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Mon October 25 2021

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Galliford Try races ahead

18 Sep 12 Galliford Try has reported a 17% rise in revenues and 80% rise in pre-tax profit for the year to 30 June 2012 " beating the targets it set three years ago.

Chief executive Greg Fitzgerald
Chief executive Greg Fitzgerald

Group revenue rose to £1,504m (2011: £1,284m) and profit before tax climbed to £63.1m (2011: £35.1m).

Chief executive Greg Fitzgerald said: "Against a background of challenging and uncertain economic conditions I am very pleased to report that we have exceeded the objectives of our three year transformational housebuilding plan, delivering a substantial increase in profits and return on capital.  In addition, we have maintained a high quality construction order book.  We have a strong balance sheet and a disciplined growth strategy with a clear focus on improving margins that positions us well to deliver further profitable growth in the new financial year and beyond."

In September 2009, Galliford Try raised £125.6m from a rights issue to double the size of its housebuilding division by 2012, with the target of £60m pre-tax profits. The plan was to create a business that could deliver 3,000 units a year, focussing on the south of England.  In the past financial year, it delivered 3,039 completions and also passed its profit target, accompanied by a significant improvement in return on capital.

Construction revenues, by contrast, were down marginally although margins were held at 2.0% (2011: 2.4%). Infrastructure work including the Forth Replacement Crossing and water treatment works helped to prop up the company’s construction operations.

Results by division

Housebuilding

2012

2011

Revenue (£m)

636.7

388.5

Profit from operations (£m)

75.1

31.6

Operating profit margin (%)

11.8

8.1

Completions

3,039

2,170

Construction

2012

2011

Revenue (£m)

924.8

936.9

Profit from operations (£m)

18.9

22.2

Operating profit margin (%)

2.0

2.4

Order book (£bn)

1.65

1.75

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