Trading Statement

Galliford Try PLC
26 July 2001

Galliford Try PLC 

Trading Update 

The Company will be announcing its preliminary results for the year to 30 June
2001 on Monday 10 September. The benefits forecast from the merger of Galliford
and Try Group in September last year are being realised according to plan and
the Company expects results to be in line with market expectations. 

However, tests carried out during July into a recently completed high
performance floor in a large distribution centre currently being built by Try
Construction, at a site near Daventry, have indicated that it may not have met
its performance criteria. An investigation into the cause and liability is
ongoing however, the directors consider that the exposure to potential loss on
the contract, including damages for late completion, is £6.5 million. In view of
its size and the one off nature of this event an exceptional provision will be
taken in the year end accounts. A task force has been charged with the
responsibility of ensuring the Company meets its contractual obligations should
the floor prove defective, as well as pursuing vigorously all avenues for
reducing its exposure. 

Trading in the Company's construction division has otherwise met its
targets and at 30 June the order book was £419 million, a satisfactory
increase of 21% on the previous year. £285 million of current work was secured
on value criteria, demonstrating the Company's growing reputation with long
term and partnering clients. Housebuilding achieved 781 completions in the
year to 30 June, meeting its targets, and entered the new year with sales in
hand of 190, an increase of 51% on the previous year. 

Commenting, David Calverley, Chief Executive of Galliford Try said: 

'The position on the contract at Daventry is very disappointing, particularly
when the rest of our businesses and the benefits of the merger are meeting our
expectations. With a good construction order book and in hand sales position in
our housebuilding companies, the Board is encouraged by current trading.' 

For further enquiries contact: 

David Calverley, Chief Executive 01895 855220 

George Marsh, Deputy Chief Executive 01455 222729 

Frank Nelson, Finance Director 01895 855221

Ann-marie Wilkinson, Beattie Financial 0207 398 3300