Interim Results

Gleeson(M J)Group PLC
22 March 2005

                  M J GLEESON GROUP PLC - INTERIM ANNOUNCEMENT


   • M J Gleeson, the construction services, homes and property group,
    announces that it proposes to exit from building (as distinct from civil
    engineering for the water industry, where it enjoys an exceptionally strong
    presence, and its specialist construction activities). A memorandum of
    understanding setting out agreed terms, subject to contract, for the buy out
    of Gleeson Building by its new senior management team has been signed.


   •A £16.6m loss was incurred by the Building Division in the half year,
    including a £1.5m charge for restructuring in the period. These losses were
    identified during a review of contracts undertaken following the recent
    restructuring of the Building Divisions and mainly relate to large and
    highly complex design and build projects, most of which have now been
    completed.


   •As a result, for what is traditionally much the weaker half of the year,
    Gleeson is reporting a pre-tax loss of £6.7m compared with a £3.3m profit in
    the same period last year.


   •The Engineering Division, Gleeson Homes, Gleeson Regeneration and Gleeson
    Properties are all trading strongly, ahead of the Board's expectations. As a
    result, overall prospects for the full year remain broadly in line with
    market expectations.


   •In the light of the good performance and encouraging prospects of the
    Group's remaining businesses, the Board has declared an interim dividend per
    share of 1.50p, up 7.1% on 2003/04's restated 1.40p.


   •The Construction Services order book at 1st March 2005 totalled £770m (or
    £609m if the Building Division is excluded). Of the latter figure, over 90%
    related to low risk three to five year partnership agreements. Gleeson is
    well positioned for AMP 4, the water industry's next five year capital
    investment programme in England and Wales.


   •The housing market appears to be improving following a sluggish first
    half and a further year of record divisional profits is expected for Gleeson
    Homes.


   •Gleeson Regeneration (which was formed in February 2003 to focus more
    closely on urban regeneration schemes in the North and the Midlands) is
    expected shortly to commence work on the £300m regeneration project for
    Liverpool's City Centre Inner Core South


   •The commercial property investment market remains strong and a number of
    development and investment properties have been identified for sale in the
    second half of the year.


   •In the light of the Board's decision to withdraw from building, Andrew
    Muncey has decided to resign as Group Managing Director with immediate
    effect. Terry Massingham (53), formerly Managing Director of Gleeson Homes,
    has been appointed Group Chief Executive.

Dermot Gleeson, Chairman, stated 'The sale of Gleeson Building will further
reduce, very substantially, the Group's exposure to construction risk. Our
remaining businesses are performing strongly and have considerable potential for
further profitable growth. The Group's prospects, therefore, are encouraging'.

Presentation:

There will be a presentation to brokers' analysts between 09.00 and 10.00 today
at Bankside Consultants, 123 Cannon Street, London EC4N 5AU.

Enquiries:

M J Gleeson Group plc                                            020-8644 4321
Dermot Gleeson (Chairman)
Terry Massingham (Chief Executive)
Colin McLellan (Finance Director)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166



                          CHAIRMAN'S INTERIM STATEMENT

For what is traditionally much the weaker half of the year, I have to report a
pre-tax loss of £6.7m compared with a £3.3m profit in the same period last year.
This reflects a £16.6m loss incurred by the Group's building operations,
including a £1.5m exceptional charge for restructuring in the period. These
losses were identified during a review of contracts undertaken following the
recent restructuring of the Building Divisions.

The Engineering Division, Gleeson Homes, Gleeson Regeneration, and Gleeson
Properties are all trading strongly, ahead of the Board's expectations. As a
result, overall prospects for the full year remain broadly in line with market
expectations.

Following a strategic review of all of the Group's operations, the Board has
concluded that the interests of the Group's shareholders would be best served by
an orderly exit from the building (as distinct from the civil engineering)
sector. To this end, the parties have signed a memorandum of understanding
setting out agreed terms, subject to contract, for the buy out of Gleeson
Building by its new senior management team. Should the exit be completed within
the planned timescale, it is likely that the Group's building operations will be
treated as discontinued in the preliminary announcement of the Group's results
for the current year.

FINANCIAL OVERVIEW

Turnover decreased by 13.2% to £266.3m (2003/04: £306.8m). A loss before
interest of £4.2m, including the £1.5m exceptional item, compares with profit
before interest of £4.9m in the first half of the previous year. The loss per
share was 8.4p (2003/04: earnings per share, restated for the share sub-division
of July 2004, of 4.4p).

Net interest payable increased to £2.5m (2003/04: £1.7m). Gearing at the half
year end, a seasonally high point, was 56.6% (2003/04: 70.9%).

Net assets per share at the half year end totalled 305p (2003/04: a restated
296p), providing substantial backing to the share price.

INTERIM DIVIDEND

In the light of the good performance and encouraging prospects of the Group's
remaining businesses, the Board has declared an interim dividend per share of
1.50p, up 7.1% on 2003/04's restated 1.40p, which will be paid on 30th June 2005
to shareholders on the register at the close of business on 3rd June 2005, with
an ex-dividend date of 1st June 2005.


OPERATING REVIEW


Gleeson Construction Services

Gleeson Construction Services' turnover decreased by 19.0% to £214.7m (2003/04:
£265.2m), and an operating loss of £8.4m (2003/04: profit of £2.3m) was
incurred.


Building

Within Construction Services, the Building Division's turnover decreased by
43.3% to £91.7m (2003/04: £161.7m), as a result of a more cautious approach to
project selection and pricing. A large proportion of the work undertaken related
to the Government's substantial capital expenditure programme in the health and
education sectors. The losses mainly relate to large and highly complex design
and build projects, most of which have now been completed.


Civil and Process Engineering

The Engineering Division increased its turnover by 23% to £79.7 m (2003/04:
£64.8m), and contributed a substantially increased profit. Virtually all of the
work undertaken during the period was for the water industry, a sector in which
Gleeson continues to have an exceptionally strong presence.


Specialist Subsidiaries

The total turnover of the Group's three specialist Construction Service
subsidiaries, Gleeson MCL, Powerminster and Concrete Repairs, increased by 13.0%
to £46.0m (2003/04: £40.7m), including intra-group turnover of £2.7m.

Gleeson Homes

Gleeson Homes made an operating profit of £2.5m (2003/04: £2.0m) on a turnover
32.9% higher at £50.1m (2003/04: £37.7m).

In the half year, a total of 281 units were sold (including sales by Gleeson
Regeneration) at an average selling price of £178,000, compared with 229 and
£159,000, respectively, in the first half of 2003/04.

Gleeson Regeneration was formed in February 2003 to focus more closely on urban
regeneration schemes in the North and the Midlands. The half-year contribution
to the total was 23 units at an average selling price of £88,000.

Gleeson Properties

Gleeson Properties' generated a turnover of £1.5 m (2003/04: £3.9m) and an
operating profit of £1.6m including rents receivable from investment properties
(2003/04: £3.0m). In addition, the sale of an investment property contributed a
profit of £0.5m.

APPOINTMENTS

In the light of the Board's decision to withdraw from building, Andrew Muncey
has decided to resign as Group Managing Director with immediate effect. Terry
Massingham (53), formerly Managing Director of Gleeson Homes, has been appointed
Group Chief Executive.

Tony Collins (48), the Managing Director of the Engineering Division, has been
appointed Managing Director of Gleeson Construction Services with responsibility
for all of the Group's remaining construction activities.

Roger Dunlop (39), formerly Operations Director, has been appointed Managing
Director of Gleeson Homes.

PROSPECTS

Gleeson Construction Services

The Construction Services' order book at 1 March 2005 totalled £770m (or £609m
if the Building Division is excluded). Of the latter figure, over 90% related to
low risk three to five year partnership agreements.

For AMP 4 - the water industry's next five year capital investment programme in
England and Wales - the Group has been reappointed by its four AMP 3 employers -
Thames Water, Yorkshire Water, South West Water and Wessex Water - and,
additionally, has been appointed by Severn Trent and Northumbrian Water. In
Scotland, the Group maintains a healthy forward order book through its work for
Scottish Water and Scottish Water Solutions.

Gleeson MCL, which specialises in construction work for the rail sector, has
recently secured a five year partnering contract with London Underground with an
estimated value of in excess of £50m.

Gleeson Homes

The market appears to be improving following a sluggish first half. In the year
to June 2005, units sold are expected to exceed 700 from 535 and the average
selling price to increase to approximately £200,000 from £177,000 last year. A
further year of record divisional profits is expected. The quality of the
landbank (including the strategic portfolio) has been maintained and sufficient
plots will be in place to see further growth in 2006 and beyond.

A growing contribution to Homes' results is expected from Gleeson Regeneration.
In this area of the market, demand has remained high and work is expected to
commence within the next few months on the £300m regeneration project for
Liverpool's City Centre Inner Core South. First completions on the Grove Village
Housing PFI in Manchester are expected in the second half.

Gleeson Properties

The commercial property investment market remains strong and a number of
development and investment properties have been identified for sale in the
second half of the year.

SUMMARY

The proposed sale of Gleeson Building will further reduce, very substantially,
the Group's exposure to construction risk. Our remaining businesses are
performing strongly and have considerable potential for further profitable
growth. The Group's prospects, therefore, are encouraging.

Dermot Gleeson
Chairman 22nd March 2005

                      CONSOLIDATED PROFIT AND LOSS ACCOUNT


                     6 months                6 months           Year ended
                     ended 31 December   ended 31 December        30 June
                                  2004                2003                2004
                     Unaudited               Unaudited            Audited
                       £000       £000     £000       £000     £000       £000

Turnover: group and
share of joint
ventures
Existing operations            266,278             306,762             657,087
Less: share of joint
ventures' turnover                   -                   -             (12,091)
                                ______              ______              ______
Group turnover                 266,278             306,762             644,996

Cost of sales                 (251,536)           (283,959)           (592,596)
                                ______              ______              ______
Gross profit                    14,742              22,803              52,400
Investment property              2,340               2,381               4,599
income
Net operating                  (22,905)            (19,838)            (41,652)
expenses
                                ______              ______              ______
Operating (loss)/               (5,823)              5,346              15,347
profit

Share of results of
joint                             (171)               (400)                 80
ventures
Profit on sale of                  508                   -               5,467
properties
Profit on sale of                1,253                   -                   -
investment
                                ______              ______              ______
(Loss)/profit on
ordinary                        (4,233)              4,946              20,894
activities before
interest

Interest receivable          258            305               1,063
Less: interest            (2,719)        (1,958)             (4,357)
payable
                           _____          _____               _____
                                (2,461)             (1,653)             (3,294)
                                 _____               _____               _____
(Loss)/profit on
ordinary                        (6,694)              3,293              17,600
activities before
taxation
Taxation on (loss)/
profit on                        2,407              (1,070)             (3,392)
ordinary activities
                                 _____               _____               _____
(Loss)/profit after             (4,287)              2,223              14,208
taxation
Dividends                         (154)               (718)             (3,870)
                                 _____               _____               _____
Retained (loss)/
profit for                      (4,441)             (1,505)             10,338
the period
                        
                                =======             =======             =======

Earnings per share               (8.43p)             21.98p              28.11p

Earnings per share -
fully                            (8.54p)             21.71p              27.85p
diluted

Interim dividend per              1.50p               1.40p  *
share

* Restated following 5 for 1 share split

                      SUMMARISED CONSOLIDATED BALANCE SHEET



                                             As at         As at       As at
                                          31 December   31 December   30 June
                                                 2004          2003       2004
                                           Unaudited     Unaudited    Audited
                                                 £000          £000       £000

Fixed assets
Intangible assets                               4,640         4,948      4,794
Tangible assets                                84,588        96,815     84,834
Investments                                     4,336         2,812      4,635
                                               ______        ______     ______
                                               93,564       104,575     94,263

Current assets
Stocks                                        182,765       165,558    182,096
Debtors                                       128,805       115,871    133,423
Cash at bank and in hand                           92           141         87
                                               ______        ______     ______
                                              311,662       281,570    315,606

Creditors: amounts falling due within one
year                                         (248,391)     (235,308)  (248,478)
                                               ______        ______     ______
Net current assets                             63,271        46,262     67,128
                                               ______        ______     ______
Net assets                                    156,835       150,837    161,391
                                          
                                             ========      ========    ========
Capital and reserves


Called up share capital                         1,029         1,029      1,029

Share premium account                           3,762         3,762      3,762

Capital redemption reserve fund                   120           120        120

Revaluation reserve                             7,881         9,424      8,821

Profit and loss account                       144,917       137,808    148,533

Own shares reserve                               (874)       (1,306)      (874)
                                               ______        ______     ______
Total shareholders' funds                     156,835       150,837    161,391
                                             ========      ========    ========



                  SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
                                        


                                     6 months ended   6 months ended    Year
                                      31 December      31 December      ended
                                               2004             2003   30 June
                                          Unaudited        Unaudited      2004
                                                                       Audited
                                               £000             £000      £000

Net cash outflow from operating
activities                                  (20,846)         (47,901)  (19,187)

Returns on investments and servicing
of finance                                      802              391     1,490

Taxation                                     (1,726)          (1,432)   (4,483)

Capital expenditure and financial
investment                                    5,110           (5,063)    7,286

Acquisition and disposals                         -              (50)       (4)

Equity dividends paid                           (54)               -    (3,495)
Financing                                         -              317       645
                                             ______           ______    ______
Increase in net debt                        (16,714)         (53,738)  (17,748)
                                             ======           ======    ======


NOTES

1. Segmental analysis

                                     6 months ended   6 months ended    Year
                                           December         December    ended
                                               2004             2003    June
                                          Unaudited        Unaudited     2004
                                                                       Audited
                                               £000             £000      £000

Analysis of turnover on continuing
operations:


Construction


United Kingdom                              214,140          263,689   526,021

Jersey                                          587            1,525     2,234
                                             ______           ______    ______

                                            214,727          265,214   528,255


Homes - United Kingdom                       50,076           37,668   111,298

Property - United Kingdom                     1,475            3,880     5,443
                                             ______           ______    ______

                                            266,278          306,762   644,996
                                             ======           ======    ======


Operating (loss)/profit on
continuing activities:


Construction                                 (8,384)           2,252     1,453

Homes                                         2,509            2,012    12,280

Property                                      1,600            3,003     5,263

Central costs                                (1,548)          (1,921)   (3,649)
                                             ______           ______    ______

                                             (5,823)           5,346    15,347
                                             ======           ======    ======




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