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4 JULY 2013
GALLIFORD TRY PLC - TRADING UPDATE
Galliford Try plc, the housebuilding and construction group, today provides the following update on trading for the year ended 30 June 2013. The group expects to announce its results for the full year on 17 September 2013.
Since our last update in May we have continued to make good progress resulting in record group profits in line with the current market consensus. This year, our housebuilding division has performed strongly, achieving a record landbank and year end sales carried forward position. This is due to a mix of factors including our deliberate focus on the South and South East regions and improved mortgage availability supported by the Government's Help to Buy scheme.
Our construction division has performed well in difficult market conditions, particularly demonstrated by its strong cash position. Management has continued to focus on winning work which offers acceptable returns. We have won a number of exciting contracts and are seeing increased opportunities.
· Record full year results, in line with the current market consensus.
· Modest net debt of less than £20 million at 30 June 2013. (31 December 2012: net debt £58 million and 30 June 2012: net cash £23 million).
· Record total landbank of 11,300 plots up 8% (30 June 2012: 10,500 plots).
· Record £313 million year end sales carried forward position up 15% (2012: £273 million).
· Average private sales prices up 5% to £262,000 (2012: £250,000).
· Revenue in line with last year on completions (including joint ventures) of 2,932 units (2012: 3,039 units). During the second half of the year sales rates averaged 0.64 per site per week (H2 2012: 0.55 per week).
· Strong progress on margin to circa 13% (2012: 11.8%).
· 86% of landbank secured at current market values. 100% of plots secured for the new financial year's production and 87% of plots secured for FY 2015.
· Solid performance in a continuing difficult market.
· Stable order book of £1.65 billion (31 December 2012: £1.6 billion and 30 June 2012: £1.65 billion).
· Strong cash management throughout the year, with cash balances at similar levels to last year.
· All business units experiencing an increase in opportunities albeit pricing remains challenging. Major contract awards include the £89 million leisure and retail development in Birmingham and the £52 million redevelopment of the old St Clements Hospital site in East London. We were also recently reappointed to the Environment Agency's four year water and environment management framework and to the new Manchester Airport Group framework.
· 82% of project revenue for the new financial year secured (2012: 82%).
Greg Fitzgerald, Chief Executive, commented:
"With modest net debt, a record landbank and year end carry forward position in housebuilding and a stable order book with good visibility of work in construction, we start the year in an encouraging position."
For further enquiries:
Galliford Try Greg Fitzgerald, Chief Executive 01895 855001
Graham Prothero, Finance Director
Tulchan Communications James Macey White 020 7353 4200
Notes to editors:
1. The range of analyst forecasts for adjusted profit before tax for the year ending 30 June 2013 is £72.0m to £75.0m based on forecasts as at 1 July 2013. The consensus of these forecasts is £73.9m
2. Galliford Try plc is a leading UK housebuilding and construction group. It is listed on the London Stock Exchange and a member of the FTSE 250. The housebuilding business - through its Linden Homes brand - sells distinctive homes to the public and affordable homes to housing associations and local authority providers across the South and South East of England. The construction business carries out building and infrastructure work across the UK with clients ranging from major Government departments through to regulated utilities and private sector companies. At the end of the last financial year to 30 June 2012, the Group generated revenues of £1.5 billion.
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