Analyst describers contractor's performance as solid despite exposure to housing market following Linden Homes buy
Galliford Try has said trading for the six months to December 2007 will be in line with expectations despite its exposure to the flagging housing market.
In a statement this morning it said results would be “substantially ahead” of last year – largely thanks to the £245m acquisition of Linden Homes in February.
Following the deal, completions for the period were up 98% on last year at 1,174 units and total sales were £473m (2006: £204m).
Its construction forward order book is £2bn, with the company pointing to a spread of projects in the Midlands and Scotland following on from its multi-school PFI deals in Northamptonshire and the Highlands of Scotland.
Panmure Gordon analyst Andy Brown described the forecast as “solid” but said its share performance had suffered as a result of the weak housing market. He said: “The shares may need more than an in-line statement to spark interest.”
The consensus forecast for the year ended 30 June 2008 is £72.6m pre-tax profit on turnover of £1.67bn.