A strong performance from its Linden Homes housebuilding division helped to lift underlying pre-tax profits at Galliford Try (GFRD) by almost a quarter to £196m in the year to June 2018. Headline profits were dented by a £45m provision associated with the Aberdeen bypass joint venture following the insolvency of Carillion, although this was almost half the amount set aside in the previous year. Any further provisions will depend on the extent to which costs can be reclaimed following completion of the project in late autumn.
Linden Homes saw operating profits up by 8 per cent at £184.4m, with margins improving from 18.2 per cent to 19.5 per cent. Completions rose from 3,296 to 3,442, while average selling prices on private units rose 4 per cent to £367,000.
On the partnership and regeneration side, revenue grew by 44 per cent, with revenue from mixed-tenure developments up by more than a half. A total of 751mixed-tenure units were sold at an average selling price of £220,000. Project work secured included a joint venture with Trafford Housing Trust for a 600-home regeneration scheme in Manchester, and selection as a development partner by Ealing Council to create 471 new homes and a new council headquarters.
Analysts at Peel Hunt are forecasting adjusted pre-tax profits for the year to June 2019 of £190m and EPS of 139.2p.
| GALLIFORD TRY (GFRD) | ||||
| ORD PRICE: | 1,044p | MARKET VALUE: | £1.16bn | |
| TOUCH: | 1,044-1,045p | 12-MONTH HIGH: | 1,269p | LOW: 695p |
| DIVIDEND YIELD: | 7.4% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 700p** | NET CASH: | £98.2m | |
| Year to 30 Jun | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p)* | Dividend per share (p)* |
| 2014 | 1.77 | 95 | 84 | 47.1 |
| 2015 | 2.35 | 114 | 100 | 60.4 |
| 2016 | 2.49 | 135 | 118 | 72.9 |
| 2017 | 2.66 | 71 | 53 | 86 |
| 2018 | 2.93 | 151 | 121 | 77 |
| % change | +10 | +114 | +128 | -10 |
| Ex-div: | 08 Nov | |||
| Payment: | 05 Dec | |||
| *Adjusted for 1-for-3 rights issue **Including intangible assets of £175m or 158p a share | ||||
