Galliford Try sees FY at upper end of forecasts

Construction group Galliford Try said its full year profits would be at the upper end of analysts forecasts of £46m - £59m although it sounded a note of caution about political uncertainty in the UK after June's General Election.

In a trading update, the company said its Linden Homes and Partnerships & Regeneration units were expected to deliver increased revenue and improved operating margins, while newer contracts in Construction were performing well.

The group's outlook for full year 2018 was unchanged. Linden Homes is expected to deliver further volume growth and improvement in the operating margin.

“Partnerships & Regeneration continues to enhance its position to benefit from the demand for affordable housing, while Construction's margin is expected to increase as we close out legacy positions,” the company said.

Chief executive Peter Truscott said the failure of the Conservative Party to secure a majority at the last General Election had created some concerns about the medium-term outlook for the macro economy.

“However, all three businesses have clearly defined plans to improve operating efficiency and grow revenue and margins, providing the group with confidence in its ability to deliver a strong performance even in a period of lower growth in the wider economy,” he said.

“We enter the financial year with a group order book of £4.9bn, giving us a solid foundation to deliver growth in full year 2018.”