Interim Management Statement

RNS Number : 0288H

Galliford Try PLC

14 May 2014

 



GALLIFORD TRY PLC

INTERIM MANAGEMENT STATEMENT

WEDNESDAY 14 MAY 2014

Galliford Try plc, the housebuilding and construction group, today issues its Interim Management Statement for the period 1 January to 13 May 2014.

Greg Fitzgerald, Chief Executive, commented:

"The Group has made strong progress since the start of the year particularly in housebuilding where market conditions continue to improve.  With six weeks to the year end, the Group expects to report a profit before tax for the full year ending 30 June 2014 above the current analysts' consensus of £89.7 million and not less than £92.0 million.

During the spring selling season Linden Homes experienced strong levels of reservations with sales prices improving above management expectations.  Our margin enhancement programme is also progressing on plan, and the division has made further progress at the operating margin level.  Galliford Try Partnerships, realigned from 1 January 2014 into the Housebuilding Division, is also experiencing strong demand for both contracting and mixed tenure projects.  We continue to buy land at our increased hurdle rate of 22% and together Linden Homes and Galliford Try Partnerships have a record housing landbank of 13,750 plots.

In construction we have grown our order book and are seeing increased levels of opportunities across the business.  The division is winning work with appropriate margin and inflation protection and continues its focus on risk management and cash, which have been robust in the period.

All of our businesses, in common with the industry, continue to experience challenging production conditions, with supply of both labour and materials constrained by strong demand; however these conditions are stabilising and we continue to manage them proactively.

Year end net debt is expected to increase compared to June 2013 reflecting planned higher investment in land. This is in line with our strategy, announced in February, of disciplined growth across the Group's businesses, against which we are making good progress."

Housebuilding

·      Record £1.0 billion of sales reserved, contracted or completed across both Linden Homes and Galliford Try Partnerships, of which £790 million is for the current financial year to 30 June 2014 (2013: £853 million and £644 million respectively).

·      Since our last update, the division is experiencing strong levels of activity with reservations up 30% per outlet and sales rate per week, since 1 January 2014, at 0.79 (2013: 0.70).

·      Solid Galliford Try Partnerships contracting order book of £0.5 billion (31 December 2013: £0.5 billion).

·      Both businesses are actively pursuing good land opportunities at our increased hurdle rate.  The division currently has a record landbank of 13,750 plots of which 91% have been secured at current market values (2013: 85% of 11,000).  All plots secured for 2015 together with 75% of plots for 2016 secured.

Construction

·      Improved order book at £1.3 billion (31 December 2013: £1.25 billion).

·      80% of next year's revenue secured (2013: 79%).

·      All business units experiencing an increase in opportunities.

·      Continuing focus on risk management and margin.

·      Cash performance continues to be strong.

Conference call

A conference call for Analysts and Investors will be held at 08:00am (UK time)

Participant telephone number: [phone]

Participant passcode: 34781971#

For further enquiries please contact:

Galliford Try -                             Greg Fitzgerald, Chief Executive                          01895 855001

                                                Graham Prothero, Finance Director

Tulchan Communications -          Christian Cowley/James Macey White                 0207 353 4200

Galliford Try plc is a leading UK housebuilding and construction group. It is listed on the London Stock Exchange and a member of the FTSE 250. The housebuilding business - through its Linden Homes and Galliford Try Partnerships brands - sells distinctive homes to the public and affordable homes to housing associations and local authority providers.  The construction business carries out building and infrastructure work across the UK with clients ranging from major Government departments through to regulated utilities and private sector companies. At the end of the last financial year to 30 June 2013, the Group generated revenues of £1.5 billion.

 

END

 

 

IMSQXLFFZEFZBBD