Profits will be significantly above market expectations as contractor predicts record levels of housebuilding

Galliford Try has released a strong trading update for 2007, with profits “substantially ahead” of last year.

Greg Fitzgerald
Chief executive Greg Fitzgerald

Full-year profits are expected to be “significantly above market expectations” following several high-profile acquisitions and contract wins, according to the firm.

Galliford Try’s order book is maintained at over £2.1bn, with recent wins including a £41m contract to construct the National Museum of Liverpool. Other ongoing projects include a £192m PFI school scheme in Northants and over £100m of road projects. Work is also progressing on seven major English Partnership regeneration and affordable homes projects.

Housebuilding this year will reach 'record levels' according to the firm, with completions of 1,530 units, up from 1,054 in 2006, and £185m worth of sales carried forward, more than double last year’s total of £78m.

Morrison Construction and Chartdale Homes were acquired by Galliford Try in 2006, and Linden Homes in March this year. The firm says both Morrison and Chartdale Homes have delivered “excellent performances” and the integration of Linden Homes is progressing well.

Preliminary results are expected to be announced on 6 September.

Galliford Try's share price rose 12p to 171p this morning.