Housebuilding and construction group Galliford Try plc has released a trading update for the year ending June 30th 2015.
The group says it expects full year results, with profit before tax towards the upper end of analysts' range. It also reports strong cash performance with net debt over the year at less than £20 million, compared to £5.1 million for 2014, and despite landbank ahead of plan.
A record year
Commenting on the results, executive chairman at Galliford Try Greg Fitzgerald said: "It has been another record year for Galliford Try, and we are pleased to see that the momentum across the Group continues, supported by encouraging market trends for all three businesses."
Sales rates have improved since the general election and the company reports that sales rates since its last update have averaged at 0.71 per site per week, up 49 per cent on the same period last year. The company has competed 3,177 units compared to 3,107 last year and the average Linden Homes private sales price is up seven per cent to £327,000 compared to £305,000 in 2014.
Pre-tax profit for the period is expected to be at the upper end of analyst estimates of £105.9 to £113.0 million. The company says it has been buoyed by "encouraging market trends" and there has been renewed confidence in the industry since the conservatives won the election in May.
Mr Fitzgerald also said he was "delighted" with the acquisitions of Miller Construction and Shepherd Homes after increasing the Group's opportunities and capacity.
He also noted that labour availability and cost remain challenges for the company. "We continue to manage this effectively working closely with our supply chain," he said.
"Housing market conditions remain positive and the directors take further confidence from the significant increase in the Group's landbank as well as the contracting order book within Partnerships," he added.
The housebuilder will report its full-year results on September 16.
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