Shares of Sheffield-based affordable housebuilder MJ Gleeson plc rose 9% on Thursday after it said in a trading update its Gleeson Homes division delivered its largest annual volume growth — selling 1,529 homes during the year, a 25% increase.
Gleeson said it is confident its results for the financial year will be comfortably in line with expectations.
Gleeson Homes builds low-cost homes for people predominantly on low incomes in the North of England and the Midlands.
“The division is comfortably on track towards achieving its stated target of doubling volumes to 2,000 new homes per year by 2022,” said Gleeson.
The firm’s Gleeson Strategic Land division 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.
Gleeson interim CEO James Thomson said: “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 withthe group’s positive outlook underpinned by continued strong demand.”
In June, MJ Gleeson said its then CEO Jolyon Harrison had left the firm after a disagreement “regarding his remuneration and succession planning …”