Galliford Try doubles divi as profits soar

Housebuilding and construction firm Galliford Try doubled its interim dividend and delivered strong profit growth.

Pre-tax profit rose to £32.2m for the half year ended 31 December 2011 from £17m the same time a year earlier. Group revenue climbed to £746.8m from £575.9m previously.

Galliford said the housing market has remained resilient and it is encouraged by the continued strength of the market during the first seven weeks of 2012.

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"The group is confident that it is on track to deliver all the objectives of its three year housebuilding expansion plan during the current financial year with our southern biased business performing strongly despite the general economic uncertainty," Galliford said in a company statement.

The housebuilder said the spread of long term work in its construction business is underpinning its strength in difficult market conditions as well as its south of England bias.

In housebuilding it posted a 59% increase in total completions to a record 1,352 units. Housebuilding margins increased to 11% from 6.5%. In construction it said margins held up well at 2.2% compared to 2.5% last year despite difficult markets.

The group is recommending and interim dividend payment of 9p per share, up from 4.5p a year earlier.