TIDMGFRD
RNS Number : 7454J
Galliford Try PLC
05 July 2011
5 JULY 2011
GALLIFORD TRY PLC - TRADING UPDATE
Galliford Try plc, the housebuilding and construction group,
today provides the following update on trading for the year ended
30 June 2011. The group expects to announce its results for the
full year on 14 September 2011.
HIGHLIGHTS
-- Full year results expected to be in line with current market
expectations.
-- Net cash of over GBP30 million at 30 June 2011, ahead of
expectations (31 December 2010: net debt GBP31 million; 30 June
2010: net cash GBP75 million).
Housebuilding
-- Total housing completions up 27% to 2,170 units.
-- Average private sales price up 10% to GBP227,000 (2010:
GBP207,000).
-- 23% increase in housing sales carried forward at GBP247
million (2010: GBP201 million) of which GBP173 million is for the
new financial year, representing 29% of planned output.
-- 7% increase in total landbank to 10,250 plots (30 June 2010:
9,600 plots).
-- 70% of landbank secured at current market values (2010: 56%),
with 100% of plots required for new financial year's production
having detailed planning consent.
Construction
-- Resilient performance in difficult markets.
-- GBP1.75 billion order book maintained (2010: GBP1.8
billion).
-- Excellent cash management, cash in hand up on half year.
-- Major contract awards secured include GBP790 million Forth
Road Crossing, GBP200 million United Utilities treatment works and
GBP50 million Petrofac plant.
-- 80% of projected revenue for new financial year secured
(2010: 77%).
Greg Fitzgerald, Chief Executive, commented:
"Two years into our transformational housebuilding expansion
plan, we are on target to meet our objectives. In addition, we have
maintained a high quality construction order book, winning a series
of valuable projects during the period, and maintaining excellent
cash balances. Our financial strength and the spread of our
activities mean that, subject to the economic uncertainties
affecting our markets, we enter the new financial year with
confidence."
For further enquiries please contact:
Galliford Try - Greg Fitzgerald, Chief Executive 01895
855001
Frank Nelson, Finance Director
Tulchan Communications - Mal Patel, Matthieu Roussellier 020
7353 4200
Housebuilding
Following the improvement in the housing market early in 2011,
sales levels have remained firm and prices for our homes stable.
Cancellation levels of 19% are close to the historical average, and
the requirement for sales incentives reduced significantly during
the second half, particularly in the south east of England where
our southern biased business is strong.
As production increased and we opened new sites in line with our
expansion plan, the number of completions rose during the second
half to bring the total for the year to 2,170; 1,988 net of the
proportionate share of our partners in joint venture developments
(2010: 1,705 and 1,624). During the second half of the year sales
rates averaged 0.46 per site per week and we enter our new
financial year with GBP247 million of housing sales carried
forward, 23% up on last year, of which GBP173 million is for the
2011/12 financial year. This represents 29% of the significantly
increased planned output for the new year, in line with our
expansion plan (2010: GBP130 million and 32%). Of the 2,170 units
completed in the year, private housebuilding represented 1,446
units and affordable and regeneration 724 units. The average price
for private sales was GBP227,000 (2010: GBP207,000) while the price
obtained for affordable homes averaged GBP106,000 (2010:
GBP124,000).
Our landbank now stands at 10,250 plots of which 70% has been
secured at current market values (2010: 9,600 plots and 56%),
meeting our criteria for margin and return on capital based on
achievable selling prices. As we enter the new financial year,
during which our objective is to deliver the significant expansion
plan for our housebuilding business set out at the time of our
rights issue in September 2009, we have the land we need and the
infrastructure in place.
Construction
The Group's construction business has maintained its workload in
markets that remain difficult, concentrating on sectors where it
has a strong presence and can continue to deliver acceptable
margins and cash balances. We enter our new financial year with a
total order book maintained at GBP1.75 billion, with 80% of our
planned revenues for the new year secured (2010: GBP1.8 billion,
77%). 40% of the order book is for the regulated sector, 42% for
the public sector, and 18% for the private sector.
Although we have anticipated an overall reduction in publically
financed work, we have secured a number of significant long term
public sector projects in Scotland. Our strengths with the
regulated utilities, particularly in water, and our presence in the
gradually improving commercial market, specifically in London, puts
us in an encouraging position.
Our expertise in our chosen sectors, combined with our robust
financial position, has recently enabled us to secure a number of
significant contracts that add further visibility to our workload.
Projects recently awarded include the GBP790 million Forth Road
Crossing project in a four party consortium, GBP200 million of work
for our AMP5 joint venture on the Liverpool waste water treatment
works for United Utilities, a GBP50 million project for Petrofac in
the Shetland Islands and, boosting our affordable housing workload,
the GBP347 million Gateshead regeneration programme to be carried
out in joint venture with Home Group.
Outlook
Two years into our transformational housebuilding expansion
plan, we are on target to meet our objectives. In addition, we have
maintained a high quality construction order book, winning a series
of valuable projects during the period, and maintaining excellent
cash balances. Our financial strength and the spread of our
activities mean that, subject to the economic uncertainties
affecting our markets, we enter the new financial year with
confidence.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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