Galliford Try sounds upbeat note on first half

Housebuilding and construction group Galliford Try pointed to solid trading across the board in the first half, as its order book rose in an improving market.

In an update for the half year to the end of December, the company said total housing units completed came to 1,603 compared with 1,529 in the same period in 2014.

Meanwhile, Galliford’s total sales reserved, contracted and completed of £740m compared with £645 the previous year, while landbank units edged up to 15,400 from 14,050.

Net debt rose to £95m from £35.9m, reflecting additional investment in Linden Homes and Partnerships.

Galliford said good progress was achieve on operating margin In Linden Homes, against the corresponding period and the full year, and revenue is expected to be up 5% on the previous year.

In the construction division, the order book increased to £3.7bn from £3.2bn in an improving market and the company said it continues to make progress concluding legacy contracts.

Chief executive Peter Truscott said: "I am delighted to report that all of our businesses continued to trade well in the first half of the year to 30 June 2016. Market conditions have remained positive, with build cost increases stabilised to a manageable level.

“It is now two years since Galliford Try adopted its clear plan for disciplined growth to 2018. In my first few months as CEO, I am happy that these are the right medium term targets. I am working with each of the businesses to ensure we achieve these, and to consider the longer term aims. As we look ahead to the second half of the year, we are in a strong position to deliver results in line with our expectations."