Galliford Try has revealed record profits of £135 million as it unveiled its annual results for the year ended 30 June 2016.

With profits up 18% from last year, the Group also recorded a 10% rise in revenue (including joint ventures) from £2,431m last year to £2,670m in 2016.

In addition, its Linden Homes business saw completions increase to 3,078 (2015:2,769), producing an 8% rise in revenue to £841m from £779m in 2015. Net debt was also reduced from £17.3m to £8.7m.

However, while overall performance remained good, the construction division achieved a margin of 1.1%, compared with 1.2% in 2015. Galliford Try said the margin was particularly constrained by building contracts secured in a "more difficult economic climate". The Board added since these contracts are still be finalised, the deals are likely to impact on the Group's 2017 results.

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Peter Truscott, Chief Executive, said: "I am delighted to announce excellent results for the year. We have achieved further progress on margins in Linden Homes, increased our mixed-tenure output in Partnerships and Regeneration, and continue to make progress in resolving older contracts in Construction, whilst building and delivering a reliable and high quality order book.  We have reorganised management in all three businesses during the year, creating the right platform for future progress in both volume and margin.  Reflecting the delivery of record results and our continuing confidence in the business, we are proposing an increase in our full year dividend of 21%.

"The decision to leave the European Union inevitably creates a backdrop of uncertainty for the new financial year. However, we have been encouraged by visitor levels and sales rates at Linden Homes through the summer. The balance of our businesses and the strength of our order books mean that we are well-placed to manage the impact of this uncertainty."

(LM/CD)