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Builders and building materials

Galliford Try says 'Brexit' hits commercial demand

Building group says demand for new private commercial buildings cooled before and after referendum

The EU referendum has hit demand for offices and manufacturing sites, according to construction group Galliford Try plc (LON:GFRD).

Galliford said there had "undoubtedly" been a cooling in demand for new private commercial buildings before and after the June 23 vote.

It also said the rate at which work was coming through the public sector remained slower than expected.

"The result of the EU referendum inevitably created a backdrop of uncertainty for the new financial year and we are monitoring market conditions and consumer confidence closely," Galliford said.

However, the group's shares rose 64p, or 5.7%, to 1195p in early London trading after it reported a strong year across its businesses and increased its dividend.

Annual pre-tax profit rose 18% to £135mln on a 10% gain in revenue including joint ventures to £2.7bn. The group lifted its dividend per share by 21% to 82p.

It achieved further progress on margins in its Linden Homes business, increased mixed-tenure output in partnerships and regeneration and made progress in resolving older construction contracts, whilst increasing orders.

Linden's visitor levels and sales rates throughout the summer were encouraging and it said it was well-placed to manage the impact of any uncertainty.

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