Galliford Try upbeat on construction

UK contractor Galliford Try said its construction division had already secured 95% of its projected revenues for the year ending 30 June, 2012, after refocusing its strategy on high margin business and opportunities in the water infrastructure sector.

The company has also already secured 58% of its projected revenue for 2013. But as a result of the strategic refocus, the company's total construction order book reduced to £1.6 billion (€1.9 billion) at 10 November, 2011, compared to £1.75 billion (€2 billion) at the same point in 2010.

Chief executive Greg Fitzgerald said, "Although the economic outlook remains uncertain, we have been encouraged by the performance of our house building business as its growth plan comes to fruition during this financial year. Construction is benefiting from its long-term frameworks, particularly for the water industry, during the current more challenging markets. While continuing to adopt an appropriate level of caution, we remain confident in delivering the objectives of our expansion plan."

Recent contract wins for the construction division included £35 million (€41 million) of work in joint venture for Anglian Water and an expected £30 million (€35 million) of work with the UK Environment Agency thanks to a contract extension.

The company's housing division, meanwhile, reported 38% year-on-year growth in sales for the period from 1 July to 10 November, 2011, to £430 million (€501 million) following an "encouraging" autumn selling season.