Builder鈥檚 housing business boosts full year 2012 results
Contractor and housebuilder Galliford Try has posted strong pre-tax profit of 拢63.1m, up 51%, on the back of a huge expansion in its housing business.
In full-year results to the year ending June 30, the firm said revenue from its housebuilding business, Linden Homes, had risen by almost two thirds, to 拢637m.
Operating profit from the housing business more than doubled, rising 138% to 拢75.1m.
However, growth at the firm was tempered by the tough construction market. Revenue fell in Galliford Try鈥檚 construction business by 1.3% to 拢925m, with operating profit dropping by 15%. The firm鈥檚 traditional building work business was particularly badly hit, with revenue dropping by 17% as the market became 鈥渟ignificantly more competitive.鈥�
Overall the group reported revenue of 拢1.5bn, up 17% on 2011, and said the figures showed its three-year plan to expand its housebuilding business had exceeded expectations.
Greg Fitzgerald, chief executive, said: 鈥淎gainst a background of challenging and uncertain economic conditions I am very pleased to report that we have exceeded the objectives of our three year transformational housebuilding plan. In addition, we have maintained a high quality construction order book.鈥�
The firm said in a statement the construction business had secured 82% of its revenue for 2013 already, maintaining its order book at 拢1.65bn. The statement said it planned to add another three percentage points to its 11% housebuilding operating margin in by the end of 2015, through using more recently bought land focused on the South East of England.
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