Trading Update

RNS Number : 9857M

Galliford Try PLC

13 May 2015

 



GALLIFORD TRY PLC

TRADING UPDATE

WEDNESDAY 13 MAY 2015

Galliford Try plc, the housebuilding and construction group, today issues its trading update for the period 1 January to 12 May 2015.

Greg Fitzgerald, Executive Chairman, commented:

"We are pleased to report all businesses - Linden Homes, Partnerships and Construction - continue to perform well with favourable market demand against a background of continuing challenges on the labour supply side in all sectors.  The Group expects to report full year results in line with analysts' consensus. 

Conditions in the housing market remain positive and we have been encouraged by trading through the year so far, with sales below the exceptionally strong corresponding period although significantly above the previous six months July to December 2014. The land market continues to be good.  On 12 May 2015 Linden Homes exchanged contracts with Shepherd Homes to acquire their Yorkshire based housebuilding land assets comprising six current sites and five sites in planning totalling a landbank of 515 plots.  We are seeing significant opportunities for our growing Galliford Try Partnerships business with the division very well placed to continue to capitalise on the strong demand for both contracting and mixed tenure developments. 

The construction market is improving and our construction business is seeing growth in the order book, helped further by the benefits of acquiring Miller Construction. The improving market has enabled us to secure contracts with appropriate margins.

The Board has a clear strategy to 2018 of disciplined and sustainable growth across all of Galliford Try's businesses. With the recent appointment of a new CEO joining a strong executive team, and with the Board further strengthened by a number of non-executive appointments, the Board is confident that this strategy will continue to be executed successfully."

Housebuilding

·      £982 million of sales reserved, contracted or completed across both Linden Homes and Galliford Try Partnerships, of which £778 million is for the current financial year to 30 June 2015 (2014: £1.0 billion and £790 million respectively).

·      Since 1 January 2015 Linden Homes has been selling at a rate of 0.68 per outlet per week (2014: 0.80, July - December 2014: 0.51).

·      Strong Galliford Try Partnerships contracting order book of £0.65 billion (31 December 2014: £0.5 billion).

·      Both businesses are actively pursuing good land opportunities.  The division currently has a record landbank of 15,000 plots.  Linden Homes has all plots secured for 2016 together with 75% of plots secured for 2017.

Construction

·      Order book of £3.3 billion (31 December 2014: £3.2 billion).

·      83% of next year's revenue secured (2014: 80%).

·      Experiencing strong levels of opportunities with good visibility of future work stream across all parts of the business.

·      Cash performance continues to be strong.

Conference call

A conference call for Analysts and Investors will be held at 07:45 am (UK time today)

Participant telephone number: [phone]

Participant passcode: 50906637#

Financial Reporting Calendar

Following changes to the disclosure and transparency rules, Galliford Try has reviewed its financial reporting calendar.  Going forward the Group expects to make the following financial announcements:

8 July 2015                    Trading update

16 September 2015        Full year results

23 February 2016           Half year results

12 May 2016                 Trading update

For further enquiries please contact:

Galliford Try -                             Greg Fitzgerald, Executive Chairman                   01895 855001

                                                Graham Prothero, Finance Director

Tulchan Communications -          Martin Pengelley/James Macey White                 0207 353 4200

/Giles Kernick               

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 2014, the Group generated revenues of £1.8 billion.

 

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