Gleeson confident despite H1 revenue falling to £105m

Sheffield-based affordable housebuilder MJ Gleeson plc said on Thursday its revenue fell 11.2% to £105 million in the half year ended December 31, 2019, and profit before tax fell 40.4% to £13.3 million.

“However,” said Gleeson, “the continued strong performance in the homes division and a return to deal flow with a healthy pipeline of demand in strategic land, reaffirm the board’s confidence that the group is on track to deliver results for the full year in line with expectations.”

Gleeson’s unit sales increased 17.4% to 811 units and average selling price increased 1.2% to £128,900.

MJ Gleeson chairman Dermot Gleeson said: “We are delighted with the performance of our homes division, with completions up 17.4% at 811 units.

“Demand remains strong, with January reservations per site up 5% on last year.

“We see no signs of this abating. Land remains available at sensible prices and we will be opening a significant number of new sites shortly.

“As previously announced, strategic land, which saw an exceptionally strong result for the comparator period, did not complete any sales in the first half.

“However, the anticipated deal flow in the second half is now materialising with three sites sold, of which one was sold unconditionally and legally completed in January.

“We have a substantial pipeline in place and demand for consented sites, from both large and medium-sized developers, remains very high. 

“The strong performance of Gleeson Homes and anticipated deal flow in strategic land for the second half underpin the board’s confidence that the group’s results for the full year will be in line with expectations.”

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