"If business had been half as good going into the second half, I'd still be at the bottom end of satisfied", concedes Greg Fitzgerald, chief executive of Galliford Try (GFRD). The construction and housebuilding group ticked all the boxes in the six months to December, but it differs slightly from its contemporaries in the focus going forward.
The group is planning to build on its affordable housing presence - the only area management thinks has the potential to expand sufficiently to meet the chronic housing shortage. Mr Fitzgerald believes that turnover from affordable housing could rise from around £100m in 2013 to £400m by 2018, with the potential to reach £1bn. This forms part of the group's strategy to double 2013 full-year profits by 2018.
Completions in the half year were relatively flat at 1,300, but revenue grew by 20 per cent to £328m, thanks to a 15 per cent increase in the average selling price on private sales to £291,000. Numis Securities is forecasting full-year pre-tax profits of £93m and EPS of 88.1p (up from £75.1m and 71.1p last year).
GALLIFORD TRY (GFRD) | ||||
---|---|---|---|---|
ORD PRICE: | 1,202p | MARKET VALUE: | £988m | |
TOUCH: | 1,202-1,206p | 12-MONTH HIGH: | 1,234p | LOW: 875p |
DIVIDEND YIELD: | 3.3% | PE RATIO: | 16 | |
NET ASSET VALUE: | 611p* | NET DEBT: | 17% |
Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2012 | 678 | 32.3 | 31.3 | 12 |
2013 | 804 | 38.1 | 36.8 | 15 |
% change | +19 | +18 | +18 | +25 |
*Includes intangible assets of £130m, or 158p a share |