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(GFRD) Galliford Try Plc share chat

Discussion in 'General Share Chat' started by Steamy, Nov 6, 2015.

  1. Steamy

    Steamy Co-Founder of BlueShare Staff Member Moderator

    Galliford Try Plc
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  9. Mongoose82

    Mongoose82 A Legendary Member

    Beafort note just out: Https://www.research-tree.com/company/GB00B3Y2J508

    "Another record year, with growth across all three businesses. And there appears still more to come. Linden Homes saw a strong average sales rates, achieving 0.68 per site per week in the second half from increased average outlets of 84, and enters the new financial year with record sales exchanged and reserved of £380 million. Galliford Try Partnerships has continued to grow its mixed tenure revenues, which is key to achieving the targets it has set for the business, and maintained a strong contracting order book. Construction continues to enjoy an excellent order book and has grown revenues in the year, with good margins on newer work, although the overall result is still constrained by legacy contracts. The fact that the shares were hit very hard on June 24th and still remain 40% below their price immediately prior to the vote, suggests a degree of over-reaction. Galliford, like just about all building and construction-related operators, notes "It is too early to predict specific effects on our markets, but the strength of underlying demand for new homes and the continuing availability of mortgage finance and Help-to-Buy give grounds for confidence in both Linden Homes and Galliford Try Partnerships". The CEO went on to note that the late-cycle nature and public sector focus are key advantages for the Group, with the order book already 82% secured for FY17. Based on the full year to June 2017E, Galliford shares are presently trading on price/book of just 0.95, a PER of 7.2x, while offering a yield of 10.4%."
  10. Mongoose82

    Mongoose82 A Legendary Member

    Update from Beaufort Securities:

    "Galliford performed robustly in FY 2016, recording growth across all three businesses. Linden Homes benefited from a strong housing market, supported by supply shortages, the ample availability of low-cost mortgages, and a land market that remained positive. Linden Homes witnessed robust average sales rates, achieving 0.68 per site per week in the second half from increased average outlets of 84. Additionally, 100% of the land required for FY 2017 is in place, and 85% required for FY 2018 has been secured. Partnerships have continued to grow the company’s mixed-tenure revenues, which is the key to achieving the targets it has set for the business, and helped it maintain a strong contracting order book. Construction continues to enjoy an excellent order book; revenues have expanded during the year, and it is earning good margins on new work. Galliford reorganised its management to improve operational excellence in all three businesses and created the right platform for future progress in both volumes and margins. The company increased shareholder value as it increased the dividends payable. We are buoyed by Galliford’s progress in FY 2016 and maintain a Buy rating on the stock."

    Via Research Tree
  11. Groucho

    Groucho Member

    28 September 2018



    Galliford Try plc has today, in accordance with LR 9.6.1 R of the Listing Rules, submitted to the Financial Conduct Authority's National Storage Mechanism copies of the following:

    · The Annual Report and Financial Statements 2018

    · Notice of 2018 Annual General Meeting

    · Form of Proxy for the 2018 Annual General Meeting

    The documents will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.

    The Annual Report and Financial Statements and Notice of Annual General Meeting are also available on the Galliford Try plc website at www.gallifordtry.co.uk/investors/reports-and-presentations/2018.

    A condensed set of the Group's financial statements and information on important events that have occurred during the financial year and their impact on the financial statements were included in Galliford Try plc's Final Results Announcement on 12 September 2018. That information together with the information set out below which is extracted from the Annual Report and Financial Statements 2018 constitute the material required by DTR 6.3.5 of the Disclosure Guidance and Transparency Rules which is required to be communicated to the media in full unedited text through a Regulatory Information Service. This announcement is not a substitute for reading the full Annual Report and Financial Statements 2018. Page and note references in the text below refer to page numbers and note references in the Annual Report and Financial Statements 2018. To view the results announcement, slides of the results presentation and the results webcast please visit www.gallifordtry.co.uk/investors.

    Principal risks

    Managing risk and uncertainty to deliver business performance

    The ability to identify, assess and manage risks and uncertainties is critical to achieving our strategy of sustainable growth and is an integral element of our management processes.

    Our approach to risk and internal controls

    Risks and uncertainties are inherent to the markets in which we compete, the regulatory environment in which we operate and the operational activities we perform in pursuit of our strategy. Our risk appetite, defined as the nature and level of risks that we are prepared to be exposed to, is discussed and agreed by the Board and is expressed in our Group strategy. This attitude to risk is then applied by the businesses and business units in their annual business plans and day-to-day operations. For example, at Group level, we have stated that we will not bid for large, fixed-price construction contracts that carry an unacceptable level of risk. At the business unit level, this appetite informs how opportunities are assessed and is enforced through the governance and review controls over bidding.

    The Board also has overall responsibility for maintaining oversight of the Group's processes for identifying, assessing, managing and reporting on principal risks and the system of internal controls designed to manage them. The Board has reviewed the principal risks and uncertainties, including those that would threaten its business model, future performance, solvency or liquidity, together with the key mitigations in place, and the most significant risks are presented on pages 24 and 25. There may be other risks and uncertainties besides those listed which may also adversely affect the Group and its performance. In addition to the ongoing processes for monitoring our principal risks, during the year, the Board also carried out a comprehensive assessment of the general risk factors relating to the Group, which were included in the rights issue prospectus.

    The Audit Committee has reviewed the risk management process and internal control framework, together with the findings of the Internal Audit function over the past year, which may indicate weaknesses that have had, could have had, or may have in the future, a material impact on the results, and remedial actions taken. Based on these assessments, the Board is satisfied with the effectiveness of the Group's systems of risk management and internal control.

    Risk management governance structure and process

    The Group's risk management and governance structure, as shown below, highlights the way in which risks are identified, reported and managed within the frameworks set out by the Board. It is designed to facilitate both a bottom-up and top-down view of risk. The Board has delegated implementation of risk management and internal control, together with their day-to-day operation, to the Group's Executive management. The process is overseen by the Executive Risk Committee, which is chaired by the General Counsel and Company Secretary, and is managed on a day-to-day basis by the Director of Risk and Internal Audit. The Risk and Internal Audit function plays an integral role in facilitating the identification, reporting and management of risk throughout the governance structure.

    Each business unit maintains a risk register, which captures the principal risks applicable to that business, the key mitigations in place and what further action is required to manage the risk. The business unit Board reviews the risk register twice a year. One of these reviews is facilitated by the Group Risk and Internal Audit function and includes an assessment of the likelihood and impact of each risk using defined risk assessment criteria and interactive voting software. The same methodology and review process is used to identify and assess the key risks at a business level.

    The Executive Risk Committee meets three times a year and reviews the latest versions of each of the three business risk registers. Following each Risk Committee, the Group risk register is updated by the Director of Risk and Internal Audit and reviewed by the Executive Board and plc Board.

    The Audit Committee is responsible for keeping under review the adequacy and effectiveness of the Group's risk management processes and systems of internal control, and for reviewing and approving statements included in the Annual Report concerning internal controls, risk management and the Viability statement.

    Internal control framework

    The day-to-day management of our principal risks is supported by an internal control framework which is embedded in our management and operational processes. The most significant elements of the Group's internal control framework include the following:

    Organisational structure: each business unit is led by a managing director and management team providing a clear hierarchy and accountabilities.

    Code of Conduct: the Group promotes a culture of acting ethically and with demonstrable integrity. Group standards are set out in a Code of Conduct which is communicated to all employees and supported by specific training modules in key areas.

    Contractual review and commitments: the Group has clearly defined policies and procedures for entering into contractual commitments which apply across its business units and operations and are enforced through the Group's legal authorities matrix.

    Investment in land and development: land expenditure approval is subject to clearly defined policies and procedures, with significant investments approved at Executive Board and Board levels under Group policies and procedures.

    Operational activity: site operations are performed in line with established business management systems and processes that incorporate all operational activities, including health, safety and environmental procedures, regular performance monitoring, quality management and external accountability to stakeholders.

    Financial planning framework: a detailed annual budget is prepared for each financial year, which is approved by the Board.

    Operational and financial reporting: an exacting profit and cash reporting and forecasting regime is in place across the Group. As well as the emphasis placed on cash flow, income and balance sheet reporting, health, safety and environmental matters are prioritised within monthly operational reports.

    Internal Audit: the Group Internal Audit function develops and delivers an annual programme of internal audits, which includes business unit key controls reviews, audits of business and Group processes and targeted risk reviews.

    Assurance provided by non-audit functions: a number of other Group functions provide assurance in areas including, but not limited to, health, safety and environment, legal contract reviews and compliance, and construction industry regulation.

    Pension plan administration: review of the funding position of the Group's defined benefit pension scheme and consideration of cash contributions by the Group are the responsibility of the Board. The administration of the Group's fully closed final salary and ongoing defined contribution pension plan is outsourced to professional service providers. Each of the final salary schemes has an independent scheme secretary and a proportion of independent trustees to provide additional layers of external scrutiny.

    Viability statement

    In accordance with provision C.2.2 of the UK Corporate Governance Code, the Board has assessed the prospects of the Group over a period of three years in line with its typical business planning and risk management review period.

    The Group's budget includes information in relation to the Group's revenues, profits, cash flows, dividends, net debt and other key financial and non-financial metrics. The plan considers the potential impact of the principal risks to the business as described overleaf, the cyclical nature of the markets in which the Group operates, and incorporates an appropriate level of flexibility to mitigate against these risks. This is achieved through the preparation of sensitivity analyses on a range of scenarios, including variations in revenue, house prices, sales rates, build costs, cash generation and access to financing.

    Based on the results of its review and analysis, the Board has a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the three-year period of its assessment.

    Strategic priority 1

    Drive operating efficiencies, so we increase margins, respond faster to changing market conditions and have strong foundations for delivering further top-line growth.

    Strategic priority 2

    Maintain capital discipline, so we appropriately invest in growth opportunities, maintain a robust balance sheet and continue to pay strong dividends.

    Strategic priority 3

    Operate sustainably, so we create longer-term value by balancing financial performance with our obligations to all our stakeholders.


    The Company has provided performance guarantees in respect of certain operational contracts entered into between joint ventures and a Group undertaking.

    Statement of directors' responsibilities

    The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

    Company law requires the directors to prepare financial statements for each financial year. Under company law the directors have prepared the Group and Parent Company financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. Under company law, the directors must not approve the financial statements, unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Parent Company and of the profit or loss of the Group and Parent Company for that period.

    In preparing the financial statements, the directors are required to:

    * select suitable accounting policies and then apply them consistently;

    * make judgments and accounting estimates that are reasonable and prudent;

    * state whether applicable IFRSs as adopted by the EU have been followed, subject to any material departures disclosed and explained in the financial statements; and

    * prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Group and Parent Company will continue in business.

    The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and Parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and Parent Company and enable them to ensure that the financial statements and the Directors' Remuneration Report comply with the Companies Act 2006 and, as regards the Group financial statements, Article 4 of the IAS Regulation. They are also responsible for safeguarding the assets of the Group and the Parent Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

    The directors are responsible for the maintenance and integrity of the Group and Parent Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

    The directors consider that the annual report and accounts, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Group and Parent Company's performance, position, business model and strategy.

    Each of the directors, whose names and functions are listed on pages 50 and 51, confirms that to the best of their knowledge:

    * the Parent Company financial statements, which have been prepared in accordance with IFRSs as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit of the Parent Company;

    * the Group financial statements, which have been prepared in accordance with IFRSs as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit of the Group; and

    * the Strategic Report contained in pages 1 to 49 includes a fair review of the development and performance of the business and the position of the Group and Parent Company, together with a description of the principal risks and uncertainties that it faces.

    In the case of each director in office at the date the Directors' report is approved:

    * so far as the director is aware, there is no relevant audit information of which the Group and Company's auditors are unaware; and

    * they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Group and Company's auditors are aware of that information.

    Galliford Try PLC - Annual Financial Report https://www.voxmarkets.co.uk/rns/announcement/1a3e58d9-b89c-4517-9c2e-421bacc243f1
  12. Groucho

    Groucho Member

    07:00 AM WEDNESDAY 12 SEPTEMBER 2018







    · Very strong underlying performance reflecting excellent progress made against strategy to 2021

    · 6,193 total new homes built by Linden Homes and Partnerships & Regeneration (2017: 5,490)

    · Sales order books in Linden Homes and Partnerships & Regeneration robust at £698m (2017: £638m)

    · Successful 1 for 3 rights issue in April 2018 resulting in net proceeds of £150m

    · Average net debt at £227m (excluding the rights issue proceeds)

    · Full year dividend payment of 77.0p (2017 restated: 86.0p), covered 2.0x by pre-exceptional profits in line with policy announced at the rights issue

    · Pre-exceptional return on net assets improved to 29.2% from 27.5%

    · On track to achieve Group 2021 strategic targets with adjustments to divisional targets

    Linden Homes

    · Excellent progress against our objectives, generating an improved operating margin of 19.5% (2017: 18.2%) and operating profit up 8% to £184.4m (2017: £170.3m)

    · 3,442 completions8 (2017: 3,296), revenue up to £947m (2017: £937m)

    · 0.59 sales rate per outlet per week (2017: 0.62) with sales reserved, contracted or completed of £510m9 (2017: £545m)

    · 11,830 plot landbank9,10 (2017: 11,250), estimated to be around 3.5 years' supply

    Partnerships & Regeneration

    · Continuing strong profitable growth with mixed-tenure revenue up 51% to £124m, from 751 completions7 (2017: £82m and 594 completions respectively) and contracting revenue of £351m, up 42% (2017: £248m)

    · Operating margin improved to 5.0% (2017: 4.5%), generating a 58% increase in operating profit to £23.6m (2017: £14.9m)

    · £1.2bn9 contracting order book (2017: £1.05bn) and mixed-tenure sales reserved, contracted or completed of £188m9 (2017: £93m)

    · 3,760 plot landbank9, up 39% (2017: 2,700)


    · Pre-exceptional margin improved to 0.9%, on revenue of £1,687m (2017: 0% and £1,527m respectively)

    · £26m net debt (2017: net cash £137m), reduction primarily reflecting cash funding of Aberdeen Western Peripheral Route (AWPR)

    · Good progress on the AWPR contract, with the vast majority of the road complete, significant sections already opened to traffic and final completion expected in late Autumn. Construction result impacted by exceptional charge of £45.0m from the contract, in line with earlier guidance

    · £3.3bn9 risk managed high-quality order book (2017: £3.6bn)

    Peter Truscott, Chief Executive, commented:

    "We have delivered a very strong underlying performance during the year, driven by excellent progress towards our strategic objectives across all three businesses.

    Linden Homes continued to prioritise margin growth, benefiting from further standardisation and the robust control of overheads. This resulted in increased profitability in a year with modest house price inflation. Volumes also grew reflecting the strength of our product offering, and with the sector supported by Help to Buy, good mortgage availability and the cut in stamp duty for first-time buyers. The land market continues to be favourable, allowing us to buy land at robust margins, in the right locations for our new standardised product.

    Partnerships & Regeneration achieved strong growth in both revenue and margin, with excellent contributions from the new businesses in Southampton, Bristol and East Midlands. The business has a strong order book and continues to see growing demand across all regions with opportunities in both contracting and mixed-tenure.

    The underlying Construction business performed well and continues to see a pipeline of suitable opportunities, with new projects delivering improved margins. We have made good progress towards completion of the AWPR contract, with significant sections of the road open to traffic and the final section expected to be open by late Autumn 2018.

    The rights issue in April has strengthened the balance sheet and ensures that the Group's businesses are well positioned, with the appropriate capital, to deliver on their respective growth opportunities in line with our Strategy to 2021."

    This announcement contains inside information.


    Galliford Try plc Peter Truscott, Chief Executive 01895 855001

    Graham Prothero, Finance Director 01895 855001

    Tulchan Communications James Macey White / Martin Pengelley / 020 7353 4200

    Elizabeth Snow

    1 'Revenue' includes share of joint ventures' revenue of £200.7m (2017: £158.1m). 'Group revenue' where stated excludes share of joint ventures.

    2 Pre-exceptional measures exclude exceptional costs as described in note 3. All future references to pre-exceptional data or ratios are consistent with this definition.

    3 Exceptional costs in 2018 were £45.0m. Exceptional costs in 2017 of £88.9m.

    4 2017 restated due to rights issue (note 7)

    5 2017 restated due to rights issue (note 6)

    6 Group return on net assets represents profit before tax, finance costs and amortisation divided by average net assets.

    7 Pre-exceptional Group return on net assets represents pre-exceptional profit before tax, finance costs and amortisation divided by average pre-exceptional net assets.

    8 Completions net of joint venture partner share were 2,903 (2017: 2,876) for Linden Homes and 564 (2017: 444) for Partnerships & Regeneration.

    9 As at 10 September 2018. All future references to this data is for the same period.

    10 Linden Homes landbank includes 3,276 plots (2017: 2,737) representing Linden Homes share of plots held in joint ventures.

    Analyst Presentation

    Galliford Try will hold its results presentation at 09:30 am on Wednesday 12 September 2018 at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. A live audio webcast will be available at http://webcast.openbriefing.com/galliford_FY18/. Recorded interviews with Peter Truscott and Graham Prothero, regarding the full year results will be available on the Group's website: www.gallifordtry.co.uk from Wednesday 12 September 2018.

    Capital Markets Day

    The housebuilding businesses, Linden Homes and Partnerships & Regeneration, will host a Capital Markets Day for institutional investors and analysts in London on 11 October 2018.


    The Group's private and affordable homes businesses continue to benefit from good market fundamentals, with sales reserved, contracted and completed in Linden Homes and Partnerships & Regeneration of £698m (2017: £638m). The market is characterised by a continuing strength in the regions and for units below the Help-to-Buy threshold, with higher price points and the South East seeing some weakening in buyer confidence. The Government's commitment to the housing market, combined with the relaxation of stamp duty for first-time buyers, good mortgage availability and historically low interest rates, continues to support the sector, despite the ongoing macroeconomic uncertainty.

    Linden Homes has made a good start to the new financial year. The business has a solid forward order book, which is lower than last year's strong comparative but in line with 2016, an optimal-length landbank equivalent to 3.5 years, and a growing strategic landbank. As part of the strategy to 2021, the business remains focused on delivering higher margins through continued process improvement, the benefits of product standardisation and enhancing our strategic landbank.

    Partnerships & Regeneration continues to pursue its vigorous growth, benefiting from excellent demand and opportunities across all aspects of the business, from the partners and types of products to the increasing reach of the business nationally. The business continues to focus on regional expansion, and remains confident in reaching its target for 2021, with strong growth in the order books for both mixed-tenure and contracting.

    Construction, which continues to operate predominantly in the public and regulated sectors, benefits from the substantial current and planned investment in the nation's infrastructure. As the AWPR contract progresses to completion, and the few remaining legacy project negotiations are concluded, the business is focused on winning projects of the right quality and risk profile, through a rigorous project selection process. The performance of newer projects, which are aligned to the business's project selection parameters, is encouraging.

    The Group remains positive about the opportunities for each business, supported by a strengthened balance sheet, a strong forward order book and robust demand across our sectors. Collectively these provide the Board with confidence in the Group's prospects for the forthcoming year.


    The Board is committed to a dividend strategy which fairly and prudently allocates profits between returns to shareholders and further investing in the growth potential of the businesses and maintaining a strong balance sheet, which protects against the risks in cyclical markets. We approach this by setting a target level of dividend cover. In our strategy document, published in February 2017, we indicated our intention to increase this cover up to two times during the strategy period. We took the opportunity of the rights issue to accelerate this adjustment, moving immediately to cover of 2.0x, which both provides clarity and enables the dividend to progress in line with profits after the current year.

    The directors are recommending a final dividend of 49.0 pence per share which, subject to approval at the AGM, will be paid on 5 December 2018 to shareholders on the register at 9 November 2018. Together with the interim dividend of 28.0 pence per share paid in April, this will result in a total dividend for 2018 of 77.0 pence per share.

    STRATEGY TO 2021

    In February 2017, we set out our three-part strategy for sustainable growth:

    1. Drive operating efficiencies by streamlining our operations to increase margins, so we may respond faster as markets change and ensure we have strong foundations for top-line growth.

    2. Maintain capital discipline by continuing to manage capital prudently, reinvesting appropriately in growing the business and continuing to pay attractive dividends.

    3. Operating sustainably is fundamental to everything that we do, with a principal focus on health and safety and the development and well-being of our people.

    As part of the strategy, the Board set out Group financial targets for the five years to 2021, based on the results for FY 2016. The rights issue in April, together with the acceleration of the higher dividend cover, require a rebasing of the prospective targets for dividend CAGR, with the Group targets otherwise remaining as:

    · 60% growth in profit before tax to FY 2021;

    · a five year CAGR on dividend of at least 5%1; and

    · a Group return on net assets in FY 2021 of at least 25%.

    The Group is making strong progress towards its objectives, with each business working towards individual financial targets to drive Group profit and returns. In Linden Homes, reflecting a slightly more cautious outlook for the wider economy, the business is now focused on delivering more prudent volume growth, but a stronger improvement in margins. The business has therefore adjusted its unit volume target to a range of 4,200 - 4,500 units, and its revenue target to £1.25bn in FY 2021, but has reached its 2021 margin target (19%-20%), and expects to achieve an operating margin at the upper end of the previously guided range. Partnerships & Regeneration is performing ahead of expectations and has increased its unit volume range to 4,200 - 4,400 and revenue target to a range of £700m-£750m. Reflecting these adjustments, the business targets by which the Group targets will be achieved, have been updated as set out below:
    Galliford Try PLC - Final Results https://www.voxmarkets.co.uk/rns/announcement/624b33e1-3e9c-41d3-97f4-60e09774942f
  13. Groucho

    Groucho Member

    Sunday Telegraph 4/11/18
  14. Groucho

    Groucho Member

    7 November 2018

    Galliford Try appointed to £8bn Highways England framework

    Galliford Try, the leading housebuilding and construction business, announces that it has successfully won two places on the Highways England Delivery Integration Partnership. The framework, which replaces the current Collaborative Delivery Framework, is worth a total of £8.7bn and will run for six years.

    The places successfully secured by Galliford Try are both within 'Band B' for higher value schemes, on lot four in the South West, valued at £800m, alongside one other supplier, and lot seven in the East of England, valued at £2.8bn alongside two other suppliers.

    Galliford Try has already been allocated two schemes through the new framework, one in each lot. The larger scheme is a package of six projects to improve the A47 corridor in Norfolk. In the South West, the company will undertake the dualling of the A303 between Sparkford and Ilchester in Somerset, one of three planned projects designed to improve the A303/A358 corridor.

    Peter Truscott, Chief Executive of Galliford Try, said: "Highways is a key growth sector for our Infrastructure business so this appointment is particularly significant. We are currently partnered with Highways England under its Collaborative Delivery Framework and Construction Works framework and also a leading Smart Motorways partner. We are fully aligned with our client's ambition and strategic imperatives and pleased to be an integral part of its supply chain for years to come."
  15. Groucho

    Groucho Member

    13 FEBRUARY 2019





    · Strong group underlying performance producing record pre-exceptional profit, with continuing progress against our strategic objectives across the Group.

    · 3,069 total new homes completed by Linden Homes and Partnerships & Regeneration (H1 2018: 2,878).

    · Net debt reduced to£40m(H1 2018:£85m), with average net debt decreasing to£126m(H1 2018:£203m).

    · Interim dividend of 23.0p declared (H1 2018: 28.0p), in line with 2.0x cover policy.

    · Increased total sales currently reserved, contracted and completed of£1,097m7(H1 2018:£1,008m) and a current Group order book of£5.4bn7(H1 2018:£5.6bn).

    Linden Homes

    · Strong performance in more challenging markets, with operating margin continuing to grow.

    · Revenue of£392.1m(H1 2018:£436.8m) from 1,505 unit completions, 1,306 net of joint venture partners' share (H1 2018: 1,587 and 1,346 respectively).

    · Private average selling price 5% lower at£352k(H1 2018:£370k), reflecting changed mix of sales in line with strategy.

    · Further improvement in operating margin to 19.6% (H1 2018: 18.5%).

    · 3,6077unit sales currently reserved, contracted or completed representing a value of£850m7(H1 2018: 3,401 units and£879mrespectively).

    · First half year sales rate at 0.52 (H1 2018: 0.53) with a sales rate of 1.277, 10from 1 January 2019 (H1 2018: 0.65 from 1 January 2018).

    · 11,7507plot landbank (H1 2018: 11,540), in line with target of 3.5 years' supply.

    Partnerships & Regeneration

    · Revenue up 27% to£284.9m(H1 2018:£223.5m), reflecting strong growth in both contracting and mixed-tenure.

    · Operating margin improving in line with our strategy to 5.1% (H1 2018: 4.8%).

    · Total sales currently reserved, contracted and completed up 91% at£247m7of which£153mis for the current financial year to 30 June 2019 (H1 2018:£129mand£96mrespectively).

    · Contracting order book of£1.2bn7(H1 2018:£1.2bn).

    · 4,1007plot landbank (H1 2018: 2,850).


    · Aberdeen Western Peripheral Route (AWPR) construction completed. First half exceptional costs of£26mfrom completion delays.

    · Constructive dialogue with the client continues regarding significant and recognised claims. Financial statements include an estimate for these recoveries.

    · Lower revenues reflect more cautious bidding and project deferrals owing to clients' macro uncertainty.

    · Pre-exceptional operating margin maintained at 0.9% (H1 2018: 0.9%) with encouraging performance on current projects.

    · Solid, high-quality order book of£3.2bn7(H1 2018:£3.5bn).

    Peter Truscott, Chief Executive, commented:

    "Galliford Try has delivered a strong financial and operational performance in the first half, with further progress against our 2021 strategy. The Group is well capitalised and average net debt is below previous guidance, driven by focused working capital management over the period.

    We were delighted to achieve completion of the AWPR with final handover in progress, successfully delivering a vital and major piece of infrastructure to the local community. We continue constructive dialogue with our client regarding important and recognised claims.

    Linden Homes delivered a strong performance in the first half, despite the continuing political uncertainty and its impact on confidence. The business continues to pursue its successful strategy of product standardisation and improved process efficiency, resulting in continued margin growth. We are seeing good demand, in particular for smaller and mid-range family houses, supported by Help-to-Buy and a strong mortgage market. We have seen a positive start to the Spring selling season, despite the headwinds to consumer confidence arising from political uncertainty, which is key to the strength of the market over the coming months.

    Partnerships & Regeneration is performing very strongly, both at revenue and margin levels. Opportunities for the business continue to grow, underpinned by our strong relationships with providers and funders, our growing geographical footprint and by cross-party political support for affordable housing. The business has been encouraged by the successes it has seen in the first half of the year, with new projects commenced across both contracting and mixed-tenure resulting in strong levels of sales reserved, contracted or completed as well as a solid contracting order book.

    Construction's performance continues to be encouraging, particularly on newer contracts, reflecting the business's careful approach to project selection and risk management. We continue to prioritise the quality of each opportunity over volume. We are seeing projects deferred as a result of macro uncertainty, but with 96% of revenue secured for the current financial year and 66% secured for the following year the business has confidence in its prospects.

    The Group enters the second half of the year with a solid foundation, underpinned by a strong balance sheet and our focus on high-quality earnings which will drive further margin improvements over time. Our mix of residential development creates a robust proposition in more uncertain markets. We remain cautious of the impact of the current political uncertainty on consumer and business confidence, and the medium-term outlook for the macro economy, but believe our focused strategic objectives, strong order book and disciplined approach will deliver a full year out-turn toward the upper end of the analysts' current range."
    Last edited: Feb 13, 2019 at 8:14 AM

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