8th Feb 2007 07:02
Galliford Try PLC08 February 2007 GALLIFORD TRY PLC INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2006 (Unaudited) HIGHLIGHTS 2006 2005 Increase £m £m• Revenue 606.8 372.2 +63% • Profit before tax - Pre exceptional* 20.7 14.0 +48% - Post exceptional 21.6 14.0 +54% • Earnings per share pence pence - Pre exceptional* 5.3 4.4 +20% - Post exceptional 5.6 4.4 +27% • Dividend per share 0.8 0.7 +14% • Chartdale Homes and Morrison Construction successfully integrated. • Construction order book £2.3 billion - 90% on non price competitive basis • Housebuilding completions of 593 units, sales in hand for the full year of £212 million and landbank of 4,848 units all at record levels • Net cash in hand of £26.6 million. • Proposed acquisition of Linden Holdings plc announced separately today. *An exceptional gain of £0.9 million (2005: nil) arises from a profit on thesale and leaseback of a group property. Commenting on the results, Greg Fitzgerald, Chief Executive, said: "I am pleased to report record results for the six months to 31 December 2006.We have successfully integrated Chartdale Homes and Morrison Construction,consolidated our position as a major force in the building and infrastructuremarkets in the UK, and are pushing forward with our strategy to expand oursuccessful housebuilding business. The Board is very confident of reporting further progress at the full year." For further enquiries please contact: Greg Fitzgerald, Chief Executive Galliford Try plc 01895 855219Frank Nelson, Finance Director Galliford Try plc 01895 855226 Ann-marie Wilkinson Bell Pottinger CorporateGeoff Callow & Financial 020 7861 3232 CHIEF EXECUTIVE'S REVIEW Overview I am pleased to report record results for the six months to 31 December 2006. Wehave successfully integrated Chartdale Homes and Morrison Construction,consolidated our position as a major force in the building and infrastructuremarkets in the UK, and are pushing forward with our strategy to expand oursuccessful housebuilding business. We have also announced separately today theproposed acquisition of Linden Holdings plc and an associated placing and openoffer to shareholders. Financial Results Profit before tax was up 54% on last year to £21.6 million (2005: £14.0 million)with Group revenue up 63% at £606.8 million (2005: £372.2 million). Thesefigures reflect the first full six months following the acquisitions of MorrisonConstruction and Chartdale Homes during the last financial year. Profit fromoperations, stated before finance costs, exceptional items, amortisation ofintangible assets and share of joint ventures' interest and tax, was 46% aheadof the same period last year at £23.6 million (2005: £16.2 million). Profit on our construction operations was up 75% to £9.8 million (2005: £5.6million) with a combined margin for our building and infrastructure divisions of2.1% (2005: 2.0%). As forecast, there were no PFI projects planned to reachfinancial close in the period and the costs of our PPP Investments businesstherefore exceeded income, resulting in a loss from operations of £1.6 million.Housebuilding profit from operations was a record £18.6 million with the marginat 14.1% (2005: 13.9%). Taking advantage of the continued strong market for commercial propertyinvestments we entered into a sale and leaseback arrangement on a group propertyin High Wycombe, generating cash proceeds of £3.1 million and a one offexceptional profit of £0.9 million. Since the half year end we completed afurther sale and leaseback arrangement on the Group's office and depot at Wolveyin Leicestershire, which will generate cash proceeds of £8.1 million and a oneoff exceptional profit of £4.0 million. Earnings per share before the exceptional profit increased by 20% to 5.3 pence(2005: 4.4 pence). Post the exceptional profit the increase was 27% to 5.6 pence(2005: 4.4 pence). Our trading results have been underpinned in the period by strong cashgeneration. Overall there was a £10.6 million inflow in the period resulting ina net cash balance of £26.6 million at 31 December 2006 (2005: £8.9 million netdebt). Our construction activities, particularly within the building division,maintained strong cash balances in the period. Dividend The directors have declared an interim dividend of 0.8p per share, a 14%increase on last year, which will be paid on 12 April 2007 to shareholders onthe register at 2 March 2007. The directors remain committed to a progressivedividend policy that takes into account both earnings growth and the need forcontinuing investment in the business. Building The division achieved a profit from operations of £5.7 million on revenue of£305.7 million, representing a margin of 1.9%. Cash generation has beenparticularly strong during the period. The order book at 31 December 2006 hasbeen maintained at £1.1 billion, 89% of which has been secured on criteria otherthan on a purely price competitive basis. Markets for the Group's businesses in Scotland, central England and the southhave been good with 79% of the order book in the public sector. We have aspecific focus on education, with two of the largest PFI schools projects inNorthamptonshire and the Highlands of Scotland, several Academies and a numberof university and other further education contracts, as well as in health wherewe have a good track record in delivering LIFT projects for primary care trusts.In our other key sectors of commercial, interiors and leisure the business iscarrying out a growing workload. We are working on a number of significantoffice and retail developments in Scotland and are expanding our operations inthe North of England from our well established business in the Midlands. We have strength and depth in our regional operations, demonstrated by thenumber of clients for whom we carry out repeat projects. Our objective is tobuild on this resource by growing both in our existing areas of operation and byextending our coverage. Infrastructure The division continues to build on its significant market presence in water,highways, rail, ground remediation, engineering and renewable energy. A profitfrom operations of £4.1 million on revenue of £166.2 million was achieved,representing a margin for the period of 2.4%. 88% of the division's £1.2 billion order book represents work secured under longterm frameworks and is in the public and regulated sector. As a market leader inthe water sector we have also been successful in being awarded a number ofadditional contracts from our framework clients, such as the recently announced£32 million of work secured for Yorkshire Water outside our current AMP4frameworks. Our highways business carries out projects throughout the UK and has a number ofgood opportunities in the pipeline. We started on site last month with a £24million scheme from Parton to Lilleyhall under the Highways Agency's "earlycontractor involvement" form of contract and have, in joint venture with threeother contractors, been appointed preferred bidder on the proposed M74 extensionin Glasgow, a project for the Scottish Executive with a total value of circa£300 million. During the period we secured the £79 million contract to construct Europe'slargest wind farm at Whitelee, south of Glasgow and started work on the OlympicPark remediation contract in East London. These awards demonstrate our growingtrack record and capability within these expanding markets. PPP Investments The Group has a strong presence in education, health and accommodation PFIprojects. Work is currently progressing towards financial close on the LIFT(Local Improvement Finance Trust) framework for primary care trust projects insouth east Essex, which is anticipated to provide £100 million of work. We have carried out, for the first time, a directors valuation of the Group'sPFI / PPP portfolio. As at 31 December 2006, based on a discounted cash flowbasis, the valuation was £16.3 million which compares to the net book value of£4 million. The Group's objective is to build up its portfolio of equityinvestments with a significant percentage holding in each project, in order toincrease equity returns as well as providing long term negotiated constructionwork. Affordable Housing and Regeneration We have made significant progress in growing our affordable housing andregeneration activities in both our building and housebuilding divisions. We areworking on three major English Partnerships sites, in Camborne, Plymouth and inColchester where we are preferred bidder on a 430 homes scheme. We aim toincrease our penetration of the market across our areas of operation, basing ourservice on the combined expertise we can bring to schemes from both ourhousebuilding and contracting skills. In January we announced the award of a 440homes regeneration scheme in Grimsby for Shoreline Housing, in which a keyfactor was our presence as a local housebuilder, established last year with theacquisition of Chartdale Homes. We have recently secured two affordable housing contracts in our eastern area,at Skegness and Soham, totalling 132 units and have a long term pipeline ofprojects, particularly in the south west and to the east of London, where thereis good future potential. Housebuilding Good sales rates were maintained throughout the first half of the financial yearand the division achieved a profit from operations of £18.6 million on revenueof £131.4 million, representing a margin for the period of 14.1%. Completionswere up 23% on last year at a record 593 units on an average selling price of£221,000, compared to £203,000 a year ago. The market for the first few weeks of 2007 has remained stable, despite theincrease in interest rates, with sales continuing to meet our targets. Thedivision has currently reserved, contracted or completed sales with a recordvalue of £212 million, 23% up on the same period last year, and in line with theprogress required to meet our sales objectives for the full year to 30 June. We are encouraged by the resilience of the market to short term economicchanges. With the fundamental economic factors underpinning the demand forhousing unchanged, as well as the continuing housing shortage, we are pressingahead with our expansion plans for the business. Achieving our growth targetsdepends on increasing the number of sites in our landbank as well as the averagesize of site, while maintaining our focus on individually designed developmentsand industry leading levels of customer satisfaction. Since the year end we havecontinued to secure good quality sites across our regions and currently ourlandbank stands at a record 4,848 units compared to 2,447 at the same point lastyear and 4,022 on 30 June 2006. Health, Safety & Environment We remain committed to achieving continuing high standards of health and safetyas an integral part of our business performance. For the 12 months to 31December 2006 our accident incident rate of 7.21 per 1,000 people remained wellbelow the industry average. During the period we have restructured our health,safety and environment team across the Group to match the needs of oursignificantly larger business and to ensure all our operations receive anappropriate level of service. Board Structure The board has decided to reorganise its structure with effect from 31 March 2007to take account of the significant increase in the size of its businessfollowing the Morrison Construction and Chartdale Homes acquisitions last yeartogether with the proposed acquisition of Linden Holdings plc separatelyannounced today. An executive board will be formed from the Group's existing executive committeeand will be responsible to the main board for the executive management of theGroup. It will be chaired by the Chief Executive and comprise: Greg Fitzgerald, Chief ExecutiveFrank Nelson, Finance DirectorAndy Sturgess, Managing Director Building DivisionKen Gillespie, Managing Director Infrastructure DivisionIan Baker, Managing Director Housebuilding DivisionRichard Barraclough, Company Secretary and Legal Director Ian Baker joins the executive board having been Managing Director of StamfordHomes in the eastern counties since 2003 where he was responsible for theintegration of Chartdale Homes. Ian, 36, originally joined the Group's southwest housebuilding business, Midas Homes, in 1995. Subject to completion of the proposed acquisition of Linden , Chris Coates, 41,currently the director of Linden responsible for its south east and Bristolregions, will join the executive board. He will be divisional housebuildingManaging Director responsible for the south east, with Ian Baker takingresponsibility for all other areas of the enlarged housebuilding division. The Board of Directors of Galliford Try plc will therefore comprise the fourexisting non executive directors, David Calverley, Chairman; Chris Bucknall,Deputy Chairman; Jonathan Dawson and Amanda Burton together with the ChiefExecutive, Greg Fitzgerald, and Finance Director, Frank Nelson. RichardBarraclough continues as Company Secretary. The Group's Audit, Remuneration andNomination Committees are unchanged. Prospects The Group is performing well across all its divisions. In building andinfrastructure we have a significant presence in our key markets. Our affordablehousing and regeneration activities have grown significantly due to our successin securing major regeneration schemes. Our track record in private financeinitiative projects places us in a good position to secure attractive equity andconstruction returns. We have embarked on a plan to build on our successful housebuilding model wherethere is significant scope to increase our penetration and coverage acrossmarkets in the south and east of England. The Board is very confident of reporting further progress at the full year. Greg FitzgeraldChief Executive 8 February 2007 CONSOLIDATED INCOME STATEMENTfor the half year ended 31 December 2006 (unaudited) Half Year Half Year Year to to to 31 Dec 31 Dec 30 June 2006 2005 2006 Notes £m £m £m----------------------------------------------------------------------Continuing operationsRevenue 3 606.8 372.2 851.5Cost of sales (550.2) (336.2) (763.4)----------------------------------------------------------------------Gross profit 56.6 36.0 88.1Administrative expenses (32.4) (19.5) (48.9) Share of post tax (losses)/ profit from joint ventures (0.2) (0.2) 0.3----------------------------------------------------------------------Profit before finance costs 3 24.0 16.3 39.5 ----------------------------------------------------------------------Profit before finance costs, amortisation and exceptionalitems 23.4 16.3 38.0Amortisation of intangibles (0.3) - (0.5)Exceptional items:Profit on sale and leaseback of property 2 0.9 - 3.9Restructuring costs - - (1.9)Profit before finance costs 24.0 16.3 39.5---------------------------------------------------------------------- Interest receivable 4 0.5 0.3 0.7Interest payable 4 (2.9) (2.6) (5.7)----------------------------------------------------------------------Profit on ordinary activities before tax 21.6 14.0 34.5Taxation 5 (6.3) (4.1) (9.1)----------------------------------------------------------------------Profit for the financial period 15.3 9.9 25.4====================================================================== Earnings per ordinary share 6- basic 5.6p 4.4p 10.8p- diluted 5.5p 4.4p 10.6p====================================================================== Dividend declared per sharefor the period 7 0.8p 0.7p 2.5p====================================================================== CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEfor the half year ended 31 December 2006 (unaudited) Half Year to Half Year to Year to 31 Dec 2006 31 Dec 2005 30 June 2006 £m £m £m-----------------------------------------------------------------------Profit for the financial period 15.3 9.9 25.4 Actuarial losses in pension scheme (3.5) (3.2) (5.1)Deferred tax on items charged to equity 2.3 0.9 2.2Current tax on items charged to equity - - 1.4-----------------------------------------------------------------------Net losses not recognised in the income statement (1.2) (2.3) (1.5)-----------------------------------------------------------------------Total recognised income for the period 14.1 7.6 23.9======================================================================= CONSOLIDATED BALANCE SHEETat 31 December 2006 (unaudited) 31 Dec 31 Dec 30 June 2006 2005 2006 £m £m £m-----------------------------------------------------------------------Non-current assetsIntangible assets 2.0 - 2.3Goodwill 57.2 0.6 57.2Property, plant and equipment 7.3 11.6 8.0Financial assets - Available for sale investments 1.2 0.5 1.2Investments accounted for using equity method 5.5 1.9 3.3Trade and other receivables 0.2 0.2 0.2Deferred tax assets 18.7 16.4 15.7-----------------------------------------------------------------------Total non-current assets 92.1 31.2 87.9Current assetsInventories 1.9 2.1 0.9Developments 325.2 202.5 283.8Trade and other receivables 180.7 93.1 184.1Available for sale financial assets - 4.8 -Derivative financial assets - 0.1 0.1Cash and cash equivalents 34.0 3.7 21.7-----------------------------------------------------------------------Total current assets 541.8 306.3 490.6 -----------------------------------------------------------------------Total assets 633.9 337.5 578.5----------------------------------------------------------------------- Current liabilitiesFinancial liabilities - Borrowings (6.3) (16.4) (3.8)Trade and other payables (391.6) (195.3) (344.5)Current tax liabilities (7.4) (4.6) (3.1)Provisions (1.0) - (2.0)-----------------------------------------------------------------------Total current liabilities (406.3) (216.3) (353.4)Non- current liabilitiesFinancial liabilities - Borrowings (1.1) (1.0) (1.9)Retirement benefit obligations (49.7) (48.1) (47.1)Deferred tax liabilities (13.5) (3.2) (13.5)Other non-current liabilities (34.2) (10.7) (42.1)Provisions (0.4) - (0.4)-----------------------------------------------------------------------Total non-current liabilities (98.9) (63.0) (105.0) -----------------------------------------------------------------------Total liabilities (505.2) (279.3) (458.4)----------------------------------------------------------------------- -----------------------------------------------------------------------Net assets 128.7 58.2 120.1----------------------------------------------------------------------- Shareholders' equityShare capital 13.8 11.3 13.7Share premium 49.0 2.3 48.7Merger reserves 4.7 4.7 4.7Retained earnings 61.2 39.9 53.0-----------------------------------------------------------------------Total shareholders' equity 128.7 58.2 120.1Minority interest in equity - - ------------------------------------------------------------------------Total equity 128.7 58.2 120.1======================================================================= CONSOLIDATED CASH FLOW STATEMENTfor the half year ended 31 December 2006 (unaudited) Half Year Half Year Year to to to 31 Dec 31 Dec 30 June 2006 2005 2006 Notes £m £m £m-------------------------------------------------------------------------Cash flows from operating activities:Net cash from operations 9 25.6 14.2 18.2Net interest paid (1.1) (2.6) (4.6)Tax paid (2.8) (3.0) (10.3) -------------------------------------------------------------------------Net cash from operating activities 21.7 8.6 3.3 Cash flows from investingactivities:Acquisition of subsidiaries (net of cash acquired) (1.9) (1.1) (24.8)Acquisition of investments in joint ventures and associates (2.4) - (1.0)Income from investments in joint ventures and associates - - 0.1Acquisition of available for sale investments - - (0.7)Purchases of property, plant and equipment (0.9) (0.6) (1.6)Proceeds from sale of property, plant and equipment - - 11.1-------------------------------------------------------------------------Net cash used in investing activities (5.2) (1.7) (16.9) Cash flows from financing activities:Net proceeds from issue of ordinary share capital 0.4 - 48.8Purchase of treasury shares (1.3) - (1.9)Repayment of borrowings (0.9) (0.1) (0.1)Borrowing acquired with subsidiary - (0.1) -Dividends paid to group shareholders (5.0) (3.3) (4.9)Available for sale financial assets - (1.4) 3.4-------------------------------------------------------------------------Net cash (used in)/from financing activities (6.8) (4.9) 45.3 -------------------------------------------------------------------------Increase in net cash and cash equivalents 9.7 2.0 31.7------------------------------------------------------------------------- Net cash and cash equivalents at beginning of period 18.0 (13.7) (13.7)-------------------------------------------------------------------------Net cash and cash equivalents at end of period 9 27.7 (11.7) 18.0========================================================================= NOTES TO THE INTERIM REPORT 1 Basis of preparation This financial information comprises the consolidated interim balance sheets asat 31 December 2006 and 31 December 2005 and related consolidated interimstatements of income and cash flows and related notes for the six months thenended of Galliford Try plc (hereinafter referred to as the 'financialinformation'). This financial information has been prepared in accordance withthe Listing Rules of the Financial Services Authority and is unaudited. In preparing this financial information, management have used the principalaccounting policies as set out on pages 37 to 39 of the Group's annual financialstatements for the year ended 30 June 2006. These policies have beenconsistently applied to all the periods presented. The Group has chosen not to adopt IAS 34, 'Interim financial statements', inpreparing its 2006 interim statements and, therefore, this interim financialinformation is not in compliance with International Financial ReportingStandards (IFRS). The comparative figures for the year ended 30 June 2006 do not constitutestatutory accounts for the purposes of Section 240 of the Companies Act 1985. Acopy of the statutory accounts for the year ended 30 June 2006, prepared inaccordance with IFRS as detailed in the preceding annual accounts, has beendelivered to the Registrar of Companies and contained an unqualified auditors'report in accordance with Section 235 of the Companies Act 1985. 2 Exceptional items The profit on the sale and leaseback of one of the Group's properties has beentreated as exceptional in accordance with the Group's accounting policy. Theproperty had previously been held within developments. 3 Business segment reporting Segment information is presented in the consolidated interim accounts in respectof the Group's business segments which are the primary basis of segmentreporting. The business segment reporting reflects the Group's management andinternal reporting structure. Segment results include items directlyattributable to a segment as well as those that can be allocated on a reasonablebasis. As explained in the financial statements for the year ended 30 June 2006,with effect from 1 July 2006 the Construction activities have been operating astwo divisions, Building and Infrastructure, hence the business segments havebeen amended accordingly. Due to the complexity of the integration of theMorrison Construction and PFI divisions into the Group for part of the previousyear, the comparative figures have not been restated as it is impracticable. 3 Business segment reporting (continued) Construction PPP Building Infrastructure Total Investments Housebuilding Group Total £m £m £m £m £m £m £mHalf year ended 31 December 2006Group revenue and share of jointventure revenue 306.6 171.4 478.0 0.2 131.4 3.3** 612.9 Share of joint ventures' revenue (0.9) (5.2) (6.1) - - - (6.1)-------------------------------------------------------------------------------------------------------------------Revenue 305.7 166.2 471.9 0.2 131.4 3.3 606.8=================================================================================================================== Segment result:Profit/(loss) before joint ventures 5.7 4.1 9.8 (1.6) 18.6 (3.2) 23.6 Share of joint ventures' profit - - - - - - --------------------------------------------------------------------------------------------------------------------Profit/(loss) from operations * 5.7 4.1 9.8 (1.6) 18.6 (3.2) 23.6 Share of joint ventures' interestand tax - - - (0.1) (0.1) - (0.2) -------------------------------------------------------------------------------------------------------------------Profit/(loss) before finance costs,amortisation andexceptional items 5.7 4.1 9.8 (1.7) 18.5 (3.2) 23.4 Amortisation and exceptional items (0.2) (0.1) (0.3) - - 0.9 0.6------------------------------------------------------------------------------------------------------------------- Profit/(loss) before finance costs 5.5 4.0 9.5 (1.7) 18.5 (2.3) 24.0 Net finance costs (2.4)-------------------------------------------------------------------------------------------------------------------Profit before tax 21.6Income taxes (6.3)-------------------------------------------------------------------------------------------------------------------Profit for the year from continuing operations 15.3------------------------------------------------------------------------------------------------------------------- PPP Construction Investments Housebuilding Group Total £m £m £m £m £mHalf year ended 31 December 2005Group revenue and share of joint venture revenue 274.2 0.7 98.5 0.3 373.7Share of joint ventures' revenue (1.4) - (0.1) - (1.5)-----------------------------------------------------------------------------------------------------------------Revenue 272.8 0.7 98.4 0.3 372.2-----------------------------------------------------------------------------------------------------------------Segment result:Profit/(loss) before joint ventures 5.5 (0.5) 14.1 (2.6) 16.5Share of joint ventures' profit/(loss) 0.1 - (0.4) - (0.3)-----------------------------------------------------------------------------------------------------------------Profit/(loss) from operations * 5.6 (0.5) 13.7 (2.6) 16.2Share of joint ventures' interest and tax - - 0.1 - 0.1-----------------------------------------------------------------------------------------------------------------Profit/(loss) before finance costs, amortisation and exceptional items 5.6 (0.5) 13.8 (2.6) 16.3Amortisation and exceptional items - - - - ------------------------------------------------------------------------------------------------------------------Profit/(loss) before finance costs 5.6 (0.5) 13.8 (2.6) 16.3Net finance costs (2.3)-----------------------------------------------------------------------------------------------------------------Profit before tax 14.0Income taxes (4.1)-----------------------------------------------------------------------------------------------------------------Profit for the year from continuing operations 9.9================================================================================================================= * Profit from operations is stated before finance costs, exceptional items,amortisation of intangible assets and share of joint ventures' interest and tax. ** Included with Group revenue is £3.1 million in relation to the sale of theGroup's property in High Wycombe, previously held within developments. 4 Finance costs Half Year to Half Year to Year to 31 Dec 2006 31 Dec 2005 30 June 2006 £m £m £m------------------------------------------------------------------------------- Bank interest 0.2 0.9 2.3Interest on unwinding of discounted creditors 2.4 1.3 2.4Net return on assets of pension fund 0.3 0.4 0.8Other - - 0.2-------------------------------------------------------------------------------Interest payable 2.9 2.6 5.7Interest receivable (0.5) (0.3) (0.7)-------------------------------------------------------------------------------Net finance costs 2.4 2.3 5.0------------------------------------------------------------------------------- 5 Taxation The tax charge for the period reflects the estimated effective rate for the fullyear to 30 June 2007 of 29% (30 June 2006: 26%). 6 Earnings per share Basic earnings per share is calculated using the profit on ordinary activitiesafter tax and the weighted average number of ordinary shares in issue during theyear less the weighted average number of shares held by the Galliford TryEmployee Share Trust which have not unconditionally vested in employees. Fordiluted earnings per share the weighted average number of ordinary shares isadjusted to assume conversion of all potentially dilutive ordinary shares. 31 December 2006 31 December 2005 ----------------------------- ------------------------------- Weighted Per Weighted Per average share average share Earnings number amount Earnings number amount £m of shares pence £m of shares pence---------------------------------------------------------------------------------------BasicEarnings attributable to ordinaryshareholders 15.3 273,865,542 5.6p 9.9 222,802,899 4.4p Effect of dilutivesecurities:Options 4,868,276 3,035,427 ----------------------------------------------------------------------------------------Diluted 15.3 278,733,818 5.5p 9.9 225,838,326 4.4p--------------------------------------------------------------------------------------- Earnings adjusted for post tax exceptional items of £0.7million (Dec 2005:£Nil)amount to £14.6million (Dec 2005: £9.9 million). The basic earnings per sharecalculated on this adjusted basis is 5.3p (Dec 2005: 4.4p) (diluted 5.2p (Dec2005: 4.4p)). 7 Dividends The following dividends were paid by the Company: Half year to 31 Dec 2006 Half year to 31 Dec 2005 Year to 30 June 2006 ------------------------ ------------------------ -------------------- Pence per Pence per Pence per £m share £m share £m share--------------------------------------------------------------------------------------------Previous period final 5.0 1.8 3.3 1.5 3.3 1.5Current period interim - - - - 1.6 0.7-------------------------------------------------------------------------------------------- 5.0 1.8 3.3 1.5 4.9 2.2============================================================================================ The following dividends were declared by the Company in respect of each accountingperiod presented: Half year to 31 Dec 2006 Half year to 31 Dec 2005 Year to 30 June 2006 Pence per Pence per Pence per £m share £m share £m share--------------------------------------------------------------------------------------------Interim 2.2 0.8 1.6 0.7 1.6 0.7Final - - - - 5.0 1.8-------------------------------------------------------------------------------------------- 2.2 0.8 1.6 0.7 6.6 2.5============================================================================================ The interim dividend for 2007 of 0.8 pence per share was approved by the Boardon 8 February 2007 and has not been included as a liability as at 31 December2006. This interim dividend will be paid on 12 April 2007 to shareholders on theregister at the close of business on 2 March 2007. 8 Consolidated statement of changes in shareholders' equity Half Year to Half Year to Year to 31 Dec 2006 31 Dec 2005 30 June 2006 £m £m £m-------------------------------------------------------------------------------- Balance at start of period 120.1 53.7 53.7Actuarial losses in pension scheme (3.5) (3.2) (5.1)Deferred tax on items charged to equity 2.3 0.9 2.2 Current tax on movement in equity - - 1.4--------------------------------------------------------------------------------Net expense recognised directly in equity (1.2) (2.3) (1.5)Profit for the period 15.3 9.9 25.4Dividends (5.0) (3.3) (4.9)Issue of shares 0.4 - 48.8Purchase of own shares (1.3) - (1.9)Share based payments 0.4 0.2 0.5--------------------------------------------------------------------------------Balance at end of period 128.7 58.2 120.1-------------------------------------------------------------------------------- 9 Notes to the cash flow statement Half Year to Half Year to Year to 31 Dec 2006 31 Dec 2005 30 June 2006 £m £m £m--------------------------------------------------------------------------------Cash flows from operatingactivities:Net profit after income taxes 15.3 9.9 25.4 Adjustments for:Tax 6.3 4.1 9.1Depreciation 1.4 0.8 1.5Amortisation of intangibles 0.3 - 0.5Profit on disposal of property, plant and equipment - - (3.6)Net finance costs 2.4 2.3 5.0Share based payment charge 0.4 0.2 0.5Movement in pension deficit (0.8) (1.1) (4.2)Share of post tax losses/(profits) from joint ventures 0.2 0.2 (0.3)-------------------------------------------------------------------------------- 25.5 16.4 33.9 Changes in working capital:(Increase)/decrease in inventories (1.0) (0.7) 0.5(Increase)/decrease in developments (40.0) 3.7 (1.2)Decrease/(increase) in trade and other receivables 3.6 7.4 (0.2)Increase/(decrease) in trade and other payables 38.5 (12.6) (16.7)(Decrease)/increase in provisions (1.0) - 1.9--------------------------------------------------------------------------------Net cash from operations 25.6 14.2 18.2-------------------------------------------------------------------------------- Half Year to Half Year to Year to 31 Dec 2006 31 Dec 2005 30 June 2006 £'m £'m £'m-------------------------------------------------------------------------------- Cash and cash equivalents 34.0 3.7 21.7Bank overdrafts (6.3) (15.4) (3.7)--------------------------------------------------------------------------------Net cash and cash equivalents 27.7 (11.7) 18.0-------------------------------------------------------------------------------- 10 Net cash/(debt) Half Year to Half Year to Year to 31 Dec 2006 31 Dec 2005 30 June 2006 £m £m £m------------------------------------------------------------------------------Available for sale financial assets - 4.8 -Cash and cash equivalents 34.0 3.7 21.7Financial liabilities:Bank overdrafts (6.3) (15.4) (3.7)Other current - (1.0) (0.1)Non current (1.1) (1.0) (1.9)------------------------------------------------------------------------------Net cash/(debt) 26.6 (8.9) 16.0------------------------------------------------------------------------------ INDEPENDENT REVIEW REPORT TO GALLIFORD TRY PLC Introduction We have been instructed by the company to review the financial information forthe six months ended 31 December 2006 which comprises the consolidated interimbalance sheet as at 31 December 2006 and the related consolidated interimstatements of income, cash flows and recognised income and expense for the sixmonths then ended and related notes. We have read the other informationcontained in the interim report and considered whether it contains any apparentmisstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The Listing Rulesof the Financial Services Authority require that the accounting policies andpresentation applied to the interim figures should be consistent with thoseapplied in preparing the preceding annual accounts except where any changes, andthe reasons for them, are disclosed. This interim report has been prepared in accordance with the basis set out inNote 1. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board for use in the United Kingdom. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the disclosed accounting policies havebeen applied. A review excludes audit procedures such as tests of controls andverification of assets, liabilities and transactions. It is substantially lessin scope than an audit and therefore provides a lower level of assurance.Accordingly we do not express an audit opinion on the financial information.This report, including the conclusion, has been prepared for and only for thecompany for the purpose of the Listing Rules of the Financial Services Authorityand for no other purpose. We do not, in producing this report, accept or assumeresponsibility for any other purpose or to any other person to whom this reportis shown or into whose hands it may come save where expressly agreed by ourprior consent in writing. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 31 December 2006. PricewaterhouseCoopers LLPChartered AccountantsWest London8 February 2007 Notes: (a) The maintenance and integrity of the Galliford Try plc web site is theresponsibility of the directors; the work carried out by the auditors does notinvolve consideration of these matters and, accordingly, the auditors accept noresponsibility for any changes that may have occurred to the interim reportsince it was initially presented on the web site. (b) Legislation in the United Kingdom governing the preparation anddissemination of financial information may differ from legislation in otherjurisdictions. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Galliford Try