Galliford profits down two-thirds

HOUSEBUILDER Galliford Try was counting the cost of the worst property market "for generations" yesterday as interim profits slumped 66 per cent.

The firm, which owns Scottish company Morrison Construction, has axed 400 staff and put workers on a four-day week to cope with the slowdown. Yesterday it posted pre-tax profits of 11.2 million in the half-year to 31 December, down from 33.8m previously.

Galliford said it remained cautious over prospects this year and said there had been "little practical easing" in the mortgage market so far in 2009.

Chief executive Greg Fitzgerald said the firm was well within banking covenants and added that its highly cash-generative construction business was helping it weather the worst of the recession.