Galliford Try sees annual profit in line with market expectations
By Michele Maatouk
Date: Wednesday 17 Jul 2019
(Sharecast News) - FTSE 250 builder Galliford Try said on Wednesday that it expects annual pre-tax profit to be in line with the current range of analysts' expectations amid "good" housing demand.
In a trading update for the year to the end of June 2019, the company said it continues to trade well, with full-year pre-tax profit set to meet market expectations of between £112.7m and £116.4m.
Galliford said its Linden Homes division is still seeing "robust" demand despite the weaker economic outlook and has maintained its sales rate and strong margin while continuing to improve its customer satisfaction. Meanwhile, the Partnerships & Regeneration business continues to achieve strong growth ahead of targets, with both revenues and margins rising. The company said it had enjoyed some "key wins" during the period.
The strategic review of Galliford's construction business is now complete and underlying operations are performing well, it said. The current order book for the division stands at £2.9bn versus £3.3bn in 2018, with 88% of revenue for the new financial year secured.
Chief executive Graham Prothero said: "The group has continued to perform well, supported by good housing demand. We expect our full year results and average net debt to be in line with previous guidance.
"We are making strong progress against the operational targets we set out in 2017. We are reviewing our 2021 volume targets to ensure that growth is controlled, and our gearing is managed.
"We are pleased that the restructure of the construction business is now complete. The business is now firmly focused on its core strengths of regional building operations, together with profitable operations in highways and water, all of which are now performing effectively. I look forward to the next financial year with the appropriate strategic priorities in place across the group."
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