Reporting its half-year results for the six months to 31st December 2014, Galliford Try unveiled group revenue up 35% to £1,085.4m from £803.5m for the same period in 2013/14
Profit before tax was £42.5m, up 12% on the £38.1m made in 2013/14. The company says that it has plans in place to double this profit figure by 2018.
There was a significant reduction in net debt, from £85.9m down to £35.9m despite an increase in the landbank.
Boosted by the acquisition of Miller Construction in July 2014, Galliford Try’s construction order book has grown from £1.25bn a year ago to £3.25bn today – representing 160% growth. It not only has 100% of projected revenue for the current financial year already, it has secured 75% secured for the year to June 2016.
With the addition of the Miller business, now fully integrated, Galliford Try Construction saw its half-year revenues rise from £398.1m last time to £604.8m. However, as old projects bid for when prices were lower continue to be worked on, construction profit margins remain tight – 1.0% for Galliford Try, down from 1.4% for the same period the previous year. Operating profit was therefore only £5.9m, up from £5.5m last time.
Galliford Try is now targeting construction revenue of £1.5bn by 2018.
The house-building division, Linden Homes, saw its revenue grow 5% to £346.1m in first half, with an improved operating margin of 15.1% (H1 2014: 13.5.
Revenue at Galliford Try Partnerships was up 56% to £157.6m (H1 2014: £100.9 million) generating an operating margin of 2.3% (H1 2014: 1.9%).
Executive chairman Greg Fitzgerald said: "We are very pleased with the group's strong performance in the six months to 31st December 2014 with our housebuilding and construction businesses both performing well, and are encouraged by the start we have made to the second half of the year.”
Mr Fitzgerald stepped up from chief executive in October 2014 on the departure of chairman Ian Coull to fill both roles in the boardroom. However, he had already announced that he planned to take early retirement before the end of 2015. The search for a successor continues.
“We are making good progress with the search for a new chief executive,” he said today.
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