Contractor’s house sale reservations up 86%

Galliford Try has unveiled strong trading figures for the second half of 2011, with growth in its housebuilding division despite a stagnant housing market.

The contractor achieved an 86% increase in house sale reservations over the last six months of 2011 compared with the same period in 2010, with an increase in both sales and properties put on the market.

Analyst Panmure described the contractor’s update on its housing division as “probably the strongest trading statement we have ever read in terms of growth in a housebuilding business”.

Galliford Try chief executive Greg Fitzgerald said the southern bias of the firm had helped its housebuilding division perform strongly.

The contractor said its three year expansion plan for housebuilding would come “into fruition” by the end of this financial year.

The contractor’s average house sale price was also up 12%, from £204,000 in the last six months of 2010 to £239,000.

The contractor said its construction business was trading in line with expectations, with a £1.6bn order book.

The trading statement said: “During the six months we achieved a rate of sale up 36% to 0.45 unit sales per outlet per week on a 32% increase in the number of outlets, resulting in an 86% increase in actual sales reservations made compared with the same period last year.”