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Galliford Try house building division ahead of expectations on all fronts

Galliford Try’s house building division is leading the group forward, with higher than expected sales and average selling prices also beating expectations, meaning profits will be at the top end of market forecasts.

In a stock exchange announcement released today, the firm said housing completions were 1,624 units, net of joint venture partners’ share in the financial year ended 30 June 2010. This is behind last year’s 1,769 completions but ahead of its own expectations for the year.

Average selling prices also climbed, rising 10 per cent to £190,000, compared to £172,000 last year.

The size of its land bank has increased significantly to 9,600 plots, a rise of 23 per cent compared to last year.

Of these plots, more than half have been secured at current market prices, meaning there could be significant upside to values as and when land values recover.

The statement added that the construction business has been performing in line with expectations in a challenging market.

The construction order book is slightly ahead of last year at £1.8bn and 77 per cent of this year’s revenue has already been secured, compared to 67 per cent at the same time last year.

Galliford Try chief executive Greg Fitzgerald said: “We are ahead of our target for delivering the transformational housebuilding expansion plan announced with the rights issue in September 2009.

“We have also maintained a quality construction order book in increasingly challenging market conditions.”

The strong performance from the house building division means that profits will be towards the top end of market expectations.