AGM Statement

RNS Number : 0316K

Gleeson(M J)Group PLC

12 December 2008

 



12 December 2008

M J GLEESON GROUP PLC

AGM Statement

At the AGM of M J Gleeson Group plc (GLE.L), the urban regeneration and strategic land specialist, convened for 11 am today in London, the Non-executive Chairman, Dermot Gleeson, will state:

'Demand in the housing market will inevitably remain extremely weak until there is a substantial increase in the availability of mortgage finance. 

And, as Sir James Crosby has explained in his recent report for the Chancellor, this seems unlikely to occur for some time unless effective action is taken to re-open the wholesale money markets to mortgage providers.  

As stated in our Interim Management Statement on the 19th November 2008, the Group is therefore implementing a further and very substantial cost reduction programme. This is designed to reduce the Group's annual 'cash burn', whilst at the same time protecting current and prospective value.  

Excluding Powerminster Gleeson Services which remains profitable and cash generative, the effect of these cost reduction programmes will be to reduce the Group's annual payroll costs at June 2009 to approximately £3.5m compared with £12.0m at July 2008, the beginning of this financial year - a reduction of 70%. In the same period and again excluding Powerminster, the Group's headcount will fall from 224 to approximately 50. 

In the context of this programme, the Board has agreed to make a number of changes to the senior executive team.

After three years with the Group, Paul Wallwork will be stepping down as Group Chief Executive with effect from 31 December 2008. I would like to thank Paul for his strong and energetic leadership of the Group during an extremely challenging period. He has ensured that the Group is well placed to meet the tough challenges faced by all housebuilders in the current market conditions.

Paul will be replaced as Group Chief Executive by Chris Holt with effect from 1 January 2009. Chris has been Group Finance Director since 1 May 2007. Prior to joining the Group, Chris held senior positions in Foster Wheeler and Bechtel.

I am pleased to announce that Chris Holt will be replaced as Group Finance Director by Alan Martin with effect from 1 January 2009. Alan is currently Group Financial Controller, a position he has held since November 2006. 

These changes, coupled with a reduction of the remuneration of the Non-executive Directors, including myself, will substantially reduce the Board's cost.

I should also mention that there will be no formal bonus scheme for 2008/9 nor any awards for the current year under the Group's Long Term Investment Plan.'

Enquiries:

M J Gleeson Group plc                                                                        01252 360300

Chris Holt (Group Chief Executive, Designate)

Alan Martin (Group Finance Director, Designate)

Bankside Consultants Limited                                                              020 7367 8851

Charles Ponsonby

 

END

 

 

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