Trading Update

RNS Number : 2582X

Gleeson(M J)Group PLC

09 January 2014

 



MJ GLEESON GROUP PLC

('Gleeson' or 'the Group')

TRADING UPDATE

MJ Gleeson Group plc (GLE.L), the urban regeneration and strategic land specialist, today issues the following trading update ahead of its interim results for the six months ended 31 December 2013, which are expected to be announced on Monday 17 February 2014. 

The Group continues to trade well and expects profits for H1 2014 to show a strong increase over H1 2013. Beyond that, the Board is confident of delivering a result for the full year which is in line with current expectations.

Gleeson Homes

Gleeson Homes sold 258 homes during the period, an increase of 56% on the previous year's total of 165, and has a current forward order book of 240 homes.

The Government's Help to Buy initiative has continued to be attractive to our customers, with 44% of completions in the period benefitting from the scheme.

The business currently has 33 active sites, compared with 27 in the corresponding period. Gleeson Homes is in active discussions regarding the acquisition of further sites which, if purchased, will add 1,940 plots to the land pipeline, taking the total number of plots to in excess of 6,000.

Gleeson Strategic Land

Gleeson Strategic Land sold two sites in the period, with a combined acreage of four acres and planning permission for 42 plots. In addition, the division achieved planning permission on three sites which will deliver a combined total of 380 plots when the sites are sold in due course.  Twelve planning applications with the potential to deliver a total of 1,737 plots were submitted during the period.

Also during the period, a further four land interests of 81 acres, with the potential to deliver 545 plots, were secured.  The Gleeson Strategic Land portfolio now comprises 70 land interests of 3,781 gross acres, which have the potential to deliver 21,600 plots.

Jolyon Harrison, Chief Executive, commented:

"The first half performance of both Gleeson Homes and Gleeson Strategic Land has been encouraging, with first half profits expected to be strongly ahead of last year. The Group continues to benefit from our twin track strategy focussed on providing low cost family homes in the North of England, and strategic land promotion in the South."

9 January 2014

Enquiries:

MJ Gleeson Group plc		Tel: [phone]
Jolyon Harrison	Chief Executive Officer
Alan Martin	Chief Financial Officer
College Hill		Tel: [phone]
Helen Tarbet
Mark Garraway
N+1 Singer
Shaun Dobson		Tel: [phone]
Gillian Martin

Notes to Editors

MJ Gleeson Group plc operates in the house building sector through the following business units; Gleeson Homes, which focuses on estate regeneration and housing development on brownfield land in the North of England; and Gleeson Strategic Land, which purchases options over land in the South of England with the objective of enhancing the value of the site concerned by securing residential planning permission.

 

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