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Galliford Try writes down £50m

Galliford Try, has warned it will have to make a £50 million pounds writedown on its housebuilding operations in the first half of 2008/09 this morning.

The company said while the performance of its mainstream construction activities remained strong, prospects for housebuilding had deteriorated, as consumer confidence plunged and the availability of mortgage finance dried up.

The firm said its Galliford Try says cancellation rates were up 28 per cent. In the housebuilding division' current sales reserved, contracted or completed stand at £255 million - £219 million of which is for the current year to end-June 2009 - with projected sales for the year down 11 per cent compared with the same point last year.

"Although we are undoubtedly experiencing the most difficult trading conditions for a very long time, the board considers that the spread and depth of our business gives the group significant resilience," said group Greg Fitzgerald, the firm's chief executive.

"We are focussed on tight cash control and ensuring we are ready to resume our growth plans once conditions stabilise."

The group is the latest builder to warn of deteriorating trading conditions, with Rok releasing a a similar warning on Wednesday and gloomy updates from Redrow and Bovis Homes Group.

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Redrow admits outlook for 2009 'very weak'

Bovis Homes warns of further landbank writedowns