Trading Statement

RNS Number : 4682B

Galliford Try PLC

07 January 2015

 



7 JANUARY 2015  

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 2014.  The Group expects to announce its results for the half year on 18 February 2015.

Group

·      The Group continues to trade well and in line with our expectations.

·      Net debt below £40 million (31 December 2013: £85.9 million) despite the increase in the landbank.

·      Miller Construction integration has proceeded very well and is substantially complete ahead of plan.

·      Last month the Group was reclassified into the FTSE Home Construction sub sector.

Housebuilding

·      Solid performance with rates of sale and prices in line with our expectations.

·      Revenue is expected to be up on the prior half year period, from 1,529 unit completions, 1,404 net of joint venture partners' share (2013: 1,359 and 1,279).

·      Strong in hand position with total sales reserved, contracted and completed at £645 million from a lower number of average selling outlets (2013: £652 million).  Outlets are expected to increase from an average of 67 in the first half to 75 in the period January to June 2015.

·      Record landbank of 14,050 plots with the land market continuing to be positive.  98% of land secured for 2016.

·      We expect Linden Homes' operating margin to improve compared to the same period last year.

·      Average Linden Homes selling price up 7% at £310,000 (2013: £291,000). The average selling price for affordable sales was £121,000 (2013: £122,000) producing a combined average selling price of £259,000 (2013: £255,000).

·      Linden Homes' unit sales per outlet per week at 0.51 is in line with last year (2013: 0.52) with rates increasing in the last quarter following a quieter summer.  Cancellation levels continue to remain around the long term average at 19% (2013: 19%).

·      Continuing excellent progress and revenue growth in Galliford Try Partnerships including major project wins in the period.

Construction

·      Exceptional order book of £3.2 billion (2013: £1.75 billion) with a number of major project wins in the period and further visibility of an excellent pipeline of opportunities.

·      Enlarged business benefiting from high quality clients and diverse future revenues with 21% of order book in the regulated sector, 59% in public and 20% in private (2013: 19%, 52% and 29% respectively).

·      We continue to prioritise risk management and margin protection in an improving market.  Margins continue to be constrained due to the completion of historical projects.

·      98% of projected revenue for the current financial year secured with 72% for the year 30 June 2016 (31 December 2013: 98% and 62% respectively).

Greg Fitzgerald, Executive Chairman, commented:

"It has been another strong performance for the Group in the first half of the financial year with our housebuilding and construction businesses both performing in line with our expectations. Housing market conditions remain good with growth having moderated to a more normal and sustainable level, and we are optimistic about the prospects for a number of recent and forthcoming sales outlets.  Our Partnerships business continues to see exceptional prospects for both contracting and development in the affordable market.  Following the acquisition of Miller Construction in July 2014 our enlarged Construction business is benefiting from an improving market.  We remain confident in the delivery of our strategy of strong and disciplined growth across all of our businesses."

For further enquiries:

Galliford Try                                           Greg Fitzgerald, Executive Chairman                   01895 855001

                                                            Graham Prothero, Finance Director

Tulchan Communications                        Christian Cowley                                                020 7353 4200

                                                            James Macey White

                                                            Giles Kernick

 

END

 

 

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