You are viewing 1 of your 1 free articles
Galliford Try grows regeneration business by 55%
House builder Galliford Try grew its regeneration business by 55% in the past six months, it announced in its half-year results.
In the first half of 2017, Galliford Try’s Partnerships & Regeneration arm took in £144.3m in revenue, and this rose to £223.5m in the second half.
The builder has been growing its business significantly in the past year; it acquired South East-based contractor Drew Smith in May and has expanded into new geographical areas.
Its operating margin increased in the period, from 3.4% to 4.8%. Its total sales – including reserved, contracted and completed – went up 40% from £92m in the first half of 2017 to £129m in the second half.
READ MORE
Stephen Teagle, chief executive of Galliford Try’s Partnerships & Regeneration arm, told Inside Housing: “This past six months, we’ve built 1,350 homes, and the same six months a year ago was only 730, so we’re close to double.
“We’ve gone from having 420 people working in the business to close to 750 now, which illustrates the growth.”
Mr Teagle added that he doesn’t think the company’s growth is threatened by London mayor Sadiq Khan’s plan to introduce resident ballots for estate regeneration.
He said: “Successful regeneration schemes across tenures engage people in wanting to create a new place, and if having ballots ensures that there is community support for what we’re trying to achieve, that completely reinforces the value of that investment.”
The Galliford Try group has also declared it plans to raise £150m of new equity capital from shareholders to cover the costs of Carillion being forced to withdraw from a joint venture with Galliford’s construction arm.
Galliford Try had been building a road with the now-liquidated contractor and construction company Balfour Beatty.
These two plan to continue the project and Galliford Try intends to raise new money to cover the costs so that the new obligations do not have an impact on the other parts of the business.
