Galliford Try reveals construction restructure now complete

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Galliford Try has revealed the restructuring of its construction arm is complete, as it expects to meet full year profit

In a trading update, housebuilding, regeneration and construction group, Galliford Try said that its housebuilding division continued to make strong margins and the underlying construction operations were performing effectively.

Linden Homes has maintained its good performance and strong margin and remains a four-star housebuilder.

It delivered 3,229 unit completions, including units in joint ventures (2018: 3,442 units), at an average private selling price of £351,000 (2018: £367,000), continuing to reflect its refocus on mid-range family houses.

Partnerships & Regeneration made further progress against its strategy of increasing geographic coverage and growing margins. At 30 June 2019, the business has a £1bn contracting order book (2018: £1.2bn) and mixed-tenure sales carried forward of £184m (2018: £160m).

On 1 July 2019 Galliford Try completed the acquisition of Strategic Team Group (STG), giving it a mature operating platform in Yorkshire and expanding their presence in Cheshire.

The restructure of Galliford’s construction business is complete, and the business is refocused to deliver improved future performance.

The current order book is £2.9bn (2018: £3.3bn) with 88% of revenue for the new financial year secured (2018: 87%).

Graham Prothero, chief executive of Galliford Try, said: “The group has continued to perform well, supported by good housing demand. We expect our full year results and average net debt to be in line with previous guidance.

“We are making strong progress against the operational targets we set out in 2017. We are reviewing our 2021 volume targets to ensure that growth is controlled, and our gearing is managed.

“Despite the weaker economic outlook, Linden Homes continues to see robust demand, with operating efficiencies driving strong margins and improving customer satisfaction.

“Partnerships & Regeneration is well on track with its aspirations for exciting growth in both revenue and margins, with some key wins in the period and further good opportunities across the market.

“We are pleased that the restructure of the construction business is now complete. The business is now firmly focused on its core strengths of regional building operations, together with profitable operations in highways and water, all of which are now performing effectively. I look forward to the next financial year with the appropriate strategic priorities in place across the group.”

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