The six months to 31 December 2013 represent the first half of Galliford Try’s financial year. In a trading update this morning, the company said that it had performed well in the period and when it reports its half-year results next month, its profits will be higher than ever before.
Its house-building division saw a 20% increase in total sales reserved, contracted and completed at £652m for the six months to 31 December 2013 (2012: £544m). The average selling price was up 16% at £288,000 (2012: £248,000).
Galliford Try has also built up a record landbank of 13,100 plots to consolidate its growth. This has meant an increase, as planned, in net debt to £90m (2012: £58m) although due to a strong performance from its construction activities, the debt rise is at the lower end of expectations.
The board said that while market conditions for construction remained challenging, the order book remained ‘robust’ at £1.75bn (2012: £1.6 billion).
Chief executive Greg Fitzgerald said: "It has been another strong performance for the group in the first half of the financial year with profits anticipated to be at record levels. Housing market conditions have continued to improve and we are delighted to have secured a 16% increase in the landbank during the period, with the land market remaining positive. In Construction we have increased the size of our order book and remain focused on margin protection and cash generation. Construction is performing well in challenging markets with the prospects looking better as our pipeline of opportunities continues to increase. Across the group supply chain cost issues continue but are being well managed. We are confident that our disciplined strategy will deliver further good growth and improved returns this year and beyond."
Got a story? Email news@theconstructionindex.co.uk
