Galliford Try to beat expectations in first half

Galliford Try, the housebuilding and construction group, seemed to ignore the doom and gloom shrouding the construction industry, saying it would beat profit expectations in its first half.

The firm also said it was on track to meet full year expectations.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Galliford reported a 4% increase in total sales reserved, contracted and completed at £544m, but flat unit sales per outlet per week at 0.46.

It added that its operating margin was expected to be up on full year with a continued industry-leading return on capital.

In its construction division the firm said 99% of projected revenue for current financial year had been secured, as well as 62% for year to June 30th 2014.

It's order book was unchanged on the previous year at £1.6bn, in line with expectations.

Of this, 40% was in the regulated sector, 42% in public and 18% in the private sector.

Greg Fitzgerald, Chief Executive, said: "We are encouraged by the performance of both housebuilding and construction in the first half of the financial year with profits ahead of board expectations".

"Housebuilding continues to deliver good results in a stable market with construction performing well against a backdrop of a difficult market," he added.

The positive results come at a very difficult time for the construction sector.

Activity in the construction industry contracted at the fastest rate for six months in December as it was hit by lack of demand and bad weather.

The decline was driven by a particularly weak month for residential house building.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.