Trading Update

Galliford Try PLC
06 July 2005


WEDNESDAY 06TH JULY 2005

                               GALLIFORD TRY PLC
                                 TRADING UPDATE

Galliford Try plc, the construction and housebuilding group, is providing the
following update to trading for the year to 30 June 2005 prior to entering its
close period.

Galliford Try expects to report full year profits well ahead of last year and
above current market expectations. The construction division is continuing to
increase its margin and we are delivering growth in housebuilding
notwithstanding the difficult market. This is being achieved with Group
borrowings at 30 June at a similar level to last year.

We see excellent prospects in the affordable housing market for both our
construction and housebuilding divisions. In the South West we are a market
leader, and in joint venture with affordable housing provider Westco, have
secured planning consent for the redevelopment of Truro Hospital into 190 units,
45% of which will be affordable. Public sector investment in social housing and
key worker accommodation is rising, and the planning requirements now
necessitate a different perspective on the affordable housing element on sites
for private sale. We are one of around 20 developers that have been shortlisted
by the Housing Corporation for inclusion in the Government's 'New partnerships
in affordable housing' scheme which allows for grant direct to developers. We
are currently working with sixteen affordable housing providers on a variety of
schemes and in June we won the best social housing development award for a
scheme in Devon at the National housebuilder design awards.

The current construction order book has been maintained at £950million, of which
78% is in the public and regulated sectors and over 90% has been secured on a
non price competitive basis. In May we secured the five year AMP 4 contract for
water and waste water infrastructure works for United Utilities and we have
continued our strong presence in framework contracting. We have been awarded a
number of projects on the rail network arising from our building and structures
framework agreements with Network Rail and the train operating companies.

Education and health are key sectors for us and with four schemes totalling
£120million having financially closed in the year, we have a real opportunity
for growth with the next phase of NHS LIFT projects as well as Building Schools
for the Future. We have sold our Private Finance Initiative investment in
Birmingham Schools Partnership (Holdings) Ltd for a consideration of £1.8million
in cash, resulting in a profit of £1.5million, which has contributed towards
offsetting significantly higher PFI/PPP costs during the year as our involvement
in this market continues to grow.

We are taking advantage of the steady improvement in the commercial market,
where our expertise in developments such as the recently completed £19million
mixed scheme for the Corporation of London in Sedley Place is leading to a
number of new opportunities. We have commenced the first year's work on our
latest project for the All England Lawn Tennis Club at Wimbledon, the
reconstruction of the Centre Court buildings to incorporate a retractable roof,
due for completion in 2009.

Housebuilding completions for the year were up 12% at 853 on an average selling
price down 7% to £208,000, in line with our strategy of growing the business in
the mainstream market. Our business model, focusing on individually designed
developments, with a particular strength in conversions and brownfield
development, is demonstrating its value in difficult market conditions. We have
no high rise apartment developments and do not depend on major consortium sites,
giving us a competitive advantage in a purchaser driven market and minimising
the level of sales incentives required.

We have made satisfactory sales progress in the last 6 months following the slow
market of the first half and ended the financial year with sales in hand at
£65million. This compares to £74million last year following the exceptionally
buoyant market in early 2004, but is substantially up on the £37million of the
year before. In the next six months the number of active sites from which we
will be selling will be up by over 20% in line with our planned growth for the
year. Good progress on our cost reduction programme is assisting our margins,
and we are obtaining better sub-contract prices in the current market.

We remain selective in purchasing sites that meet our more stringent acquisition
hurdles, but there are good opportunities in the current market. In May we
acquired the redundant Banstead hospital in Surrey, which we are planning to
convert into around 100 units in a mixture of new build and conversion. At the
year end our land bank was marginally up at 2,455 units compared to 2,333 last
year.

The preliminary results for the year to 30 June 2005 are expected to be
announced on Thursday 08 September 2005.



Further enquiries to:

Greg Fitzgerald, Chief Executive Galliford Try plc 01895 855 219
Frank Nelson, Finance Director Galliford Try plc 01895 855 226
Ann marie Wilkinson/Geoff Callow Bell Pottinger Financial 020 7861 3232



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