Galliford Try to re-enter affordable homes market
Construction & Build
Galliford Try is staging a return to the affordable housing market as part of a bid to boost group margin in a new five-year growth plan.
Bill Hocking sees big opportunities in the affordable homes market for Galliford Try
The firm was excluded from the growth sector when it sold its Linden Homes and partnerships businesses to Vistry for £1.1bn four years ago.
But now that agreement has lapsed allowing Galliford Try to build up a new business stream in a sector that typically commands margins of 4-5%.
Announcing his new five-year plan, chief executive Bill Hocking, said: “We see this as a big area of growth, with scope to increase our housing offer as we move forward.
“Initially we will concentrate on contracting for housing associations and landlords.”
Hocking said the move back into the market was part of the firm’s plan to deliver a 4% group-wide margin and exceed £2.2bn turnover within five years, up from £1.4bn today.
He said: “Our strategy will be delivered through continued growth in our existing core markets within building and infrastructure as well as in higher-margin adjacent markets including the private rented sector, affordable homes, capital maintenance and asset optimisation within water, and green retrofit.
“We will also continue to grow our higher margin specialist capabilities, including fire protection, active security and facilities management.”
Hocking added: “The strong momentum in the business and our confidence in the outlook is a reflection of our disciplined strategy, committed people and established relationships with our supply chain and clients.
“Our updated strategy to 2030, which we announce today, reflects our strong performance since 2021 and is designed to continue our disciplined growth and provide long-term sustainable value for our stakeholders.”
In order to reflect the growth of the Infrastructure business and its increasing role in the future growth strategy, David Lowery will join the main board on 1 July in the new role as divisional managing director of infrastructure.
Written by Aaron Morby at Construction Enquirer