Galliford Try plc (LON:GFRD) shares charged higher as the housebuilder said it expects pre-tax profit for the year to be in line with analysts’ expectations on the back of good housing demand.
The Linden homes division delivered 3,229 housing completions, including joint ventures, for the year, compared to 3,442 last year as the company reduced its exposure to the slowing central London property market.
The average selling price fell to £351,000 from £367,000.
The sales rate was 0.56 per site per week from an average of 80 outlets, compared to a sales rate of 0.59 and 85 outlets in 2018.
In the partnerships and regeneration business, the contractor order book stood at £1bn, down from £1.2bn the same year ago.
Galliford said the restructuring of its construction business is complete and current order book is valued at £2.9bn, compared to £3.3bn last year, with 88% of revenue for the new financial year secured.
Pre-tax profit for the year, including exceptional items, is expected to be in line with expectations of £113-£116mln.
Net debt was £60m at the end of the year. The company had net cash of £98mln last year.
"We are making strong progress against the operational targets we set out in 2017," said chief executive Graham Prothero.
"We are reviewing our 2021 volume targets to ensure that growth is controlled, and our gearing is managed."
Shares rose 4.2% to 636p in morning trading.