Construction and housebuilding group Galliford Try has seen its profit from operations in its infrastructure arm fall to £3.6 million on revenue of £215.4 million for the six months ended 31 December 2012,
The second-half figures are down on the profit of £5.2 million and revenue of £249.7 million for the first six months of 2012. The figures for the second-half represented a 1.7% margin, down from 2.1% in the first half.
For the Group as a whole, revenue fell to £678.3 million, compared with £746.8 million for the first half of 2012. Profit before tax, however, remained flat at £32.2 million due to a strong showing in housebuilding.
Revenue at the construction division fell from £499.9 million for H1 2012 to £439.8 million for the second half. Margins stood at 1.9% (H1 2012: 2.2%).
Galliford Try’s Infrastructure division carries out civil engineering projects, primarily in the water, highways, flood alleviation, remediation and renewable energy markets operating across the UK.
It said it is “preparing and progressing our interest in the water sector’s next five year asset management programme” and is “encouraged” by the Government’s planned investment in infrastructure projects.
Greg Fitzgerald, Chief Executive, commented:
“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 £6.9 million 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.”