Galliford Try makes £50m write-down on housing landbank

Galliford Try will write down £50m for its half-year results to 31 December 2008 because of the dwindling value of its landbank.

The construction and house building group said it decided to review the value of the land on its balance sheet because of the continuing deterioration in the housing market.

Galliford Try said performance remains strong in its construction activities, but the prospects for house-building remain difficult, and it is taking a "cautious view" for the rest of 2008 and 2009.

A group statement said: "Our housebuilding business will clearly continue to experience tough trading until general economic conditions improve."

Galliford Try has a construction order book £1.8bn, 90% of it public sector work.

In house building, it has sales reserved or completed worth £255m, of which £219m are for the current financial year (to 30 June 2009). Cancellation rates for the year to date stand at 28%.