Construction group Galliford Try has seen profits rise as its new housebuilding strategy begins to bear fruit.

The company - which has a base on Hagley Road in Birmingham - saw revenues down by more than £200m at £570m compared to last year although pre-tax profits increased to £13.2m compared to £11.2m last year.

The company - which saw its housebuilding operations boosted at the end of last year with £119m net equity raise - has seen average selling prices rise by more than 2 per cent with sales in hand up 21 per cent compared to last year.

Greg Fitzgerald, chief executive, said: “Against the backdrop of a more stable housing market we have made excellent progress with the first stage of our transformational housebuilding strategy for our southern based business, bringing land acquisition opportunities with attractive potential returns to fruition.

“The market for construction is challenging but our quality order book and the spread and depth of our industry leading business across its market sectors continue to be key strengths that will enable us to respond quickly to a market upturn once it occurs.

“While the Board remains cautious on the overall economic environment, with a strong balance sheet and sector leading cash resources the Group is well placed to take advantage of opportunities across its activities as they arise”.