Galliford Try profit falls 4%, but forecasts annual profits toward upper end of expectations

House-builder Galliford Try said Wednesday it expected full year performance would be toward the upper end of market expectations despite reported a slip in first-half profit on declining revenues.

The company forecasts underlying profit before tax for the year ending 30 June 2019, in the upper range of market expectations of between £158.8m and £192.5m.

For the six months to 30 June, reported pre-tax profit fell 4% to £53.8m. Revenue fell 4% to £1,344m, with construction revenue falling 13% weighed down by a 'more cautious bidding and project deferrals owing to clients' macro uncertainty,' the company said.

Reported profit was weighed down by an exceptional cost of £26.0m arising from the completion of the Aberdeen Western Peripheral Route contract. The profit and loss account also included an exceptional charge of £4.4m related to pension costs, the company said.

The Linden Homes and Partnerships & Regeneration built 3,069 total new homes, up from 2,878 a year earlier.

The interim dividend was cut to 23.0p a share for half from 28p a share a year earlier, in-line with the company's policy for the dividend to be covered two times by earnings, as previously announced, the company said.

'We remain cautious of the impact of the current political uncertainty on consumer and business confidence, and the medium-term outlook for the macro economy, but believe our focused strategic objectives, strong order book and disciplined approach will deliver a full year out-turn toward the upper end of the analysts' current range,' the company said.