Galliford Try's five-year profit plan is on course

Unlike traditional housebuilders, Galliford also operates a large construction business, and revenue there grew by more than a fifth to £739m, with virtually all projected revenue for the full year already secured and nearly three-quarters for the following year. At 1.2 per cent, margins are wafer thin, but improved from 1 per cent a year earlier and will rise further as legacy contracts mature and new higher-margin work is secured. The target is to lift margins to 2 per cent by 2018.

On the housebuilding side, Linden Homes saw private home completions grow by 14 per cent to 1,124, but affordable home sales fell by 39 per cent to 233 as some housing associations withdrew construction plans following last year's government regulations to reduce rents.

Average selling prices rose 8 per cent to £334,000 on private sales, but affordable house prices were lower at £110,000 on a change in the geographical mix - and operating margins were still better at 17 per cent from 15.1 per cent a year earlier. There are also plans to open a further Linden Homes in Yorkshire and an affordable homes unit in Bristol.

Analysts at Peel Hunt are forecasting adjusted pre-tax profit for the year to June 2016 of £133.5m and EPS of 128.3p (from £122m and 117.3p in 2015).