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Wed October 28 2020

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Galliford Try profit slashed to £6.4m by OFT fine

24 Feb 10 Galliford Try is back in the black after reporting a £6.4m profit for the six months to 31 December 2009, compared to a loss of £37.5m for the same period the previous year.

Galliford Try is back in the black after reporting a £6.4m profit for the six months to 31 December 2009, compared to a loss of £37.5m for the same period the previous year.

The figure would have been higher but for an £8.3m exceptional provision for its OFT fine following the bid-rigging investigation. Galliford Try was able revalue its landbank upward by £1.5m.

The group’s turnover dropped to £570m (H1 2008: £774) as revenues fell across both housebuilding and construction divisions.

In housing, Gallford Try reported low activity, while in construction, the firm said it is taking a more “selective” approach to new work, and several long-term contracts, notably in the water sector, have now wound down.

The order book is up slightly at £1.8bn, compared to £1.7bn a year ago.

The group said it was making “excellent progress” with its planned investment in the housing market, after raising £119m from investors last year.

Galliford Try chief executive Greg Fitzgerald said: “Against the backdrop of a more stable housing market we have made excellent progress with the first stage of our transformational housebuilding strategy for our southern based business, bringing land acquisition opportunities with attractive potential returns to fruition.

“The market for construction is challenging but our quality order book and the spread and depth of our industry leading business across its market sectors continue to be key strengths that will enable us to respond quickly to a market upturn once it occurs.”
 

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