Galliford Try Regulatory News (GFRD)

GALLIFORD TRY PLC

INTERIM MANAGEMENT STATEMENT AND ANNUAL GENERAL MEETING

FRIDAY 9 NOVEMBER 2012

Galliford Try plc, the housebuilding and construction group, is holding its Annual General Meeting today, Friday 9 November, and is issuing its Interim Management Statement for the period from 1 July 2012 to 8 November 2012.

Highlights

Housebuilding

·; 7% growth in sales reserved, contracted or completed to £460 million following an encouraging autumn selling season which has been maintained in recent weeks (2011: £430 million).

·; Sales per outlet maintained at 0.51 per week from 1 July 2012 (2011: 0.50), averaging 0.62 during the autumn selling season. Selling outlets maintained at 83 (2011: 82).

·; Sales prices slightly ahead of expectations. Cancellation rates stable at 17%. 

·; 81% of 10,500 plot land bank (2011: 73% of 10,500 plots) secured at current market values. 94% of land secured for financial year to 30 June 2014.

Construction

·; More opportunities apparent albeit pricing levels remain competitive.

·; Cash balances remain robust.

·; Stable £1.6 billion order book in line with expectations (2011: £1.6 billion) with a number of key projects wins in the period in both the private and public sector.

·; 92% of projected revenues for financial year to 30 June 2013 secured with 55% for year to 30 June 2014 (2011: 95% and 58% respectively).

Group

·; The Group has a strong balance sheet providing a good platform for future growth.

·; In September 2012 Galliford Try was admitted to the FTSE4Good Index recognising the Group's commitment to environmental, social and governance matters.

Greg Fitzgerald, Chief Executive, commented:

"Building upon the success of our three year transformational plan we have set out a disciplined growth strategy with a clear focus on improving margins. Whilst the economic outlook continues to remain uncertain both our Housebuilding and Construction divisions have made a good start to the financial year. The autumn selling season was encouraging and our Construction business won a number of key projects during the period. Overall the Group is well positioned to deliver further profitable growth in the current financial year and beyond."

For further enquiries please contact:

Galliford Try - Greg Fitzgerald, Chief Executive 01895 855001

Tulchan Communications - Christian Cowley / James Macey White 020 7353 4200

Galliford Try's Annual General Meeting will be held today, Friday 9 November, at the RBS Conference Centre, 250 Bishopsgate, EC2M 4AA. The meeting will commence at 11.00 am.

Housebuilding

Total sales reserved, contracted or completed are up by 7% from a year ago, standing at £460 million. 

Since the start of our financial year prices achieved are slightly ahead of expectations. We generated encouraging sales volumes during the autumn selling season which we have maintained at similar levels into recent weeks. The market continues to be more robust in the south east, where we have a significant presence. 

Mortgage finance availability, whilst improving, continues to be an issue. Together with Government initiatives, including the availability of 95% mortgages for first time buyers, we are working with lenders to facilitate affordable products. 

We are currently selling from 83 sites with sales from 1 July 2012 to date representing 0.51 units per site per week. The average rose to 0.62 during the autumn. 

With 75% of our landbank in the south, equating to 84% by gross development value, this together with sales coming from new land will further contribute and drive improved profit. 81% of our 10,500 plot land bank (2011: 10,500) has been secured at current market prices with only 19% remaining from our 2008 financial year or before when land prices were higher. We continue to see good opportunities to acquire new land at attractive prices.

Construction

Against the backdrop of current difficult market conditions we continue our strategy to focus on margins and cash by only pursuing work on which we can earn an acceptable return. Our total construction order book is, in line with expectations, stable at £1.6 billion (2011: £1.6 billion). 57% has been secured in frameworks highlighting our position as a key partner to the utility sector. Overall we have good workload visibility with 92% projected revenue having been secured for the current financial year to 30 June 2013, with 55% for 2014 (2011: 95% and 58% respectively).

We are a leading contractor in the water sector and are continuing to work through the final phase of the sector's five year asset management programme (AMP5). We are also actively participating with our clients in the early stages of procuring the next AMP6 phase.

Notwithstanding the difficult economic conditions we have won a number of key projects in the period in both the private and public sector. As part of a consortium we have been selected as preferred bidder for a new hub framework to deliver over £500 million of public sector infrastructure projects across the south west of Scotland. We have also been awarded a £20 million flood alleviation contract at Forres in northern Scotland.

Our Partnerships division secured £100 million of housing deals including a £23 million contract to construct 170 homes on the Gallions Quarter development in east London, a £52 million redevelopment of the St Clement's Hospital site in Mile End, east London, an appointment as preferred bidder for a contract worth £11.8 million to build an apartment retirement village in Malvern, Worcestershire and a £12 million contract to build 165 homes for Northumberland County Council at Blythe and South Newsham. We have also been appointed as the successful bidder for the regeneration of the Blackberry Hill Hospital in Bristol.

Our Building division announced major contract wins in the period including the £89 million Resorts World project in Birmingham, the £23 million mixed use project at Macaulay Road in central London and the £18 million preferred bidder appointment for the refurbishment of the National Indoor Arena in Birmingham.

Outlook

Building upon the success of our three year transformational plan we have set out a disciplined growth strategy with a clear focus on improving margins. Whilst the economic outlook continues to remain uncertain both our Housebuilding and Construction divisions have made a good start to the financial year. The autumn selling season was encouraging and our Construction business won a number of key projects during the period. Overall the Group is well positioned to deliver further profitable growth in the current financial year and beyond.