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RNS Number : 9181C
Galliford Try PLC
09 May 2012
GALLIFORD TRY PLC
INTERIM MANAGEMENT STATEMENT
WEDNESDAY 9 MAY 2012
Galliford Try plc, the housebuilding and construction group, today issues its interim management statement for the period 1 January to 8 May 2012.
Greg Fitzgerald, Chief Executive, commented:
"The housebuilding division, with its southern focus, continues to perform well with strong sales in the year to date. 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. 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."
Highlights:
Housebuilding
-- Strong sales in the year to date with 97% of sales for the financial year in hand.
-- GBP774 million of sales reserved, contracted or completed, of which GBP625 million is for the current financial year to 30 June 2012 (2011: GBP540 million and GBP371 million respectively).
-- 100% of plots secured for 2013. 80% of plots secured for FY 2014.
-- Land availability remains good with the landbank standing at 10,600 of which 78% is secured at current market values (2011: 67% of 10,150).
Construction
-- Stable order book at GBP1.6 billion (31 December 2011: GBP1.6 billion).
-- Significant project wins in the period including financial close on the GBP347 million Gateshead Regeneration programme, a total of GBP117 million of projects for Anglian Water, Scottish Water and Yorkshire Water, GBP56 million of Partnerships development contracts and GBP49 million in the commercial building sector.
-- Cash balances are in line with our expectations.
-- 80% of next year's revenue secured (2011: 72%).
For further enquiries:
Galliford Try Greg Fitzgerald, Chief Executive 01895 855001
Frank Nelson, Finance Director
Tulchan Communications Christian Cowley 020 7353 4200
James Macey White
Housebuilding
Since the start of 2012 the sales rate has been strong. In the period we recorded 0.60 sales per site per week compared to 0.45 in the first half of the financial year. Currently sales reserved, contracted or completed stand at GBP774 million (2011: GBP540 million) of which GBP625 million (2011: GBP371 million) is for the current financial year to 30 June 2012.
Our 94 sales outlets, up from 75 in May 2011, are focused in the south in line with our stated strategy, and are benefitting from increased activity. Since the start of 2012 visitor levels per site are 22% up on the corresponding period last year. There has been some evidence of improving mortgage availability and we are encouraged by recent Government initiatives to further help the market.
In line with our strategy the landbank has been developed such that we have secured 100% of required land for 2013 and 80% for FY 2014. 78% of our current landbank of 10,600 plots has been secured at current market value. For the financial year ending June 2013 we anticipate 75% of sales will be on land acquired at current market values.
Following our success in obtaining GBP17 million funding under the Government's Affordable Housing Programme, reflecting our market presence in the south and strength of client relationships in the sector, we are securing good revenues under the affordable rent regime.
Construction
In the context of what continues to be a difficult market, our construction division is performing well. In line with strategy, the division is focusing on projects that provide acceptable returns, maintaining robust risk management and developing opportunities with key clients and within established frameworks. Our total order book of GBP1.6 billion, with 80% secured for 2013, is in line with expectations.
During the period we have been successful in securing a number of significant projects including financial close on the GBP347 million Gateshead Regeneration programme, a total of GBP117 million of projects for Anglian Water, Scottish Water and Yorkshire Water, GBP56 million of Partnerships development contracts and GBP49 million in the commercial building sector. Our recent wins in water reinforce our number one position in this important sector. We are also pursuing a number of significant infrastructure projects in our chosen markets.
Outlook
The housebuilding division, with its southern focus, continues to perform well with strong sales in the year to date. 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. 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.
Notes to editors:
Galliford Try plc is a leading UK housebuilding and construction group. It is listed on the London Stock Exchange and a member of the FTSE 250. The housebuilding business - through its Linden Homes brand - sells distinctive homes to the public and affordable homes to housing associations and local authority providers across the South and South East of England. The construction business carries out building and infrastructure work across the UK with clients ranging from major Government departments through to regulated utilities and private sector companies. At the end of the last financial year to June 30 2011, the Group generated revenues of GBP1.3 billion.
Galliford Try plc will today be holding an investor and analyst site visit at King Harry Park, St Albans at which no further information on current trading will be published. The presentations from the event will be made available on the Company's website.
This information is provided by RNS
The company news service from the London Stock Exchange
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