Galliford Try has announced record housebuilding sales of £836m and the appointment of Andrew Richards as housing managing director in an interim management statement.
The firm reported that £836m-worth of housing had been reserved, contracted or completed, of which £632m is for the current financial year to 30 June 2013.
It also noted “encouraging levels of activity” across the housing market, with reservations up 6 per cent per since the company’s last update. Galliford said this was down to improving mortgage availability and the Help to Buy scheme.
The firm said it was actively pursuing a high level of land opportunities, with the current landbank at 11,000 plots of which 85 per cent have been secured at current market values (up from 78 per cent of 10,600 in 2012). It added that all plots are secured for 2014, with 75 per cent of plots for 2015 secured.
Also announced in the statement was the news that Mr Richards will become group MD of the firm’s housebuilding division, Linden Homes.
He will assume the role on 1 July 2013, moving from his current position as MD of Galliford’s PPP/Investments business. He replaces Ian Baker, who stepped down last year due to ill health.
Galliford Try chief executive Greg Fitzgerald said: “It’s a pleasure to introduce Andrew as the new managing director of our housebuilding division. His financial discipline and commercial acumen will undoubtedly bring a fresh approach to the company and leadership team.
“Having worked for the Galliford Try group for over seven years, Andrew has solid understanding of the company, which will set him in good stead for taking the business forward.”
Click here for an exclusive Construction News interview with Mr Fitzgerald in which he says he wants to “aggressively” grow the company into a top-five contractor and insists he won’t “lose sleep” over its turnover unless it drops below £750m.
The company’s order book remains stable at £1.6bn, the same as in December 2012. The statement added that cash balances “remain satisfactory” and that 77 per cent of next year’s revenue is secured (compared with 80 per cent in 2012).
Mr Fitzgerald said: “We have made strong progress since the beginning of the year, largely driven by further improvements in our housebuilding division.
“Overall, and despite prolonged winter conditions which impacted on production levels, the group expects to report results in line with the current market consensus for the full year ending 30 June 2013.
“In a continuing difficult market our construction division is operating well, driven by robust risk management and a disciplined focus on projects that will deliver appropriate returns.
“The financial position of the group remains strong and we expect to have modest net debt at the year end, reflecting our increased investment in land.”
The firm also said it had successfully retained its place on the Delivery Partner Panel framework and the London Development Panel.