Mixed fortunes in latest results

Housebuilders and contractors reporting results this week suffered mixed fortunes. Galliford Try and Redrow showed healthy growth, while Barratt shares dropped on a £12m end of year loss.

Barratt, which reported on Wednesday, said the loss for the 12 months to June this year was down from the £162.9m loss reported in 2010, and came on turnover of £2.04bn, the same as last year.

However, it managed to increase its operating profit before exceptional items by 50%, raising its margin from 4.4% to 6.6%. It was hit by £54.2m in exceptional items, mostly due to the re-financing of its debt in May, as well as a £65m “gross impairment” after it reviewed its land bank value.

Contractor and housebuilder Galliford Try on the same day announced continued progress in its plan to double the size of its housebuilding business over three years, reporting completions up 27% to 2,170 and an operating profit margin up to 8.1%.

Overall revenue was up 5% to £1.28bn, with pre-tax profit up by a third to £35m. Greg Fitzgerald, chief executive, said: “We enter the final year of our three-year transformational expansion plan for housebuilding in a strong position to deliver on the objectives we set.”

Last week Redrow reported that pre-tax profit leapt to £25.3m for the year to June 2011 as the builder managed to increase the average selling price of its homes.