Gleeson revenue down 41% to £147m, but orders strong

Sheffield-based affordable housebuilder MJ Gleeson plc said on Monday its revenue fell 41.1% to £147.2 million in the year to June 30, 2020, and profit before tax fell 86% to £5.6 million.

“2020 results reflect Covid-19 impact on historically critical Q4 period,” said Gleeson.

However, Gleeson said its order book is up 52% on the prior year as it enters the new financial year “with a forward order book of £145.3m on 1,033 units” work in progress well advanced and a healthy pipeline of land opportunities.

Gleeson said dividends will resume as soon as it is prudent to do so.

Average selling price rose to £130,900 from £128,900.

MJ Gleeson CEO James Thomson said: “We started the new financial year with a strong forward order book up 52% on prior year and work in progress up 55% as measured in terms of unit equivalents built.

“Reservation rates have picked up significantly post lockdown and selling prices on new reservations are above pre-Covid levels.

“Build rates per site are increasing and we expect to return to pre-Covid levels of build activity by January 2021.”