Contractor reports that it will spend less than £4m integrating Miller, which it acquired in July
Restructuring costs at Galliford Try following the acquisition of Miller are set to be lower than the £4m originally forecast, the company has said.
In a statement to the City this morning, Galliford Try said cost of integrating and restructuring Miller Construction, which it bought in July, were “likely to be lower than our initial estimates whilst still in line to deliver the planned savings”.
When it announced the acquisition it estimated one-off restructuring costs would total £4m.
It added that its order book had now grown to £3.1bn of work following the acquisition. It also said it had secured 94% of its projected revenue for the year to 30 June 2015 and 56% of revenue for the following year.
Galliford Try said its housebuilding arm had experienced an improvement in sales rates during the autumn compared with the summer - when sales are usually slower - but that the upswing was less marked than it was last autumn.
Greg Fitzgerald, executive chair of Galliford Try, said that “steadily improving confidence in the economy” was helping to support the firm’s “planned disciplined growth”.
He added: “Housing market growth rates have steadied to a more sustainable level and, supported by improved mortgage availability, Linden Homes is on target to meet our expectations.
“Construction, bolstered by the acquisition of Miller Construction in July, is benefiting from an improving market and the stronger presence created by the combination. I am delighted both with the efficient integration process and by the strong contribution already evident from the incoming team.”
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