黑洞社区

Galliford Try has posted a record profit in strong full-year results to June, with both its housebuilding and construction businesses contributing increased profit.

The group posted pre-tax profit of 拢114m for the period, up 20% on 拢95.2m the previous year. Both Galliford鈥檚 housing and construction businesses increased pre-tax profit 11%, to 拢87.4m and 拢9.8m, up from 拢78.5m and 拢8.8m respectively.

Revenue jumped a third to 拢2.3bn, up from 拢1.8bn, boosted by recent acquisitions including Northern housebuilder Shepherd Homes and contracting business Miller Construction.

Ken Gillespie (pictured), chief operating officer at Galliford Try, told 黑洞社区 he was pleased with the overall group performance, but said the firm鈥檚 focus was on improving margins further, particularly in the construction division.

Galliford鈥檚 construction division inched up its profit margin during the second half of the financial year to 1.2%, up from 1%, while its housing division Linden Homes hit a 16.1% margin, up from 15.1%. Galliford鈥檚 target margins for 2018 are for construction and housebuilding to hit a 2% and 18% margin respectively.

Gillespie - who was promoted to group chief operating officer in April but also retains the role of leading the construction business - said he was 鈥渟atisfied鈥� with the construction division profit: 鈥淩elevant to peer group I鈥檝e got to be satisfied when you see some of the headlines in the sector. But for the great work we do it鈥檚 a small margin.鈥�

He added: 鈥淭he construction industry achieves fantastic things. When you interact with other sectors and show them what we do - for instance the Forth Road Crossing we鈥檙e involved in, or a complex building - these are fantastic products but at a relatively low margin.鈥�

Gillespie said his main priorities in his new role were improving group procurement and recruitment.

He said Galliford would be looking to 鈥渃ollaborate鈥� more with the supply chain and to strike more 鈥渘ational agreements鈥� with suppliers to secure long-term supply.

Galliford Try鈥檚 construction order book jumped to 拢3.8bn, up from 拢3bn.

In the housing division, Galliford Try said a completed restructure of its Southern division would achieve annualised savings of up to 拢2m.

In a statement accompanying the results, Galliford Try executive chairman Greg Fitzgerald said all of the group鈥檚 businesses had been 鈥渂uoyed by encouraging market trends鈥�.

Fitzgerald said that while 鈥渉igh levels of build cost inflation鈥� had impacted on 鈥渁ll鈥� its businesses, 鈥渆arly signs indicate the situation may be moderating鈥�.

Commenting on the housing business, Fitzgerald said: 鈥淭he outlook for Linden Homes remains strong, with the mortgage and land markets and the planning environment all positive. The main issue is building to schedule, given the shortage of skilled people.鈥�

Taylor Wimpey South divisional chiarman Peter Truscott joins Galliford Try as chief executive on 1 October. Following a three-month handover period, Fitzgerald will become non-exec chairman from 1 January next year.