Market Boost From Galliford Try

on Sep 18, 2012
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Galliford Try plc (LON:GFRD), a FTSE 250 company and leading UK homebuilder, has given the market a bit of a boost with its board today (18 September) recommending a final dividend of 21 pence for the year. Added to the nine pence paid out in April, the 30 pence total dividend represents a welcome 88 percent increase on last year. The company’s shares will go ex-dividend as of 5 October and, assuming shareholder approval at the upcoming AGM, will be paid on 16 November.

In a statement accompanying the dividend announcement, the company reported an increase in revenues from new home construction and sales by 64 percent over 2011 to £636.7 million. Total revenues for the group were up from £1.3 to £1.5 billion, with pre-tax profit reported at £63.1 million (2011 – £41.7 million).
The impressive results were, according to the company, a “culmination of our three-year expansion plan”. Back in 2009, Galliford went to its shareholders with an ambitious £125.6 million rights issue, with the express aim of making a quantum leap in its residential construction business, focused especially on the then – and now – still buoyant south-eastern corner of the UK. Shareholders who ponied up back then have been well rewarded for their faith in the builder – and its assessment of where lay the prospects of growth. Almost four-fifths – 79 percent – of Galliford Try’s home completions have been in the south-east.

Meanwhile, over in its construction division, things haven’t gone quite so swimmingly, with full-year revenues slipping a tad from £936.9 million to £924.8 million. Speaking to the Daily Telegraph, CEO Greg Fitzgerald noted that the commercial market remains ‘difficult’, but that “we have maintained a high quality construction order book”.
Galliford Try remains upbeat about the future of the UK’s housing market, especially with the prospect of easier mortgage access following the recent government measures in that direction, including making 95 percent mortgages available to qualifying first-time buyers through High Street lenders.

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