9th Nov 2007 07:01
Galliford Try PLC09 November 2007 GALLIFORD TRY PLC INTERIM MANAGEMENT STATEMENT For the period from 1 July 2007 to 9 November 2007 Galliford Try plc, the construction and housebuilding group, is publishing itsfirst Interim Management Statement as required by the revised Listing Authoritydisclosure rules, in advance of its annual general meeting being held today: We made significant progress during the year to 30 June 2007. We produced recordfinancial results and made good progress in developing our affordable housingand regeneration business following the acquisition of Linden Homes. Weconsolidated our position as a major construction force in the building andinfrastructure markets, and joined the FTSE 250 Index for the first time. Since the start of our new financial year the Group has traded in line with theboard's expectations. The Group's cash position remains strong, with excellentcash flows from our construction businesses, and average net debt to date wellbelow the £99 million reported at 30 June. The integration of Linden Homescontinues to go well, and we are on track to deliver higher synergy savings thanforecast at acquisition. Our construction activities continue to perform well in good markets. We arecarrying out a significant amount of work from our long term frameworks,particularly those in the water sector, and are over half way through our majormulti-school PFI education projects. Our total construction order book currentlystands at £2.0 billion, with 95% of our anticipated revenue for the currentfinancial year secured. Having achieved financial close on the South East Essex LIFT since the beginningof the financial year, which is expected to generate up to £100 million ofconstruction work, our PPP Investments business is shortly expected to achievefinancial close of the £32 million St Andrews health centre for NHS Fife. Wehave a number of further projects in earlier stages of the private financeinitiative process including being shortlisted for the major Building Schoolsfor the Future project in Birmingham. We have made significant further progress in the affordable housing andregeneration sector where our ability to transfer our construction andhousebuilding skills to large schemes gives us a competitive edge. We weredelighted to announce in October our appointment as preferred bidder for thefirst major net zero carbon development in the UK with an 800 homes scheme atChichester, taking the total of major regeneration schemes on which we areworking to eight, six of them with English Partnerships. Our housebuilding business made a good start to the financial year with recordsales carried forward and an encouraging level of sales during July and August.However, the succession of interest rate rises and the impact on consumerconfidence as a result of the turbulence in the financial markets duringSeptember has led to a more difficult market during the autumn selling season.We have benefited from our policy of forward selling, our continuedconcentration on individually designed developments and minimum exposure toconsortium sites, as well as our geographic spread across the south and east ofthe country, all of which have lessened the overall effect on our sales. Our housebuilding sales value either reserved, contracted or completed currentlytotals £380 million. This represents 60% of our total projected sales for thefinancial year, compared to 58% at the same stage last year. The board believes that, notwithstanding the tougher housing market, itsbusiness model will serve it well during the current period. The Group is makingexcellent progress in affordable housing and regeneration, and its strength inthe construction market, particularly in the public and regulated sectors,continues to generate good opportunities for growth. The board continues to be confident on the future prospects for the Group. For further enquiries, please contact: Greg Fitzgerald, Chief Executive Galliford Try plc 01895 855219Frank Nelson, Finance Director Galliford Try plc 01895 855226Ann marie Wilkinson/Dan de Belder Bell Pottinger 020 7861 3232 Corporate & Financial This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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