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Galliford Try to see ‘record profits’ for 2014

Galliford Try said it expects to post “record profits” for the year ended 30 June 2014, after a strong year in both its housebuilding and construction divisions.

Pre-tax profit is expected to be at the “upper end” of analysts’ current range of £92.8m-£95.2m, the group said in a trading update.

Net debt for the full year will be less than £5m, compared with £14.4m for the same period in 2013, which the group said was better than expected.

The group’s Linden Homes division will see an increase in its revenue, driven by 2,968 completions, compared with 2,806 the previous year.

During the second half of the year, sales rates for Linden Homes averaged 0.73 per site, per week, compared with 0.67 in 2013.

Average private sale prices for Linden Homes were up 15 per cent to £305,000 for the period, compared with £266,000 the year before.

Galliford Try Partnerships, the second division of the group’s housebuilding business, also performed strongly with an order book of £500m, it said.

The group’s total landbank stood at 13,900 plots, up 23 per cent from 11,300 plots in 2013.

It said 91 per cent of the landbank was secured at current market values, with 100 per cent secured for the new financial year’s production and 87 per cent of plots secured for 2016.

Galliford Try’s construction business saw an improved order book of £1.4bn, compared with £1.25bn in 2013.

It said the business had secured 84 per cent of revenue for the new financial year, compared with 82 per cent in 2013.

The contractor highlighted several recent contract wins, including being named preferred bidder to design, build, finance and operate the £745m Aberdeen Western peripheral route.

Galliford Try chief executive Greg Fitzgerald said the market was “good across all of our regions”. He welcomed recent measures by the Bank of England to stabilise the housing market, which capped mortgage rates at 4.5 times average earnings.

He said: “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.

“We also recognise that challenges remain around the supply chain and are converting outline planning permission into detailed consents.”

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