Galliford Try Reports Impressive Results

Galliford Try  (LSE: GFRD.L  ) -- the homebuilding and construction company behind the Linden Homes, Pentland, and Morrison Construction brands -- turned in an impressive set of annual results for the year to June 30, 2012, this morning, pushing its share price up 2% at the time of writing, despite most of the good news already being known from a July trading statement.

Group revenue was up 17%, at £1,504 million, pre-tax profit soared 80%, to £63.1 million, and earnings per share were up 89% at 60.9 pence. The homebuilding division led the way, thanks to a robust market in the South East, with revenue climbing 64% to £636.7 million and operating profit rocketing 137% to £75.1 million. While results from the construction division suffered from difficult market conditions, the order book remains relatively stable, at £1.65 billion.

In line with the group's "enhanced progressive and sustainable dividend policy," announced in February 2012 and facilitated by a reduced need for cash within the business, the full-year dividend will be increased by 88%, with a total dividend for the year of 30 pence per share giving a yield of 4.4% at the current share price.

Chief executive Greg Fitzgerald commented:

Against a background of challenging and uncertain economic conditions I am very pleased to report that we have exceeded the objectives of our three year transformational homebuilding plan, delivering a substantial increase in profits and return on capital. In addition, we have maintained a high quality construction order book. 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.

The excellent results further help Galliford Try's recovery, with the share price now up 55% on this time last year and 114% up on two years ago, although that has to be seen in the context of it still being some 63% down on its February 2007 peak.

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Jon Wallis doesn't own shares in Galliford Try. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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