Galliford Try reports 7 per cent sales growth
Galliford Try has reported a 7 per cent growth in reserved, contracted and completed sales, which total £460m.
In an interim management statement, the housebuilder reported that the growth came off the back of an “encouraging” autumn season that had been sustained in recent weeks.
The sales figure for 2011 stood at £430m.
Galliford also reported that more opportunities were becoming apparent in construction, although price levels remain “competitive”.
The firm has recently won around £100m in housing deals, the £89m Resorts World project in Birmingham, and has been named in a consortium to win £500m public sector infrastructure projects in south west Scotland.
Sales prices were slightly above expectations, while cancellation rates were stable.
81 per cent of the firm’s 10,500-plot land bank was secured at current market values, compared to 73 per cent the year before.
Housebuilders have been snapping up land at cut prices following the onset of the financial crisis in 2008.
75 per cent of Galliford’s landbank is in the south.
Chief executive Greg Fitzgerald commented: “Building upon the success of our three year transformational plan we have set out a disciplined growth strategy with a clear focus on improving margins.
“Whilst the economic outlook continues to remain uncertain both our housebuilding and construction divisions have made a good start to the financial year. The autumn selling season was encouraging and our construction business won a number of key projects during the period.
“Overall the group is well positioned to deliver further profitable growth in the current financial year and beyond.”
Galliford also said mortgage finance availability was an issue “despite improvements”, and that it was taking an approach of “only pursuing work on which we can earn an acceptable return”.