Galliford Try says construction market more challenging

Galliford Try, one of the construction industry’s two successful hybrid companies, “is continuing to derive benefits from trading in both the construction and house building markets” according to a trading update issued today.

Galliford and Kier have retained a presence in house building while others have bolted from the sector. Both have enjoyed higher levels of profit, over the years, as a result.

Galliford’s latest trading report covers the period from the start of the year to the present date.

It reveals that construction is performing well while the limited recovery in the housing market seen since the New Year has been sustained. 

Galliford expects to report results for the full year in line with the board's expectations.

In its operational review, Galliford says: “The economic downturn continues to have an impact, with the construction market becoming more challenging.

“Despite this, the group has maintained its contracting order book at £1.7bn due to our strengths in both building and infrastructure markets for the public and regulated sectors, both of which continue to demonstrate resilience, and which currently represent 87% of the order book.

“In addition, the current order book does not take account of any AMP5 water framework contract renewals.”

The building division has recently secured the £100m refurbishment of St Pancras Chambers in London for the Manhattan Loft Corporation

Galliford’s PPP Investments division has been appointed preferred bidder on the £60m Worcester Library and History centre and is working towards financial close.

In infrastructure, over 95% of Galliford’s forward order book is for the public and regulated sectors with 80% in frameworks.

The rail business recently secured two projects totalling £19m for Network Rail and London Underground, and the regional civil engineering business has secured a £16m local highways authority framework contract in South Wales. 

“Our remediation contract at Olympic Park in East London, on which we have been working since 2006, is going well,” says Galliford, “and we are delighted that we have been awarded a further £23m of work by the Olympic Development Authority to construct the white water canoeing centre in Broxbourne and to carry out improvement works to the rowing centre at Dorney Lake.”