GallifordTry report huge increase in profits
House builder experiences surge in annual turnover
September 18, 2012
The house builder GallifordTry has reported annual profits of more than £60 million, a jump of 80% compared to 2010/11. The firm’s revenues topped £1.5 billion increasing by £220 million. The annual report also claimed that the group had exceeded its three year targets and established a cash stockpile of £23 million to provide a “platform for future growth”. Shareholders also benefited as dividends per share increased by 80%.
This announcement follows hot on the heels of Barratt Homes’ annual report last week which showed the developer has also substantially increased profits in the last 12 months. This is despite a housing market that is flat-lining. One explanation for the excellent growth of these firms has been the government’s FirstBuy scheme for first time buyers, available through Linden homes, part of the GallifordTry Group. Moreover, house building may be at the lowest level since the 1920’s but GallifordTry have actually increased completions by 40%. This may be from a very low base but is certainly an encouraging sign. Greg Fitzgerald said:
“We have a strong balance sheet and a disciplined growth strategy with a clear focus on improving margins that positions us well to deliver further profitable growth in the new financial year and beyond.”