Galliford Try CEO Announces Retirement Plan after Record Profits
Galliford Try Chief Executive Greg Fitzgerald has stated his intention to retire, as the company announced strong results for the year ending 30 June 2014.
After 33 years with the company and nine years as CEO, the 50-year-old will retire by the end of 2015, with the board already seeking a successor.
The announcement came as Galliford reported pre-tax profits of £95.2m, up 28 percent from the £74.1m posted for the same period a year previously.
Group revenue rose 21 percent from £1,467m to £1,768m, while dividend per share was up 43 percent to 53p.
Net debt was down to £5.1m from 14.4m in 2013.
The results were attributed to “strong performance across the Group and successful delivery of disciplined growth strategy,” and followed the acquisition of Miller construction in February.
Construction however, struggled, with the operating profit margin falling 10 one percent from 1.6 the year before. Operating profit fell 40 percent to £8m in a still “challenging” UK market
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.
“Galliford Try Partnerships delivered outstanding growth with revenues more than doubling and margins improving. Construction continued to perform well, maintaining a profitable result as we work through contracts won in a difficult market, and start to deliver new work secured on more robust terms in improving conditions.
“We are very pleased to have acquired Miller Construction which more than doubles the size of our order book, adds several strategically important frameworks and also brings additional talent to the enlarged Group. Integration is proceeding very well and ahead of expectations.
“With a record landbank in housebuilding, a larger and stronger construction business and a robust balance sheet, the Group is in an excellent position. Whilst we continue to recognise the challenges around the supply chain and the time required to convert outline planning permissions into detailed consents, we look forward to the year ahead with confidence.”
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