Member Article

Galliford Try sees 'record profits' as customer demand remains strong post-Brexit

Housebuilder Galliford Try has posted bumper profits of £135m in its annual results posted to the stock exchange this morning.

The FTSE-250 business saw its pretax profits leap by 18% last year, up from £114m in 2015, underlined by a significant 19% growth in reserved, contracted or completed sales to £510m.

Galliford’s financials have also been boosted by growth in its landbank, which rose to 2,800 plots from 2,200 and its contracting order book which expanded to £865m.

Commenting on the results, Chief Executive Officer, Peter Truscott, said that the ‘excellent results’ for the year were fuelled by continued customer demand in its Linden Homes plots and its increasing focus on mixed-tenure developments.

He said: “We have achieved further progress on margins in Linden Homes, increased our mixed-tenure output in Partnerships and Regeneration, and continue to make progress in resolving older contracts in Construction, whilst building and delivering a reliable and high quality order book.

“We have reorganised management in all three businesses during the year, creating the right platform for future progress in both volume and margin. Reflecting the delivery of record results and our continuing confidence in the business, we are proposing an increase in our full year dividend of 21%.”

Touching upon the continued spectre of the EU referendum, Truscott added that, while Brexit did not seem to be affecting demand, uncertainty surrounding the UK’s continued access to the single market would continue into the new financial year.

“The decision to leave the European Union inevitably creates a backdrop of uncertainty for the new financial year.

“However, we have been encouraged by visitor levels and sales rates at Linden Homes through the summer. The balance of our businesses and the strength of our order books mean that we are well-placed to manage the impact of this uncertainty,” he concluded.

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