The profits of Galliford Try increase by 145%, because Help to buy gives the housing industry a boost

Boost: Galliford Try the arrangements for & # 39; Help to buy & # 39; and a reduction in stamp duty for newcomers helped to increase annual profits

Housing and construction group Galliford Try to agree with the help of buying projects and a reduction of the seal rights for starters has contributed to the annual profit growth.

In the past year, Galliford, which also owns Linden Homes, saw profits increase 145 percent from £ 58.7 million to £ 143.7 million.

The share price of the listed FTSE 250 rose by 5.06 percent or 50.5p this morning to 1,049.5p.

Boost: Galliford Try the arrangements for & # 39; Help to buy & # 39; and a reduction in stamp duty for newcomers helped to increase annual profits

Boost: Galliford Try the arrangements for & # 39; Help to buy & # 39; and a reduction in stamp duty for newcomers helped to increase annual profits

The sale of Galliford Try, including that of joint ventures, was 11 percent higher than a year ago for £ 3.1bn.

The group revealed that it had cost another £ 20 million on its Aberdeen bypass project, meaning the company lost £ 45 million to the project for the full fiscal year.

Across the Galliford Try housing boom, the number of houses grew by 13 percent to 6,193.

Forty percent of Linden Home's revenue in the past year came from Help to Buy schemes, compared to 47 percent a year ago. Linden's operating margins rose by 19.5 percent last year.

Average sales prices were £ 367,000 for private homes, an increase of 4 percent and £ 134,000 for affordable housing, an increase of 11 percent from a year earlier.

A series of house builders urges the government to decide whether Help to Buy will continue after 2021, given the stimulus that the schemes have given to their balance sheet.

Help with the purchase: forty percent of Linden Home's sales in the last year came from Help to Buy

Help with the purchase: forty percent of Linden Home's sales in the last year came from Help to Buy

Help with the purchase: forty percent of Linden Home's sales in the last year came from Help to Buy

Peter Truscott, CEO of Galliford Try, said: & # 39; We have achieved a very strong underlying performance throughout the year, driven by excellent progress towards our strategic objectives for all three businesses.

"Linden Homes continued to prioritize margin growth, benefiting from further standardization and the robust management of overhead costs.

& # 39; This resulted in higher profitability in a year with modest house price inflation.

& # 39; Volumes also grew due to the strength of our product offering, and with the sector supported by & # 39; Help to Buy & # 39; good mortgage availability and the reduction of stamp duties for starters.

& # 39; The land market remains favorable, allowing us to buy land with strong margins, in the right locations for our new standardized product. & # 39;

On the issue of dividends, Galliford Try said: & # 39; The directors recommend a final dividend of 49.0 pence per share that, on approval of the AGM, will be paid on 5 December 2018 to the shareholders of the register at 9 November 2018.

& # 39; Together with the interim dividend of 28.0 pence per share paid in April, this will result in a total dividend for 2018 of 77.0 pence per share. & # 39;

Looking ahead, Galliford said it was & # 39; positive & # 39; remained on his outlook for the coming year, with & # 39; robust & # 39; demand in all sectors.

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