Orders strong for Galliford Try

A construction order book of £3.2 billion (€4.1 billion), up from a 2013 figure of £1.75 billion (€2.2 billion), is a highlight in a trading update from Galliford Try, the UK housebuilding and construction group.

Trading for the half year ended 31 December, 2014, was said to be in line with expectations. The group expects to announce its results for the half year on 18 February.

Galliford Try said its net debt was below £40 million (€51.1 million), compared to £85.9 million (€109.7 million) a year earlier.

It reported a solid performance in housebuilding, with rates of sale and prices in line with expectations.

In construction, it described its order book as “exceptional” adding that it had seen a number of major project wins in the period, and saw “an excellent pipeline of opportunities” coming up.

It said 21% of its order book was in the regulated sector (up from 19% in 2013), 59% in public (up from 52%) and 20% in private (down from 29%).

The company said it continued to prioritise risk management and margin protection in an improving market, adding that margins continued to be constrained as a result of the completion of historical projects.

It said that 98% of projected revenue for the current financial year was secured, with 72% for the year to 30 June 2016. This compared to 98% and 62% a year ago.

Greg Fitzgerald, executive chairman, said, “Housing market conditions remain good with growth having moderated to a more normal and sustainable level, and we are optimistic about the prospects for a number of recent and forthcoming sales outlets.

“Our partnerships business continues to see exceptional prospects for both contracting and development in the affordable market. Following the acquisition of Miller Construction in July 2014, our enlarged construction business is benefiting from an improving market.”

The company said that the successful integration of Miller was “substantially ahead of plan”.

Fitzgerald added, “We remain confident in the delivery of our strategy of strong and disciplined growth across all of our businesses."