Galliford construction orders up 15%
Galliford Try is looking forward to higher profits after growing its construction order book by more than 15% in the past year.
In a trading update, the company said that construction orders stood at £3.7bn on 31st December 2015, which is the midpoint of Galliford Try’s financial year. A year earlier it was £3.2bn.
At the same time progress is being made on legacy contracts on which profit margins are not so strong and new work is being won with improved margins.
The Linden Homes house-building division is also in line to report a 5% increase in half-year revenue.
Total housing units completed by both Linden Homes and Galliford Try Partnerships reached 1,603 units in the six months to 31st December 2015 (2014: 1,529). The forward position is at a record high for the company with total sales reserved, contracted and completed at £740m (2014: £645m).
Investment in land, including the May 2015 acquisition of sites from Shepherd Homes, meant that net debt increased from £35.9m to £95m over the 12-months period.
Chief executive Peter Truscott said: "I am delighted to report that all of our businesses continued to trade well in the first half of the year to 30 June 2016. Market conditions have remained positive, with build cost increases stabilised to a manageable level.
“In Linden Homes we have improved our margins and increased outlet numbers and unit sales per outlet. In Partnerships we continue to make progress in line with our strategy, and are considering whether we can expedite that growth. In Construction our order book remains strong, with good visibility on projected revenue for the rest of this year and next.
“It is now two years since Galliford Try adopted its clear plan for disciplined growth to 2018. In my first few months as CEO, I am happy that these are the right medium term targets. I am working with each of the businesses to ensure we achieve these, and to consider the longer term aims.”
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This article was published on 13 Jan 2016 (last updated on 13 Jan 2016).