Galliford Try on track for year

Galliford Try said its housebuilding division continues to perform well with strong sales in the year to date, helped by its focus on the south of England although headwinds continue in construction.

The group reported strong housebuilding sales in the period from 1 January to 8 May 2012 with 97% of sales for the financial year secured. Nearly £775m of sales have been reserved, contracted or completed, of which £625m is for the current financial year to 30 June 2012.

It expects to meet company expectations for the financial year.

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It added land availability remains good with the landbank standing at 10,600 of which 78% is secured at current market values, up from 67% in 2011. The company said 100% of plots have been secured for 2013 and 80% of plots are in hand for 2014.

The group, which recently won a £36m contract for Anglian Water, said its construction order book has remained stable at £1.6bn and 80% of next year's revenue secured, up from 72% in 2011.

"Although construction markets remain difficult we have won a number of important contracts in our chosen markets. The group is confident of delivering its housebuilding expansion plan as set out three years ago and we remain on track to meet our expectations for the financial year," Galliford said in a company statement.

Looking ahead Galliford noted, "The strong financial performance in the period means the group is expected to be cash positive at financial year end. Our disciplined growth plans and focus on margin improvement should continue to create shareholder value and support our progressive dividend policy."

CJ