Interim Management Statement

RNS Number : 1695E

Galliford Try PLC

08 May 2013

 



GALLIFORD TRY PLC

INTERIM MANAGEMENT STATEMENT

WEDNESDAY 8 MAY 2013

Galliford Try plc, the housebuilding and construction group, today issues its Interim Management Statement for the period 1 January to 7 May 2013.

Greg Fitzgerald, Chief Executive, commented:

"We have made strong progress since the beginning of the year, largely driven by further improvements in our housebuilding division. Overall, and despite prolonged winter conditions which impacted on production levels, the Group expects to report results in line with the current market consensus for the full year ending 30 June 2013.

In housebuilding, we are experiencing encouraging levels of reservations since our last update including prices achieved above expectations.  We welcome the Government's Help To Buy scheme.  The early signs of its impact are encouraging and we expect an increase in completion levels from next year.  Our principal focus on margin enhancement for the housebuilding division continues.  Our landbank is 11,000 plots.

In a continuing difficult market our construction division is operating well, driven by robust risk management and a disciplined focus on projects which will deliver appropriate returns.

The financial position of the Group remains strong and we expect to have modest net debt at the year end reflecting our increased investment in land."

Housebuilding

·      Encouraging levels of activity across the housing market with reservations up 6% per outlet since our last update with the sales rate per week since 1 January 2013 at 0.7 (2012: 0.6), driven by improving mortgage availability and Help To Buy.

·      Record £836 million of sales reserved, contracted or completed, of which £632 million is for the current financial year to 30 June 2013 (2012: £774 million and £625 million respectively).

·      Actively pursuing a high level of land opportunities with the current landbank at 11,000 plots of which 85% have been secured at current market values (2012: 78% of 10,600).  All plots secured for 2014 and 75% of plots for 2015 secured.

·      Our detailed knowledge of the affordable housing sector continues to identify and facilitate land and partnering opportunities including securing our successful retention on the Delivery Partner Panel framework and the London Development Panel.

Construction

·      Continuing stable order book at £1.6 billion (31 December 2012: £1.6 billion).

·      Cash balances remain satisfactory.

·      77% of next year's revenue secured (2012: 80%).

·      Good project wins with all business units experiencing an increase in opportunities albeit pricing remains challenging.

·      Continuing focus on margin protection through securing projects with acceptable returns.

Management

The Group is delighted to announce that after an extensive internal and external search we have decided to promote Andrew Richards, currently Managing Director of our PPP/Investments business, to become Group Managing Director of Housebuilding (Linden Homes).  Andrew will assume the post from 1 July 2013, taking over from Ian Baker who stepped down from the position last year due to ill health.

For further enquiries please contact:

Galliford Try -                             Greg Fitzgerald, Chief Executive              01895 855001

                                                Graham Prothero, Finance Director

Tulchan Communications -          James Macey White                              0207 353 4200

                                                Peter Hewer 

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 brand - sells distinctive homes to the public and affordable homes to housing associations and local authority providers across the South and South East of England.  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 2012, the Group generated revenues of £1.5 billion.

 

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