Galliford Try expects to meet market expectations amid ongoing demand for housing

Galliford Try said it expected full-year results to meet market expectations supported by ongoing demand for housing and its effort to trim its construction business.

'The group traded well since the turn of the year and we anticipate achieving a full year result consistent with the current range of analysts' expectations for profit before tax, including account exceptional items for the year ending 30 June 2019, of £112.7m to £123.3m,' the company said.

The current order book value fell to £3.0bn, from £3.3bn a year earlier, but 78% of next year's revenue having been secured, up from 71% a year earlier.

The update comes as the company continues efforts restructure and refocus its construction business, with resized business 'well placed to deliver improved performance,' the company said.

'The restructured business's target annual revenue will reduce to approximately £1.3bn generating annualised cost savings of up to £15m from 2021, accelerating progress towards our target operating margins of 2% by 2021,' it added.

The company also reiterated that construction's profitability in the current year would impacted by the division's strategic review, with a write down of approximately £40m to be recognised in the year.

In its housing segment, demand continued to be supported by a 'strong' mortgage market, and by Help to Buy, despite the ongoing macro-economic and political uncertainty, the company added.

Since 1 January 2019, Linden Homes had maintained a sales rate of 0.68, down from 0.71 a year earlier, with average sales outlets falling to 79 from 84.

Unit sales reserved, contracted or completed also fell to 4,320 from 4,494 a year earlier, at a lower average selling price, which the company blamed on 'planned changes to the product mix.'

Total sales carried forward fell to £1,054m, of which £770m was for the current financial year, from £1,183m and £904m, respectively.