GALLIFORD TRY PLC
TRADING UPDATE
TUESDAY 17 JULY 2018
Galliford Try plc, the housebuilding, regeneration and construction group, today provides the following update on trading for the year ended 30 June 2018. All figures are as at 30 June 2018, unless otherwise stated, and all comparatives relate to the prior year equivalent period. The Group expects to announce its results for the full year on 12 September 2018.
Peter Truscott, Chief Executive, commented:
Galliford Try has achieved a strong underlying performance in the financial year and continues to make good progress against its growth plans to 2021 across all three businesses.
Linden Homes has delivered sales growth in line with expectations and at a further significantly improved operating margin, and enters the new financial year with sales exchanged and reserved of £366m.
Partnerships & Regeneration continues to make excellent progress against the stretching growth and margin targets set for the business, significantly increasing revenue and profit. The business has a strong order book, benefiting from growing demand and opportunities in both contracting and mixed tenure.
Construction's underlying performance is good with current and new projects expected to deliver improved margins, operating on multiple secured frameworks and in our chosen sectors.
The Aberdeen Western Peripheral Route joint venture continues to make progress on site, with sections of the road already opened to traffic, and substantial completion expected to be achieved this summer. We continue to anticipate a further exceptional charge in the second half, in line with previous guidance (ie expected to be lower than the charge of £25m taken in the first half), and the final out-turn remains dependent upon the result of several significant claims.
The Group expects to report strong pre-exceptional full year results, in line with previous guidance, and net cash at 30 June 2018 of £97m (2017: £7.2m), with average net debt for the year below previous guidance at £227m (excluding the benefit of the rights issue receipt of £150m net). The outlook for the current financial year remains in line with management's expectations.
Linden Homes
· The business expects to report strong overall performance and further significant improvement in margin representing very good progress against our strategic objectives.
· 3,442 unit completions, including units in joint ventures (2017: 3,296 units).
· Sales rate for the year was 0.59 units per site per week from 85 average outlets (2017: 0.62 and 77).
· £366m year-end sales carried forward position representing 2,326 units (2017: £373m and 2,229 units).
· £367,000 average private sales price, up 4% (2017: £354,000).
· 11,400 plot landbank (2017: 10,650) with all plots secured for the new financial year and 81% of plots secured for FY 2020.
Partnerships & Regeneration
· Impressive performance continues, with significant growth in both revenue and profit, against a backdrop of increasing demand and opportunities.
· £1.2bn contracting order book (2017: £1.05bn) and mixed tenure sales carried forward of £160m (2017: £77m).
· 3,300 plot landbank, up 22% (2017: 2,700).
Construction
· Improved underlying performance. Net debt position expected to be lower than £30m (2017: net cash of £137m); the deterioration since the prior year principally reflects the burden of the AWPR joint venture.
· £3.3bn risk managed high quality order book (2017: £3.5bn) with 86% in the public and regulated sectors.
· 87% of revenue for the new financial year secured (2017: 84%).
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 the afternoon of 11 October 2018. Further details will be provided in due course.
A conference call for Analysts and Investors will be held at 08:00 am today (UK time)
UK dial in: +44 333 300 0804
US dial in: +1 631 913 1422
International dial-in: Please click here to access a full list of international numbers
Participant PIN: 22345337#
For further enquiries please contact:
Galliford Try Peter Truscott, Chief Executive 01895 855001
Graham Prothero, Finance Director
Tulchan Communications James Macey White / Martin Pengelley / Elizabeth Snow 0207 353 4200
Galliford Try plc is a leading UK housebuilding, regeneration and construction group. It is listed on the London Stock Exchange and a member of the FTSE 250. Housebuilding – through our Linden Homes business – develops private and affordable homes in prime locations. Galliford Try Partnerships – our regeneration business – delivers mixed-tenure solutions working with housing association, local authority and private sector partners. Operating as Galliford Try and Morrison Construction, our Construction business carries out building and infrastructure with clients in the public, private and regulated sectors. At the end of the last financial year to 30 June 2017, the Group generated revenue of £2.8bn.