In its interim report for the six months to 31 December 2010, the company posted group revenue only marginally down from £570m in the first half 2009/10 to £575.9m this time.
Profits, before exceptional items and tax, were up 29% to £17m.
In line with the group’s strategy, housebuilding revenue was up 29% to £152.9m, while construction revenue was down 5% at £442.6m.
The operating margin of the construction business improved from 2.4% to 2.5% and large water schemes have helped hold the construction order book up at £1.75bn, close to the £1.8bn of a year ago.
Galliford Try set out a strategy in September 2009 to expand its housebuilding business over three years. Now halfway through, all the building blocks are in place, the company said. All the land needed for the next financial year is already acquired and the number of sales outlets is set to increase by 30% to 85 by June 2011.
Chief executive Greg Fitzgerald said: "We are currently on track to deliver the objectives of our three year housebuilding expansion plan during the next financial year. The spring selling season remains crucial, and although it is too early to judge whether it will be sustained, the improvement in our sales rate during the first few weeks of 2011 is encouraging. Our strategy for managing our construction business in challenging times is working well and the underlying results give us confidence that we will be able to grow the business again when markets improve.
Although the economic outlook is still uncertain, the board is encouraged by the group's performance and progress in the first half of the financial year, and is confident in its strategy for delivering the objectives of its expansion plan."
Total housing completions were up 28% to 851 units, or 779 net of joint venture partners share (2009: 663 and 638 respectively). Prices achieved were at or slightly above expectations and average selling price on private sales was up 4% at £204,000 (2009: £197,000). Due to a higher proportion of lower priced affordable homes completed in the period, the average selling price for affordable sales was £110,000 (2009: £131,000) leading to a combined average selling price of £178,000 (2009: £181,000).
Total construction profit from operations was £10.9m on revenue of £442.6m, including joint ventures, representing a margin of 2.5% (2009: £11.1 million on £465.8 million, representing 2.4%).
Within construction, the building division had first-half operating profits of £5.1m on revenue of £216.6m, and the infrastructure division made £4.7m operating profit on revenue of £174.4m.
The building division's order book stands at £631m, compared to £706m a year ago.
Infrastructure order book is £919m, compared to £959m a year ago.
Ian Coull joined the board as a non-executive director on 8 November and will succeed David Calverley as chairman when he retires on 30 June 2011. Ian, 60, is currently chief executive of Segro, Europe's largest real estate investment trust, and was previously a director of J Sainsbury plc.
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