Galliford Try upbeat after raising £119m in rights issue

Galliford Try has issued a positive trading statement after successfully raising £119m in a rights issue.

The group said: “Following the raising of a net £119m in the recently completed rights issue, we are pressing ahead with our plans to deliver significant growth in our house building business over the next three years. Since the start of the financial year we have secured a number of sites across our areas of operation that meet our criteria, adding 800 units to the landbank.

“Positive progress is also being made by our affordable housing and regeneration business, with both further direct grant awards and £16.8m of Kickstart funding now secured from the Homes and Communities Agency's housing stimulus package.”

Galliford Try said housing sales (reserved, contracted or completed) in its southern business were up 7% at £274m, despite having 18% fewer active selling sites than a year ago. Cancellation rates have fallen back to 12% in the current financial year, from 28% a year ago. 

In construction, the company has secured several major contracts:

• A position on the £2bn capital works framework for Scottish Water;
• A position on the £400m capital works framework for United Utilities
• £83m of hotel and residential projects;
• £49m of health sector work;
• £32m of highways in Scotland; and
• A position on Network Rail's five year £1bn enhancements multi asset framework.

Its contracting order book has increased during the period to £1.75bn, 81% of which is public sector, with 80% of its anticipated revenues secured for the financial year to 30 June 2010.

Galliford Try said it is still “considering the grounds for appealing the fine imposed” imposed by the Office of Fair Trading for its part in the bid-rigging scandal. The group was fined £8.33m.