About Us Press Centre Contacts CAPABILITIES FLAGSHIP PROJECTS INVESTORS CAREERS SUSTAINABILITY OUR GROUP OUR BRANDS OUR AWARDS COMPANY POLICY STATEMENTS The Group employed 3,973 staff as at 30 June 2013 and benefits from a strong client base and integrated supply chain, spanning both industries in which it operates. Our Vision & Values Our Board & Management Our Business Model & Strategy Our Company History OUR BUSINESS MODEL & STRATEGY STRATEGY TO 2018 Targeting disciplined growth across all businesses to deliver strong shareholder returns The Board has reviewed its strategy against a backdrop of an improving economy and, assuming continued economic stability, is targeting disciplined growth across all businesses in the period to 2018. The plan assumes no material early tightening of the private housing market, with mortgage availability and flexibility continuing to grow, and no change to the announced scale and duration of the Government’s Help to Buy initiative. More broadly, it presumes continuation of Central Government support for affordable housing, and of a steady recovery in the wider construction market. We have also assumed a continuation of the current tougher building environment initially, stabilising towards the end of the period. Housebuilding Linden Homes The business will continue to focus on its margin enhancement programme and we expect operating margin to rise towards 18%. We are also targeting a disciplined expansion in volumes to increase revenue by circa 50% from the record FY13 level. The business will continue to focus on well located sites principally in the south and south east, and its increasing bias towards houses over apartments. Galliford Try Partnerships To respond to the demand for and growth in affordable housing our partnerships business has been realigned within housebuilding so as to create a regeneration and land led contractor/developer with a refocused management team. The business will target an increase in mixed tenure turnover to in excess of £60 million, with the revenue from the contracting business increasing by 200% over FY13 to fund future regeneration and land led activities. We expect the blended operating margin to increase to 3.5 - 4.0%. In a land market that continues to be generally positive we are planning to acquire a 14,000 unit landbank early in the period, across Linden Homes and Partnerships that will remain stable thereafter and provide a comfortable 3½ - 4 year supply. Construction Following a year of sustained and improved levels of opportunity we intend to grow our building and infrastructure businesses by circa 50%. We expect turnover to increase from an improving private sector as well as an increased participation in frameworks and major projects. Maintaining our focus on risk management we will continue to prioritise margin and strict cash management. In the short term we continue to expect operating margin to fall, but then to rise towards 2.0%. Our investments business will continue to promote its PFI/PPP investment capabilities to support our construction and partnerships businesses. Group We will capitalise on the excellence of our team to deliver growth across the business, as well as focus on the challenge of recruiting to support our plans. We will continue to optimise the opportunities in intra-group trading. The business plan maintains our normal discipline around working capital, and is comfortably accommodated by the Group’s new £400 million unsecured five year credit facility. We are targeting period end gearing no higher than 30%, with average and peak levels well below covenant levels. In parallel with our disciplined growth plans for all businesses we will maintain our progressive dividend policy, with 1.8x cover in 2014 reducing to 1.7x cover for the remainder of the period. Our strategy is expected to more than double FY13’s profit before tax and earnings per share by 2018, with a greater increase in the dividend. Download our Publications Alert Service Sign up Group Websites Linden Homes Morrison Construction Rock & Alluvium Pentland Estate Management Website Information Alerts Cookies Disclaimer Accessibility Site Map