Property

Linden reports strong first half

Warren Lewis
|
15th February 2018
construction 7

Linden Homes has seen a strong first half, with revenue increasing 7% to £436.8 million against the equivalent period the previous year.

Linden, the housebuilding arm of Galliford Try, completed 1,587 units during the six months to December 31 2017 against 1,491 the year before. Private completions totalled 1,170, up from 1,155 the previous year. The division’s private average selling price climbed from £338,000 to £370,000.

The average number of outlets during the period rose from 75 to 81, with a sales rate of 0.53 unit sales per outlet per week, slightly down on the 0.56 of the previous year.

Profit from operations increased 9% to £80.9 million whilst Linden’s operating margin climbed from 18.2% to 18.5%.
The housing division entered the second half of its financial year with a “solid” forward order book, and total sales currently reserved, contracted and completed of £879 million against the previous year’s £857 million.

Meanwhile, Galliford Try announced plans to raise £150 million of new equity capital from its shareholders to help cover the effect of Carillion’s collapse. GT was a joint venture partner of the construction giant on the Aberdeen Western Peripheral Route (AWPR) contract.

Peter Truscott, GT’s ceo, said: “Linden Homes had a very strong first half, with both volume growth and improving margins. Our strategy of focusing on standardisation is proving to be effective and we continue to benefit from further operating efficiencies. The market continues to be positive, underpinned by good mortgage availability, the government's ongoing commitment to Help to Buy, and the recent stamp duty cut for first-time buyers.”

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