Galliford Try increased its profits by 29 per cent to £17 million in the second half of 2010 on broadly flat turnover of £576m.
The company’s construction division reported construction revenue to forecast at £443m, compared to £466m in the same period in 2009, with margins up slightly to 2.5 per cent.
Housebuilding revenue was up 29 per cent to £153m, with profit up 39 per cent to £9.9m – housing completions were up 28 per cent to 851 units with prices 1.3 per cent higher than forecast. The company said post-Christmas sales were higher than expected and expected to deliver at least 3,000 units next year
Chief executive Greg Fitzgerald said although its construction order book had fallen, it had not suffered as much as expected. He said: “I was very pessimistic about construction – 18 months ago I would have predicted the order book to have dropped to £1.5 billion and margins to have dropped as well.”
The order book for building fell by the biggest extent, down from £706m to £631m. Mr Fitzgerald said he believed it “had fallen broadly as far as it was going to”.
However, he said he saw no growth across the business as a whole before 2013.
He said that the company was seeing strong growth in the water industry with an order book of £470m – just more than half its total infrastructure order book - and expected revenue in 2011 of about £160-170m, compared to £110m in 2010.
The company said it had secured 61 per cent of budgeted work for next year, up 1 per cent on the same position in 2009.
The company announced an expansion of both its affordable housing and building businesses into the southwest, buoyed by the demise of Rok last year. The company now has offices in Bristol – including a partnership with local contractor Bray and Slaughter - and Saltash in Cornwall.