A trading update to the City confirmed that Galliford Try’s strategy of focusing on decent margin construction work is paying off while its housebuilding side continues to perform strongly.
The firm said: “The construction market has continued to be challenging during the period. In response we have maintained our strategy of focusing on margins and cash as well as securing work with acceptable returns and risk.
“Our total order book continues to be stable in line with our expectations at £1.6 billion (2011: £1.6 billion).
“We have a diverse spread of future revenues with 40% in the regulated sector, 42% in the public sector and 18% in the private sector.”
Galliford Try has doubled the size of its housebuilding arm in the last three years with a focus on the south east.
Completions during the period hit 1,364 from 1.352 last time with sales up 4% to £544m.
The firm secured £17m funding under the Government’s Affordable Housing Programme and is expecting margins to be up on last year.
Greg Fitzgerald, Chief Executive, said: “We are encouraged by the performance of both housebuilding and construction in the first half of the financial year with profits ahead of board expectations.
“Housebuilding continues to deliver good results in a stable market with construction performing well against a backdrop of a difficult market.
“We continue to manage cash with group net debt improving on last year.
“Notwithstanding the continuing challenging economic conditions the Group remains on track to meet its expectations for the financial year and is well positioned to deliver growth.”