Builders bullish about trading

Published:  06 May, 2011

LONDON: Galliford Try, Costain and Morgan Sindall issued upbeat trading statements predicting strong progress for the rest of the year,  despite the challenging economic conditions.

Their views add to opinion that data from the Office for National Statistics released earlier this week understates the performance of the construction industry.

Galliford said its hybrid house building and contracting model was producing results with 72% of the next financial year's construction revenues already secured.

"The housing market has exceeded our expectations throughout the spring selling season and we have continued to benefit from the strong southern bias of our expansion plan," chief executive Greg Fitzgerald, said.

"Construction has also benefited from encouraging contract awards in the period and strong cash balances that lead us to expect the Group's gearing will be minimal at the financial year end.

"We therefore now expect full year results to be significantly ahead of the current range of market estimates and remain confident in delivering the objectives of our expansion plan during the next financial year," Mr Fitzgerald said

Costain confirmed a "robust" order book of £2.3bn and preferred bidder positions of over £400m as the group continues to focus on blue chip customers.

Morgan Sindall said trading was in line with expectations at the construction and infrastructure division following a series of major wins including the £50m Pudding Mill Lane Crossrail contract and a place on two lots of the £500m Smarte East Alliance framework.

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