Losses narrow at Galliford Try

It came as Redrow outlined plans to restore its dividend next year despite reporting a sharp decline in profits

Galliford Try posted narrowing losses for the year to the end of June and forecast a return to profit next financial year.

The FTSE 250 company reported a pre-tax loss of £34.6m for the 12 months to June 30, compared with a £64.5m loss last year, after disposing of its housebuilding division. Revenues declined by a fifth to £1.12bn. 

The housebuilder also recorded a year-on-year increase in its order book, which now stands at £3.2bn. It expects to resume dividend payouts next year after cancelling them in March at the height of the pandemic

Chief executive Bill Hocking said: “The group is performing well and focusing on its core strengths of building, highways and environment.  

“In recent months we have secured a number of significant project wins and we are well placed to benefit from planned future investment in our areas of operation... The group is well capitalised with a strong order book.”

Galliford Try reinstated its financial guidance, adding that it had a “strong platform for return to profitability” in fiscal year 2021.

Redrow plans to reinstate dividend in 2021

It came as housebuilder Redrow said it would restore its dividend next year despite reporting a sharp decline in profits. 

Pre-tax profits tumbled by two-thirds to £140m for the year, as revenues dived by 37pc to £1.34bn.

Legal completions on properties also dropped by 37pc to 4,032 deals for the year to June 28.

However, the company said it now had a “record order book” and had completed “substantially more homes in the first few weeks of the new financial year” than during the same period last year.

As a result it will allow dividend payments to resume in 2021.

The FTSE 250 company shut down its construction sites in March, before reopening its first sites again in May.

House prices jumped in August after lockdown and the outlook for the property market has also hit a four-year high, according to an influential survey of chartered surveyors.

Pent-up demand and Chancellor Rishi Sunak’s stamp duty cut are seen as key reasons for the pick-up in transactions.

John Tutte, executive chairman of Redrow, said: “The Covid-19 pandemic had a profound impact upon the group’s performance in the 2020 financial year but we entered the new financial year in a position of strength.”

“This was due in part to increased investment earlier in the year in anticipation of strong demand for the Help to Buy scheme ahead of changes to the scheme next year.”

Shares in Galliford Try rose 8pc to 95p in early trading, while shares in Redrow declined 2pc to 447p.