Galliard reports £16m loss despite 50% rise in turnover

In 2008 the housebuilder made a pre-tax profit of £7m. The London-focused firm saw profits collapse as it was forced to write down £13.7m for the cost of land, mostly relating to its buy-out of the 850-home Indescon scheme (pictured) in Canary Wharf for £1.

However, the purchase fuelled the 2009 growth in turnover, which jumped to £205m, compared with £131m in 2008.

Stephen Conway, Galliard’s managing director, said the firm’s banks had agreed it would not need to refinance loans this year, despite the amount of bank debt payable within 12 months ballooning to £304m at the end of the financial year.

He said a number of major schemes were due to complete in time to allow cash from 600 pre-sales to flow through, allowing the bulk of the debt to be repaid. Notes to the accounts say that £38m of debt was refinanced after year end, and the firm has £465m worth of half-built schemes it has not been paid for.

Conway said: “We’re on line now to have it all paid off; in the next accounts you’ll see that things are more levelled out.”

Galliard Homes fell to 22nd in this year’s list of the biggest housebuilders by revenue, compiled by the Home Builders Federation. Barratt, Taylor Wimpey and Persimmon retained the one, two and three slots respectively. The most obvious casualty was Redrow, moving from 7th to 13th place, with McCarthy & Stone (7th), Lovell (9th) and Crest Nicholson (8th) all moving up.