(0.1)	(0.5)
Movement on provisions		-	-	(3.6)
Other non cash movements		(3.9)	(4.5)	(4.9)
Net cash generated from operations before pension deficit payments and changes in working capital		34.5	13.4	39.0
Deficit funding payments to pension schemes		(3.4)	(3.7)	(6.9)
Net cash generated from operations before changes in working capital		31.1	9.7	32.1
Decrease in inventories		0.1	0.5	0.9
Increase in developments		(71.7)	(56.3)	(86.7)
Increase in trade and other receivables		(31.2)	(9.9)	(37.3)
(Decrease)/increase in payables		(17.5)	(40.2)	81.3
Net cash used in operations		(89.2)	(96.2)	(9.7)
Interest received		0.5	1.4	1.1
Interest paid		(4.0)	(2.0)	(8.6)
Income tax paid		(1.4)	(2.5)	(5.6)
Net cash used in operating activities		(94.1)	(99.3)	(22.8)
Cash flows from investing activities
Dividends received from joint ventures		0.3	-	0.3
Acquisition of investments in joint ventures		-	-	(0.1)
Acquisition of available for sale financial assets		-	(0.3)	(0.3)
Acquisition of intangible assets		(2.6)	-	(3.1)
Acquisition of property, plant and equipment		(1.1)	(2.4)	(3.3)
Proceeds from investments in joint ventures and non-current assets held for sale		2.6	2.4	2.1
Proceeds from available for sale financial assets		0.2	0.1	0.5
Proceeds from sale of property, plant and equipment		0.2	-	0.2
Net cash used in investing activities		(0.4)	(0.2)	(3.7)
Cash flows from financing activities
Purchase of own shares		(2.2)	-	(1.6)
Repayment of borrowings		(0.1)	(0.1)	(90.4)
Dividends paid to Company shareholders	8	(9.4)	(7.5)	(11.2)
Net cash used in financing activities		(11.7)	(7.6)	(103.2)
Net decrease in cash and cash equivalents		(106.2)	(107.1)	(129.8)
Cash and cash equivalents at beginning of period		36.9	166.7	166.7
Cash and cash equivalents at end of period	11	(69.3)	59.6	36.9

For the purpose of the cash flow statements, cash and cash equivalents are reported net of bank overdrafts. Bank overdrafts are excluded from the definition of cash and cash equivalents in the balance sheet.

The notes are an integral part of the condensed consolidated interim financial statements.

Notes to the condensed consolidated interim financial statements

for the half year ended 31 December 2011 (unaudited)

1      Basis of preparation

The company is a public limited company incorporated and domiciled in the UK. The address of its registered office is Cowley Business Park, Cowley, Uxbridge, Middlesex, UB8 2AL. The company has its primary listing on the London Stock Exchange. This condensed consolidated interim financial information was approved for issue on 22 February 2012.

This condensed consolidated interim financial information does not comprise statutory financial statements within the meaning of Section 434 of the Companies Act 2006.  Statutory financial statements for the year ended 30 June 2011 were approved by the Board of directors on 14 September 2011 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006.

This condensed consolidated interim financial information has been reviewed, not audited. The auditors' review opinion is set out below.

This condensed consolidated interim financial information for the half year ended 31 December 2011 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, "Interim financial reporting" as adopted by the European Union. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 30 June 2011, which have been prepared in accordance with IFRSs as adopted by the European Union.

The Group's activities, together with the factors likely to affect the future development, performance and position of the business are set out in this Interim Report. The annual financial statements for the year ended 30 June 2011 included the Group's objectives, policies and processes for managing capital, its financial risk management objectives, details of its financial instruments and hedging activities and its exposure to credit risk and liquidity risk.

The Group meets its day to day working capital requirements through its bank facilities. The Group's forecasts, taking into account the board's future expectations of the Group's performance, indicate that there is substantial headroom within the bank facilities and the Group will continue to operate within the covenants of those facilities.

After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the condensed consolidated interim financial information.

2      Accounting policies

Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2011, as described in those financial statements. The only new standard that has been subsequently issued was IAS 32 - Financial Instruments: Presentation - Amendments to application guidance on the offsetting of financial assets and financial liabilities which applies to annual periods beginning on or after 1 January 2014.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected annual earnings.

3      Business segment reporting

Segment reporting is presented in the consolidated financial statements in respect of the Group's business segments, which are the primary basis of segment reporting. The business segment reporting reflects the Group's management and internal reporting structure. Segment results include items directly attributable to the segment as well as those that can be allocated on a reasonable basis. As the Group has no material activities outside the UK, segmental reporting is not required by geographical region.

The chief operating decision-maker ("CODM") has been identified as the Chief Executive and the Group Finance Director. The CODM review the Group's internal reporting in order to assess performance and allocate resources.  Management has determined the operating segments based on these reports as Housebuilding, Building, Partnerships, Infrastructure and PPP Investments.

The CODM assess the performance of the operating segments based on a measure of adjusted earnings before finance costs, amortisation, exceptional items and taxation. This measurement basis excludes the effects of non-recurring expenditure from the operating segments, such as restructuring costs and impairments when the impairment is the result of an isolated, non-recurring event.  Interest income and expenditure are included in the result for each operating segment that is reviewed by the CODM.  Other information provided to them is measured in a manner consistent with that in the financial statements.

			Construction
		House- building	Building	Partner- Ships	Infra- structure	Total	PPP Investments	Central costs	Total
		£m	£m	£m	£m	£m	£m	£m	£m
Half year ended 31 December 2011
Group revenue and share of joint ventures' revenue		277.0	199.2	51.0	249.7	499.9	7.7	0.3	784.9
Share of joint ventures' revenue		(33.2)	-	-	(4.9)	(4.9)	-	-	(38.1)
Group revenue		243.8	199.2	51.0	244.8	495.0	7.7	0.3	746.8
Segment result:
Profit/(loss) before joint ventures and amortisation		31.5	4.6	1.1	5.2	10.9	1.1	(8.4)	35.1
Share of joint ventures' profit		3.5	-	-	-	-	-	-	3.5
Profit/(loss) from operations *		35.0	4.6	1.1	5.2	10.9	1.1	(8.4)	38.6
Share of joint ventures' interest and tax		(2.5)	-	-	-	-	-	-	(2.5)
Profit/(loss) before finance costs, amortisation and taxation		32.5	4.6	1.1	5.2	10.9	1.1	(8.4)	36.1
Net finance (costs)/income		(18.2)	0.4	0.1	0.1	0.6	(0.1)	14.3	(3.4)
Profit before amortisation and taxation		14.3	5.0	1.2	5.3	11.5	1.0	5.9	32.7
Amortisation of intangibles									(0.5)
Profit before taxation									32.2
Income tax expense									(7.1)
Profit for the period									25.1

*Profit from operations is stated before finance costs, amortisation, share of joint ventures' interest and tax and taxation.

Inter-segment revenue eliminated from Group revenue above amounted to £30.0 million (31 Dec 2010: £22.1 million, 30 June 2011: £61.7 million) of which £1.0 million (31 Dec 2010: £nil, 30 June 2011: £14.6 million) was in Housebuilding, £11.8 million was in Building (31 Dec 2010: £5.2million, 30 June 2011: £14.0 million), £15.4 million  (31 Dec 2010: £16.3 million, 30 June 2011: £31.9 million) was in Infrastructure,  £1.2 million (31 Dec 2010: £Nil, 30 June 2011: £nil) was in Investments and £0.6 million (31 Dec 2010: £0.6 million, 30 June 2011: £1.2 million) was in Central costs.

			Construction
		House- Building	Building	Partner- ships	Infra- structure	Total	PPP Investments	Central costs	Total
		£m	£m	£m	£m	£m	£m	£m	£m
Half year ended 31 December 2010
Group revenue and share of joint ventures' revenue		152.9	216.6	51.6	174.4	442.6	1.3	0.5	597.3
Share of joint ventures' revenue		(15.0)	(0.1)	-	(5.6)	(5.7)	(0.7)	-	(21.4)
Group revenue		137.9	216.5	51.6	168.8	436.9	0.6	0.5	575.9
Segment result:
Profit/(loss) before joint ventures and amortisation		9.6	5.0	1.1	4.7	10.8	0.4	(3.3)	17.5
Share of joint ventures' profit		0.3	0.1	-	-	0.1	-	-	0.4
Profit/(loss) from operations *		9.9	5.1	1.1	4.7	10.9	0.4	(3.3)	17.9
Share of joint ventures' interest and tax		(0.2)	(0.1)	-	-	(0.1)	-	-	(0.3)
Profit/(loss) before finance costs, amortisation and taxation		9.7	5.0	1.1	4.7	10.8	0.4	(3.3)	17.6
Net finance (costs)/income		(5.3)	0.5	(0.4)	(0.2)	(0.1)	-	5.3	(0.1)
Profit before amortisation and taxation		4.4	5.5	0.7	4.5	10.7	0.4	2.0	17.5
Amortisation of intangibles									(0.5)
Profit before taxation									17.0
Income tax expense									(4.9)
Profit for the period									12.1

			Construction
		House- Building	Building	Partner- ships	Infra- structure	Total	PPP Investments	Central costs	Total
		£m	£m	£m	£m	£m	£m	£m	£m
Year ended 30 June 2011 (audited)
Group revenue and share of joint ventures' revenue		388.5	436.5	123.9	376.5	936.9	9.6	0.8	1,335.8
Share of joint ventures' revenue		(39.0)	(0.1)	-	(11.2)	(11.3)	(1.3)	-	(51.6)
Group revenue		349.5	436.4	123.9	365.3	925.6	8.3	0.8	1,284.2
Segment result:
Profit/(loss) before joint ventures and amortisation		26.4	10.4	1.9	9.9	22.2	(2.1)	(9.2)	37.3
Share of joint ventures' profit		5.2	-	-	-	-	1.1	-	6.3
Profit/(loss) from operations *		31.6	10.4	1.9	9.9	22.2	(1.0)	(9.2)	43.6
Share of joint ventures' interest and tax		(4.6)	(0.1)	-	-	(0.1)	(1.1)	-	(5.8)
Profit/(loss) before finance costs, amortisation and taxation		27.0	10.3	1.9	9.9	22.1	(2.1)	(9.2)	37.8
Net finance (costs)/income		(12.0)	1.0	(0.2)	(0.5)	0.3	-	10.0	(1.7)
Profit before amortisation and taxation		15.0	11.3	1.7	9.4	22.4	(2.1)	0.8	36.1
Amortisation of intangibles									(1.0)
Profit before exceptional items and taxation									35.1
Exceptional items									6.6
Income tax expense									(8.9)
Profit for the period									32.8

*Profit from operations is stated before finance costs, amortisation, share of joint ventures' interest and tax and taxation.

Reportable segments' assets are reconciled to total assets as follows:

						Construction
			House-building			Building	Partner- ships	Infra- structure	Total	PPP Investments	Central costs	Total
			£m			£m	£m	£m	£m	£m	£m	£m
Half year ended 31 December 2011
Assets
Net (debt)/cash				(579.3)	111.0		18.5	19.9	149.4	0.3	359.8	(69.8)
Borrowings												130.3
Cash and cash equivalents												60.5
Other assets												1,186.1
Deferred income tax assets												5.9
Total assets												1,252.5
Half year ended 31 December 2010
Assets
Net (debt)/cash				(517.2)	128.6		20.0	25.4	174.0	(0.8)	313.3	(30.7)
Borrowings												91.2
Cash and cash equivalents												60.5
Other assets												1,009.0
Deferred income tax assets												8.0
Total assets												1,077.5
Year ended 30 June 2011 (audited)
Assets
Net (debt)/cash				(522.6)	138.4		24.9	53.4	216.7	(0.9)	343.1	36.3
Borrowings												11.5
Cash and cash equivalents												47.8
Other assets												1,080.2
Deferred income tax assets												5.5
Total assets												1,133.5

During the period the Group acquired £1.1 million (31 December 2010: £2.4 million, 30 June 2011: £3.3 million) of property, plant and equipment and disposed of property plant and equipment with a net book value of £0.2 million (31 December 2010: £nil, 30 June 2011: £0.2 million).

4      Exceptional item

The exceptional item shown in the consolidated income statement for the year to 30 June 2011 of £6.6 million arose due to the reduction on appeal of the quantum of the fine imposed by the Office of Fair Trading in 2009 for cover pricing between 2001 and 2004 by 83% from £8.3 million to £1.4 million. The net £6.6 million reduction, after costs, was reflected in the Group's results as an exceptional item credited to profit before tax. The exceptional credit was non taxable as it was reversing the non deductible treatment of the exceptional loss in the year to 30 June 2010.

5      Net finance costs

	Half year to 31 December 2011 £m	Half year to 31 December 2010 £m	Year to 30 June 2011 (audited) £m
Interest receivable from banks	-	0.6	0.6
Interest receivable from joint ventures	0.5	0.9	1.7
Unwind of discount on shared equity receivables	0.8	0.6	1.3
Fair value gains on financing activities - interest rate swaps	0.3	0.7	1.3
Other	-	-	0.4
Finance Income	1.6	2.8	5.3
Interest payable on borrowings	(3.9)	(2.0)	(5.0)
Unwind of discounted payables	(1.0)	(0.6)	(1.3)
Net finance cost on retirement benefit obligations	-	(0.3)	(0.5)
Other	(0.1)	-	(0.2)
Finance costs	(5.0)	(2.9)	(7.0)
Net finance costs	(3.4)	(0.1)	(1.7)

6       Income tax expense

The taxation expense on profit for the period of 22.0% (31 December 2010: 28.8%) reflects the estimated effective rate for the full financial year to 30 June 2012.

7       Earnings per share

a)  Basic and diluted earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year, excluding those held by the Employee Share Trust, which are treated as cancelled.

Under normal circumstances, the average number of shares is diluted by reference to the average number of potential ordinary shares held under option in the period. The dilutive effect amounts to the number of ordinary shares which would be purchased using the aggregate difference in value between the market value of shares and the share option price. Only shares that have met their cumulative performance criteria are included in the dilution calculation. The Group has two classes of potentially dilutive ordinary shares: those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year and the contingently issuable shares under the Group's long term incentive plan. A loss per share cannot be reduced through dilution, hence this dilution, if applicable, is only applied where the Group has reported a profit.

The earnings and weighted average number of shares used in the calculations are set out below.

	Half year to 31 December 2011			Half year to 31 December 2010			Year to 30 June 2011 (audited)
	Earnings £m	Weighted average number  of shares	Per share amount pence	Earnings £m	Weighted average number  of shares	Per share amount pence	Earnings £m	Weighted average number  of shares	Per share amount pence
Basic EPS
Earnings attributable to ordinary shareholders	25.1	80,925,903	31.1	12.1	81,539,277	14.8	32.8	81,452,318	40.3
Effect of dilutive securities		1,879,043
Options					85,684			1,797,030
Diluted	25.1	82,804,946	30.4	12.1	81,624,961	14.8	32.8	83,249,348	39.4

8      Dividends

The dividend per ordinary share amounts is shown in the table below.

	Half year to 31 December 2011 £m		Half year to 31 December 2010 £m		Year to 30 June 2011 (audited) £m
	£m	Pence per share	£m	Pence per share	£m	Pence per share
Declared dividends for the period
Interim	7.4	9.0	3.7	4.5	3.7	4.5
Final	-	-	-	-	9.4	11.5
	7.4	9.0	3.7	4.5	13.1	16.0
Recognised dividends for the period
Previous period final	9.4	11.5	7.5	9.2	7.5	9.2
Current period interim	-	-	-	-	3.7	4.5
	9.4	11.5	7.5	9.2	11.2	13.7

The interim dividend for 2012 of 9.0 pence per share was approved by the board on 22 February 2012 and has not been included as a liability as at 31 December 2011.  This interim dividend will be paid on 11 April 2012 to shareholders on the register at the close of business on 23 March 2012.

9      Goodwill

Goodwill is allocated to the Group's cash-generating units (CGUs) identified according to business segment. The goodwill is attributable to the following business segments:

	Half year to 31 December  2011 £m	Half year to 31 December  2010 £m	Year to 30 June 2011 (audited) £m
Housebuilding	52.2	52.2	52.2
Partnerships	5.8	5.8	5.8
Building	17.9	17.9	17.9
Infrastructure	37.2	37.2	37.2
PPP Investments	1.9	1.9	1.9
Total	115.0	115.0	115.0

As stated in the annual financial statements for the year ended 30 June 2011, detailed impairment reviews were carried out for all business segments. Consideration has been given as to whether any events have occurred since the year ended 30 June 2011 which would give rise to an impairment and none have been identified.

10   Defined benefit plans

The amounts recognised in the income statement are as follows:

	Half year to 31 December  2011 £m	Half year to 31 December  2010 £m	Year to 30 June 2011 (audited) £m
Interest costs	(4.2)	(4.4)	(8.8)
Expected return on plan assets	4.2	4.1	8.3
Charge to income statement	-	(0.3)	(0.5)

The principal actuarial assumptions used to calculate the liabilities as at 31 December 2011 have been set in a consistent manner to those adopted at 30 June 2011. These assumptions will change as market conditions change over time.

An actuarial loss of £5.3 million (31 December 2010: gain £9.0 million, 30 June 2011: gain £12.7 million) has been taken to the condensed consolidated statement of comprehensive income.

The amounts recognised in the balance sheet are as follows:

	Half year to 31 December  2011 £m	Half year to 31 December  2010 £m	Year to 30 June 2011 (audited) £m
Present value of funded obligations	(168.4)	(165.3)	(155.2)
Fair value of plan assets	169.7	160.3	158.4
Asset / (liability)	1.3	(5.0)	3.2

11   Net (debt)/cash

Net (debt)/cash is made up as follows:

	Half year to 31 December  2011 £m	Half year to 31 December  2010 £m	Year to 30 June 2011 (audited) £m
Cash at bank and in hand	42.9	48.5	41.0
Short term bank deposits	17.6	12.0	6.8
Cash and cash equivalents (excluding bank overdrafts)	60.5	60.5	47.8
Borrowings
Current
Bank loans and overdrafts	(129.8)	(0.9)	(10.9)
Unsecured loan notes	(0.5)	(0.9)	(0.6)
	(130.3)	(1.8)	(11.5)
Non current
Bank loans	-	(89.4)	-
Net (debt)/cash	(69.8)	(30.7)	36.3

Cash and cash equivalents include the following for the purposes of the consolidated cash flow statement:     

	Half year to 31 December  2011 £m	Half year to 31 December  2010 £m	Year to 30 June 2011 (audited) £m
Cash and cash equivalent	60.5	60.5	47.8
Bank overdrafts	(129.8)	(0.9)	(10.9)
	(69.3)	59.6	36.9

12   Contingent liabilities

Disputes arise in the normal course of business, some of which lead to litigation or arbitration procedures.  The Directors make proper provision in the financial statements when they believe a liability exists.  Whilst the outcome of disputes and arbitration is never certain, the directors believe that the resolution of all existing actions will not have a material adverse effect on the Group's financial position.

Galliford Try plc has entered into guarantees and counter indemnities in respect of bank and performance bonds issued on behalf of Group undertakings, including joint arrangements and joint ventures, in the normal course of business amounting to £131.3 million (31 December 2010: £117.9 million, 30 June 2011: £125.5 million).

13   Related party transactions

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not included within this note. Transactions between the Group and its joint ventures and jointly controlled operations and assets are disclosed as follows:

	Sales to related parties			Purchases from  related parties
Trading transactions	31 Dec 2011 £m	31 Dec 2010 £m	30 Jun 2011 (audited) £m	31 Dec 2011 £m	31 Dec 2010 £m	30 Jun 2011 (audited) £m
Joint ventures	11.1	5.0	12.6	-	0.2	0.3
Jointly controlled operations and assets	12.1	11.2	19.3	-	-	16.0
	Amounts owed by related parties			Amounts owed to related parties
Trading transactions	31 Dec 2011 £m	31 Dec 2010 £m	30 Jun 2010 (audited) £m	31 Dec 2011 £m	31 Dec 2010 £m	30 Jun 2010 (audited) £m
Joint ventures	16.7	5.3	16.5	0.5	1.0	1.5
Jointly controlled operations and assets	7.0	3.1	-	-	-	-

	Interest income from loans to related parties			Loans to related parties			Loans from related parties
Non-trading transactions	31 Dec 2011 £m	31 Dec 2010 £m	30 Jun 2011 (audited) £m	31 Dec 2011 £m	31 Dec 2010 £m	30 Jun 2011 (audited) £m	31 Dec 2011 £m	31 Dec 2010 £m	30 Jun 2011 (audited) £m
Joint ventures	0.5	0.9	1.7	39.5	47.5	45.6	0.1	-	-

Principal Risks and Uncertainties

The directors consider that the principal risks and uncertainties which may have a material impact on the group's performance in the second half of the financial year remain the same as those outlined on pages 32 and 33 of the group's annual report and financial statements for the year ended 30 June 2011.  These can be summarised as health, safety and environmental, changes to the UK housing market and the economic cycle, availability of mortgage finance, availability of developable land, land acquisition, availability of financing, the level of public sector spending, confidence and the availability of project finance, contract acquisition, project delivery, people and sustainability.

Forward Looking Statements

Certain statements in this interim report are forward looking.  Such statements should be treated with caution as they are based on current information and expectations and are subject to a number of risks and uncertainties that could cause actual events of outcomes to differ materially from expectations.

Directors' responsibilities

The half year financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half year financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half year financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

The directors' confirm that this condensed consolidated interim financial information has been prepared in accordance with IAS 34 as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 namely:

·          an indication of important events that have occurred during the six months and the impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

·          material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.

The directors of Galliford Try plc are:

Ian Coull                                        Non executive Chairman

Greg Fitzgerald                             Chief Executive

Frank Nelson                                Finance Director

Amanda Burton                            Senior Independent director

Peter Rogers                                Non executive director

Andrew Jenner                             Non executive director

Signed on behalf of the board

Greg Fitzgerald

Chief Executive

Frank Nelson

Finance Director

22 February 2012

Independent review report to Galliford Try plc

Introduction

We have been engaged by the company to review the condensed consolidated interim financial information in the half year financial report for the six months ended 31 December 2011, which comprises the Consolidated balance sheet, the Consolidated income statement, the Consolidated statement of comprehensive income, the Consolidated statement of changes in shareholders' equity, the Consolidated cash flow and related notes. We have read the other information contained in the half year financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The half year financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half year financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half year financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half year financial report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half year financial report for the six months ended 31 December 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP
Chartered Accountants
22 February 2012

Uxbridge

Notes:

(a)  The maintenance and integrity of the Galliford Try plc website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

(b)   Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

END

 

 

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