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					Interim results for half year to 31 December 2009
Greg Fitzgerald, Chief Executive: Frank Nelson, Finance Director




1                                                Interim Results Presentation – February 2010
                                                                  Park Centrale, Southampton
Disclaimer




    This presentation is being made only to and is directed at (a) persons who have professional
    experience in matters relating to investments falling within Article 19(1) of the Financial
    Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (b) any
    other persons to who it may otherwise lawfully be communicated, falling within Article 49(2) of
    the Order (all such persons being referred to as “relevant persons”).

    Any person who is not a relevant person should not act or rely on this presentation or any of
    its comments.

    The financial information set out in this document does not constitute the Company’s statutory
    accounts. Statutory accounts for 2009, which received an auditors’ report that was unqualified
    and did not contain any statement concerning accounting records or failure to obtain
    necessary information and explanations, have been filed with the Registrar of Companies.

    Certain statements in this presentation are forward looking. Such statements should be
    treated with caution as they are based on current information and expectations and are
    subject to a number of risks and uncertainties that could cause actual events or outcomes to
    differ materially from expectations.




2                                                              Interim Results Presentation – February 2010
Agenda
Interim Results for Half Year to 31 December 2009




    • Highlights


    • Financial Review


    • Operating Review


    • Strategic Update


    • Summary and Outlook




3                                                   Interim Results Presentation – February 2010
Highlights




4            Interim Results Presentation –Coves, Duporth
                                      Two February 2010
Highlights
Housebuilding



    • Excellent start to transformational expansion plan - land bank up
      to 9,300 plots, 43% acquired at current market values

    • Upper quartile margin performance

    • Review of land values at 31 December results in a net £1.5m land
      write back

    • Acquisitions of Wrights of Hull, Rosemullion Homes and joint
      venture interests provide 1,190 plots at current market values

    • Strength in Affordable Housing and Regeneration delivering
      value and opportunities

    • Sales in-hand position up 21% in more stable market conditions




5                                                Interim Results Presentation – February 2010
Highlights
Construction




    • Strong performance with upper quartile margins

    • Revenue level in construction reflects tight risk management

    • Prudent profit recognition policy

    • OFT fine accounted for and appeal lodged

    • Successful AMP 5 Water renewals with all existing clients

    • Forward order book up 6% to £1.8bn in challenging market
      conditions




6                                                Interim Results Presentation – February 2010
Highlights
Financials/Balance Sheet – Half Year to 31 December 2009




    • Pre-exceptional profit up 18% to £13.2m

    • £119.3m equity raising to fund transformational Housebuilding
      expansion

    • Balance sheet of £408m at 31 December, tangible net assets of
      £286m (£3.50 per share)

    • Interim dividend of 3.3p per share - maintained at equivalent
      level to last year*

    • £100m net cash in hand at 31 December 2009

    • Banking and bonding facilities with extensive headroom


      * Adjusted for 1 for 10 consolidation and 7 for 6 rights issue


7                                                                      Interim Results Presentation – February 2010
Financial Review




8                                  Presentation – February 2010
                   Interim ResultsSt Pancras Chambers, London
Financial Review
Highlights – Half Year to 31 December 2009



                                                                   2009             2008
          • Group revenue                                         £570m            £774m
          • Profit/(loss) before tax
             • Pre-exceptional                                    £13.2m          £11.2m
             • Post-exceptional                                   £6.4m          £(37.5)m

          • Earnings/(loss) per share
              • Pre-exceptional                                   14.0p             15.7p
              • Post-exceptional                                  3.0p             (51.0)p

          • Net cash at 31 December                               £100m             £2m
          • Interim dividend per share                             3.3p             3.3p*



          * Restated after share consolidation and rights issue


9                                                                  Interim Results Presentation – February 2010
Financial Review
Income Statement – Half Year to 31 December 2009



     £m                                                                                    2009             2008
     Revenue                                                                               570.0            773.8
     Profit from operations                                                                17.1              24.5
     JV interest and tax                                                                   (1.9)            (6.3)
     EBITA*                                                                                15.2              18.2
     Intangibles amortisation                                                              (0.7)            (1.0)
     EBIT*                                                                                 14.5              17.2
     Net finance costs                                                                     (1.3)            (6.0)
     Profit before exceptional items                                                       13.2              11.2
     Exceptional items
                     - Housebuilding write-back/(write-down)                                1.5             (48.7)
                     - OFT fine                                                            (8.3)              -
     Profit/(loss) before tax                                                               6.4             (37.5)


     * Profit before net finance costs, amortisation, exceptional items and tax


10                                                                                Interim Results Presentation – February 2010
Financial Review
Segmental Analysis – Half Year to 31 December 2009




                                            Revenue*                  EBITA            Margin %**

     £m                                  2009        2008     2009            2008    2009     2008
     Housebuilding                       84.5        141.7     2.3            3.4     2.8%     2.5%
     Affordable Housing & Regeneration   75.9        99.5      4.8            6.5     6.3%     6.7%
     Total Housebuilding                 160.4       241.2     7.1            9.9     4.5%     4.2%
     Building                            226.3       274.6     5.5            6.7     2.4%     2.4%
     Infrastructure                      197.9       265.4     5.5            7.8     2.8%     2.9%
     Total Construction                  424.2       540.0    11.0            14.5    2.6%     2.7%
     PPP Investments                      2.5        14.5      0.4            (3.1)
     Group                                0.3         0.9     (3.3)           (3.1)
                                         587.4       796.6    15.2            18.2




     * Including joint ventures
     ** Profit from Operations/Revenue


11                                                           Interim Results Presentation – February 2010
Financial Review
Finance Costs: Net – Half Year to 31 December 2009




                                                                                          Year to
     £m                                              2009         2008                 30 June 2009
     Net interest payable                            0.2           0.9                      1.7
     Fair value (gains)/losses on financing
                                                     (0.2)         3.7                      3.5
     activities - interest rate swaps
     On unwinding of discount on creditors           0.4           0.9                      1.5
     Net cost on asset of pension fund               1.0           0.5                      0.8
     Other                                           (0.1)          -                      (0.1)
                                                     1.3           6.0                      7.4




12                                                           Interim Results Presentation – February 2010
Financial Review
Balance Sheet Highlights – Half Year to 31 December 2009




                                                                                                                Year to
                                                                         2009            2008
                                                                                                             30 June 2009
  Shareholders’ funds £m                                                 408.4           302.8                  294.6
  Net cash £m                                                            100.2            1.8                    34.1
  Interest cover - total (inc IFRS and swap)*                            11 x             3x                     4.3 x
                        - bank                                           72 x             19 x                  19.9 x

  Total land £m **                                                       340.2           342.6                  317.0
  Work in progress £m                                                    148.2           146.0                  130.6
  Land creditors £m                                                      (44.6)          (33.2)                 (32.8)
  Net developments £m                                                    443.8           455.4                  414.8




     * Calculated on profit before finance costs and exceptional items
     ** Excludes joint ventures


13                                                                                Interim Results Presentation – February 2010
Financial Review
Pensions – Half Year to 31 December 2009




 • IFRS net deficit £22m

 • Scheme fully closed from March 2007

 • Asset allocation conservative with gilts and bonds representing 52%

 • Present cash contribution to DB scheme £7m pa (defined contribution
   £7m pa)

 • Triennial valuation presently being undertaken

 • Contributions expected to remain the same over the medium term

 • Scheme deficit circa 5% of net worth




14                                           Interim Results Presentation – February 2010
Financial Review
Cash Flow Summary – Half Year to 31 December 2009




      £m                                                    2009           2008
      Operating cash flow                                   (48.7)         10.3
      Interest, tax and dividends                           (7.5)          (5.0)
      Net proceeds from issue of shares                     119.3            -
      Capital expenditure and investments                   14.5           (1.8)
      Borrowings acquired with subsidiaries                 (11.5)           -
      Net cash inflow                                       66.1            3.5
      Opening net cash/(debt)                               34.1           (1.7)
      Closing net cash                                      100.2           1.8




       Key Cash Flow Movements          £m

       Construction and Investments     (11)
       Housebuilding                    (28)

       Other movements                   5

       Net operating cash/investments   (34)


15                                                  Interim Results Presentation – February 2010
Financial Review
Financing – Half Year to 31 December 2009




 • Total bank facility £390m until renewal in 2012

 • Competitively priced borrowings at < 100bps over LIBOR

 • Covenants

       • Pre-exceptional interest cover - 3 times

       • Gearing < 150%

       • Net assets including goodwill > £282m

 • Substantial facility and covenant headroom




16                                                  Interim Results Presentation – February 2010
Financial Review
Balance Sheet/Debt Profile by Sector – Illustrative Only



                                                        Tangible                                 Accepted
                                                       Net Assets     Cash/(Debt)                Valuation
                                                           £m            £m                     Methodology

      Construction                                           (60)        150                          P/E

      Housebuilding and Group
                                                             346         (145)                    Adj. to NAV
      (NAV after deduction of debt)

      Investments                                                 -       (5)                 Directors’ Valuation

                                                             286           -




       Notes                                £m

       Total net assets per B/S             408

       Less intangibles                    (122)
       Net tangible assets                  286

       Assumes average net debt/cash break-even
       (taking account of BoS and other expenditure)
       Assumes total land spend in second half of year of £110m


17                                                                        Interim Results Presentation – February 2010
Operating Review
Housebuilding




18                 Interim Results Presentation – February 2010
                                         The Collection, Bushey
Operating Review - Housebuilding
Market Overview




 • Industry forecasting 90,000 new homes, half of peak production

 • Market currently stable with some price inflation in South East

 • Housebuilders’ stock levels historically low

 • Right product in right location selling well

 • Consumer confidence improved, but fragile

 • Mortgage availability improved, but tough criteria

 • Market support from Government initiatives

 • Liquidity returning to land market with increased competitiveness




19                                                Interim Results Presentation – February 2010
Operating Review - Housebuilding
Galliford Try’s Position



 • Predominantly southern based business

 • Little reliance on consortium sites

 • Product mix with houses/apartments in right places

 • Individually designed schemes

 • Acknowledged refurbishment expertise

 • Top ratings in customer service

 • Organisational structure kept in place to take advantage of upturn

 • Proven ability to acquire quality land

 • Strength in Affordable Housing and Regeneration



20                                            Interim Results Presentation – February 2010
Operating Review - Housebuilding
H1 Progress


 • Sales in hand up 21% at £370m

 • Average selling prices up 2.8% to £182,000

 • 63 outlets with 27 average sales per week

 • Part exchange lock up only £1.9m, equity share £12.3m

 • £11.6m of planning gain secured, further £12m targeted

 • Key acquisitions in period:

     – Wrights of Hull:                               147 units

     – Rosemullion Homes:                             156 units

     – 50% share of Bristol joint venture:           146 units

 • 43% of current 9,300 plot land bank at current market values

21                                              Interim Results Presentation – February 2010
Operating Review - Housebuilding
Bank of Scotland Joint Venture Acquisition




 • Low economic worth at JV carrying value

 • Four sites at good locations in and around London

 • Galliford Try 50% share comprised 370 plots

 • Equity interest and debt acquired in February 2010 for £42.5m

 • Acquisition risk minimal as known sites

 • 742 plots now in land bank at £35k per plot

 • Land to development value ratio of 18%

 • Restart on site for early contribution to profit




22                                               Interim Results Presentation – February 2010
Financial Review
Land Bank Analysis - Plots




                                         Actual                    Estimated

                                        Feb 2010     June 2010     June 2011    June 2012

     Acquired at current market value    4,050          5,350         7,300        9,660
     Historic land                       5,250          4,350         2,700        1,340
     TOTAL                               9,300          9,700        10,000       11,000


     % at current market value            43%            53%          73%           88%




23                                                 Interim Results Presentation – February 2010
Operating Review - Housebuilding
Land Bank Analysis – February 2010




 • Total plots owned: 9,300

 • Private housing: 5,200; affordable and regeneration: 4,100

 • Over 75% of plots in South of England

 • Average number of plots per site: 67

 • Total value of land bank*: £474m

 • Average plot cost: £51k

 • Average plot cost as % of GDV: 24%

 • Strategic land holdings 1,100 acres, expected to generate 7,100 plots


     *Includes joint ventures



24                                            Interim Results Presentation – February 2010
Operating Review - Housebuilding
Outlook – Short Term


 • 84% of projected sales for year secured

 • Investment in work in progress continuing

 • Sales prices being maintained

 • Visitor levels in financial year to date – up 14%

 • Reservations in financial year to date – up 30%

 • Use of shared equity and part exchange to continue

 • Market may fluctuate

 • Mortgage lending improving, but very slowly

 • Consumer uncertainty in election period

 • South East most resilient market

25                                              Interim Results Presentation – February 2010
Operating Review - Housebuilding
Outlook – Medium Term



 • Fundamental shortage of housing for both private sale and
   affordable provision will continue

 • Housing volumes and prices demonstrating recovery from
   low base

 • Customers more discerning

 • Uncertain planning policies

 • More demand for houses than apartments

 • Demographics continue to support demand

 • Recovery being led from South East

 • Galliford Try well positioned geographically and by market
   sectors


26                                            Interim Results Presentation – February 2010
Operating Review
Affordable Housing and Regeneration




27                                    Interim Results Presentation – February 2010
                                                                South Gate, Totnes
Operating Review - Affordable Housing and Regeneration
Market Overview




 • Decline in RSL activity offset by Government’s stimulus package

 • Tightening of grant availability until public spending plans known

 • Primary developing RSLs are refinanced and back in business
 • Intermediate market still to play out via private sector
 • Portfolios of public sector land coming to market

 • Planning negotiations fundamental to grant and gap funding




28                                              Interim Results Presentation – February 2010
Operating Review - Affordable Housing and Regeneration
Position in market




• Excellent relationship with HCA - largest private sector partner operating
  across all programmes

• Selected for all three HCA Delivery Partner Panels

• Strong visibility as sector-leading contractor/developer

• Track record of joint ventures with public commissioners

• Partnership housing rolled out across all GT operating areas

• Emerging presence in FM markets and new build PFI

• Well positioned to deliver intermediate rented and equity products




29                                             Interim Results Presentation – February 2010
Operating Review - Affordable Housing and Regeneration
Outlook




• Enduring supply side deficit will demand public investment

• Increased activity from local authorities

• Channelling of funding awards to public sector land releases

• Contracting market now strengthening

• Appetite amongst clients for collaborative working

• Strong position to capitalise on Partnerships model




30                                             Interim Results Presentation – February 2010
Operating Review
Construction




31                 Interim Results Presentation – February 2010
                             Castle Stuart Golf Links, Inverness
Operating Review - Construction
Market Overview




 • Infrastructure investment in regulated sectors continuing but
   constrained

 • Health, education and custodial spending programmes ongoing

 • Public sector projects susceptible to government policy

 • Limited private commercial market opportunities in South East;
   very little elsewhere

 • Competitive market conditions across all sectors

 • Client relationships and frameworks proving their value




32                                            Interim Results Presentation – February 2010
Operating Review - Construction
Galliford Try Position




 Building

 • National coverage from South of England to North of Scotland

 • Strong position in resilient London market

 • One of the few contractors able to deliver major projects

 • Succession of projects from NHS LIFT and Scottish Health frameworks

 • Major presence across all education sectors

 • Developing business in property services and facilities management




33                                              Interim Results Presentation – February 2010
Operating Review - Construction
Galliford Try Position




 Infrastructure

 • Leading contractor to the Water industry

 • National civil engineering capability

 • Track record in joint ventures for the largest projects

 • Leading position in remediation and environmental sectors

 • Developing businesses in renewable energy, waste and remote
   site security




34                                              Interim Results Presentation – February 2010
Operating Review - Construction
H1 Progress



 Building

 • Strong trading performance, excellent cash position

 • Steady flow of negotiated projects in health frameworks

 • Awarded accommodation block at Olympic Village

 • Appointed preferred contractor for Cambridgeshire BSF (Building
   Schools for Future) programme

 • Directors for Education and Health appointed

 • 97% of current financial year’s workload secured




35                                           Interim Results Presentation – February 2010
Operating Review - Construction
Building Forward Order Book, February 2010




                 Sectors                                                       £m

                 Commercial                                                   180

                 Education                                                     92

                 Health                                                       153

                 Custodial                                                     47

                 Interiors                                                     39

                 FM                                                           137

                 Other Public Sector                                           58

                                                                              706



                - Excludes affordable housing contracting of £144m




36                                                                   Interim Results Presentation – February 2010
Operating Review - Construction
H1 Progress




 Infrastructure

 • Strong trading performance, good cash position

 • Successful AMP 5 Water renewals with all existing clients

 • New Divisional Managing Director appointed

 • Major projects at Olympic Park and M74 in Glasgow performing well

 • Good pipeline of opportunities in renewables

 • 93% of current financial year’s workload secured




37                                            Interim Results Presentation – February 2010
Operating Review - Construction
Infrastructure Forward Order Book, February 2010


                   Sectors                                   £m

                   Water                                     457

                   Highways                                  169

                   Flood Alleviation                          76

                   Rail                                       79

                   Remediation                                65

                   Communications                             62

                   Renewable Energy                           41

                   International                              9

                   Ground Engineering                         1

                                                             959




38                                                 Interim Results Presentation – February 2010
Operating Review - Construction
Outlook



 • £1.8bn order book – 36% regulated sector, 48% public, and 16%
   private commercial

 • 60% of next financial year’s projected workload secured, compared to
   47% at same point last year

 • Strong position in resilient market sectors and South East of country

 • Leading contractor in Scotland

 • Presence in Qatar established

 • Cash performance remains industry leading

 • Effective management of risk and opportunities through downturn

 • Strong covenant supports quality order book


39                                            Interim Results Presentation – February 2010
Operating Review
PPP Investments Division




40                                 Interim Results Presentation – February 2010
                           St Andrews Community Hospital & Health Centre, Fife
Operating Review - Investments
Highlights


•    Disposed of interest in Highland Schools

•    St Andrews Community Hospital and Ealing Care Homes reached
     construction completion

•    Preferred bidder decisions expected by mid 2010

      •      South Tyne & Wear Waste

      •      Halton and Warrington BSF

      •      Scottish South East Hub Health

      •      Kent Housing

•    Good opportunities going forward in waste and affordable housing

•    Worcester Library financially closed, 100% equity held


41                                              Interim Results Presentation – February 2010
Strategic Update




42                                Presentation – February 2010
                   Interim ResultsThe Royal Apartments, Henley
Strategic Update



• Transformational strategy to expand Housebuilding from market low
  point

• Rights issue provided finance for investment in land and production

• Successful execution to date with land acquisition ahead of target

• Fundamental housing shortage will support growth in future years

• Affordable Housing and Regeneration key to market opportunities

• Tight management of Construction to optimise returns and cash

• Exploiting cross group expertise

• Rigorous risk management on land acquisition and construction
  commitments

• Strong balance sheet and liquidity supports strategy

43                                            Interim Results Presentation – February 2010
Summary and Outlook




44                    Interim Results Presentation – February 2010
                                                 Park View, Epsom
Summary and Outlook



 • Housebuilding sales since turn of year continue to be
   encouraging

 • Capitalising on strengths in Affordable Housing and Regeneration

 • 53% of land bank expected to be at current market values by
   June 2010

 • Construction performing well in challenging markets with quality
   order book

 • Optimising benefits from hybrid model

 • Robust management and risk controls throughout the business

 • Group in strong financial position

 • On course for earnings enhancement in 2012


45                                            Interim Results Presentation – February 2010
Interim results for half year to 31 December 2009
Greg Fitzgerald, Chief Executive: Frank Nelson, Finance Director




46                                               Interim Results Presentation – February 2010
                                                                  Park Centrale, Southampton

				
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