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Galliford Try expects annual profit in line with estimates

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By Reuters
Galliford Try expects annual profit in line with estimates
FILE PHOTO: A builder assembles scaffolding as he works on new homes, in south London June 3, 2014. REUTERS/Andrew Winning   -   Copyright  Andrew Winning(Reuters)
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(Reuters) – British builder Galliford Try Plc <GFRD.L> said on Wednesday it expected annual pretax profit to be in line with analysts’ estimates as a reduction in exposure to Central London helped it ride out the worst effects of a slowing UK housing market.

The company said restructuring of its construction business is complete and current order book stands at 2.9 billion pounds for the year ended June 30 compared to 3.3 billion pounds last year.

Galliford has been reducing the size of its faltering construction business to focus on more profitable sectors under the new Chief Executive Officer Graham Prothero.

It expected annual pretax profit to be in the range of between 112.7 million pounds and 116.4 million pounds, according to company complied estimates.

The FTSE 250 company in May unveiled a retrenchment programme as part of its turnaround plan and said it would deliver 15 million pounds of savings a year from 2021 and a faster rise in operating margin.

The company, known for construction projects ranging from the redevelopment of the Wimbledon tennis venue to hospitals and city bypasses, also said it expects its average net debt to be 187 million pounds, in line with the previous guidance.

(Reporting by Samantha Machado in Bengaluru; Editing by Arun Koyyur)