FINANCE: Galliford Try’s chief executive is stepping down next year as the house builder announces soaring profits today.
Greg Fitzgerald, who has been with the company for 33 years, will retire no later than the end of 2015. A search for his successor is underway.
The group today posted a 28% hike in pretax profit to £95.2m on the back of a 21% uplift in revenue to £1.8bn in the year to 30 June.
Galliford try said the record profit was achieved through “strong performance across the group and successful delivery of disciplined growth strategy”.
It also posted record earnings per share, up by 32% to 94.6p, while returns on net assets improved to 20.7%.
The group announced an increase in full dividend to 53p.
It housebuilding division said a strong increase in revenue to £1bn – up from £730m – came on an increase in the number of completions.
Including joint ventures, completions came in at 3,107, up from 2,932 last year. The average Linden Homes selling price rose to £305,000 from £266,000.
It also noted an improved margin performance with 13% increase in Linden Homes’ operating margin to 15.1%.
Looking ahead it reported a strong forward sales position with 3% increase in sales currently reserved, contracted or completed at £419m.
The group also said it had a record 14,000-plot landbank with 91% now acquired at current market values.
Fitzgerald said: “We have made excellent progress during the year against our strategy of disciplined growth with principal focus on margin.
“Linden Homes achieved an improved margin, ahead of our expectations, and significantly stronger average selling prices, reflecting the quality of our homes, our prime locations and the backdrop of improved consumer confidence.
“As we have gone through the quieter summer period, sales have been in line with our expectations.”
Chairman Ian Coull said: “On behalf of the board I would like to thank Greg for his excellent leadership and vision over the last nine years in his role as chief executive. The company has a clear disciplined growth strategy against which we are making strong progress. We have begun the search for Greg’s successor; Greg is committed to ensuring a smooth transition and will leave the business in a strong position for his successor.”
Fitzgerald added: “After 33 very enjoyable years at Galliford Try I have decided to retire no later than the end of 2015.
“My decision is a personal one and I am fully committed to delivering the company’s growth strategy. As our full-year results announced today demonstrate, the group is in great shape, with a strong management team, and very well equipped for the future.”
bridget.oconnell@estatesgazette.com
