Galliford Try (GFRD) delivered another year of impressive growth, beating the objectives set out in its three-year growth plan and rewarding shareholders with a hefty dividend hike. The shares now trade above net assets but, given the strong growth profile, expect more upside.
At the housebuilding unit, completions rose 40 per cent in the period to 3,039, while average selling prices for private houses rose from £227,000 to £250,000. Add that to a greater use of cheaper land, and a rise in sales outlets from 78 to 87, and the operating margin grew from from 8.1 per cent to 11.8 per cent. Moreover, forward sales are currently 7 per cent ahead of this time last year - at £350m.
The construction business meanwhile, saw operating profit fall from £22.2m to £18.9m amidst tough trading conditions, while the operating margin dipped from 2.4 per cent to 2 per cent. However, the forward order book was only down marginally, from £1.75bn to £1.65bn, and 86 per cent of the current year's planned revenue has already been secured.
Peel Hunt expects adjusted pre-tax profit of £72.2m for 2013, giving EPS of 69.3p.
| GALLIFORD TRY (GFRD) | ||||
|---|---|---|---|---|
| ORD PRICE: | 685p | MARKET VALUE: | £561m | |
| TOUCH: | 683-685p | 12-MONTH HIGH: | 694p | LOW: 408p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 584p* | NET CASH: | £23m | |
| Year to 30 Jun | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 1.83 | 60.3 | 82.5 | 21.7 |
| 2009 | 1.46 | -26.9 | -34.4 | 10.9 |
| 2010 | 1.22 | 19.2 | 14.7 | 12.5 |
| 2011 | 1.28 | 41.7 | 40.3 | 16.0 |
| 2012 | 1.50 | 63.1 | 60.9 | 30.0 |
| % change | +17 | +51 | +51 | +88 |
Ex-div: 3 Oct Payment: 16 Nov *Includes intangible assets of £127m, or 155p a share | ||||
