Contractor says pre-tax profit will hit top end of analysts鈥� forecasts in trading update

Greg Fitzgerald

Galliford Try will report record profit in its full-year results to 30 June 2014, the contractor has said in a trading update.

The firm said pre-tax profit will be at the upper end of analysts鈥� expectations, which currently range from 拢92.8m to 拢95.2m. Last year the firm posted a 17.4% rise in pre-tax profit to 拢74.1m.

Galliford Try said its housebuilding division 鈥減erformed strongly鈥� and enjoyed 鈥渟trong progress on margin鈥� in its subsidiary Linden Homes.

Average Linden Homes sales prices rose 15% to 拢305,000, up from 拢266,000, while completions grew to 2,986, up from 2,806.

Galliford Try鈥檚 construction division amassed an improved order book of 拢1.4bn, up from 拢1.25bn the previous year, and reported an 鈥渋ncrease in opportunities鈥� in the market.

Greg Fitzgerald, Galliford Try chief executive, said: 鈥淭he market continues to be good across all of our regions.  We welcome the Government鈥檚 continuing commitment to housing provision, and the focus of the Bank of England on maintaining stability in the housing market.  In addition the prospect of timely interest rate rises should support a sustainable market into the longer term.

鈥淲e are pleased to have finished the year strongly and expect to deliver another record profit.  With a solid balance sheet, minimal debt, a record landbank in housebuilding and excellent visibility of work in construction, we are starting the new financial year in a strong position, whilst recognising that challenges remain around the supply chain and converting outline planning permission into detailed consents.鈥�

The firm鈥檚 full-year results will be posted on 16 September.

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