In the six months to 31 December 2012, Galliford Try’s group revenue was down 9% to £678.3m, from £746.8m for same period the year before. However, profits were up a shade at £32.3m, compared to £32.2m last time.
The housebuilding division had a record number of completions at 1,364 units and saw its margins improve from 11% to 12.1%, excluding the impact of a one-off land sale last time.
The construction division’s margin, however, shrank from 2.2% in H1 2012 to 1.9% this time.
Construction revenue was down 12% to £439.8m, in line with expectations, and operating profit was down 24% to £8.3m. The construction order book is stable at £1.6bn
Chief executive Greg Fitzgerald said: "In a stable market we are seeing continued momentum in housebuilding particularly in the geographic regions where we operate. Underlying growth is strong given that last year's results included a contribution of £6.9m from one significant land sale. In line with our stated strategy and progress to date we will continue our disciplined focus on margin enhancement in housebuilding.
“Our construction business continues to deliver a robust performance against the backdrop of a difficult market. We have maintained our core skills and our focus on margin protection, thus delivering profits whilst managing our planned reduction in turnover.
“We are also encouraged by our performance since the start of the calendar year and are confident of meeting the Board's expectations for the full year. Reflecting our strong first half performance and future confidence we have increased the interim dividend by 33%."
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