Galliford Try PLC - Trading Statement

GALLIFORD TRY PLC

TRADING UPDATE

TUESDAY 22 MAY 2018

Galliford Try plc, the housebuilding and construction group, today issues its trading update for the period 1 January to 21 May 2018.  All data is as at 18 May 2018, unless otherwise stated, and all comparable figures relate to the prior year equivalent period.

Peter Truscott, Chief Executive:

"The Group continues to deliver a strong operational and financial performance and is making good progress against its growth plans to 2021. Following the successful completion of the recent rights issue the Group is well capitalised with a strengthened balance sheet to support our planned growth. 

In Linden Homes sales rates remain encouraging at 0.71 units per site per week since 1 January, positioning the business well for the remainder of the financial year. We are also making good progress in line with our strategic objectives, and expect to report further margin improvement.

Partnerships & Regeneration continues to benefit from strong demand and opportunity to grow both its mixed tenure and contracting offering.  The business expects to report margin growth driven by market demand, contract wins and our successful geographical expansion.

On the Aberdeen Western Peripheral Route we are making good progress on site, with progressive handover of sections of road under way.  We have experienced some further cost pressure, principally from weather delays, which are likely to increase the exceptional charge in the current year.  The amount will depend upon progress recovered through the summer, and is expected to be lower than the charge (£25m) taken in the first half.  We are continuing to discuss several significant claims.  Practical completion of the project is anticipated this summer.

Construction's underlying performance continues to improve, while continuing to work through diminishing outstanding legacy contracts. The business is seeing a good level of new project wins and opportunities on its multiple frameworks, whilst maintaining its disciplined approach to bidding.

Cash continues to be well managed, and average net debt has been below the guided figure of £275m (excluding the additional cash raised).

The Group's operating outlook is unchanged and all three businesses remain on track to deliver further profitable growth over the full year. We anticipate achieving a full year result in line with the current range of analysts' expectations²."

Linden Homes

·      £1,183m of sales reserved, contracted or completed of which £904m is for the current financial year to 30 June 2018 (2017: £1,176m and £915m, respectively).

·      Sales rate of 0.71 per outlet per week since 1 January 2018 (2017: 0.74).

·      Landbank of 11,750 plots (2017: 11,300).  All plots secured for 2019 together with 77% of plots secured for 2020.

Partnerships & Regeneration

·      £175m of sales reserved, contracted or completed of which £123m is for the current financial year to 30 June 2018 (2017: £127m and £77m, respectively).

·      Contracting order book of £1.15bn (2017: £0.98bn).

·      Landbank of 2,918 plots (2017: 2,867).

Construction

·      Continued focus on risk management and cash. 

·      £3.3bn order book (2017: £3.5bn) with encouraging performance on current projects.

·      71% of next year's revenue secured (2017: 73%).

Conference call

A conference call for Analysts and Investors will be held at 08:30 am today (UK time)

UK Dial In: 0203 936 1888

International dial-in: Please access www.speakserve.com/numbers to access a full list of International numbers

Room Number: 603325

Participant PIN: 3109

For further enquiries please contact:

Galliford Try -                                    Peter Truscott, Chief Executive                                                                   01895 855001

                                                          Graham Prothero, Finance Director

Tulchan Communications -              James Macey White / Martin Pengelley / Elizabeth Snow                            0207 353 4200

1.    Galliford Try plc is a leading UK housebuilding, regeneration and construction group.  It is listed on the London Stock Exchange and a member of the FTSE 250.  Housebuilding - through our Linden Homes business - develops private and affordable homes in prime locations. Galliford Try Partnerships - our regeneration business - delivers mixed-tenure solutions working with housing association, local authority and private sector partners.  Operating as Galliford Try and Morrison Construction, our Construction business carries out building and infrastructure with clients in the public, private and regulated sectors.  At the end of the last financial year to 30 June 2017, the Group generated revenue of £2.8bn.

2.    The range of analysts' forecasts with profit before tax after taking into account exceptional items for the year ending 30 June 2018 is £138m to £146m based on forecasts as at 17 May 2018.