Trading Statement

Galliford Try plc, the housebuilding and construction group, today provides the following update on trading for the half year ended 31 December 2014. The Group expects to announce its results for the half year on 18 February 2015.

Group

· The Group continues to trade well and in line with our expectations.
· Net debt below £40 million (31 December 2013: £85.9 million) despite the increase in the landbank.
· Miller Construction integration has proceeded very well and is substantially complete ahead of plan.
· Last month the Group was reclassified into the FTSE Home Construction sub sector.

Housebuilding

· Solid performance with rates of sale and prices in line with our expectations.
· Revenue is expected to be up on the prior half year period, from 1,529 unit completions, 1,404 net of joint venture partners' share (2013: 1,359 and 1,279).
· Strong in hand position with total sales reserved, contracted and completed at £645 million from a lower number of average selling outlets (2013: £652 million). Outlets are expected to increase from an average of 67 in the first half to 75 in the period January to June 2015.
· Record landbank of 14,050 plots with the land market continuing to be positive. 98% of land secured for 2016.
· We expect Linden Homes' operating margin to improve compared to the same period last year.
· Average Linden Homes selling price up 7% at £310,000 (2013: £291,000). The average selling price for affordable sales was £121,000 (2013: £122,000) producing a combined average selling price of £259,000 (2013: £255,000).
· Linden Homes' unit sales per outlet per week at 0.51 is in line with last year (2013: 0.52) with rates increasing in the last quarter following a quieter summer. Cancellation levels continue to remain around the long term average at 19% (2013: 19%).
· Continuing excellent progress and revenue growth in Galliford Try Partnerships including major project wins in the period.

Construction

· Exceptional order book of £3.2 billion (2013: £1.75 billion) with a number of major project wins in the period and further visibility of an excellent pipeline of opportunities.
· Enlarged business benefiting from high quality clients and diverse future revenues with 21% of order book in the regulated sector, 59% in public and 20% in private (2013: 19%, 52% and 29% respectively).
· We continue to prioritise risk management and margin protection in an improving market. Margins continue to be constrained due to the completion of historical projects.
· 98% of projected revenue for the current financial year secured with 72% for the year 30 June 2016 (31 December 2013: 98% and 62% respectively).


Greg Fitzgerald, Executive Chairman, commented:

"It has been another strong performance for the Group in the first half of the financial year with our housebuilding and construction businesses both performing in line with our expectations. Housing market conditions remain good with growth having moderated to a more normal and sustainable level, and we are optimistic about the prospects for a number of recent and forthcoming sales outlets. Our Partnerships business continues to see exceptional prospects for both contracting and development in the affordable market. Following the acquisition of Miller Construction in July 2014 our enlarged Construction business is benefiting from an improving market. We remain confident in the delivery of our strategy of strong and disciplined growth across all of our businesses."

Half Yearly Report

GALLIFORD TRY PLC - HALF YEAR REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2014
CONTINUING STRONG PERFORMANCE: DISCIPLINED GROWTH AND DIVIDEND ENHANCEMENT

Financial H1 2015 H1 2014

Change

· Group revenue ¹ £1,085.4m £803.5m +35%
· Profit before tax £42.5m £38.1m +12%
· Earnings per share 42.0p 36.8p +14%
· Dividend per share 22.0p 15.0p +47%
· Net debt £35.9m £85.9m -£50.0m
· Group return on net assets ² 20.1% 17.1% +3.0 ppts
· Profit before tax, pre-exceptional ³ £45.9m £38.0m +21%
· Earnings per share, pre-exceptional ³ 45.5p 36.7p +24%

Group

· Record results and excellent progress on our disciplined growth strategy to 2018.

· Interim dividend up 47%, reflecting our strong performance.

· Further enhancement of our progressive dividend policy aiming to reduce cover from 1.7x to 1.5x.

· Net debt of £35.9 million (H1 2014: £85.9 million), despite the increase in the landbank.

· Existing £400 million unsecured bank facility extended to 2020 on improved terms; new £100 million interest rate hedge.

· Successful completion of integration of the Miller Construction business.

Housebuilding

· Linden Homes revenue up 5% to £346.1 million (H1 2014: £328.2 million) from 1,364 unit completions, 1,278 units net of joint venture partner share (H1 2014: 1,300 and 1,230 respectively).

· Linden Homes operating margin rose to 15.1% (H1 2014: 13.5%), including planned land sales, in line with both our strategy and our margin enhancement programme.

· Galliford Try Partnerships revenue, including both contracting and mixed tenure, up 56% to £157.6 million (H1 2014: £100.9 million) generating an operating margin of 2.3% (H1 2014: 1.9%).

· Strong Galliford Try Partnerships contracting order book of £650 million (H1 2014: £500 million) which excludes the appointment as preferred developer for the £360 million Silvertown Way development in Canning Town.

· Total sales currently reserved, contracted and completed across Linden Homes and Galliford Try Partnerships of £747 million (H1 2014: £744 million).

· Record landbank of 14,300 plots with the land market continuing to be positive. 100% of land secured for 2016 and 70% of land secured for 2017.

Construction

· Construction margin of 1.0% (H1 2014: 1.4%, FY 2014: 1.0%) in line with our expectations as we work through historical projects, and helped by the Miller Construction acquisition.

· Exceptional order book at £3.25 billion (H1 2014: £1.25 billion) and further visibility of an excellent pipeline of opportunities. 100% of projected revenue now secured for the current financial year with a record 75% secured for 2016 (31 December 2013: 100% and 65% respectively).

· Strong cash balance of £158.0 million underlining the robust performance of the business (H1 2014: £121.5 million).

Trading Update

Housebuilding

· £982 million of sales reserved, contracted or completed across both Linden Homes and Galliford Try Partnerships, of which £778 million is for the current financial year to 30 June 2015 (2014: £1.0 billion and £790 million respectively).
· Since 1 January 2015 Linden Homes has been selling at a rate of 0.68 per outlet per week (2014: 0.80, July - December 2014: 0.51).
· Strong Galliford Try Partnerships contracting order book of £0.65 billion (31 December 2014: £0.5 billion).
· Both businesses are actively pursuing good land opportunities. The division currently has a record landbank of 15,000 plots. Linden Homes has all plots secured for 2016 together with 75% of plots secured for 2017.

Construction

· Order book of £3.3 billion (31 December 2014: £3.2 billion).
· 83% of next year's revenue secured (2014: 80%).
· Experiencing strong levels of opportunities with good visibility of future work stream across all parts of the business.
· Cash performance continues to be strong.

Conference call

A conference call for Analysts and Investors will be held at 07:45 am (UK time today)

Four mid-cap infrastructure plays

Good results - AGM coming up, good yield, Why has the share price gone down by £4?
Maybe because the CEO is semi retiring.

Don't know why it's fallen by £4 but with a yield of 5% in a growth sector I'll be putting it back on watch with interest list

Tbh right now it just looks like the bots have got hold of it and are just jumping on the trend.

Maybe is the high PE the company was, almost sure about it.
Anyway most Builders are dropping lately from their highs, so this one is nothing special at the momet

StockMarketWire.com
Galliford Try has reported a strong trading performance for the period from 1 January to 2 May but warned the overall result would be impacted by non-recurring costs in Construction.

It said non-recurring costs of around £98m were expected following a reappraisal of costs to complete and recoveries from legacy contracts in Construction.

The group said underlying business in Construction was performing well, while Linden Homes and Galliford Try Partnerships & Regeneration continued to make strong progress.

It said group outlook for FY 2017 and future years was otherwise unchanged.

It said the balance sheet and cash position remained robust, and the group expected to pay a final dividend in line with previous guidance.

The group also said it had made good progress towards 2021 strategic targets to deliver sustainable growth and strong returns across all three businesses.

Chief executive Peter Truscott said: "The impact of the legacy projects in Construction, in particular the two large infrastructure projects, is regrettable.

"However, as described in our recent Strategy presentation, Galliford Try is no longer undertaking large infrastructure jobs on fixed price contracts.

"There are no other similarly procured major projects in our current portfolio and we are encouraged by the performance of the underlying portfolio of newer work.

"Excluding the non-recurring charge, we remain confident in delivering a strong performance over the full year, and we plan to pay the dividend in line with previous guidance.

"The Group continues to make good progress on our Strategy to 2021, supported by the strong leadership of our reorganised management teams.

"Whilst we remain cautious of continuing macroeconomic uncertainty, all three businesses are focused on exciting targets and clearly defined plans to improve operating efficiency and grow both margins and revenue."

1,388.50p +25.50p (+1.87%)

Galliford Try hikes divi after strong underlying performance

Galliford Try's revenues - including joint ventures - rose by 6% to £2,820m in the year ended 30 June following a strong underlying performance.

Group revenues of £2,662m rose by 7%.

Pre-tax profits were down 57% at £58.7m but pre-exceptional profit before tax rose buy 9% to £147.6m.

The group has declared a final dividend of 96.0p per share - up 17%.

Chief executive Peter Truscott said: "I am pleased to announce strong operating progress in the financial year, which has been supported by robust market conditions.

"While the one-off costs relating to legacy contracts in Construction have impacted the reported financial performance, we remain confident in the prospects for the business, with the underlying portfolio of newer contracts performing well, and simplified and strengthened processes proving effective.

"Reflecting our strong underlying performance we are proposing an increase in our full year dividend of 17% to 96.0 pence per share.

"Entering the new financial year, we remain cautious about the impact of the current political uncertainty and the medium-term outlook for the macro economy.

"However, all three businesses have clearly defined plans as part of our 2021 strategy, providing the Group with confidence in its ability to deliver a strong performance even in a period of lower growth in the wider economy.

Highlights
Financial 2017 2016 Change
* Revenue(1) (including joint ventures) GBP2,820m GBP2,670m 6%

* Group revenue(1) GBP2,662m GBP2,495m 7%

* Profit before tax GBP58.7m GBP135.0m (57)%

* Pre-exceptional profit before tax(2,3) GBP147.6m GBP135.0m 9%

* Earnings per share 59.1p 132.5p (55)%

* Pre-exceptional earnings per share(2,3) 145.8p 132.5p 10%

* Full year dividend per share 96.0p 82.0p 17%
GBP7.2m GBP(8.7)m GBP15.9m
* Net cash/(debt)
(12.9)
* Group return on net assets(4) 14.0% 26.9% pts

* Pre-exceptional Group return on net assets(5) 27.5% 26.9% 0.6 pts

That is a sorry looking chart.



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Presumably some of the decline is due to CLLN fallout?
A few of their previous RNS have included the phrase "we remain cautious.....", so they were presumably expecting the odd bit of bad news in the industry.

Just seen the latest RNS:

StockMarketWire.com
Galliford Try first half pre-tax profit fell 11% to £56.3m from £63.0 in the prior year period as the company announced plans for a £150m capital raise to ease the £25m hit resulting from the liquidation of Carillion.

Group revenue for the half year to 31 December 2017 was £1,403m (H1 2017: £1,235m). Revenue, including share of joint ventures, was £1,495m (H1 2017: £1,308m).

The company reported net debt of £84.9 million, down £28.9m from the prior year period. Average debt over the period was lower than expected at £203m, with deferred outflows on land acquisitions in Linden Homes and partnerships outweighing some delayed inflows in construction.

The company said its construction business continued to benefit from a strong order book, with an encouraging pipeline of opportunities from the current and planned investment in the nation's infrastructure.

The company declared an interim dividend of 28.0p per share, down 13% from the prior year's 32.0p.

Decline due raising of £150m capital.

Curiously they don't call it a rights issue

Actually I haven't read any of the detail as I'm not invested in this stock and today has been rather busy.

But, I don't understand.

If the impact of CLLN is a £25m exceptional item why do they need £150m?

especially since if they are turning a profit of say £110m which would produce loads of EBITBA.

I don't get it. Perhaps the market doesn't either.

Maybe they see this as an opportunity to get bigger once the CLLN dust is sucked-up and binned for good. The chances are that a good firm can bid for some of this work that many others will be reluctant to attempt..... dunno, but I read in IC the £150m is already underwritten, so it's not a Rights Issue - shareholders won't be invited and won't receive favourable Terms ( who said that?). That they can ask for so much "probably" means their backers believe this could "be the start of something good..."
GFRD has seen this fall-out as an opportunity.... and whilst losing £25m is deplorable - they were ( presumably) unaware things were so bad with a "Trusted partner" - until the TP fell off a cliff.

CC You aren't a holder?.... but might you join-in when the (stock) price is right? The GFRD Div isn't like generous now and could be cut further.... I think ( DYOR ), its half-year is ~3.0% at sp = 880p....
Cheers.

Ok, I think I understand why they have asked for £150m. In their previous accounts they had a provision of £85m mostly against the Aberdeen bypass, so with the £25m that comes to £110m.

When they made the provision, they wouldn't have spent the cash at that point as the work was still left to do.

Once the dust settles, margins should improve in the whole industry as CLLN were always the lowest bidder keeping prices down.


I'm more interested in the sector Hangon than GFRD. I'm already very overweight in this sector through CTO and NMD so I can't really take any more.

I shall wait anyway until the £150m placing has gone through. Someone is going to get stock at a cheap price. I'm not impressed it's not a rights issue. Doesn't seem fair to shareholders.

Thanks CC - whilst not getting stock cheaply is a swiz, -it's now almost half the price of March 2017.... maybe you could think of that as a bargain, even if the Inner Circle is getting a better-deal..... You could wait for the Truth-to-Out and hope the sp is matched, as the greedy-boys sell-off whatever then can, creating a Stock-depression? I read that you are waiting until then, so I guess that's what I'd do, if it was one of mine. Good Luck.
On another subject: that By-Pass . . . will be well-used one hopes after so much agro.
It amazes me that firms are willing to Dance-with-Nature when it comes to anything like Construction.... when it is only as it's approached that anyone can know what's there. Even then, it may not remain so - and could change long after the Men+Plant are removed..... but their liability remains.

StockMarketWire.com
Housebuilder Galliford Try reported Wednesday full-year profits more than doubled, and the company said it was on track to achieve its strategic targets.

For the 12 months to 30 June, pre-tax profit rose 145% to £143.7m, and revenue rose 11% to £3.13bn.

Pre-exceptional profit from operations, which excludes finance costs, tax and Galliford's share of joint ventures' interest and tax, rose 24% to £213.1m.

Performance was held back by an exceptional charge of £45m in the second half of the year, relating to the additional costs on the Aberdeen (AWPR) joint venture after Carillion went bust in January.

Total completions by Linden Homes and Partnerships & Regeneration increased to 6193 units from 5,490 seen last year. Sales order books in Linden Homes and Partnerships & Regeneration stood at £698m.

The construction division entered the new financial year with an order book of £3.3bn, and revenue of £1.69bn, up from £1.53bn last year.

The company said it was on track to achieve its strategic targets for 2021.

The full-year dividend payment was 77.0p, down 10% from 86p a share, owing to a rights issues and a higher dividend cover.

'We have delivered a very strong underlying performance during the year, driven by excellent progress towards our strategic objectives across all three businesses,' said Peter Truscott, Chief Executive.

'Linden Homes continued to prioritise margin growth, benefiting from further standardisation and the robust control of overheads.'

'Partnerships & Regeneration achieved strong growth in both revenue and margin, with excellent contributions from the new businesses in Southampton, Bristol and East Midlands.'

'The underlying Construction business performed well and continues to see a pipeline of suitable opportunities, with new projects delivering improved margins.'

'The rights issue in April has strengthened the balance sheet and ensures that the Group's businesses are well positioned, with the appropriate capital, to deliver on their respective growth opportunities in line with our Strategy to 2021.'