Trading Statement

RNS Number : 1199X

Galliford Try PLC

08 January 2014

 



8 JANUARY 2014  

GALLIFORD TRY PLC - TRADING UPDATE

Galliford Try plc, the housebuilding and construction group, today provides the following update on trading for the half year ended 31 December 2013.  The group expects to announce its results for the half year on 19 February 2014.

Group

·      Anticipating a record half year profit.

·      Net debt of £90 million (2012: £58 million) rose as planned, reflecting the significant increase in the landbank, and was at the lower end of expectations due to a strong performance from Construction. 

Housebuilding

·      Continued strong performance with encouraging rates of sale and prices above expectations, in line with our November statement.

·      20% increase in total sales reserved, contracted and completed at £652 million (2012: £544 million).

·      Average selling price up 16% at £288,000 (2012: £248,000) reflecting the strong demand for our well located southern sites and increased focus on houses.  The average selling price for affordable sales was £118,000 (2012: £115,000) producing a combined average selling price of £250,000 (2012: £216,000).

·      Revenue is expected to be up on the equivalent half year period, as a consequence of 1,359 unit completions, 1,279 net of joint venture partners share (2012: 1,364 and 1,229), and the significant increase in the average selling price.

·      Good unit sales per outlet per week at 0.50 (2012: 0.46).  Cancellation levels remain around the long term average at 19% (2012: 19%).

·      Record landbank of 13,100 plots with the land market continuing to be positive.  90% of landbank now secured at current market values (31 December 2012: 83% of 10,400).  98% of land secured for 2015.

·      Operating margin has improved since the previous half year (31 December 2012) and anticipated to be broadly in line with the full year to June 2013.

Construction

·      Challenging market conditions although pipeline of opportunities continues to increase.  Order book remains robust at £1.75 billion as we continue to focus on strong cash management and margin protection (2012: £1.6 billion). 

·      98% of projected revenue for the current financial year secured with 62% for the year 30 June 2015 (31 December 2012: 99% and 62% respectively).

·      High quality and diverse future revenues with 40% of order book in the regulated sector, 39% in public and 21% in private (2012: 40%, 42% and 18% respectively).

·      During the previous six months we have announced a number of major project wins across our divisions including the new four year Education Funding Agency contractors framework, financial close of the Brunswick regeneration scheme, preferred bidder for the Kent 'Excellent Homes for All' scheme, the Forbury Place office contract in Reading and several health and education contracts in Scotland and the Midlands.

·      As planned, realignment of Partnerships division successfully implemented, to strengthen focus in this key growth area.

Greg Fitzgerald, Chief Executive, commented:

"It has been another strong performance for the Group in the first half of the financial year with profits anticipated to be at record levels. Housing market conditions have continued to improve and we are delighted to have secured a 16% increase in the landbank during the period, with the land market remaining positive. In Construction we have increased the size of our order book and remain focused on margin protection and cash generation. Construction is performing well in challenging markets with the prospects looking better as our pipeline of opportunities continues to increase.  Across the Group supply chain cost issues continue but are being well managed.  We are confident that our disciplined strategy will deliver further good growth and improved returns this year and beyond."

Board Announcements

As previously announced Ishbel Macpherson and Terry Miller will join the Board as non executive directors with effect 1 February 2014.

For further enquiries:

Galliford Try                               Greg Fitzgerald, Chief Executive                          01895 855001

                                                Graham Prothero, Finance Director

Tulchan Communications            Christian Cowley                                                020 7353 4200

                                                James Macey White

 

END

 

 

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