Galliford looks North following deal for Shepherd

Greg Fitzgerald, chief executive of Galliford Try
Greg Fitzgerald, chief executive of Galliford Try
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Construction and housebuilding group Galliford Try reported record annual results and said it has plans to expand in the North following the £31m acquisition of York-based Shepherd Homes earlier this year.

The group reported record underlying pre-tax profits of £118m, up 24 per cent, for the year to June 30.

Galliford said the acquisition of Shepherd Homes brought 515 plots and 59 people into the group and will accelerate its planned growth in the North.

The group reported momentum across the business, supported by encouraging market trends in all its divisions.

It said that the two important acquisitions of Shepherd Homes and Miller Construction have increased its opportunities and capacity.

It added that whilst labour availability and costs remain challenging, it is managing these issues effectively and working closely with its supply chain.

The group said that housing market conditions remain positive and Linden Homes is making good progress in improving its margin towards 18 per cent by 2018, with a rise in margin to 16.0 per cent over the half year.

It said that improving market conditions create an excellent platform for its enlarged construction business.

It has successfully integrated Miller Construction, accelerating growth plans, and has won a number of major projects during the year.

Margins at the construction business improved to 1.2 per cent and the order book showed impressive growth to £3.8bn and 90 per cent of this year’s revenue has already been secured.

Executive chairman Greg Fitzgerald said: “I am delighted to announce another record year at Galliford Try with all of our businesses buoyed by encouraging market trends.

“In housebuilding we have achieved progress on margins.

“We are very pleased to have acquired the Shepherd Homes business, which will accelerate our growth in the North. We have achieved a significant increase in the landbank with market conditions remaining positive.”