Galliford Try Plc today reported it's H1 results, despite revenues down 26% on last year to £570 million, it's pre-tax profits (pre-exceptional costs) increased by £2 million to £13.2 million.
Galliford Try reported a 15% rise in house sales in January but the outlook for the construction sector is still mired by speculation over public spending cuts.
Having raised £119.3 million in October the Group has bought land, so that 43% of 9,300 plot land bank has been acquired at current market values, including 156 plots from the acquisition of Rosemullion Homes in December 2009 and 742 plots from the post-period end buy-out of joint ventures with Bank of Scotland. Expenditure on land and increased housebuilding work in progress during the period amounted to £52 million.
The company, which won the contract to clear the site for the Olympic Park in East London, recently agreed to buy-out Bank of Scotland's stake in number of residential joint ventures in a bid to boost its housebuilding capacity.
Greg Fitzgerald, Chief Executive, said:
"Against the backdrop of a more stable housing market we have made excellent progress with the first stage of our transformational housebuilding strategy for our southern based business, bringing land acquisition opportunities with attractive potential returns to fruition.
The market for construction is challenging but our quality order book and the spread and depth of our industry leading business across its market sectors continue to be key strengths that will enable us to respond quickly to a market upturn once it occurs.
While the Board remains cautious on the overall economic environment, with a strong balance sheet and sector leading cash resources the Group is well placed to take advantage of opportunities across its activities as they arise".
The margin in the first half of the year has been depressed by the low level of completions (638) during the first half, which is expected to sharply increase during the second half, and stands at 4.5% (up from 4.2% last year).
Galliford Try's leading position in affordable housing and regeneration produced revenues of £76 million, their affordable housing and regeneration landbank is currently 4,100 plots, compared to 3,000 at 30 June 2009 and 2,800 a year ago. The firm is one of only six organisations selected as a delivery partner on all three of the HCA's development partner panels which develop new affordable and private housing on public sector sites across the whole of England.
Shares in Galliford closed at 326.50 pence per share on Tuesday, slipping 3.7% after hitting a 2010 high of 352 pence on Monday.
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