Galliford Try’s half-year profit is on course to beat board expectations, the construction group has announced.
A trading update covering the six months to 31 December shows net debt has also fallen from £69.8m to £60m.
Housebuilding revenue is up on last year’s figures, with completions hitting a record 1,364 units , 1,229 net of joint venture partners’ share, as well as an increase in average selling prices.
Total revenue from sales of homes rose by four per cent to £544 million.
The company also said that 83 per cent of a 10,400-plot land bank has been secured at current market values. In addition, 96 per cent of land for 2014 has been secured.
On the construction side, 99 per cent of projected revenue for the current financial year has been secured, along with 62 per cent for the year to 30 June 2014.
The value of the company’s order book was £1.6bn, which is in line with expectations.
Around 40 per cent of orders are in the regulated sector, 42 per cent in the public sector and 18 per cent in the private sphere.
Greg Fitzgerald, Galliford Try chief executive, said: “We are encouraged by the performance of both housebuilding and construction in the first half of the financial year, with profits ahead of board expectations.
“Housebuilding continues to deliver good results in a stable market with construction performing well against a backdrop of a difficult market. We continue to manage cash with group net debt improving on last year.
“Notwithstanding the continuing challenging economic conditions, the group remains on track to meet its expectations for the financial year and is well positioned to deliver growth.”
Galliford Try expects to publish its half-year results on 20 February.