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Galliford Try sees huge increase in profits
Construction group Galliford Try has seen its profits before tax rise 145% to £143.7m in the year ended 30 June 2018, up from £58.7m in the previous year.
This included a significant increase in its housebuilding activity, with the group building 6,193 homes in the period, up from 5,490 in the previous year.
These homes were split between Linden Homes, the group’s housebuilding arm, and Partnerships & Regeneration, through which Galliford Try works with councils and housing associations.
Stephen Teagle, chief executive of Partnerships & Regeneration, told Inside Housing that future homes set to be built by the group were set to be split around 50/50.
He added: “Altogether, if you look at Linden and Partnerships & Regeneration, we’ve built over 6,000 homes. As we approach 2021, I’d expect us to be building nearly 10,000 homes.
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“We’ve seen some new joint ventures forming and some new relationships with councils being established over the past year, and we’ve managed to see growth in our staffing, growth in our turnover, growth in the number of homes we’ve produced.”
The Partnerships & Regeneration business grew its revenue by 44% from £330.2m to £475.2m. Of this, revenue from mixed-tenure developments was £123.9m, up 51% from £82.2m, meaning such developments accounted for a larger proportion of overall revenue in 2018 than 2017.
It built 2,751 of the group’s total homes in the year, with Linden Homes delivering the remaining 3,442.
The year included Partnerships & Regeneration signing a joint venture with Trafford Housing Trust on a £100m scheme to build 600 homes in Manchester. It also signed its first deal with Metropolitan Housing Trust on a site in Nottingham.
Outside of the affordable sector, Galliford Try also agreed to deliver a £120m build-to-rent scheme in Walthamstow for Legal & General and another deal with Sigma Capital on private rented sector housing.
