Trading Statement

RNS Number : 8737D

Galliford Try PLC

12 July 2016

 

GALLIFORD TRY PLC

TRADING UPDATE

TUESDAY 12 JULY 2016

Galliford Try plc, the housebuilding and construction group, today provides the following update on trading for the year ended 30 June 2016.  The Group expects to announce its results for the full year on 14 September 2016.

Group

·      We expect to report record full year results, with profit before tax in line with management's expectations.

·      Net debt at 30 June 2016 of £2 million (2015: net debt £17 million), with average debt in accordance with the Group's plan.

Linden Homes

·      Completions (including joint ventures) of 3,078 units (2015: 2,769 units). 

·      Good progress on margins in line with our strategy.

·      Record year-end sales carried forward position up 27% at £380 million (2015: £300 million). 

·      Average private sales price up 2% to £335,000 (2015: £327,000). 

·      Landbank of 11,500 plots (of 14,200 total Group landbank) with land market continuing to be positive (2015: 13,550 and 15,750, respectively).  All plots secured for the new financial year's production and 84% of plots secured for FY 2018.

Galliford Try Partnerships

·      Growth in mixed tenure revenues, with contracting slightly constrained by procurement delays following the rent reforms.

·      Strong contracting order book of £0.85 billion (2015: £0.825 billion). 

·      Excellent opportunities, with our new office in Bristol and plans for further office openings.

·      Landbank of 2,700 plots (2015: 2,200).

Construction

·      Strong growth in revenue, with a cash position of over £160 million (2015: £173 million).

·      High quality order book of £3.5 billion (30 June 2015: £3.5 billion), predominantly in the public and regulated sectors.

·      82% of revenue for the new financial year secured (2015: 88%).

Board

·      As separately announced today, after 34 years with the business and having previously announced his intention to retire, Greg Fitzgerald has decided to step down as non-executive Chairman at the AGM on 11 November 2016.  He will be succeeded as planned by Peter Ventress, currently non-executive Deputy Chairman and Senior Independent Director.

Peter Truscott, Chief Executive, commented:

The Group has achieved another record year, with growth across all three businesses. Linden Homes has seen good average sales rates, achieving 0.68 per site per week in the second half from increased average outlets of 84, and enters the new financial year with record sales exchanged and reserved of £380 million.  Galliford Try Partnerships has continued to grow its mixed tenure revenues, which is key to achieving the targets we have set for the business, and we have maintained a strong contracting order book.  Construction continues to enjoy an excellent order book and has grown revenues in the year, with good margins on newer work, although the overall result is still constrained by legacy contracts.

Recent political events create a backdrop of uncertainty for the new financial year.  It is too early to predict specific effects on our markets, but the strength of underlying demand for new homes and the continuing availability of mortgage finance and Help-to-Buy give grounds for confidence in both Linden Homes and Galliford Try Partnerships, The late-cycle nature and public sector focus of Construction are key advantages for the Group, with the order book already 82% secured for FY17.  The balance of our businesses and the strength of our order books mean that we are well-placed to manage the impact of this uncertainty.  We are keeping the position under review and will update in more detail when we report our annual results on 14 September.

This announcement contains inside information.

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

Participant telephone number: [phone]

Participant passcode:  54873156#

For further enquiries:

Galliford Try                                                      Peter Truscott, Chief Executive                                       01895 855001

                                                                            Graham Prothero, Finance Director

Tulchan Communications                            James Macey White / Martin Pengelley                           020 7353 4200

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.  Housebuilding - through our Linden Homes and Galliford Try Partnerships businesses - 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 2015, the Group generated revenues of £2.3 billion.

 

END

 

 

TSTLLFSTDFILLIR