Galliford Try plans 126m rights issue

CONSTRUCTION group Galliford Try yesterday announced plans for a &pound;125.6m rights issue to raise funds for new developments and take advantage of the property sector upturn.<br /><br />&ldquo;The rights issue proceeds will allow us to take advantage of the improved land market liquidity we are witnessing and build homes at attractive margins,&rdquo; said chief executive Greg Fitzgerald.<br /><br />The news came yesterday as the company revealed it had fallen into the red over the year to end of June, reporting a pre-tax loss of &pound;26.9m compared with a profit of &pound;60.3m in the previous year.<br /><br />It attributed the loss to writedowns of property assets of &pound;50.4m and redundancy costs of &pound;1m, and halved its dividend to 1.5p.