Record profit expected at Galliford Try

UK homebuilder Galliford Try is expecting a record half-year profit, as it issued a trading update ahead of its half-year results up to December 31, 2013, which will be announced next month.

The contractor also said it achieved a strong performance in construction, which had contributed to a lower than expected increase in net debt, at £90 million (€110 million), up from £58 million (€70 million) in 2012.

In housebuilding, the firm saw a 20% increase in total sales reserved, contracted and completed at £652 million (€790 million), versus 2012 figures of £544 million (€660 million).

Average sale price also grew, up 16% at £288,000 (€350,000) from 2012’s £248,000 (€300,000). Affordable house sales sat at £118,000 (€143,000), up marginally on 2012’s £115,000 (€139,000).

Galliford Try said it expected revenue to be up on the equivalent half-year period, as a consequence of 1,359 unit completions.

The company also currently holds a record landbank of 13,100 plots.

In construction, Galliford Try’s order book remains strong at £1.75 billion (€2.1 billion).

Greg Fitzgerald, chief executive, said it had been another strong performance for the group in the first half of the financial year with profits expected to be at record levels.

“We are confident that our disciplined strategy will deliver further good growth and improved returns this year and beyond,” he added.