Group
Record results and excellent progress on our disciplined growth strategy to 2018.
Interim dividend up 47%, reflecting our strong performance.
Further enhancement of our progressive dividend policy aiming to reduce cover from 1.7x to 1.5x.
Net debt of £35.9 million (H1 2014: £85.9 million), despite the increase in the landbank.
Existing £400 million unsecured bank facility extended to 2020 on improved terms; new £100 million interest rate hedge.
Successful completion of integration of the Miller Construction business.
Housebuilding
Linden Homes revenue up 5% to £346.1 million (H1 2014: £328.2 million) from 1,364 unit completions, 1,278 units net of joint venture partner share (H1 2014: 1,300 and 1,230 respectively).
Linden Homes operating margin rose to 15.1% (H1 2014: 13.5%), including planned land sales, in line with both our strategy and our margin enhancement programme.
Galliford Try Partnerships revenue, including both contracting and mixed tenure, up 56% to £157.6 million (H1 2014: £100.9 million) generating an operating margin of 2.3% (H1 2014: 1.9%).
Strong Galliford Try Partnerships contracting order book of £650 million (H1 2014: £500 million) which excludes the appointment as preferred developer for the £360 million Silvertown Way development in Canning Town.
Total sales currently reserved, contracted and completed across Linden Homes and Galliford Try Partnerships of £747 million (H1 2014: £744 million).
Record landbank of 14,300 plots with the land market continuing to be positive. 100% of land secured for 2016 and 70% of land secured for 2017.
Construction
Construction margin of 1.0% (H1 2014: 1.4%, FY 2014: 1.0%) in line with our expectations as we work through historical projects, and helped by the Miller Construction acquisition.
Exceptional order book at £3.25 billion (H1 2014: £1.25 billion) and further visibility of an excellent pipeline of opportunities. 100% of projected revenue now secured for the current financial year with a record 75% secured for 2016 (31 December 2013: 100% and 65% respectively).
Strong cash balance of £158.0 million underlining the robust performance of the business (H1 2014: £121.5 million).
Greg Fitzgerald, Executive Chairman, commented:
"We are very pleased with the Group's strong performance in the six months to 31 December 2014 with our housebuilding and construction businesses both performing well, and are encouraged by the start we have made to the second half of the year.
Linden Homes' sales rate has increased since 1 January 2015. Housing market conditions remain good and we are optimistic about the prospects for a number of recent and forthcoming sales outlets. Our Partnerships business continues to see exceptional demand for contracting in the affordable housing market and the development business is growing in line with plan. Our enlarged Construction business has a record order book of £3.25 billion with the Miller Construction integration now completed.
We are making good progress with the search for a new Chief Executive.
We have increased the interim dividend by 47% and, reflecting our continuing confidence in the delivery of our disciplined growth strategy, we are further enhancing our dividend policy."
