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Galliford Try announce 80% profit surge

Construction firm Galliford Try plc has announced significant 80% profit increases in the last year.

The housebuilder, which has bases in Middlesex, Newcastle upon Tyne, Chelmsford and Saltash, said pre-tax profits rose from £35.1m² to £63.1m.

Galliford Try said it has exceeded its objectives for a three year transformation plan, after it achieved substantial profit increases and ended the year with £23m net cash.

The company will use its success in 2011/12 to develop and expand the business, which it hopes to launch through a “disciplined growth strategy” and a “progressive sustainable dividend policy”.

Despite a challenging economic climate, Galliford Try said its construction order book remained strong, and a number of contract confirmations had supported the company.

Housebuilding completions for the company rose 40% compared with 2011, while margins rose to 11.8% from 8.1% the previous year.

Margins in the firm’s construction unit “remained robust” despite a 0.4% decrease from 2011, and this sector ended the year with a cash balance of £146m.

Greg Fitzgerald, chief executive of Galliford Try plc., commented: “Against a background of challenging and uncertain economic conditions I am very pleased to report that we have exceeded the objectives of our three year transformational housebuilding plan, delivering a substantial increase in profits and return on capital.

“In addition, we have maintained a high quality construction order book. We have a strong balance sheet and a disciplined growth strategy with a clear focus on improving margins that positions us well to deliver further profitable growth in the new financial year and beyond.”

This was posted in Bdaily's Members' News section by Miranda Dobson .