With a focus on the southeast, Galliford Try’s housebuilding operation also reports cancellation rates falling and sales prices increasing matching expectations. The number of active selling sites is expected to grow from 82 today to 100 by June 2012, in line with expansion plans.
The company said that it expects the government's new national planning policy framework to be helpful to its growth ambitions and support more housebuilding.
In the construction division, a policy of more selective bidding has, as expected, seen workload fall. Total construction order book is down from £1.75bn a year ago to £1.6bn today. Of this, 40% is in the regulated sector, 45% in the public sector and 15% in the private sector. Two-thirds of the work has been won through frameworks or on a basis other than pure price competition.
Chief executive Greg Fitzgerald said: "Although the economic outlook remains uncertain, we have been encouraged by the performance of our housebuilding business as its growth plan comes to fruition during this financial year. Construction is benefitting from its long term frameworks, particularly for the water industry, during the current more challenging markets.
“While continuing to adopt an appropriate level of caution, we remain confident in delivering the objectives of our expansion plan."
Galliford Try has also begun the search for a new finance director, to succeed Frank Nelson, who will retirein September 2012 after 25 years of service.