Trading Statement

RNS Number : 8181L

Galliford Try PLC

09 July 2014

 

9 JULY 2014

GALLIFORD TRY PLC - TRADING UPDATE

Galliford Try plc, the housebuilding and construction group, today provides the following update on trading for the year ended 30 June 2014.  The Group expects to announce its results for the full year on 16 September 2014.

Since our last update in May we have continued to make strong progress resulting in another record group profit.  Profit before tax is expected to be at the upper end of the analysts' current range of £92.8 - £95.2 million.  Throughout the year our housebuilding division has performed strongly, achieving increased prices, and delivering a record landbank and sales carry forward position, together with strong progress on margin in Linden Homes.  The business continues to deliver revenues in excess of levels pre 2008.  Within housebuilding, Galliford Try's Partnerships business has also performed strongly in both contracting and mixed tenure developments.  Our construction business has equally delivered a solid performance underpinned by further improvement in cash and is experiencing increased levels of new opportunities across all divisions. 

Group

·      Record full year results, at the upper end of the analysts' current range.

·      At 30 June 2014 net debt of less than £5 million, better than expected and despite increased land spend. (31 December 2013: net debt £85.9 million and 30 June 2013: net debt £14.4 million).

Housebuilding

·      Average Linden Homes private sales prices up 15% to £305,000 (2013: £266,000). 

·      Strong increase in Linden Homes revenue from completions (including joint ventures) of 2,968 units (2013: 2,806 units).  During the second half of the year sales rates averaged 0.73 per site per week (H2 2013: 0.67 per week).

·      Record £348 million year end sales carried forward position up 11% (2013: £313 million).

·      Strong progress on Linden Homes margin since the half year.

·      Solid Galliford Try Partnerships contracting order book of £0.5 billion.

·      Record total landbank of 13,900 plots up 23% (2013: 11,300 plots).

·      91% of landbank secured at current market values.  100% of plots secured for the new financial year's production and 87% of plots secured for FY 2016.

Construction

·      Improved order book of £1.4 billion (31 December 2013: £1.25 billion and 30 June 2013: £1.25 billion).

·      Excellent cash position of circa £150 million, higher than last year, reflecting strong cash management throughout the year (2013: £132.1 million).

·      All business units experiencing an increase in opportunities.  During the year we were awarded a number of major projects including in Building the £48 million Kelso and Newbattle High Schools and the £38 million Forbury Place development in Reading.  Infrastructure secured the major Midlands Highways Alliance framework and was also recently appointed, as part of the Connect Roads consortium, preferred bidder for the design, build, finance and operation of the £745 million Aberdeen Western peripheral route.

·      84% of revenue for the new financial year secured (2013: 82%).

Greg Fitzgerald, Chief Executive, commented:

"The market continues to be good across all of our regions.  We welcome the Government's continuing commitment to housing provision, and the focus of the Bank of England on maintaining stability in the housing market.  In addition the prospect of timely interest rate rises should support a sustainable market into the longer term.

We are pleased to have finished the year strongly and expect to deliver another record profit.  With a solid balance sheet, minimal debt, a record landbank in housebuilding and excellent visibility of work in construction, we are starting the new financial year in a strong position, whilst recognising that challenges remain around the supply chain and converting outline planning permission into detailed consents."

A conference call for Analysts and Investors will be held at 08:00am (UK time)

Participant telephone number: [phone]

Participant passcode: 92862591#

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

Notes to editors:

Galliford Try plc is a leading UK housebuilding and construction group. It is listed on the London Stock Exchange and a member of the FTSE 250. The housebuilding business - through its Linden Homes and Galliford Try Partnerships brands - sells distinctive homes to the public and affordable homes to housing associations and local authority providers.  The construction business carries out building and infrastructure work across the UK with clients ranging from major Government departments through to regulated utilities and private sector companies. At the end of the last financial year to 30 June 2013, the Group generated revenues of £1.5 billion.

 

END

 

 

TSTLIFLEDEIAIIS