Interim Results

Gleeson(M J)Group PLC
27 March 2001

M J GLEESON GROUP plc - INTERIM ANNOUNCEMENT



  * Gleeson, the construction services, housebuilding and property group,
    announces a 15.5% increase in interim pre-tax profit to £5.3 m in what is
    traditionally the less active half of the year:




Half year ended 31 December                 2000           1999        Increase

   Turnover                              £184.5m        £141.1m           30.1%
   PBIT                                    £7.4m          £5.6m           31.8%
   PBT                                     £5.3m          £4.6m           15.5%
   Earnings per share                      36.7p          31.8p           15.4%
   Dividend per share                      6.00p          5.15p           16.5%
   Net assets per share                   £13.60         £12.65            7.5%







  * Construction Services turnover increased by 32% to £134.4 m and its
    operating profit to    £2.7 m from £0.4 m.  Currently, Gleeson has
    partnering agreements with eight water companies that will generate some 
    £400 m of relatively low risk turnover over the next four years.



  * Gleeson Homes improved its turnover by 27% to £50.1 m and its operating
    profit by 14.6% to £3.2 m.  The housing market has strengthened in the
    early part of 2001 and, although unit sales for the year are expected to
    total around 600 compared to 720 in 99/00, average selling prices are
    predicted to increase to about £180,000.



  * Gleeson Properties contributed an operating profit of £2.4 m (99/00: £
    2.7 m) with, as anticipated, no development properties being sold during
    the period.  The property development programme has a predicted end value
    of some £70 m and a satisfactory stream of income is expected to flow from
    realisations over the next 18 months.



  * Dermot Gleeson, Executive Chairman, stated 'In the past five years,
    Gleeson has achieved compound annual growth in profit before tax of 16.6%.
    The order book at 31 December 2000 of £648 m (almost all of it in
    Construction Services) was over three times higher than a year ago or,
    indeed, at any time in the past.  The Board is hopeful that this level of
    performance can be broadly sustained in the current year and beyond.'





Enquiries:



M J Gleeson Group plc                     020-86 44 43 21

  Dermot Gleeson (Executive Chairman)

  David Eyre (Group Managing Director)

  Colin McLellan (Finance Director)





Bankside Consultants Limited              020-72 20 74  77

  Charles Ponsonby




CHAIRMAN'S STATEMENT





FINANCIAL OVERVIEW



In what is traditionally the less active half of the year, turnover increased
by over 30% to £184.5m (1999/00: £141.1m), profit before interest and tax by
32% to £7.4m (1999/00: £5.6m) and pre-tax profit by 15.5% to £5.3m (1999/00: £
4.6m).  Earnings per share were 15.4% higher at 36.7p (1999/00: 31.8p).



Reflecting the increased level of investment in the property development
programme and in Gleeson Homes' work in progress, net interest payable more
than doubled to £2,059,000 (1999/00: £994,000).  Gearing rose to 51.4% but is
expected to fall by the year end.



Net assets per share increased to £13.60.



DIVIDEND



The Directors have declared an interim dividend per share of 6.0p, up 16.5% on
1999/00's 5.15p, which will be paid on  29 June 2001 to shareholders on the
register at the close of business on 1 June 2001.



OPERATING REVIEW



Construction Services



The Construction Divisions and subsidiaries increased their turnover by 32% to
£134.4m (1999/00:  £101.6m) and operating profit to £2.7m (1999/00: £0.4m).
The completion during 1999/00 of a number of lossmaking design and build
housing contracts was a significant factor in the 1.6% improvement in
construction margins to just over 2%.



Civil and Process Engineering



The Engineering Division's revenue increased by 23% to £71.7m (1999/00: £
58.2m).  The water sector, in which Gleeson is the leading UK contractor,
continued to provide the bulk of the Division's turnover and completion of the
main works on the £95m Edinburgh PFI Sewage Treatment Project was achieved on
programme.



Building



The Building Divisions' turnover increased by 30% to £55.3m (1999/00: £42.5m).
Construction is now well underway on the £46m PFI project at St. George's
Hospital, Tooting in South London.






Specialist subsidiaries



The total turnover of the Group's specialist construction subsidiaries
increased by 13% to £16.6m (1999/00:  £14.7m) and satisfactory margins were
maintained.



Housebuilding



Gleeson Homes increased turnover by 27% to £50.1m (1999/00: £39.4m) and
operating profit by 14.6% to £3.15m (1999/00: £2.75m).  Unit sales were 20%
lower but the Division's average selling price increased by over 50% to £
180,000.



At the half year end, Gleeson Homes' land bank, of which approximately 70% is
brownfield, comprised almost 1,800 plots with planning permission, with a
further 1,750 acres under option.  Gleeson Homes' early focus on brownfield
land, combined with its success in winning more major awards for brownfield
developments over the last two years than any other housebuilder, is
generating a significant flow of off-market and other attractive
opportunities.



Property



Gleeson Properties contributed an operating profit of £2.4m (1999/00: £2.7m).



Property Investment



The portfolio remains focused on the office and industrial warehouse sectors,
with approximately two-thirds by value situated in London and the South East.
A review of the Group's commercial property investments is likely to lead to a
number of disposals and acquisitions over the next six months.



The Group's portfolio of investment properties will be professionally revalued
as at 30 June 2001.



Property Development for Sale



As anticipated, no development properties were sold during the period.



PROSPECTS



General



Against the background of attractive trading conditions in all the major
markets in which the Group operates, the Board continues to believe that
prospects are extremely promising.  The order book at 31 December 2000 of £
648m (almost all of it in Construction Services) was over three times higher
than a year ago or, indeed, at any time in the past.



Construction Services



The construction divisions and subsidiaries are well placed to benefit from
increased Government spending on health, education, transport and social
housing - for the first time for some years, construction GDP is expected to
rise for an extended period at a faster rate than national GDP.  Currently,
Gleeson has partnering agreements with eight water companies that will
generate some £400m of relatively low risk turnover over the next four years.



The recently announced appointment of Gleeson MCL Limited (acquired in January
2000 as Mabey Construction Co. Limited) as an alliance contractor to work with
London Underground on the Bakerloo, Victoria and Central Lines Station
Modernisation Programme is an encouraging step towards the attainment of the
Group's strategic aim of achieving a major presence in the rail sector.



Construction margins should benefit from the fact that over 80% of current
orders have been secured on a partnering or a PFI basis.



Housebuilding



The housing market has strengthened in the early part of 2001 and, although
unit sales for the year are expected to total around 600 compared to 720 in
1999/00, average selling prices are predicted to continue to increase.  The
switch in focus from unit sales to higher values, coupled with the coming on
stream of a higher level of strategic land, will contribute to improved
margins which have been adversely affected by the Division's pursuit of
exceptionally fast organic growth over the last three years.



Property



Tenant and investor demand in the office and industrial warehouse sectors -
the Company's main current areas of development activity - remains generally
strong.  The programme of property development for sale has an anticipated end
value of some £70m and a satisfactory stream of income is expected to flow
from realisations over the next 18 months.



BOARD



John McKenna was appointed to the Board of  the Company as a non-executive
Director with effect from 1 February 2001.



John McKenna, 63, who has over 40 years' experience in the construction
industry in the UK and overseas, was previously Managing Director of Taylor
Woodrow Construction Limited and a member of the Executive Board of Taylor
Woodrow plc until his retirement in December 1997.



CONCLUSION



In the past five years, Gleeson has achieved compound annual growth in profit
before tax of 16.6%.  The Board is hopeful that this level of performance can
be broadly sustained in the current year and beyond.






Dermot Gleeson                                                    27 March 2001

Executive Chairman




                     CONSOLIDATED PROFIT AND LOSS ACCOUNT






                                   6  months     6 months     Year ended
                                   ended 31      ended 31      30 June 
                                   December      December      2000
                                   2000          1999            
                                                                
                                   Unaudited     Unaudited     Audited
                                                                
                                   £000  £000    £000   £000    £000   £000

Turnover:  group and share of
joint venture
Existing operations                      184,547        141,091        344,209
Acquisitions                             -              -              9,620
Less: share of joint ventures'           -              -              (4,222)
turnover
                                         ______         ______         ______
Group turnover                           184,547        141,091        349,607

Cost of sales                      (165,874)            (128,299)     (316,915)
                                         ______         ______         ______
Gross profit                             18,673         12,792         32,692
Investment property income               3,005          2,976          5,968
Net operating expenses                   (14,391)      (10,586)        (22,684)
                                         ______         ______         ______
Operating profit on continuing
activities:
  Existing operations              7,287         5,182          15,614
  Acquisitions                     -             -              362
                                   _____         ______         ______
                                         7,287          5,182          15,976
Share of results of joint ventures       72             403            872
Profit on sale of investment             -              -              1,912
properties
                                         ______         ______         ______
Profit on ordinary activities            7,359          5,585          18,760
before interest

Interest receivable                76            160            215
Less:  Interest payable            (2,135)       (1,154)        (2,868)
                                   _____         _____          _____
                                         (2,059)        (994)          (2,653)
                                         _____          _____          _____
Profit on ordinary activities            5,300          4,591          16,107
before taxation
Taxation on profit on ordinary           (1,590)        (1,377)        (4,497)
activities
                                         _____          _____          _____
Profit after taxation                    3,710          3,214          11,610
Dividends                                (607)          (521)          (2,682)
                                         _____          _____          _____
Retained profit for the period           3,103          2,693          8,928
                                         _____          _____          _____
Earnings per share                       36.66p         31.76p         114.71p

Earnings per share - fully diluted       36.67p         31.75p         114.62p

Interim dividend per share               6.00p          5.15p



                         SUMMARISED CONSOLIDATED BALANCE SHEETS




                                               As at      As at      As at
                                               31         31         30 June
                                               December   December   2000
                                               2000       1999                  
                                               Unaudited  Unaudited  Audited
                                               £000       £000       £000

Fixed assets
Intangible assets                              5,871      -          6,025
Tangible assets                                85,877     85,601     82,906
Investments                                    6,038      3,371      5,745
                                               ______     ______     ______
                                               87,786     88,972     94,676

Current assets
Stocks                                         155,734    110,045    129,564
Debtors                                        48,900     48,340     60,853
Cash at bank and in hand                       1,606      1,175      1,609
                                               ______     ______     ______
                                               206,240    159,560    192,026

Creditors:  Amounts falling due within one     (165,338)  (119,521)  (151,117)
year
                                               ______     _______    ______

Net current assets                             40,902     40,039     40,909

Total assets less current liabilities          138,688    129,011    135,585

Provisions for liabilities and charges         305        255        305
                                               ______     ______     ______

Net assets                                     138,993    129,266    135,890
                                               ______     ______     ______
Capital and reserves



Called up share capital                        1,022      1,022      1,022

Share premium account                          1,657      1,657      1,657

Capital redemption reserve fund                100        100        100

Revaluation reserve                            20,442     25,640     20,471

Profit and loss account                        115,772    100,847    112,640

                                               ______     ______     ______

Total shareholders' funds                      138,993    129,266    135,890

                                               ______     ______     ______






               SUMMARISED CONSOLIDATED CASH FLOW STATEMENT




                                            6 months     6 months     Year
                                            ended        ended        ended
                                            31 December  31 December 30 June    
                                            2000         1999         2000      
                                  
                                            Unaudited    Unaudited    Audited
                                             £000         £000         £000     
                                                                
                                                                                
      

Net cash outflow from operating activities  (29,212)     (23,610)     (7,026)

Dividends from joint ventures               -            -            -

Returns on investments and servicing of     1,143        2,070        3,306
finance

Taxation                                    (1,992)      (31)         (4,055)

Capital expenditure and financial           (1,804)      (1,408)      1,117
investment

Acquisition and disposals                   -            -            (5,114)

Equity dividends paid                       -            -            (2,282)
                                            ______       ______       ______
Increase in net debt                        (31,865)     (22,979)     (14,054)
                                            ======       ======       ======



NOTES



1.         Segmental analysis


                                            6 months      6 months      Year
                                            ended         ended         ended
                                            December      December      June    
                                             2000          1999          2000
                         
                                            Unaudited     Unaudited     Audited
                                            £000          £000          £000
                                  
Analysis of turnover on continuing
operations:



Construction



United Kingdom                              133,243       99,672        237,198

Africa                                      -             269           494

Jersey                                      1,155         1,703         3,423

                                            ______        ______        ______

                                            134,398       101,644       241,115



Homes    - United Kingdom                   50,149        39,447        106,969

Property - United Kingdom                   -             -             1,523

                                            ______        ______        ______

                                            184,547       141,091       349,607

                                            ======        ======        ======



Operating profit on continuing activities:



Construction                                2,851         390           3,333

Homes                                       3,153         2,746         8,178

Property                                    2,417         3,049         6,456

Central costs                               (1,134)       (1,003)       (1,991)

                                            ______        ______        ______

                                            7,287         5,182         15,976

                                            ======        ======        ======




2.  The interim statement was approved by the Board of directors on 26
March 2001.



3.  The interim accounts have been prepared in accordance with the
accounting policies adopted in the preparation of the accounts for the year
ended 30 June 2000 which are set out in the Company's Annual Report.



4.  The abridged results for the 12 months to 30 June 2000 do not
constitute Statutory Accounts within the meaning of S240 of the Companies Act
1985.  The Auditors' Report on these Accounts was unqualified and did not
contain any statement under S237 Companies Act 1985.



5.  In accordance with FRS 14, the earnings per share figure is based on a
weighted average number of shares which excludes 99,500 shares on which
dividends have been waived.



6.  Copies of this interim announcement will be circulated to shareholders
and will also be available from the Company Secretary at Haredon House, London
Road, North Cheam, Surrey SM3 9BS.