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Galliford Try produce respectable FY results on sales up 35%
Galliford Try have reported sales up 35% to £1.832bn with pre-tax profits level at £60.3million in it's 2008 FY preliminary results.
The Galliford Try model of operating in both construction and housebuilding markets during the year paid off as the construction businesses have delivered a record performance, with increased profits and excellent cash generation, whilst housebuilding has been affected by the severe downturn in the
housing market.
Unlike other housebuilders Galliford Try has managed to operate well within it's banking covenants and does not have to renegotiate the overall facility with it's bankers until 2012. Housing does contribute the majority of profits and this year was no exception as £53.8million ( before exceptional costs) has come from this activity. This is the first full year of the inclusion of the Linden Homes business which has yielded greater economies of scale than forecast.
The company has ceased buying land and is sitting on a land bank of 5400 plots (7600 last year). The firm has made redundancies to cut costs and has heavily discounted finished properties to move them, with the result that in the first 2 months of the new financial year it has sold £126 million of homes compared to £243million for the same period last year.
The construction businesses have produced £25.7 million profit ( before exceptional costs) a 2.2% margin on sales of which 87% is from the public sector.
The Galliford Try model of operating in both construction and housebuilding markets during the year paid off as the construction businesses have delivered a record performance, with increased profits and excellent cash generation, whilst housebuilding has been affected by the severe downturn in the
housing market.
Unlike other housebuilders Galliford Try has managed to operate well within it's banking covenants and does not have to renegotiate the overall facility with it's bankers until 2012. Housing does contribute the majority of profits and this year was no exception as £53.8million ( before exceptional costs) has come from this activity. This is the first full year of the inclusion of the Linden Homes business which has yielded greater economies of scale than forecast.
The company has ceased buying land and is sitting on a land bank of 5400 plots (7600 last year). The firm has made redundancies to cut costs and has heavily discounted finished properties to move them, with the result that in the first 2 months of the new financial year it has sold £126 million of homes compared to £243million for the same period last year.
The construction businesses have produced £25.7 million profit ( before exceptional costs) a 2.2% margin on sales of which 87% is from the public sector.
Thu, 11th Sep 2008