Galliford Try ditches plans for Bovis takeover

Galliford Try has abandoned its plans to make a formal bid for rival housebuilder Bovis Homes, a week after Redrow threw the towel in.

Galliford said that while discussions between the two have been "largely constructive", it has become clear that it is not possible to secure the support of the board of Bovis on terms that represent the best interests of Galliford's shareholders.

"The board believes that Galliford Try has a strong future based on its current business model. Galliford Try will continue to focus on delivering the five-year organic growth strategy set out at its capital markets day event on 21 February 2017.

"This strategy is targeting sustainable growth and strong returns across each of Galliford Try's businesses; housebuilding, partnerships & regeneration and construction."

The company said targets include growth in group pre-tax profit to 2021 of at least 60%, a five-year compound annual growth rate of dividends of at least 5% and a return on the group's net assets in 2021 of at least 25%.