7th Nov 2014 08:01
LONDON (Alliance News) - Galliford Try PLC Friday said both its housebuilding and construction businesses have grown in recent months, with the order book at the construction business rising significantly and its pipeline of further opportunities improving.
In a statement, the company said the sales rate for its housebuilding business improved during the autumn after a seasonally quieter summer, although not at the same rate as last year. It said the unit had GBP509 million worth of sales, reserved, contracted or completed business on November 6, down from GBP560 million a year earlier
Of that, GBP433 million or 52% is for the current financial year to June 30, 2015, down from 60% of last year's total at the same stage.
"As expected at this stage all units required to meet our half year targets have been sold," it said.
Galliford said its Linden Homes business continues to focus on margin and achieving prices above the company's expectations.
It said it is also making strong progress in Galliford Try Partnerships, with the order book at GBP620 million following recent project wins, including Silvertown Reach.
The unit's land bank stands at a record of 14,050 units, it added. That was achieved ahead of plan, and the land buying opportunities remain "very good" across all regions, it said. It has secured 94% of the land for the financial year to June 30, 2016.
Galliford said the order book in its construction business has been"transformed", rising to GBP3.1 billion as of November 6, from GBP1.75 billion a year earlier, after it acquired Miller Construction. It is also experiencing an improving pipeline of opportunities.
It said the integration of the Miller Construction business in proceeding to plan, and restructuring costs are likely to be lower than it initially expected even though it will still achieve the savings it had targeted.
The enlarged business continues to generate exceptional levels of cash, Galliford said. The unit has secured 94% of projected revenues for the financial year to June 30, 2015 and 56% for the following year, up from 93% and 55%, respectively, at this stage last year.
By Steve McGrath; [email protected]; @stevemcgrath1
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