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Galliford Try has announced plans to grow its construction division to 拢1.5bn turnover within three years, in strong half-year results published today.

The construction group said it had revised up its revenue target for its construction division to 拢1.5bn for 2018, up from its previous 拢1.25bn target, thanks to increased confidence in an 鈥渋mproving market鈥�.

Galliford Try鈥檚 construction division turned over 拢833m in its last set of full-year results to June 2014, but expanded significantly a month later in July 2014 with the acquisition of the 拢410m-turnover construction division of Miller Group.

In today鈥檚 half-year results for the six months to December 2014, Galliford鈥檚 construction division reported a 52% increase in revenue to 拢604.8m, up from 拢398.1m the previous year, but with a slim profit margin of 1%.

Galliford expects construction鈥檚 profit margin to rise to 2% by 2018. The firm said the integration of Miller Construction was now complete.

Galliford鈥檚 construction order book almost tripled to 拢3.3bn, up from 拢1.3bn last year.

Galliford鈥檚 overall half-year results - which include its housebuilding business Linden Homes - were strong.

Revenue was up 35% to 拢1.1bn, up from 拢803.5m, while pre-tax profit was up 12% to 拢42.5m, up from 拢38.1m.

Linden Homes grew 5% to 拢346.1m turnover, up from 拢328.1m, completed 1,364 homes, up from 1,278 homes, and achieve an operating margin of 15.1%, up from 13.5%.

Galliford Try said it was making 鈥済ood progress鈥� in its search for a new chief executive. Current chief executive Greg Fitzgerald (pictured) will step down later this year, as previously announced.

Fitzgerald said: 鈥淲e are very pleased with the group鈥檚 strong performance in the six months to 31 December 2014 with our housebuilding and construction businesses both performing well, and are encouraged by the start we have made to the second half of the year.鈥�