Record year expected at housebuilder

Housbuilding and construction group Galliford Try said it expect record full year results as sales rate improved since the General Election.

Galliford Try said it expects record full year results, with pre-tax profits towards the upper end of analysts’ range.

Since its last update housebuilding sales rates averaged 0.71 per site per week, up 49 per cent on the same period last year.

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The firm expects growth in revenue and profits in its construction division as well. It reported a strong order book of £3.5bn up from the previous year when it was £1.4bn.

Greg Fitzgerald, executive chairman, said: “It has been another record year for Galliford Try, and we are pleased to see that the momentum across the Group continues, supported by encouraging market trends for all three businesses.”

Ealier this year agreed to acquire Shepherd Group’s Yorkshire-based housebuilding land assets, Shepherd Homes and Miller Construction, which Mr Fitzgerald said further increases opportunities and capacity.

Mr Fitzgerald said: “Labour availability and cost remain challenging but we continue to manage this effectively working closely with our supply chain.

“Housing market conditions remain positive and the directors take further confidence from the significant increase in the group’s landbank as well as the contracting order book within Partnerships.

“Following a resilient performance in Construction throughout a tough recession we are pleased to report another profitable year for the division, and are encouraged by the outlook, with opportunities growing across multiple sectors.”