Gleeson shares up on strong trading update

Shares of Sheffield-based affordable housebuilder MJ Gleeson plc rose 9% on Monday after it said it expects results for the half-year ended December 31, 2018, “to be significantly ahead of those of the previous first half-year …”

Gleeson will report results for the half-year on Thursday, February 14, 2019.

The company said in a trading update: “Gleeson Homes completed the sale of 691 units during the period, an increase of 16.5% on the previous first half-year’s total of 593 unit completions. 

“We continue to see strong demand for our low-cost homes, supporting both increased build activity on existing sites and the opening of new sites across our target geographic area.

“Our two pilot offices in Penrith and Ashington recently became fully-staffed area offices.

“Our target market remains strong and our customers have maintained their confidence. We do not see any signs of customer caution.

“Gleeson Strategic Land sold three sites, the same number as the previous first half-year.

“These were larger sites and will lead to the division’s half-year results being considerably higher than those of the prior year comparable period. 

“The board expects the group’s results for the half-year to be significantly ahead of those of the previous first half-year and results for the full year to 30 June 2019 to be at least in line with expectations.”