Education PFI contract key to group’s strong performance as housing completions increase by 25%.
Construction and housebuilding group Galliford Try has defied the gloomy trends that threaten the industry to secure a record order book of £1.1bn for the six months to December 31. Shares rose 3.5p to 93.5p on the news released in a trading statement this morning.
It is the first time the figure has exceeded the billion-pound mark in the group’s history. This was in part thanks to reaching financial close on a £192m contract for the UK’s largest education PFI scheme for Northamptonshire County Council in December. The company said it would be building 41 schools in the area over the next three years.
In the housebuilding sector Galliford said the market had improved compared to the same period in 2004, with completions up 25% to 484 units. It said that the fall in average selling price per unit – from £228,000 to £203,000 – was due to its decision to concentrate on the mainstream market.
The company says that trading overall has been in line with board expectations, and that it is confident of a satisfactory full year.
It expects prospects in the education sector to be good as government investment continues, but says that it will not compromise margins by expanding too quickly.
