Profit leaps 19% at Galliford Try

Galliford Try saw pre-tax profit jump 19% to £32.4m driven by a strong performance from its housebuilding division and recent acquisitions as it looks to break the £1bn revenue barrier next year.

Pre-tax profit for the year ending 30 June 2006 rises to £34.5m when a £2 exceptional from the sale and leaseback of its premises is included.

The contractors revenues grew 19% to £851m up from £718m while the groups landbank saw a 58% to 4115 units.

In construction, profit from operations increased £13.2m, giving a margin of 2.1%. Margins in the housebuilding divisions were 14.3% from an operating profit of £32m.

Galliford Try made two acquisitions in the financial year. In February it bought Chartdale Homes for £67m and at the end of March it acquired Morrison Construction for £42m.

Chief executive Greg Fitzgerald believes the acquisitions will drive the company’s revenue past the £1bn mark next year.

Operations excluding acquisitions rose 14% to £35.6m, with £2.6m from acquired businesses, resulting in a total of £38.2m.

Fitzgerald said: “We have had an excellent year with record financial results and transformed the business with two key acquisitions. Our finances are very strong. Acquiring Morrison and Chartdale has demonstrated our ability to supplement organic growth with carefully positioned acquisitions that fit our strategy. We have proved the success of our business model in delivering profitable growth and we look forward to reporting further progress in the coming year.”