Trading Update

RNS Number : 2790L

Gleeson(M J)Group PLC

03 July 2014

 



3 July 2014

MJ GLEESON GROUP PLC

TRADING UPDATE

MJ Gleeson Group plc (GLE.L), the urban regeneration and strategic land specialist, is today issuing a trading update following the end of its financial year on 30 June 2014, and ahead of reporting preliminary results on Friday 26 September 2014. 

Gleeson Homes

Gleeson Homes sold 561 homes during the year, an increase of 38% compared with the previous year's total of 406.  The proportion of units sold on recently acquired, higher margin sites continued to improve with 84% of the units sold from the higher margin sites compared to last year's 75%.  The increase in sales from these sites, along with the increase in the volume of sales, substantially improved the profitability of the business unit for the year.

During the year Gleeson Homes remained active in purchasing sites. The landbank of owned and conditionally purchased plots at 30 June 2014 increased by 31% compared to the prior year, totalling 5,065 plots of which 1,815 plots have been purchased subject to planning permission.  In addition, there are a further 1,600 plots which are in the pipeline to be acquired.

The forward order book for Gleeson Homes at 1 July 2014 totalled £44.2m representing 356 homes, an improvement of 70% on last year's total of £26.0m.

Gleeson Strategic Land

Gleeson Strategic Land continues to take advantage of the strong demand from the major housebuilders for green field residential land in the South of England. 

Gleeson Strategic Land successfully disposed of two land interests just prior to the year end, bringing the total number of land interests sold during the year to seven, which is ahead of expectations.  The land disposals comprised 85 acres with the potential to deliver 617 plots for development.

The business currently has four sites with planning permission and two further sites with resolutions to grant planning permission subject to entering into legal agreements.  These sites have the potential to deliver 1,200 plots, a nursing home and 40 assisted living units.

A further 16 sites are the subject of either submitted planning applications or lodged planning appeals and have the potential to deliver approximately 2,000 plots and 100 acres of commercial land.

The strategic portfolio consists of 64 sites totalling 3,800 gross acres, which have the potential to deliver 21,000 plots.

Trading Performance

Following the year end land sales, and the stronger than expected performance by Gleeson Homes, the Group now expects to deliver a level of profitability from the business units for the year ending 30 June 2014, significantly ahead of expectations. 

The Group continues to be in a strong cash position with cash balances at 30 June 2014 of £13.8m.

Enquiries:

M J Gleeson Group plc                                                       01252 360 300                     

Jolyon Harrison                       Chief Executive Officer          

Alan Martin                              Chief Financial Officer           

Instinctif Partners                                                                 020 7457 2020

Mark Garraway

Helen Tarbet

N+1 Singer                                                                            020 7496 3000

Shaun Dobson

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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