Galliford Try boosted by Miller and Shepherd acquisitions
Galliford Try has reported a 31 per cent rise in revenues thanks to the acquisitions of Miller Construction and Shepherd Homes.
The figures for the year to 30th June 2015 equated to a new high for the company of £2,431 million, up from £1,851m last year. Pre-tax profit rose 20 per cent to £114.0m (2014: £95.2m).
Across the group, revenue was generated broadly equally from house-building and construction.
Housebuilding revenue increased 11 per cent to £1,108m from £1,002m.
Construction revenue increased by 55 per cent to £1,293.2m (2014: £832.9m) benefiting from the new contract wins and the contribution of £400m from Miller Construction.
Construction profit margins were up at 1.2 per cent compared with 1.0 per cent in 2014, with 1.5 per cent for the second half of the financial year.
Executive chairman Greg Fitzgerald said: “I am delighted to announce another record year at Galliford Try with all of our businesses buoyed by encouraging market trends. In Housebuilding we have achieved progress on margins, and made strides towards further enhancement, implementing some operational restructuring and other business improvement initiatives. We are very pleased to have acquired the Shepherd Homes business, which will accelerate our growth in the north. We have achieved a significant increase in the landbank with market conditions remaining positive. We are continuing to see strong demand for our Partnerships affordable housing offering.
“Our Construction division has made excellent progress in closing out older contracts, and won significant new work in an improving market, strongly assisted by the timely acquisition and swift integration of Miller Construction.
“All businesses saw high levels of build cost inflation but early signs indicate the situation may be moderating.
Peter Truscott takes over as group chief executive from 1st October 2015, joining from Taylor Wimpey. After a three-month handover, Greg Fitzgerald will take up the role of non-executive chairman from 1st January 2016.
Galliford Try bought Miller Construction for £16.57m last summer. The move paid almost immediate dividends as it reported a strong half-year performance in January this year and revealed that it was on course for a record year in July.