Trading Statement

Galliford Try PLC
02 July 2007





                                 TRADING UPDATE


Galliford Try plc, the construction and housebuilding group, is providing the
following update to trading for the year to 30 June 2007 prior to entering its
close period. Preliminary results are expected to be announced on 6 September
2007.


KEY HIGHLIGHTS

• Full year profits expected to be significantly above market expectations
  and substantially ahead of last year.

• Excellent performances from Morrison Construction and Chartdale Homes in
  their first full year following acquisition.

• Integration of Linden Homes progressing well.

• Construction order book maintained at over £2.1 billion.

• Regeneration and affordable homes business working on seven major
  English Partnership projects.

• Housebuilding reached record levels

  • Completions of 1,530 units (2006: 1,054 units)
  • Sales carried forward of £185 million (2006: £78 million)
  • Land bank of 11,100 units (2006: 4,022 units)

• Strong construction cash flows.

• Year end borrowings well below market expectations.


OPERATIONS

The building division continues to benefit from very good markets across the
country. We have well established bases in the south of England, Midlands and
Scotland, and are making good progress in growing our business in the north of
England, where we were recently awarded the £41 million contract to construct
the National Museum of Liverpool. We are mid-way through our major education PFI
projects, the £192 million 41 school scheme in Northamptonshire and the £134
million, 11 school scheme in the Highlands of Scotland. Progress is good on both
schemes. Commercial and retail clients continue to provide good opportunities,
and we are working on a number of projects for Marks & Spencer.

Our market penetration within the key sectors of the infrastructure division
continues to grow. In the remediation sector our Olympic Park framework in east
London for the Olympic Development Authority is progressing well, as is our work
on Europe's largest onshore wind farm at Whitelee in Scotland in our renewable
energy business. In the Highways sector we have over £100 million of road
projects currently under construction, and were recently appointed as one of the
Environment Agency's contractors on its four year framework for its £500 million
flood defence, waterways and water resources programme. Through our Network Rail
framework we continue to develop our presence in the sector and have secured our
first contract in Scotland. As a market leader in the water sector, we have
secured a number of new projects in addition to our existing long term
frameworks with seven of the eleven regulated water companies in the UK, such as
the £50 million water treatment works secured in joint venture for Anglian Water
and announced earlier this month.

Overall, the construction order book has been maintained at £2.1 billion.

The investments division secured preferred bidder status during the period on
the £25 million PPP contract to build and operate a new community hospital and
health centre in St Andrews. It also expects to achieve financial close on the
£100 million south east Essex LIFT in the autumn.

Our regeneration and affordable housing business is growing significantly, and
the acquisition of Linden Homes has increased our project base with English
Partnerships and affordable housing providers. Our ability to offer the full
range of housebuilding and contracting skills from across all Galliford Try's
operations gives us a key advantage in the larger more complex sites. We are
currently working on seven English Partnerships' projects, having secured in the
last six months the 430 homes Turner Village scheme in Colchester, the 700 home
Epsom Cluster Hospital scheme in Surrey being carried out in joint venture and
the 123 home scheme in Millbay, Plymouth. Following our appointment as
development partner, we recently exchanged contracts to undertake a 440 home
regeneration scheme in Grimsby with Shoreline Housing Partnership and announced
last week our appointment as development partner for a 500 homes scheme for
Westco Properties, part of Devon and Cornwall Housing Association, in Plymouth.

The results will include four months trading from Linden Homes, which was
acquired in March 2007. The integration of the business into our housebuilding
division is progressing well, and a number of quality projects that were in the
pipeline are now coming to fruition. We are also confident of exceeding the cost
savings projected. Following the acquisition we have reorganised our regional
structure in the south east of England, rebranding as Linden Homes throughout
the area.

The housebuilding division exceeded its sales targets in a market that moderated
in the second half of our financial year, with the effect of interest rate rises
resulting in a market that is at an acceptable, but competitive level.
Completions for the year were up 45% at 1,530 at an average sales price up 5% to
£222,000. We ended the financial year with a strong level of sales carried
forward of £185 million compared to £78 million last year.

We have continued to selectively add to our land bank across our regions in the
south west, south east and eastern counties of England. 4,800 plots were
acquired with Linden Homes, and we entered the new financial year with a record
land bank of 11,100 units compared to 4,022 last year, giving an excellent base
on which to continue our growth.


OUTLOOK

Galliford Try expects to report full year profits significantly above market
expectations and substantially ahead of last year. The integration of Linden
Homes, acquired in March, is on track and we are already seeing the benefits of
a greater market presence across all areas of operation. Morrison Construction
and Chartdale Homes have been fully integrated into our operations and have
delivered an excellent performance in their first full financial year since
acquisition. Our construction divisions are generating strong cash flows, and,
despite the increase in the land bank, the group's borrowings have been
maintained well below the levels expected on the acquisition of Linden Homes.


Further enquiries to:

Greg Fitzgerald, Chief Executive      Galliford Try plc        01895 855219
Frank Nelson, Finance Director        Galliford Try plc        01895 855226
Ann marie Wilkinson/Dan De Belder     Bell Pottinger           020 7861 3232
                                      Corporate & Financial




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