12th Jul 2016 06:49
LONDON (Alliance News) - FTSE 250-listed construction and housebuilding company Galliford Try PLC on Tuesday said its expects to post full year results in line with management's expectations, after it sold more houses at higher prices and saw revenue growth in its construction arm.
Within its Linden Homes housebuilding arm, the company said it made 3,078 completions during the year, compared to the 2,769 recorded a year earlier, and noted its average private sales price rose to GBP335,000 from GBP327,000. Its forward sales position grew 27% at the year-end to GBP380.0 million, up from GBP300.0 million a year earlier, Galliford Try said.
The Linden Homes landbank stood at 11,500 plots at the year-end, and Galliford Try's total landbank was 14,200, the company said, noting that all plots had been secured for the new financial year's production and 84% of plots had been secures for the following financial year.
Galliford Try said its construction division had seen strong growth in revenue, and had a cash position of more than GBP160.0 million at year-end, as well as an order book of GBP3.50 billion, in line with a year earlier.
There was a growth in mixed tenure revenue in its Galliford Try Partnerships division, the company said, with contracting "slightly constrained" by procurement delays following the rent reforms.
Galliford Try said it expects its results for the year ended June 30 to meet its forecasts, in a year in which it reduced its net debt to GBP2.0 million from GBP17.0 million.
Galliford Try noted that it was well positioned in the wake of the UK's vote to leave the European Union.
"Recent political events create a backdrop of uncertainty for the new financial year. It is too early to predict specific effects on our markets, but the strength of underlying demand for new homes and the continuing availability of mortgage finance and Help-to-Buy give grounds for confidence in both Linden Homes and Galliford Try Partnerships," said Cheif Executive Peter Truscott.
"The late-cycle nature and public sector focus of construction are key advantages for the group, with the order book already 82% secured for financial year 2017. The balance of our businesses and the strength of our order books mean that we are well-placed to manage the impact of this uncertainty," Truscott added.
The company said its Non-Executive Chairman Greg Fitzgerald will leave the company on November 11, having previously announced his intention to retire from the group in September 2014. Peter Ventress, non-executive deputy chairman, will, also as previously announced, become non-executive chairman on Greg Fitzgerald stepping down, Galliford Try added.
By Hannah Boland; [email protected]; @Hannaheboland
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