Gleeson revenue tops £288m, above pre-Covid levels

Sheffield-based affordable housebuilder MJ Gleeson plc announced that its revenue for the year ended June 30, 2021, increased 96.1% to £288.6 million compared to £147.2 million in 2020 and was 15.5% higher than the £249.9 million achieved in the pre-Covid year to June 2019.

Homes sold and profit before tax were also above pre-Covid levels.

Group profit before tax was £41.7 million compared to £5.6 million a year earlier and £41.2 million in 2019.

MJ Gleeson CEO James Thomson said in his outlook: “In our Gleeson Homes division, demand remains robust and it entered the new financial year in a strong position, with a forward order book of £134.1m on 841 homes.

“Whilst there are some challenges on material costs and availability, I expect these to be short term and manageable.

Gleeson Land starts the new financial year in a strong position and with a pipeline of 71 sites, a record for the division.

“These sites will deliver sustainable value and we will continue to invest in new sites and in progressing existing sites through the complex planning system.

“The demand for consented land is expected to remain robust, with land promoters playing an important role in the land supply chain.

As a result, I believe we will continue to grow in a sustainable and controlled manner and we remain firmly on track to meet our near-term target of delivering 2,000 new homes in the coming financial year.”

Following suspension of dividends in 2020, Gleeson resumed payments in April 2021, paying an interim dividend of 5p per share — and the firm is proposing to pay a final dividend of 10p per share on November 22.

Gleeson Homes saw volumes rise 69% to 1,812 homes sold, with average selling price up 11.4% to £145,800 and the division on track to deliver 2,000 homes sold in year ending June 20, 2022.

The firm’s land pipeline was up 2,062 plots to 15,863 plots.

MJ Gleeson chairman Dermot Gleeson said: “These are an excellent set of results.

“Our profits, revenue and volumes all exceeded pre-Covid levels, which represents a record performance for the group.

“This was achieved thanks to the resilience of our business model and the talent within the business.

“Our strategy of building low-cost, high-quality homes in the North of England and the Midlands and unlocking value by promoting land through the planning system in the South of England, ensured the business recovered strongly through what was a tough year.

“We are managing industry-wide supply chain pressures well and remain confident of delivering Gleeson Homes’ interim target of 2,000 homes sold in the current financial year.

“Demand remains robust, we have a growing pipeline of sites, an experienced management team and a strong platform for continued growth.

“We continue to operate in a market underserved by other housebuilders, and as a result our homes are as needed and in demand as ever.

“The market for consented sites has recovered and Gleeson Land’s pipeline continues to grow.

“The division’s experienced management team remains focussed on delivering sites with sustainable and implementable residential planning permission to other developers in the South of England and is well placed to drive sustainable growth over the medium term.

“Against this background, the board is cautiously confident that the group will deliver significant growth in both revenue and profits in the current year and beyond.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.