Miller takeover set to drive Galliford Try profit rise

Housebuilding and construction group Galliford Try has said it is on course for a record year with profits likely to be at the upper end of market expectations on the back of its acquisition of Edinburgh-based Miller Construction a year ago.

The firm said housing completions are likely to come in at 3,177, up from 3,107 in the previous year, while average selling prices from its Linden Homes arm have grown seven per cent to £327,000.

The construction arm saw growth in revenue and profits and pre-tax profit of £113.8 million is expected for the year to June, up from £95.2m last time.

Greg Fitzgerald, executive chairman, said: “We are pleased to see that the momentum across the group continues, supported by encouraging market trends for all three businesses. We are also delighted with the two important acquisitions of Miller Construction and Shepherd Homes, further increasing the group’s opportunities and capacity.”

In yesterday’s trading update, Fitzgerald also said that Miller – bought for almost £ 17m last July – has increased “opportunities and capacity” at the group, which also owns fellow Edinburgh construction operation Morrison.

He said: “Following a resilient performance in construction throughout a tough recession, we are pleased to report another profitable year for the division, and are encouraged by the outlook, with opportunities growing across multiple sectors.”

Morrison, along with Balfour Beatty and Carillion, is involved in the £ 550m Aberdeen bypass project, which is set for completion in winter 2017.

It is also working on the Queensferry Crossing over the Firth of Forth and the redevelopment of the Royal Edinburgh Hospital, and in May the division was named as preferred bidder by Moray Council for the £ 17m refurbishment of four primary schools in Buckie, Elgin, Forres and Lossiemouth.