Record profits at construction firm Galliford

City A.M. Reporter
CONSTRUCTION company Galliford Try reported an 80 per cent rise in profit for the fiscal year, helped by the performance of its housebuilding segment, and said it was confident of further growth.

The company, which also takes up government infrastructure projects, said its construction segment has already secured 82 per cent of its projected workload for 2013.

The division has orders worth £1.65bn.

Pre-tax profit rose to £63.1m for the year ended 30 June, from £35.1m a year earlier.

Revenue rose 17 per cent to £1.5bn.

Housebuilding margins rose to 11.8 per cent from 8.1 per cent a year earlier, but construction margins fell to two per cent from 2.4 per cent.

Galliford raised its final dividend to 21p per share from 11.5p a year earlier.

“Against a background of challenging and uncertain economic conditions I am very pleased to report that we have exceeded the objectives of our three year transformational housebuilding plan, delivering a substantial increase in profits and return on capital,” said the firm’s chief executive, Greg Fitzgerald.

He added that the company was well positioned to continue growing profits in the coming year.

The FTSE 250 company’s shares, which have risen 39 per cent this year, closed at 690p yesterday.