Gleeson, affordable housebuilder, ups revenue 36%

Shares of Sheffield-based affordable housebuilder MJ Gleeson plc rose about 6% on Thursday after it said its full-year results are set to be “significantly ahead of current market consensus.”

Gleeson published results for the half year ended December 31, 2020, showing revenue up 35.8% to £142.6 million and profit before tax up 52.6% to £20.3 million.

The firm has resumed dividends with an interim payout of 5p per share.

Average selling price increased 9.1% to £140,600.

MJ Gleeson CEO James Thomson said: “This was a very robust performance reflecting the strong demand – even in difficult times – for the high-quality, low-cost homes that Gleeson Homes builds for first time buyers, many of whom are key workers, as well as from buyers of consented land brought to market by Gleeson Strategic Land.

Gleeson Homes opened a record 17 sites during the first half, enters the second half with a strong forward order book and now expects to deliver 1,775 homes in the current financial year.

“The timing of opening sites for sales means that we are comfortably on track to deliver our original target of 2,000 homes next financial year.

Gleeson Strategic Land is experiencing strong demand for consented land from both medium and large-sized housebuilders and has a healthy pipeline of sites, four of which are in a sale process and expected to complete in the second half of the financial year.

The group is well-placed for the future.

“In the absence of any unforeseen circumstances, the board is confident that results for the full year to 30 June 2021 will be significantly ahead of current market consensus.”

 

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