ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

GFRD Galliford Try Holdings Plc

240.50
-3.50 (-1.43%)
Last Updated: 14:33:06
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Galliford Try Holdings Plc LSE:GFRD London Ordinary Share GB00BKY40Q38 ORD 50P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -3.50 -1.43% 240.50 238.50 240.50 248.00 240.50 248.00 97,126 14:33:06
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Gen Contr-single-family Home 1.39B 9.1M 0.0886 27.14 246.91M

Galliford Try PLC Trading Statement (6476K)

11/07/2017 7:00am

UK Regulatory


Galliford Try (LSE:GFRD)
Historical Stock Chart


From Mar 2019 to Mar 2024

Click Here for more Galliford Try Charts.

TIDMGFRD

RNS Number : 6476K

Galliford Try PLC

11 July 2017

GALLIFORD TRY PLC

TRADING UPDATE

11 JULY 2017

Galliford Try plc, the housebuilding, regeneration and construction group, today provides the following update on trading for the year ended 30 June 2017. All figures are as at 30 June 2017, unless otherwise stated, and all comparatives relate to the prior year equivalent period. The Group expects to announce its results for the full year on 13 September 2017.

Overview

-- A strong underlying financial and operating performance across all three businesses for FY 2017, with profits towards the upper end of the analysts' range (1)

-- Linden Homes and Partnerships & Regeneration expected to deliver increased revenue and improved operating margins, while newer contracts in Construction are performing well

   --      No movement in the GBP98m non-recurring costs in Construction, as announced on 3 May 2017 
   --      Modest net cash at 30 June 2017 (2016: net debt GBP9m) 
   --      Expect to pay dividend in line with previous guidance 
   --      Well positioned to deliver against 2021 strategic targets 

Linden Homes

Linden Homes is expected to report a strong performance for the full year. Revenue growth has accelerated in the second half, driven by solid growth in volumes, with total completions (including units in joint ventures) up 7% to 3,296 units (2,876 units net of our partners' shares) at 30 June 2017 (2016: 3,078 and 2,691 units respectively). Average sales rates in the second half were strong at 0.68 units per site per week, up from 0.56 in H1 2017, from a reduced average number of outlets for the full year of 77 (2016: 80). The average private sales price was up 6% to GBP354,000 (2016: GBP335,000). Reflecting the strategy to increase product standardisation and improve operating efficiencies, the operating margin has continued to improve.

The business maintains a strong forward order book to start the next financial year, with sales carried forward of GBP373m at 30 June 2017 (2016: GBP380m). All land plots have been secured for FY 2018, with 83% of plots secured for FY 2019. The landbank stands at 10,650 plots, having decreased from 11,500 plots in FY 2016 in line with our strategy to hold a shorter landbank, equivalent to 3.5 years. Also in line with our stated plan, we have successfully increased our strategic land assets.

Partnerships & Regeneration

Performance in Partnerships & Regeneration continues to improve, with both revenue and margin increased over FY 2016 helped by growth in higher-margin mixed-tenure projects. The business is making good progress against its strategy, supported by the recent acquisition of the mixed-tenure developer, Drew Smith, in Hampshire, which is expected to accelerate growth across the southern region. At 30 June 2017, the contracting order book is up 23.5% at GBP1.05bn (2016: GBP0.85bn) and the landbank is 2,700 plots (2016: 2,700).

Construction

The underlying portfolio of newer contracts continues to perform well. As announced on 3 May 2017, Construction's reported performance in FY 2017 will be impacted by GBP98m non-recurring costs following a reappraisal of costs to complete and recoveries, principally from two large legacy contracts. These also affected the business's cash position, which decreased to GBP136m at 30 June 2017, from GBP160m in 2016. As outlined previously the business no longer undertakes these types of fixed-price contracts on large infrastructure projects. Construction enters the new financial year with a high quality order book of GBP3.5bn (2016: GBP3.5bn), predominantly in the public and regulated sectors, which includes 84% of projected revenue for FY 2018 (2016: 82%).

Financial Position

We will report net cash at 30 June 2017 of less than GBP10m (2016: net debt of GBP9m) and average net debt over the full year is expected to be lower than previous guidance at below GBP250m. While the non-recurring costs in Construction have impacted the Group's cash position, overall Galliford Try maintains a strong balance sheet, with the debt private placement and facility extension in FY 2017 providing diversification and flexibility in the Group's funding sources.

Outlook

The Group's outlook for FY 2018 is unchanged. Linden Homes is expected to deliver further volume growth and improvement in the operating margin. Partnerships & Regeneration continues to enhance its position to benefit from the demand for affordable housing, while Construction's margin is expected to increase as we close out legacy positions.

Peter Truscott, Chief Executive, commented:

"Galliford Try made excellent operating progress in the financial year, with our reorganised management teams focused on improving operating efficiency across the Group, and driving revenue growth in Linden Homes and Partnerships. Reflecting this operational focus and benefiting from robust market conditions over the last twelve months, we expect to deliver a strong underlying result for FY 2017 notwithstanding the impact on the Group's reported financial performance from the non-recurring costs in our Construction business, as previously announced.

As we enter the new financial year, we are cautious about the impact of the current political uncertainty following the general election and the medium-term outlook for the macro economy. However, all three businesses have clearly defined plans to improve operating efficiency and grow revenue and margins, providing the Group with confidence in its ability to deliver a strong performance even in a period of lower growth in the wider economy. We enter the financial year with a Group order book of GBP4.9bn, giving us a solid foundation to deliver growth in FY 2018. Overall, we remain well positioned to deliver against our medium-term targets for 60% growth in profit before tax to FY 2021, a five year CAGR on dividend of at least 5% and a return on net assets in FY 2021 of at least 25%, while rebuilding dividend cover to 2.0x.

Reflecting a strong underlying performance, the strength of our balance sheet and our confidence in the prospects for each of our businesses, we expect to pay a final dividend in line with previous guidance."

Conference Call

A conference call for Analysts and Investors will be held at 08:30am (UK time):

Participant telephone number: +44 (0)20 3139 4830

Participant passcode: 17524923#

For further enquiries:

Galliford Try Peter Truscott, Chief Executive 01895 855001

Graham Prothero, Finance Director

Tulchan Communications James Macey White / Martin Pengelley 020 7353 4200

Notes to Editors

Galliford Try plc is a leading UK housebuilding, regeneration and construction group. It is listed on the London Stock Exchange and a member of the FTSE 250. Housebuilding - through our Linden Homes business - develops private and affordable homes in prime locations. Galliford Try Partnerships - our regeneration business - delivers mixed-tenure solutions working with housing association, local authority and private sector partners. Operating as Galliford Try and Morrison Construction, our Construction business carries out building and infrastructure with clients in the public, private and regulated sectors. At the end of the last financial year to 30 June 2016, the Group generated revenue of GBP2.7 billion.

(1) The range of analysts' forecasts for profit before tax for the year ending 30 June 2017 is GBP46m to GBP59m based on forecasts at 1 July 2017.

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTLLFVRDEIILID

(END) Dow Jones Newswires

July 11, 2017 02:00 ET (06:00 GMT)

1 Year Galliford Try Chart

1 Year Galliford Try Chart

1 Month Galliford Try Chart

1 Month Galliford Try Chart

Your Recent History

Delayed Upgrade Clock