Profit and revenue both up as housebuilding business grows 45%

A two-fold increase in Galliford Try’s housebuilding business has helped the firm record bumper half-year results, with profit and revenue both significantly up.

Pre-tax profit at the contractor rose 89% for the six months ended 31 December 2011 to £32.2m, up from £17m over the same period the previous year.Turnover also grew 30% over the period to £746.8m, up from £575.9m in 2010.

A record six months for the group’s housebuilding business accounted for most of the revenue and profit growth.

Galliford Try’s housebuilding arm grew 45% over the period, with turnover up to £277.0m, from £152.9m in 2010.

Profit at the division increased by 350% to £35m (up from £9.9m) as housebuilding margins almost doubled from 6.5% to 11%.

The contractor said total housing completions over the period were up 59% to a record 1,352 units. There was also a 34% increase in total sales currently reserved contracted and completed at £605m, up from £450m in the second half of 2010.

Galliford Try said it was on course to meet its ambitious three-year housebuilding expansion strategy which was set out in September 2009 this year.

The group’s construction business grew only marginally from £442.6m to £499.9m and profit stood still at £10.9m. The operating profit margin at the division dropped from 2.5% to 2.2%.

The contractor said its housebuilding business had secured 100% of plots for planned construction in 2012 and 2013, with 76% of 10,700 plot land bank acquired at current market values.