Strong half-year from Galliford Try
Galliford Try has reported record interim profits for the six months ended 31st December 2015.
Pre-tax profit was up 24% to £52.9m on revenues up 12% to £1,264.9m.
Construction continues to generate the cash at Galliford Try but it is house-building that delivers the profits.
Its Linden Homes business made £61.5m operating profit on £362.7m revenue, a margin of 17%.
The construction division, by contrast, made just £8.5m from £738.6m. However, the margin improved from 1.0% to 1.2%, compared to the same period a year before, and the board expects construction margins to climb to 2% by 2018.
The third part of the group, Galliford Try Partnerships, made £4.5m on £150.2m revenue in the half-year.
Chief executive Peter Truscott commented: “Linden Homes has made strong progress on margins as well as increased outlet numbers and unit sales per outlet. Our Partnerships business continues to see good demand for contracting in the affordable housing market, as registered provider clients assimilate the recent changes to their income profile; and importantly the mixed tenure development business is growing strongly. The construction market continues to improve, although at a slower rate than anticipated; we have nevertheless further improved our order book to £3.7bn, with good visibility on projected revenue for this and the next financial year. Build cost increases have moderated and availability of skilled labour has improved across all regions.
“Looking forward, we are encouraged by the start we have made to the second half of the year. Market conditions for Linden Homes have improved further since the turn of the year, and the pipeline for our Partnerships business continues to grow, while our construction business has good visibility on revenue for the next financial year.”
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This article was published on 25 Feb 2016 (last updated on 25 Feb 2016).