Contractor says pre-tax profit will hit top end of analysts’ forecasts in trading update
Galliford Try will report record profit in its full-year results to 30 June 2014, the contractor has said in a trading update.
The firm said pre-tax profit will be at the upper end of analysts’ expectations, which currently range from £92.8m to £95.2m. Last year the firm posted a 17.4% rise in pre-tax profit to £74.1m.
Galliford Try said its housebuilding division “performed strongly” and enjoyed “strong progress on margin” in its subsidiary Linden Homes.
Average Linden Homes sales prices rose 15% to £305,000, up from £266,000, while completions grew to 2,986, up from 2,806.
Galliford Try’s construction division amassed an improved order book of £1.4bn, up from £1.25bn the previous year, and reported an “increase in opportunities” in the market.
Greg Fitzgerald, Galliford Try chief executive, said: “The market continues to be good across all of our regions. We welcome the Government’s continuing commitment to housing provision, and the focus of the Bank of England on maintaining stability in the housing market. In addition the prospect of timely interest rate rises should support a sustainable market into the longer term.
“We are pleased to have finished the year strongly and expect to deliver another record profit. With a solid balance sheet, minimal debt, a record landbank in housebuilding and excellent visibility of work in construction, we are starting the new financial year in a strong position, whilst recognising that challenges remain around the supply chain and converting outline planning permission into detailed consents.”
The firm’s full-year results will be posted on 16 September.