Trading Statement

Galliford Try PLC
06 January 2005


6th January 2005

                               GALLIFORD TRY PLC

                                 TRADING UPDATE

Galliford Try plc is providing the following update to trading for the half year
to 31 December 2004.

Current Trading

Galliford Try confirms that it is on course to report record half year profits
in line with market expectations. Net debt at 31 December 2004 was at a similar
level to last year.

Construction

The construction division has continued to make good progress in securing work
in its chosen market sectors during the first half of the year and is on track
to deliver its planned increase in profit margin.

In health, we achieved financial close on NHS LIFTs at Coventry and at Barnet,
Enfield and Haringey. Including Liverpool and Sefton LIFT, which closed in the
last financial year, we now have a total of £134m of LIFT projects already
underway, and are encouraged by the scope for further work in later phases. We
will be selectively targeting the opportunities that will arise from the next
release of LIFT schemes due in 2005.

In education, we achieved financial close on the £45m Caludon Schools PFI,
preferred bidder status on the £150m Northampton Schools PFI project during the
first half and are on the shortlist for further multi school PFI projects in
Rochdale and Bromsgrove which have a construction value in excess of £50m each.

In October we announced that we had won new affordable housing contracts worth
£91m, giving a significant boost in this growth sector.

Our workloads in water, rail, telecommunications and the commercial markets
continue to meet our targets and we start the second half of the year with a
well balanced order book of £719m.

Housebuilding

Completions for the half year were up 5% at 387 on an unchanged average selling
price of £228,000. The housebuilding division has currently reserved, contracted
or completed sales with a value of £130m, a 3% increase on last year and
representing two thirds of planned sales for the year to 30 June 2005.

We stated in October that sales had been held back in weaker market conditions
and this has been widely reported across the sector. However, we are encouraged
by the visitor levels at our sites and we are operating off more sites than a
year ago. This is in line with our policy of concentrating on individually
designed developments for the mainstream market, with no large apartment
developments. Together with our broad geographic spread across the southern half
of the country, this means that in the absence of any further deterioration in
the market we are well placed to achieve our targets for the full year to 30
June 2005.

An easing in external cost pressures, together with the cost reduction
initiatives we are taking, are having a positive effect. We have also been
successful in achieving a moderate increase in our land bank under the tighter
investment criteria we are applying, which at 31 December 2004 stood at 2,451
plots, up 7% on a year ago. The growth of the business is supported by the long
term fundamentals of the housing market, which remain encouraging.

Interim Results

The Company's interim results for the half year to 31 December 2004 are expected
to be announced on Thursday 24th February 2005.


Further enquiries to:

David Calverley, Chief Executive    Galliford Try plc        01895 855219
Frank Nelson, Finance Director      Galliford Try plc        01895 855226
Ann marie Wilkinson                 Bell Pottinger Financial 020 7861 3232



                      This information is provided by RNS
            The company news service from the London Stock Exchange