REG - MJ Gleeson Plc - Trading Update

MJ GLEESONAnnouncement

04/07/2019 07:00

RNS Number : 4208E
MJ Gleeson PLC
04 July 2019
 


 
 
 
4 July 2019
 
 
MJ GLEESON PLC
 
TRADING UPDATE
 
 
MJ Gleeson plc (GLE.L), the low-cost housebuilder and strategic land specialist, will report results for the year ended 30 June 2019 on Monday, 16 September 2019.
 
Gleeson Homes
 
Gleeson Homes builds low-cost homes for sale to people predominantly on low incomes in the North of England and the Midlands.
 
Gleeson Homes delivered its largest annual volume growth selling 1,529 homes during the year, a 25% increase compared with the previous year's total of 1,225.
 
Gleeson Homes remained active in purchasing sites in both existing and new areas during the year. The land pipeline of owned and conditionally purchased plots at 30 June 2019 increased by 5.6% compared to the prior year end, totaling 13,575 plots, of which 7,050 plots have been purchased subject to planning permission. In addition, there are a further 473 plots which are in the pipeline to be acquired.
 
Gleeson Homes is currently active on 69 sites and anticipates an increase to 80 or more sites during the coming year.
 
The division is comfortably on track towards achieving its stated target of doubling volumes to 2,000 new homes per year by 2022.
 
Gleeson Strategic Land
 
Gleeson Strategic Land is a land promotion business that enhances the value of land by securing mainly residential planning consents, predominantly in the South of England.
 
During the year Gleeson Strategic Land sold nine land interests with the potential to deliver 1,755 plots for housing development.
 
The business has commenced the current financial year in a strong position. Nine sites with planning permission, or resolution to grant, have the potential to deliver 2,929 plots for housing development. Three of these sites are in a process for sale. Planning decisions are expected on a further six sites.
 
The portfolio comprises 60 sites which could deliver 21,730 plots and 44 acres of commercial land.
 
Summary
 
The Group ended the year with lower cash balances, as expected, of £30.3m (30 June 2018: £41.3m). 
 
As a result of the Group's strong performance, the Board is confident that the results for the financial year will be comfortably in line with expectations.
 
James Thomson, Interim Chief Executive Officer, commented:
 
"Gleeson Homes' unique model of acquiring land at low cost and building homes for sale to people predominantly on low incomes in the North of England and the Midlands continues to deliver sustainable growth as we progress towards our target of doubling volumes to 2,000 new homes per year by 2022.
 
"Both Gleeson Homes and Gleeson Strategic Land have delivered a record performance with the Group's positive outlook underpinned by continued strong demand."
 
 
 
 
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.
 
 




Enquiries:
 
MJ Gleeson plc


 


 
 
01142  612900




James Thomson
Stefan Allanson


Interim Chief Executive Officer
Chief Financial Officer


 




Instinctif
Mark Garraway
James Gray
Christine Galloway


 


020 7457 2020




N+1 Singer
Shaun Dobson
Rachel Hayes


 


020 7496 3000




Liberum
Neil Patel
Richard Bootle
 


 


020 3100 2222




 Notes to Editors
 
MJ Gleeson plc operates in the house building sector through the following business units; Gleeson Homes, which builds low-cost homes for sale to people predominantly on low incomes in the North of England and Midlands; and Gleeson Strategic Land, which enters into promotion or option agreements over land, predominantly in the South of England, with the objective of enhancing the value of the site concerned by securing residential planning permission.
 
LEI: 21380064K7N2W7FD6434




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