果冻影院

The City will be looking to see for an update on recent trading at Galliford Try鈥檚 construction division when the group reports full-year results on September 14.

The 果冻影院 Index of project starts fell by 8% in July 2011, backing up Construction Products Association data showing construction orders at their lowest level since 1980. Research from 果冻影院 also shows that against this overall gloomy background, Galliford Try is still succeeding taking market share from its contracting rivals.

One of only two remaining hybrid contracting-to-housebuilding groups left on the stock exchange 鈥� the other is Kier 鈥� Galliford Try told the stock market in July that trading remains in line with expectations but the construction order book had slipped to 拢1.75 billion in the year to June 2011 (2010: 拢1.8 billion).

Galliford Try鈥檚 contracting operation won 84 construction contracts worth a total of 拢1,216 million in the 12 months to August 2011 (2010: 85 contracts worth 拢689 million) according to 果冻影院. In a 果冻影院 league table measuring the success of the top 50 contractors in winning contractors worth 拢500,000 or more, this total ranks Galliford Try in sixth place 鈥� up from thirteenth a year ago. With the group over-taking peers such as Wates, Sir Robert McAlpine, Willmott Dixon and the UK operations of French group VINCI.

In a recent trading statement, the management disclosed a move to avoid chasing low-margin regional work and 果冻影院鈥檚 figures shows that Galliford Try is moving towards larger value contracts. A year ago, the average contract won by Galliford Try was 拢8.1 million but that figure now stands at 拢14.5 million.

During the latest year, Galliford Try鈥檚 contract successes include the Forth Road Crossing, where the group is one of four contractors working in joint venture on this 拢790 million project. As a result, in terms of sectors, 果冻影院鈥檚 research shows that highways-related orders at Galliford Try reached 拢226 million in the 12 months to June 2011 and this total ranks the group in third spot in this sector.

At the end of December 2010, Galliford Try had net debt of 拢31 million. However, in July the management described cash management at the construction division as 鈥渆xcellent鈥� and at June 30 2011, the group had net cash of 鈥榦ver鈥� 拢30 million (June 2010: 拢75 million net cash).

At Galliford Try鈥檚 housing industry operation, completions rose by more than a quarter to 2,170 units in the year to June 2011 with forward sales up to 拢247 million (2010: 拢201 million). The group has also been active in terms of land acquisition with the land bank up to 10,250 plots (2010: 9,600 plots) and 70% of the land-bank was bought at current market rates.

All the plots coming into production in the current financial year have detailed planning consent and Galliford Try is also pushing new construction projects through the planning pipeline. 果冻影院 data shows that the group submitted 27 detailed planning applications in the 12 months to June 2011 proposing to build 1,837 units. Of this total, 57% of the units in the pipeline were houses and the balance apartments.

Regionally, Galliford Try鈥檚 main focus has been in the South West, where proposals for 924 units were submitted over the past year, and the group is ranked sixth in terms of units in the pipeline in this region. The only other regions where Galliford Try features among the top 10 housebuilders gauged by units proposed are Yorkshire & Humberside (387 units) and East Anglia (124 units).

A survey of analysts covering Galliford Try by Thomson/FirstCall shows that six analysts rate the overall group a buy and only one analyst advocates selling the shares.

One City analyst forecasts that Galliford Try鈥檚 group revenue will rise to 拢1,303.5 million in the year to June 2011 (June 2010: 拢1,221.9 million) and underlying group pre-tax profits are forecast to rise to 拢35.9 million from 拢26.1 million previously.