‘Strong progress’ for Galliford Try

An improved construction sector order book is being reported by UK housebuilding and construction group Galliford Try in an interim management statement for the period 1 January to 13 May.

Chief executive Greg Fitzgerald said, "The group has made strong progress since the start of the year, particularly in housebuilding where market conditions continue to improve.”

He added, “With six weeks to the year end, the group expects to report a profit before tax for the full year ending 30 June 2014 above the current analysts' consensus of £89.7 million (€110.2 million) and not less than £92.0 million (€113 million).”

In the construction sector, the group’s order book was said to be standing at £1.3 billion (€1.6 billion), up from £1.25 billion (€1.54 billion) at 31 December, 2013. It said that 80% of next year's revenue was secured, compared to a 2013 figure of 79%, and that all business units were experiencing an increase in opportunities.

Fitzgerald said, “The division is winning work with appropriate margin and inflation protection, and continues its focus on risk management and cash, which have been robust in the period.

“All of our businesses, in common with the industry, continue to experience challenging production conditions, with supply of both labour and materials constrained by strong demand. However, these conditions are stabilising and we continue to manage them proactively.”

In housebuilding, Galliford Try said it had a record £1.0 billion (€1.2 billion) of sales reserved, contracted or completed across both Linden Homes and Galliford Try Partnerships – up from £853 million (€1.0 billion) in 2013 – of which £790 million (€970.7 billion) was for the current financial year to 30 June 2014 – compared to £644 million (€791.3 million) in 2013.