The UK based housebuilding and construction company Galliford Try (LON:GFRD), announced today their half year results for the period June to December 2009.
The company, which is organised into five divisions: Building, Infrastructure, PPP Investments, Housebuilding and Affordable Housing & Regeneration, reported today that they have made progress with both the first stage of the transformational housebuilding strategy and also increased the construction order book.
Group revenue for the period was GBP570m, compared to GBP774m for H2 2008. Earnings per share were down to 14pence (15.7pence for the same period a year earlier). Dividend remained the same and net cash was up to GBP100.2m for the period, compared to GBP1.8m in H2 2008.
The raising of GBP119.3 million net equity in October 2009 enhanced the progress of the company’s housebuilding strategy, the report said. The average selling price was 2.8% year on year in the first half, which is expected to pick up sharply in the second half - where 84% of projected sales for the year are reportedly already secured. The current construction margin is 2.6% and the contracting book is up 6% at GBP1.8 billion. Commenting on the results, Greg Fitzgerald, Chief Executive, said:
"Against the backdrop of a more stable housing market we have made excellent progress with the first stage of our transformational housebuilding strategy for our southern based business, bringing land acquisition opportunities with attractive potential returns to fruition. The market for construction is challenging but our quality order book and the spread and depth of our industry leading business across its market sectors continue to be key strengths that will enable us to respond quickly to a market upturn once it occurs. While the Board remains cautious on the overall economic environment, with a strong balance sheet and sector leading cash resources the Group is well placed to take advantage of opportunities across its activities as they arise".
