Galliford Try plc, the housebuilding and construction group, is expecting to report record full year results, according to its latest trading update published this morning for the year ended 30 June 2016.
Peter Truscott, Chief Executive, commented:
“The Group has achieved another record year, with growth across all three businesses. Linden Homes has seen good average sales rates, achieving 0.68 per site per week in the second half from increased average outlets of 84, and enters the new financial year with record sales exchanged and reserved of £380 million.”
“Galliford Try Partnerships has continued to grow its mixed tenure revenues, which is key to achieving the targets we have set for the business, and we have maintained a strong contracting order book. Construction continues to enjoy an excellent order book and has grown revenues in the year, with good margins on newer work, although the overall result is still constrained by legacy contracts.”
The Group is reporting strong growth in revenue in its construction division, with a cash position of over £160 million (2015: £173 million). The division has also maintained a high quality order book position of £3.5 billion (30 June 2015: £3.5 billion), predominantly in the public and regulated sectors, with 82% of revenue for the new financial year already secured (2015: 88%).
Recent political events have created backdrop of uncertainty
However, Peter Truscott warned that recent political events have created a backdrop of uncertainty for the new financial year, commenting:
“It is too early to predict specific effects on our markets, but the strength of underlying demand for new homes and the continuing availability of mortgage finance and Help-to-Buy give grounds for confidence in both Linden Homes and Galliford Try Partnerships. The late-cycle nature and public sector focus of Construction are key advantages for the Group, with the order book already 82% secured for FY17.”
“The balance of our businesses and the strength of our order books mean that we are well-placed to manage the impact of this uncertainty. We are keeping the position under review and will update in more detail when we report our annual results on 14 September.”
At the end of the last financial year to 30 June 2015, the Group generated revenues of £2.3 billion. The Group expects to announce its results for the full year on 14 September 2016.
Galliford Try has also announced that Greg Fitzgerald will step down as non-executive Chairman at the AGM on 11 November 2016. As previously announced, Peter Ventress, non-executive Deputy Chairman and Senior Independent Director, will become non-executive Chairman on Greg Fitzgerald stepping down.
Commenting on his forthcoming departure, Greg Fitzgerald said:
“In September 2014 I announced, after 33 years with the business, my intention to retire from the Group. Since announcing my intention to retire and having overseen a number of executive and non-executive appointments, including the appointment of Peter Truscott as Chief Executive and Peter Ventress as Deputy Chairman, I believe, following an effective transition that now is the right time to step down. I leave the business in an excellent financial position with a clear growth strategy.”