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Galliford Try unveils profit rise but warns of ‘severe’ Brexit impact

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  • 13/02/2019
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Galliford Try unveils profit rise but warns of ‘severe’ Brexit impact
Housebuilder Galliford Try has reported pre-tax profits of £84.2m for the second half of 2018, up by 4% on the previous year.

 

The increase in profits comes despite a fall in revenues for the group, from £1.495bn to £1.418bn.

The firm announced that 3,069 new homes had been completed over the period by its Linden Homes and Partnerships & Regeneration brands, an improvement on the 2,878 completed the year prior.

However, on the construction side, the business incurred £26m of exceptional costs as a result of delays on its Aberdeen Western Peripheral Route, a bypass it was building alongside Carillion before the firm collapsed last year.

Peter Truscott, chief executive of the firm, noted that Linden Homes had delivered a strong performance despite the political uncertainty and knock-on effect on confidence among homebuyers.

“We are seeing good demand, in particular for smaller and mid-range family houses, supported by Help-to-Buy and a strong mortgage market,” he said.

“We have seen a positive start to the spring selling season, despite the headwinds to consumer confidence arising from political uncertainty, which is key to the strength of the market over the coming months,” he continued.  

However, the business warned that while a “controlled departure” from the EU would likely have little impact on its activities, the same was not true of a no-deal Brexit.

It said: “If the UK leaves without a deal, the biggest impact we foresee is the effect on our markets, and on Linden Homes market in particular, of a potential severe decline in consumer confidence and economic activity in general.”

The business said it had made arrangements to try to get around the potential impact on its supply chain to ensure it continued to access critical material and products.

 

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