Writedowns of 拢48m on housebuilding side wipe out firm's record profit in non-housing construction
Contractor and housebuilder Galliford Try has posted a loss of 拢37.5m after 鈥渆xceptional costs鈥� of 拢48.7m in the six months to 31 December 2008
The firm said it had seen the 鈥渨orst housing market in generations鈥�, forcing it to make 拢47.7m worth of housing asset writedowns and incur costs of 拢1m on redundancies.
Galliford Try completed 964 housing units, of which 672 were for market sale at an average sales price of 拢201,000. This compared with 890 units sold at an average price of 拢231,000 in 2007.
Net debt was reduced from 拢45.7m at 31 December 2007 to 拢1.8m in 2008.
The firm said it had reaped record profits from construction, 90% of which was in the public and regulated sectors. Construction had offered 鈥渆xcellent cash generation鈥�, according to the firm.
Chief executive Greg Fitzgerald said that working in both the construction and housebuilding sectors was 鈥渃ontinuing to mitigate the worst effects of the economic downturn鈥�.
He added: 鈥淎s the recession starts to impact opportunities in the construction market, we will benefit from our strong presence in the public and regulated sectors.
鈥淥ur strategy in housebuilding to reduce our exposure to the market during the current downturn by focusing on cash generation was adopted early. We have reduced our costs to a level that will enable us to work through the current market, while conserving the resources required to take advantage of opportunities arising when the market improves.鈥�
No comments yet