Galliford Try record revenue and dividend hike is good news for the UK housing market

 
Lynsey Barber
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Galliford Try revenue is at a record high (Source: Getty)

The figures

Galliford Try has posted another set of record figures.

Pre-tax profits at the housebuilder rose 12 per cent to £42.5m in the six months to the end of December, while revenue soared 35 per cent to more than £1bn.

It reduced net debt by £50m.

The housebuilder and construction firm has hiked its interim dividend to 22 pence per share.

Why it's interesting

Housebuilders are a barometer of the housing market - and Galliford Try is feeling good.

The construction group has reported a series of record revenue figures and if that continues, it's good for not only investors, but the UK property market as a whole.

What Galliford Try said

Chairman Greg Fitzgerald:

Linden Homes' sales rate has increased since 1 January 2015. Housing market conditions remain good and we are optimistic about the prospects for a number of recent and forthcoming sales outlets. Our partnerships business continues to see exceptional demand for contracting in the affordable housing market and the development business is growing in line with plan. Our enlarged construction business has a record order book of £3.25bn with the Miller Construction integration now completed.

We are making good progress with the search for a new chief executive.

We have increased the interim dividend by 47 per cent and, reflecting our continuing confidence in the delivery of our disciplined growth strategy, we are further enhancing our dividend policy.

In Short

Despite some worry that the market is cooling off, the housebuilder is clearly confident. With the firm's performance and growth plan on track for 2018, targeting revenues of £1.5bn, it's a sign the UK housing market is heading in the same direction too.

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