* Galliford posts annual loss, Redrow profit plunges
* Companies' order books grow as construction demand returns
* Galliford expects to return to profitability
* Galliford shares rise 11%, Redrow slips 4%
By Pushkala Aripaka and Samantha Machado
Sept 16 (Reuters) - Construction groups Galliford Try
and Redrow on Wednesday pledged to resume
shareholder payouts in fiscal 2021 as construction demand picked
up following the lifting of coronavirus lockdowns.
Britain's construction industry has recovered in the past
few months, helping to boost building companies' order books.
Galliford expects to return to profitability after two
consecutive years of losses as productivity neared normal
levels, sending its shares up as much as 11%.
A year-on-year increase in its order book helped Galliford
secure 90% of planned revenue for 2021, and the group is
focusing on improving margins by opting for smaller contracts.
Homebuilder Redrow said a record order book plus its shift
away from London would produce strong operating cash flow
allowing dividends to resume in 2021, subject to market
conditions.
Consumer demand after the COVID-19 pandemic has shifted,
prompting Redrow to focus on regional businesses with higher
returns and its 'Heritage' suburban homes with period style
features and spacious interiors.
Redrow also reported a fall in home completions, lower
revenue and higher costs, sending its shares as much as 3.8%
lower at 440 pence by 0945 GMT.
But the company said it completed "substantially more" homes
in the first few weeks of the new financial year compared to the
same period last year.
Galliford, part of London's small-cap index, in
January sold its housing divisions to Vistry Group, a
move that has been paying off.
"We have successfully transitioned to a well-capitalised UK
construction business and I am confident about our future," said
Bill Hocking, Chief Executive of Galliford, which expects
revenue of 1.1 to 1.3 billion pounds ($1.4 to $1.7 billion) for
fiscal 2021.
Peel Hunt analysts pointed to the company's "well-bid order
book, attractive infrastructure markets and the sector-leading
balance sheet."
Excluding one-time items, Galliford reported a pretax loss
of 59.7 million pounds for the year ended June 30, while Redrow
said pretax profit for the same period fell to 140 million
pounds.
($1 = 0.7757 pounds)
(Reporting by Pushkala Aripaka and Samantha Machado in
Bengaluru; Editing by Devika Syamnath/Rashmi Aich/Jane Merriman)