Trading Statement

RNS Number : 4344S

Galliford Try PLC

08 July 2015

 



8 JULY 2015

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 2015.  The Group expects to announce its results for the full year on 16 September 2015.

Group

·      We expect record full year results, with profit before tax towards the upper end of analysts' range.

·      Strong cash performance with net debt at 30 June 2015 of less than £20 million (2014: net debt £5.1 million), and despite landbank ahead of plan.

·      Successful sale of shared equity portfolio achieved at balance sheet value.

Housebuilding

·      Sales rate has further improved since the General Election.  Since our last update Housebuilding sales rates averaged an encouraging 0.71 per site per week up 49% on the same period last year.  Year-end sales carried forward position is £343 million (2014: £348 million).

·      Completions (including joint ventures) of 3,177 units (2014: 3,107 units). 

·      Excellent performance on land with a record total landbank of 15,750 plots up 13% (2014: 13,900 plots).

·      Average Linden Homes private sales price up 7% to £327,000 (2014: £305,000). 

·      Linden Homes has all plots secured for the new financial year's production and 87% of plots secured for FY 2017.

·      Further excellent growth in revenue and profits in Galliford Try Partnerships, with contracting order book of £825 million (2014: £500 million).  Significant progress in the business, including opening a new office in the North West and entering into contracts on the major Silvertown Way regeneration project in London.

Construction

·      Growth in revenue and profits, excellent cash position of over £170 million (2014: £151 million).

·      Strong order book of £3.5 billion (30 June 2014: £1.4 billion).

·      All business units continue to experience an increase in opportunities. 

·      88% of revenue for the new financial year secured (2014: 84%).

Greg Fitzgerald, Executive Chairman, commented:

It has been another record year for Galliford Try, and we are pleased to see that the momentum across the Group continues, supported by encouraging market trends for all three businesses. We are also delighted with the two important acquisitions of Miller Construction and Shepherd Homes, further increasing the Group's opportunities and capacity. Labour availability and cost remain challenging but we continue to manage this effectively working closely with our supply chain. Housing market conditions remain positive and the directors take further confidence from the significant increase in the Group's landbank as well as the contracting order book within Partnerships.  Following a resilient performance in Construction throughout a tough recession we are pleased to report another profitable year for the division, and are encouraged by the outlook, with opportunities growing across multiple sectors. 

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

Participant telephone number: [phone]

Participant passcode: 66413200#

For further enquiries:

Galliford Try                                            Greg Fitzgerald, Executive Chairman                                  01895 855001

                                                                  Graham Prothero, Finance Director

Tulchan Communications                   Martin Pengelley                                                                    020 7353 4200

                                                                  James Macey White

Notes to editors:

1.  The range of analysts' forecasts for profit before tax for the year ending 30 June 2015 is £105.9 million to £113.0 million based on forecasts at 1 July 2015. 

2.  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 financial year to 30 June 2014, the Group generated revenues of £1.8 billion.

 

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