黑洞社区

In its last full-year, Galliford Try鈥檚 construction business posted revenue of 拢913m, meaning the firm would be aiming for revenue of around 拢1.4bn by 2018.

Speaking to 黑洞社区, Ken Gillespie, chief executive of Galliford Try鈥檚 construction business, said the growth target for 2018 was 鈥渘ot particularly aggressive鈥� because it represented a return to the firm鈥檚 pre-recession turnover.

He said commercial and leisure developments were among those that the firm was targeting to drive growth.

Gillespie said he wanted growth to be organic and 鈥渄idn鈥檛 see鈥� the firm using acquisitions to grow revenue 鈥渋n the short term鈥� because it was not the right point in the economic cycle to buy other firms.

He said: 鈥淚 think coming out of recession is a tougher ask than going into recession. You have got a marketplace where you have an order book that you鈥檝e won over the last five years at prices at the lowest they are in the [economic] cycle. The risk is whether you can deliver it at the price that you priced it at.鈥�

In its half year accounts, published today, Galliford Try said: 鈥淢aintaining our focus on risk management we will continue to prioritise margin and strict cash management. 

鈥淚n the short term we continue to expect operating margin to fall, but then to rise towards 2.0%.鈥�

The announcement came as it reported to the City that group revenue had jumped 18% to 拢803.5m in the second half of 2013, up from 拢678.3m in the second half of 2012.

It also reported an 18% increase in pre-tax profit to 拢38.1m in the six months to 31 December 2013, up from 拢32.3m over the same period of 2012.

Over the same period Galliford Try鈥檚 construction arm reported a slight decline in revenue to 拢398.1m in the last six months of 2013, down from 拢400.7m in the last six months of 2012.

It also reported a dip in operating profit to 拢5.5m from 拢7.4m.

In its accounts it said the construction market 鈥渃ontinued to be challenging鈥� but that it was 鈥渟eeing an increase in the pipeline of opportunities鈥�.

Galliford Try鈥檚 housebuilding division, Linden Homes, reported a jump in revenue to 拢328.2m in the second half for 2013, up from 拢273.5m. It also reported an increase in operating profit to 拢44.2m up from 拢33.9m.

Its affordable housing arm, Galliford Try Partnerships, also reported strong growth with revenue of 拢100.9m in the second half of 2013, up from 拢43.1m in the second half of 2012.

Plus, its operating profit rose to 拢1.9m from 拢500,000.

In its strategy business strategy, Galliford Try said Linden Homes would target increased operating margin of around 18% and a 50% increase in revenue by 2018.

While Galliford Try Partnerships would aim to increase turnover to over 拢60m and achieve an operating margin of between 3.5% and 4% by 2018.