Galliford Try's revenue for the year to 30 June 2010 has shrunk 16% to 拢1.22bn (2009: 拢1.46bn).
However, the construction and house-building group was comfortably back in the black with a pre-tax profit of 拢19.2m, after exceptional costs resulted in a 拢26.9m loss a year ago.
Its profit would have been higher but for a 拢6.9m provision set aside to cover the fine imposed by the Office of Fair Trading for bid-rigging. The group has appealed against the size of the 拢8.3m penalty, but said an outcome is not expected until later in the year.
Operations
In construction, Galliford Try's total revenue was 拢936.5m, compared to 拢1,175.7m the previous year. Its cash balance stood at 拢206.8m at 30 June (2009: 拢237.1m). Operating profit was 拢22.8m, a margin of 2.4% (2009: 拢27.9m representing 2.4%).
In its building division, profit from operations was 拢10.8m on revenue of 拢445.3m, a margin of 2.4% (2009: 拢11.9m on 拢528.7m, 2.3%). Infrastructure delivered profit from operations of 拢10.7m on turnover of 拢397.4m, a margin of 2.7% (2009: 拢13.9m on 拢516.6m, 2.7%). Its social housing business reported an operating profit of 拢1.3m on revenue of 拢93.8m, a margin of 1.4% (2009: 拢2.1m on 拢130.4m, 1.6%).
Galliford Try's construction strategy has been to maintain its order book in key markets, leading to a reduction in overall revenue 鈥渋n the short term鈥�.
This has resulted in the order book increasing by 6% to 拢1.8bn, of which 40% is in the regulated sector, 51% in the public, and 9% in the private sector. It has 88% of projected revenue for the new financial year secured.
In house-building, Galliford Try took the decision to double its business over a three-year period through a 拢119m rights issue a year ago.
It said this has resulted in its landbank increasing from 7,850 a year ago to a current total of 9,700 plots.
Profit from operations was up 56% to 拢17.6m on revenue of 拢316m, a margin of 5.6% (2009: 拢11.3m on 拢306.7m, 3.7%).
Completions for the year totalled 1,705, and average sales prices were up 10% on last year at 拢190,000 (2009: 拢172,000), reflecting both prices achieved and a change in sales mix.
Private housing completions, including those on regeneration projects, accounted for 1,287 of the total, generating a profit from operations of 拢14.3m. Affordable housing completions were 337, resulting in an operating profit of 拢3.3m on turnover of 拢42.2m. The average selling price was 拢124,000 (2009: 拢115,000).
Outlook
Looking ahead, chief executive Greg Fitzgerald said: 鈥淲e are on track to deliver the housebuilding expansion plan we set out at the time of the rights issue in September 2009. Our results have been achieved against a backdrop of an improving market in the early months of 2010 and we have been encouraged by the level of sales and prices achieved since the start of our new financial year.
鈥淲e have maintained a quality construction order book in increasingly challenging market conditions and anticipated reductions in public sector work, although uncertainty over the extent and focus remains as we await the outcome of the Government's autumn spending review.
鈥溄袢湛戳� continues to generate profits and cash balances, albeit we have anticipated absolute levels will reduce due to the effect of a more competitive market.
鈥淭he strength of the group's finances and the spread of its activities leaves us, subject to economic uncertainties, well positioned to deliver our planned progress.鈥�
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