Construction Firms Well Placed for 2007

Despite initial worries about the prospects for the Building Industry in 2006 it would seem that the year may have been a good one after all, as at least four of the major players in UK building have published upbeat trading statements and predicted another good year for 2007.

Alfred McAlpine, said its profits for 2006 were set to come in at the top end of expectations, and it was beginning 2007 with an "increased order book and a healthy pipeline of new opportunities." . As well as updating on its full-year trading, the group revealed it had secured a further £155m of new contract wins this week. The chief executive, Ian Grice, said he believed the company was "well placed to continue the momentum of the last 12 months".

Galliford Try issued a strong trading update and revealed its first-half results were set to be in line with expectations, and said that it was "confident" 2007 prospects.The House Building group built a record 593 new homes over the six months to 31 December this compared to 484 during the same period a year earlier.

Bovis Homes said its full-year results were going to meet expectations for 2006, on the back of a 15 per cent rise in housing completions over the year. Their average sale price has increased by 4.7 per cent to £183,700.

Keller the Global Construction Services Group said its results were set to come in slightly above market expectations, its chief executive, Justin Atkinson, added that the group was "in good shape" for the year ahead

It would seem however that the Stock Market is not yet convinced of the good news, shares in all four groups fell yesterday.According to the Halifax, British house prices fell for the first time in six months in December so this may yet inpact on the first months of 2007 trading.