Galliford Try unveils record profit for the year as CEO announces departure

The chief executive officer (CEO) of housebuilding and construction business Galliford Try announced his plans to resign by the end of 2015 as the group reported record annual profit.

Greg Fitzgerald, who has been with the group for 33 years, said his decision to leave was “a personal one” and that he remained fully committed to ensuring the company meets its targets over the next 12 months.

He will leave the company in good shape, as it reported profit of £95.2m, a 28% increase year-on-year. Group revenue was up 21% to £1.8bn, driven by an increase in revenue in the housebuilding division of over £270m from the same period in 2013, while earnings per share were up to a record 94.6p.

Galliford said its housebuilding arm also reported an improved margin performance, with Linden Homes’ operating margin rising 13% to 15.1%, while the average Linden Homes selling price rose from £266,000 in 2013 to £305,000.

“Linden Homes achieved an improved margin, ahead of our expectations, and significantly stronger average selling prices,” said Fitzgerald.

“As we have gone through the quieter summer period, sales have been in line with our expectations.”

The group’s construction division remained solid throughout the year, despite having to operate in what the company described as “difficult" market conditions and has already secured 88% of the current year’s planned revenue.

Galliford confirmed the acquisition of Mille Construction earlier this year will accelerate its growth plans, as well as providing access to new frameworks and taking the size of the company’s order book from £1.2bn to £3bn.

Fitzgerald added that while the group “continued to recognise the challenges around the supply chain” it remained positive about the market outlook and it planned to more than double 2013’s profit before tax and earnings per share by 2018.

“We have begun the search for Greg's successor; Greg is committed to ensuring a smooth transition and will leave the business in a strong position for his successor," added group chairman Ian Coull.