Join our community of smart investors

Galliford Try flying

Galliford Try is growing faster than expectations
May 14, 2014

Galliford Try (GFRD) expects full-year profits to exceed earlier consensus forecasts of £89.7m, and now reckons that profits will be not less than £92m.

IC TIP: Buy at 1,201p

The housebuilding and construction group has secured a record £1bn of forward sales, of which £790m are for the current year ending 30 June. Reservations per outlet have jumped 30 per cent from a year earlier, while to cope with the demand, the landbank has been increased to a record 13,750 plots.

On the construction side, 80 per cent of next year's targeted revenue has already been secured, while the order book has risen to £1.3bn. Management continues to remain selective about new work, concentrating on preserving margins, yet the order book has still shown a steady increase.