Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Galliford benefits from social housing building experience

Galliford Try bosses today said strong experience in social house building had given it an edge over rivals after posting flat year end results.

While many of the construction company’s rivals have seen large drops in profit, Galliford reported pre-tax profit of £60.3 million for the year ended 30 June, a £100,000 rise on last year.

The Uxbridge-based company which is upgrading Wimbledon’s Centre Court saw revenue increase 30 per cent from £1.41 billion to £1.83 billion.

Bosses were forced to write down the cost of its land bank, close an office and cut staff all at a cost of around £11.5 million as the struggling UK housing market began to bite.

But chief executive Greg Fitzgerald said the company gained 85 to 90 per cent of its construction income from public and regulated sectors, building schools and hospitals.

The company also reduced net debt from around £99 million to £2 million so it will be ready to buy cheaper land and make acquisitions when the market improves.

Mr Fitzgerald said: “Our construction businesses have delivered a record performance, with increased profits and excellent cash generation.

“Whilst housebuilding has been affected by the severe downturn in the housing market, its effect has been mitigated by our early adoption of a policy of aggressive selling, our strengths in affordable housing and our concentration on managing our debt.

“Throughout these testing times, the group’s financial strength and broad sector exposure will stand it in good stead.”