Galliford Try sees growth in house building
The construction and house building group, Galliford Try has seen a 38% growth in home sales reservations but more subdued trading in its construction business.
The construction and house building group, Galliford Try has seen a 38% growth in home sales reservations but more subdued trading in its construction business.
For the current financial year (to June 2012) total reservations in Housebuilding stand at £342m from the 82 housing projects Galliford is involved with. In 2010 the equivalent figure was £212m.
House builders have been desperate to buy land for development since the financial crisis of 2008 because chepaer land prices translate into higher margins. Galliford Try claims it is pulling this off, with 73% of it 10,500 plot land bank secured at post 2008 prices.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Interestingly, the firm also says mortgage availability is noticeably increasing and it has been able to find a 95% loan to value product for its customers.
The construction arm of the firm has been deliberately shrunk in line with economic conditions. Despite project wins for Anglian Water and the London Development Agency the total order book sits at £1.6bn, down from £1.75bn in 2010.
Greg Fitzgerald, Galliford Try's Chief Executive, commented on the results: "Although the economic outlook remains uncertain, we have been encouraged by the performance of our housebuilding business as its growth plan comes to fruition during this financial year. Construction is benefitting from its long term frameworks, particularly for the water industry, during the current more challenging markets."
BS
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?
Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
By Kalpana Fitzpatrick Published
-
What does Rachel Reeves’s plan for growth mean for UK investors?
Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
By Katie Williams Published