Homebuilder Galliford Try (LON:GFRD) said full year results would still be in line with expectations, despite delays on one of its major projects that is likely to result in increased cost pressure on the company.
The group warned that costs had gone up on its Aberdeen Western Peripheral Route project, as a result of delays from bad weather. It is now likely to increase the exceptional charge in the current year.
“The amount will depend upon progress recovered through the summer, and is expected to be lower than the charge (£25m) taken in the first half. We are continuing to discuss several significant claims. Practical completion of the project is anticipated this summer,” the group said.
The group were also hit by falling sales at its Linden project, which recorded £1.18 billion of sales reserved, contracted or completed, of which £904m was for the current financial year through June. This compares to comparative figures in the previous financial year of £1.17 billion and £915 million respectively.
Full-year pre-tax profits are still likely to be within the range of analysts’ forecasts however, between £138 million and £146 million.
“The Group continues to deliver a strong operational and financial performance and is making good progress against its growth plans to 2021,” CEO Peter Truscott said.
“Following the successful completion of the recent rights issue the Group is well capitalised with a strengthened balance sheet to support our planned growth.”
Shares in Galliford Try are currently down 0.80 percent at 964.75 (0845GMT).
