REG - MJ Gleeson Plc - AGM Statement

MJ GLEESONAnnouncement

15/11/2021 07:05

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RNS Number : 3039S  MJ Gleeson PLC  15 November 2021

MJ Gleeson plc

(GLE.L)

AGM Statement

 

MJ Gleeson plc (GLE.L), the low-cost housebuilder and land promoter, is
holding its Annual General Meeting (AGM) at 11:30am today at the Grocers'
Hall, London EC2R 8AD.

Dermot Gleeson, Chairman, will make the following comments:

"I am pleased to report that despite the widely reported challenges faced by
the house building industry, including supply issues, increases in material
& labour costs and planning delays, the business is performing well and
the Board expects to deliver a result for the current year in line with market
expectations.

Demand for Gleeson's low-cost homes remains strong and selling prices continue
to increase, as planned. The average selling price on new reservations since
the start of the financial year was 12% higher than in the same period last
year.

Whilst the construction sector continues to experience availability and cost
pressures with respect to labour and materials, Gleeson Homes has worked
closely with its suppliers and subcontractors and has been able to continue
building on all its sites.

Land continues to be available at sensible prices and the pipeline remains
strong. Gleeson Homes has a land pipeline of 15,384 plots with a gross
development value of £2.4 billion, of which 7,961 plots are owned and 7,423
are conditionally purchased.

The division currently has 82 active build sites, compared with 80 active
build sites this time last year and is actively selling on 60 sites, compared
with 65 sites this time last year. As a result of continued congestion in the
planning system, not least as a result of a shortage of staff in council
planning departments, there have been some delays to site acquisitions and
site starts. With an improvement in the planning process we expect to acquire
and open a total of 25 sites during the year to June 2022.

We expect Gleeson Homes to complete the sale of approximately 900 homes in the
half year to 31 December 2021 and not less than 2,000 homes in the full year
to 30 June 2022.

Strong demand driven by the structural need for more low-cost, high-quality
homes for first time buyers and our ability to offer attractive levels of
affordability to our customers, mean that the outlook for the division remains
positive.

Gleeson Land continues to experience strong demand for consented land and has
completed the sale of one site since the start of the financial year. Two
sites are being actively progressed to sale, of which one site sale is
expected to complete before 31 December 2021.

The issues with the planning system I referred to earlier have also delayed a
number of site consents, but we expect these to be granted during the second
half of the current financial year.

The division's land pipeline currently consists of 71 sites which have the
potential to deliver approximately 22,000 plots. The portfolio includes 4
sites, with the potential to deliver 1,816 homes, which have planning
permission or resolution to grant.

In conclusion, notwithstanding the challenges across our market, we are
pleased with the progress in the year to date and remain confident that the
result for the year to 30 June 2022 will be in line with market expectations."

 

15 November 2021

 

This announcement contains inside information. The person responsible for
arranging the release of this announcement on behalf of the company is Stefan
Allanson, Chief Financial Officer.

 

LEI: 21380064K7N2W7FD6434

 

Enquiries:

   MJ Gleeson plc                               Tel: +44 1142 612900
   James Thomson     Chief Executive Officer
   Stefan Allanson   Chief Financial Officer

 Hudson Sandler                               Tel: +44 20 7796 4133
 Mark Garraway                                Tel: +44 7771 860 938

 Singer Capital Markets
 Shaun Dobson                                 Tel: +44 20 7496 3000
 Rachel Hayes

 Liberum
 Neil Patel                                   Tel: +44 20 3100 2222

 

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