Galliford Try PLC Trading Statement (7946O)
May 22 2018 - 6:43AM
UK Regulatory
TIDMGFRD
RNS Number : 7946O
Galliford Try PLC
22 May 2018
GALLIFORD TRY PLC
TRADING UPDATE
TUESDAY 22 MAY 2018
Galliford Try plc, the housebuilding and construction group,
today issues its trading update for the period 1 January to 21 May
2018. All data is as at 18 May 2018, unless otherwise stated, and
all comparable figures relate to the prior year equivalent
period.
Peter Truscott, Chief Executive:
"The Group continues to deliver a strong operational and
financial performance and is making good progress against its
growth plans to 2021. Following the successful completion of the
recent rights issue the Group is well capitalised with a
strengthened balance sheet to support our planned growth.
In Linden Homes sales rates remain encouraging at 0.71 units per
site per week since 1 January, positioning the business well for
the remainder of the financial year. We are also making good
progress in line with our strategic objectives, and expect to
report further margin improvement.
Partnerships & Regeneration continues to benefit from strong
demand and opportunity to grow both its mixed tenure and
contracting offering. The business expects to report margin growth
driven by market demand, contract wins and our successful
geographical expansion.
On the Aberdeen Western Peripheral Route we are making good
progress on site, with progressive handover of sections of road
under way. We have experienced some further cost pressure,
principally from weather delays, which are likely to increase the
exceptional charge in the current year. The amount will depend upon
progress recovered through the summer, and is expected to be lower
than the charge (GBP25m) taken in the first half. We are continuing
to discuss several significant claims. Practical completion of the
project is anticipated this summer.
Construction's underlying performance continues to improve,
while continuing to work through diminishing outstanding legacy
contracts. The business is seeing a good level of new project wins
and opportunities on its multiple frameworks, whilst maintaining
its disciplined approach to bidding.
Cash continues to be well managed, and average net debt has been
below the guided figure of GBP275m (excluding the additional cash
raised).
The Group's operating outlook is unchanged and all three
businesses remain on track to deliver further profitable growth
over the full year. We anticipate achieving a full year result in
line with the current range of analysts' expectations(2) ."
Linden Homes
-- GBP1,183m of sales reserved, contracted or completed of which
GBP904m is for the current financial year to 30 June 2018 (2017:
GBP1,176m and GBP915m, respectively).
-- Sales rate of 0.71 per outlet per week since 1 January 2018 (2017: 0.74).
-- Landbank of 11,750 plots (2017: 11,300). All plots secured
for 2019 together with 77% of plots secured for 2020.
Partnerships & Regeneration
-- GBP175m of sales reserved, contracted or completed of which
GBP123m is for the current financial year to 30 June 2018 (2017:
GBP127m and GBP77m, respectively).
-- Contracting order book of GBP1.15bn (2017: GBP0.98bn).
-- Landbank of 2,918 plots (2017: 2,867).
Construction
-- Continued focus on risk management and cash.
-- GBP3.3bn order book (2017: GBP3.5bn) with encouraging performance on current projects.
-- 71% of next year's revenue secured (2017: 73%).
Conference call
A conference call for Analysts and Investors will be held at
08:30 am today (UK time)
UK Dial In: 0203 936 1888
International dial-in: Please access www.speakserve.com/numbers
to access a full list of International numbers
Room Number: 603325
Participant PIN: 3109
For further enquiries please contact:
Galliford Try - Peter Truscott, Chief Executive 01895 855001
Graham Prothero, Finance Director
Tulchan Communications - James Macey White / Martin Pengelley / Elizabeth Snow
0207 353 4200
1. Galliford Try plc is a leading UK housebuilding, regeneration
and construction group. It is listed on the London Stock Exchange
and a member of the FTSE 250. Housebuilding - through our Linden
Homes business - develops private and affordable homes in prime
locations. Galliford Try Partnerships - our regeneration business -
delivers mixed-tenure solutions working with housing association,
local authority and private sector partners. Operating as Galliford
Try and Morrison Construction, our Construction business carries
out building and infrastructure with clients in the public, private
and regulated sectors. At the end of the last financial year to 30
June 2017, the Group generated revenue of GBP2.8bn.
2. The range of analysts' forecasts with profit before tax after
taking into account exceptional items for the year ending 30 June
2018 is GBP138m to GBP146m based on forecasts as at 17 May
2018.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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