6th Jan 2005 07:00
Galliford Try PLC06 January 2005 6th January 2005 GALLIFORD TRY PLC TRADING UPDATE Galliford Try plc is providing the following update to trading for the half yearto 31 December 2004. Current Trading Galliford Try confirms that it is on course to report record half year profitsin line with market expectations. Net debt at 31 December 2004 was at a similarlevel to last year. Construction The construction division has continued to make good progress in securing workin its chosen market sectors during the first half of the year and is on trackto deliver its planned increase in profit margin. In health, we achieved financial close on NHS LIFTs at Coventry and at Barnet,Enfield and Haringey. Including Liverpool and Sefton LIFT, which closed in thelast financial year, we now have a total of £134m of LIFT projects alreadyunderway, and are encouraged by the scope for further work in later phases. Wewill be selectively targeting the opportunities that will arise from the nextrelease of LIFT schemes due in 2005. In education, we achieved financial close on the £45m Caludon Schools PFI,preferred bidder status on the £150m Northampton Schools PFI project during thefirst half and are on the shortlist for further multi school PFI projects inRochdale and Bromsgrove which have a construction value in excess of £50m each. In October we announced that we had won new affordable housing contracts worth£91m, giving a significant boost in this growth sector. Our workloads in water, rail, telecommunications and the commercial marketscontinue to meet our targets and we start the second half of the year with awell balanced order book of £719m. Housebuilding Completions for the half year were up 5% at 387 on an unchanged average sellingprice of £228,000. The housebuilding division has currently reserved, contractedor completed sales with a value of £130m, a 3% increase on last year andrepresenting two thirds of planned sales for the year to 30 June 2005. We stated in October that sales had been held back in weaker market conditionsand this has been widely reported across the sector. However, we are encouragedby the visitor levels at our sites and we are operating off more sites than ayear ago. This is in line with our policy of concentrating on individuallydesigned developments for the mainstream market, with no large apartmentdevelopments. Together with our broad geographic spread across the southern halfof the country, this means that in the absence of any further deterioration inthe market we are well placed to achieve our targets for the full year to 30June 2005. An easing in external cost pressures, together with the cost reductioninitiatives we are taking, are having a positive effect. We have also beensuccessful in achieving a moderate increase in our land bank under the tighterinvestment criteria we are applying, which at 31 December 2004 stood at 2,451plots, up 7% on a year ago. The growth of the business is supported by the longterm fundamentals of the housing market, which remain encouraging. Interim Results The Company's interim results for the half year to 31 December 2004 are expectedto be announced on Thursday 24th February 2005. Further enquiries to: David Calverley, Chief Executive Galliford Try plc 01895 855219Frank Nelson, Finance Director Galliford Try plc 01895 855226Ann marie Wilkinson Bell Pottinger Financial 020 7861 3232 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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