Galliford Homes H1 pre-tax profits up 19%

February 21, 2017 / Isla MacFarlane
Galliford Homes H1 pre-tax profits up 19%

The housebuilder reported a 19% rise in profit before tax to £63.0 million for the six-months ended 31 December. The Group said that its targets include a 60% growth in profit before tax to FY 2021, a five year CAGR3 on dividend of at least 5% and a return on net assets in FY 2021 of at least 25%.

Linden Homes posted a 12% rise in revenue to £407.6 million from £362.7 million in 2015. Total sales currently reserved, contracted and completed increased by 8% to £857 million (H1 2016: £793 million).

Peter Truscott, Chief Executive, said, “The Group delivered another strong performance in the first half. Our reorganised management teams have settled well and are making positive strides towards their respective operating and financial targets.

“We continue to see robust demand and pricing in residential markets, for both Linden Homes and Partnerships and Regeneration, driving good rates of sale, and the land market remains benign in all regions. Linden Homes continues to achieve margin improvement, including much improved overhead efficiency. Partnerships achieved a higher proportion of mixed tenure development revenue, resulting also in first-half margin growth. Construction is making steady progress in resolving legacy contracts, and the contribution from newer work is encouraging, demonstrating that the underlying business is strong.

“Whilst we remain alert to potential uncertainties in the wider economy, we continue to see opportunity in all of our markets. We enter the new calendar year with strong order books: both Linden Homes and Partnerships are at record levels, and whilst Construction is lower than the prior year, it remains both at a very comfortable level and, more importantly, of high quality. Our improved debt facilities have further strengthened the balance sheet, providing financial flexibility to underpin our strategy for growth.”

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