"Against a background of challenging economic conditions in both the housebuilding and construction sectors, the housing market has exceeded our expectations throughout the spring selling season and we have continued to benefit from the strong southern bias of our expansion plan,” said chief executive Greg Fitzgerald. “Construction has also benefited from encouraging contract awards in the period and strong cash balances that lead us to expect the group’s gearing will be minimal at the financial year end. We therefore now expect full year results to be significantly ahead of the current range of market estimates and remain confident in delivering the objectives of our expansion plan during the next financial year.”
The company reported a continuation of improved market conditions through the spring selling season, with sales rates substantially up on the first half and sales prices remaining stable. It said that £532m of sales have been reserved, contracted or completed, of which £363m is for the current financial year to 30 June 2011. The figures for 2010 were £443m and £308m. The cancellation rate has been reduced to 16%, below historic average. A full * 100% of plots are secured for 2012 production, all with a detailed planning consent, and 68% of plots for 2013 secured.
Galliford Try reported a 3% increase in order book during the period to £1.8bn. Key projects include the £790m Forth Road Crossing project secured by Galliford Try consortium.
Got a story? Email news@theconstructionindex.co.uk
