REG - MJ Gleeson Plc - Trading Update & Notice of Results

MJ GLEESONAnnouncement

09/01/2024 07:00

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RNS Number : 0178Z  MJ Gleeson PLC  09 January 2024

MJ Gleeson plc

(GLE.L)

 

9 January 2024

 

Trading Update & Notice of Results

("the Company" or "the Group")

 

MJ Gleeson plc, the low-cost housebuilder and land promoter, provides a
trading update for the half-year ended 31 December 2023 (the "period") ahead
of announcing results on 15 February 2024.

Gleeson Homes completed the sale of 769 homes during the half-year, 14% fewer
than the half-year to 31 December 2022, reflecting the weaker conditions
experienced across the housing market during 2023. However, Gleeson Homes
entered the second half of the financial year with a forward order book of 586
plots (31 December 2022: 319 plots).

Net reservation rates during the half-year period were 0.41 per site per week
(half-year to 31 December 2022: 0.36 per site per week).

Additional costs relating to a number of older sites, along with the
cumulative impact of current market conditions including extended site
durations, sales incentives and multi-unit sales, are now expected to result
in full year gross margins falling below expectations by circa 1.5% to 2.0%.

Gleeson Land completed the sale of one site during the half year to 31
December 2023 (H1 2023: three sites sold). We have recently commenced
marketing a further four sites.

Reflecting the significant investment in bringing forward a higher proportion
of home starts before June 2023 the Group will report net debt of £18.7m at
31 December 2023 (30 June 2023: net cash £5.2m). The cash impact of this
investment is expected to unwind over the next two years.

Against the backdrop of stabilising interest rates the Board anticipates a
recovery in demand for low-cost housing in the seasonally busier selling
period over the coming weeks and months. Gleeson Homes also continues to
negotiate further multi-unit sales and expects to enter into agreements over
the coming months for delivery of homes in the current and next financial
year.

 

 

Analyst conference call

A conference call for analysts will be held at 07:45 this morning. To dial-in,
please use the below details:

·      UK-Wide: +44 (0) 33 0551 0200

·      UK Toll Free: 0808 109 0700

·      Code: MJ Gleeson

 

 

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 612 900

Graham Prothero           Chief Executive Officer

Stefan Allanson              Chief Financial Officer

 

Hudson
Sandler
                        Tel: +44 20 7796 4133

Mark
Garraway
Tel: +44 7771 860 938

Charlotte Cobb
 
Tel: +44 7795 422 131

Harry Griffiths
 
Tel: +44 7860 630 046

 

Singer Capital
Markets
Tel: +44 20 7496 3000

Shaun Dobson

Alaina Wong

 

Liberum
Tel: +44 20 3100 2222

Richard Crawley

 

 

About MJ Gleeson:

MJ Gleeson plc comprises two divisions: Gleeson Homes and Gleeson Land.

 

Gleeson Homes is the leading low-cost, affordable housebuilder. Its
two-bedroom homes start from circa £100,000. Gleeson's vision is "Building
Homes. Changing Lives", prioritising areas where people need affordable
housing the most. Our aim is to ensure that on all of our developments, a
material proportion of the homes are affordable to a couple earning the
National Living Wage. Buying a Gleeson home typically costs less than renting
a similar property. All Gleeson homes are traditional brick built semi or
detached homes. Gleeson offers a wide mix of two, three and four bedroom
layouts.

 

Gleeson Land is the Group's land promotion division, which identifies
development opportunities and works with stakeholders to promote land through
the residential planning system.

 

As a high-quality, affordable housebuilder, Gleeson has strong and inherent
sustainability credentials. Its social purpose underpins the Company's
strategy and Gleeson measures itself closely against UN SDGs 5, 8, 11, 12, 13
and 15. More details on the Company's approach to sustainability can be found
at: mjgleesonplc.com/sustainability
(https://mjgleesongroupplc.sharepoint.com/sites/F/Shared%20Documents/STATS/2022-23%20Interim%20December%202022/Trading%20Update%2013%20Jan%2023/mjgleesonplc.com/sustainability/?xsdata=MDV8MDF8fGUzYWI2M2VjZTFjZTQyZGM4MjQwMDhkYjljYTkzYWU3fGEzM2JkYjE1N2UyNTQzOGFiMWZkNWM1MjNhODg2NmY5fDB8MHw2MzgyNzYwMjI4NTQ3MTM5MjB8VW5rbm93bnxWR1ZoYlhOVFpXTjFjbWwwZVZObGNuWnBZMlY4ZXlKV0lqb2lNQzR3TGpBd01EQWlMQ0pRSWpvaVYybHVNeklpTENKQlRpSTZJazkwYUdWeUlpd2lWMVFpT2pFeGZRPT18MXxMMk5vWVhSekx6RTVPbUV6TVRneU4yUmlPREUxWlRRMk0yRmhaV1ZqTXpBMFpUTm1OR1JqWWpCbVFIUm9jbVZoWkM1Mk1pOXRaWE56WVdkbGN5OHhOamt5TURBMU5EZzBNekV3fDE3YTdlMzIyM2NmODRmM2QxZmU4MDhkYjljYTkzYWU1fGM5ODNjZDZjZjU1YjQ0NDFiYWI4ODg4YjlhOGY3MDdj&sdata=STFJdDFUVXk1UEcweTI3ak9GUk9UK0k3ajZUdEcwV3JFdEhURkJWZTFKVT0%3D&ovuser=a33bdb15-7e25-438a-b1fd-5c523a8866f9%2Cmgarraway%40hudsonsandler.com)

 

 

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