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Galliford Try expects record half-year profit

Galliford Try has reported a strong order book and expects record profits to be announced in its half-year results next month.

In a half-year trading update, the contractor said 98 per cent of projected revenue for its current financial year had been secured in the six months to 31 December 2013.

Its order book was worth £1.75bn at the end of 2013, up from £1.6bn at the end of 2012.

Galliford Try’s share price has rocketed 60 per cent in the past year.

Chief executive Greg Fitzgerald added that profits in the first half of the financial year were “anticipated to be at record levels”.

“In construction we have increased the size of our order book and remain focused on margin protection and cash generation,” he said.

“Construction is performing well in challenging markets with the prospects looking better as our pipeline of opportunities continues to increase.”

Galliford Try won a place on the Education Funding Agency’s £4bn contractors’ framework for school building and reached financial close on the £100m housing-led regeneration of Brunswick, east Manchester, in the first half of the year.

In housebuilding, Mr Fitzgerald said market conditions had continued to improve.

Galliford Try’s net debt increased to £90m, from £58m in 2012, due to a 16 per cent increase in its landbank.

There was a 20 per cent increase in total sales reserved, contracted and completed at £652m, up from £544m at the end of 2012. Meanwhile the average selling price of homes increased by 16 per cent to £288,000, from £248,000 in 2012.

Mr Fitzgerald said: “Across the group supply chain cost issues continue but are being well managed. We are confident that our disciplined strategy will deliver further good growth and improved returns this year and beyond.”

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