Galliford Try hikes divi as growth plans progress

23rd Feb 2011 07:03

Housebuilder Galliford Try has been encouraged by sales in the first few weeks of 2011.The company declared a 29% improvement in underlying pre-tax profit to £17.0m for the six months to 31 December 2010, from £13.2m the year before (2009: £6.4m after exceptional charges).Group revenue edged up to £575.9m from £570.0m in the second half of 2009.Net debt at the end of the year stood at £30.7m, a little higher than the £30m Panmure Gordon was predicting, and a turnaround from the £100.2m in net cash the group had at the end of 2009.The construction cash balance at 31 December 2010 was £174.0m, having reduced less than anticipated in the current competitive market conditions. The working capital invested in land and work in progress increased to £517.2m as the company continued to build up its housebuilding business.The interim dividend has been hiked to 4.5p from 3.3p, a 36% increase. The board's policy is to pay a final dividend that is roughly twice the level of the interim payment, should circumstances permit."We are currently on track to deliver the objectives of our three year housebuilding expansion plan during the next financial year," said chief executive Greg Fitzgerald. The group is halfway through its three year expansion plan and expects to increase the number of its sales outlets by 30% to 85 during the second half of its financial year."Although the economic outlook is still uncertain, the board is encouraged by the group's performance and progress in the first half of the financial year, and is confident in its strategy for delivering the objectives of its expansion plan," Fitzgerald added.