Galliford Try posts record first half profit

Galliford Try has posted a record profit for the first half of its financial year.

The FTSE 250 housebuilder released its interim results for the six months to 31 December 2015 on Thursday.

The company’s profit before tax jumped 24% from £42.5m the previous year to £52.9m, helped by a 9% rise in group revenue from £1.09bn to £1.18bn.

A strong performance in its construction division boosted its results, with revenue up 22% to £738.6m, while its order book has increased from £3.25bn to £3.7bn.

The group also said net debt at 31 December 2015 was £95.7m, up from £35.9m at the same point the previous year largely reflecting additional investment in working capital within Linden Homes of £80.1m.

Galliford Try said it is encouraged by the start it has made to the second half of the year, with Linden Homes’ market conditions improving since the turn of the year, the pipeline for its Partnerships business continuing to grow, while the Construction business has good visibility on revenue for the next financial year.

It has increased its interim dividend 18% to 26p per share.

Chief executive Peter Truscott said the group has performed in line with expectations.

“Linden Homes has made strong progress on margins as well as increased outlet numbers and unit sales per outlet.,” he said.

“Our Partnerships business continues to see good demand for contracting in the affordable housing market, as registered provider clients assimilate the recent changes to their income profile; and importantly the mixed tenure development business is growing strongly.

“The construction market continues to improve, although at a slower rate than anticipated; we have nevertheless further improved our order book to £3.7 billion, with good visibility on projected revenue for this and the next financial year.”

Galliford Try also revealed that chief operating officer Ken Gillespie intends to retire from the company in February 2017, nearly 11 years after joining the group, prompting it to rejig its leadership roles.

Bill Hocking, who has been Managing Director of Construction, will become Chief Executive of Construction & Investments from 1 August.

Gillespie’s remaining responsibilities will be transferred over the coming twelve months, and he will step down from the board on 31 July.

Shares in Galliford Try were up 19.97p (1.44%) to 1,402.97p at 1105 GMT.