Contractor Galliford Try is on course to make a record half-year profit when it announces its interim results in February.

The firm said it expected profit for the past six months of 2004 to be in line with market expectations, partly as a result of its housing operation’s move to off-site construction.

Galliford Try’s trading update said its housebuilding arm has reserved, contracted or completed sales of £130m over the six-month period. This is a 3% increase on the same period last year, and makes up two-thirds of the company’s planned sales for the year to 30 June 2005.

The company said that if the market held firm, it is would be well placed to meet its targets for the full year.

It added that the growth of its business was supported by the “long-term fundamentals of the housing market, which remain encouraging”.

Galliford said that an easing in external cost pressures, together with its own cost reduction initiatives, had contributed to the results.

Profit at the firm has also been boosted by construction sector projects in healthcare and education.

In the health sector, the company achieved financial close on NHS LIFTs schemes at Coventry, and Barnet, Enfield and Haringey in north London. This increased the company’s current portfolio of LIFT projects already under way to £134m. The company aims to target further LIFT schemes this year.