Interim Results - 6 Months to 31 December 1999

Gleeson(M J)Group PLC 23 March 2000 TELEPHONE CONTACT: Dermot Gleeson, Chairman 0181 644 4321 David Eyre, Group Managing Director Colin McLellan, Finance Director M J GLEESON GROUP PLC 1999/00 INTERIM STATEMENT CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS TO 31ST DECEMBER 1999 Six Six Months Months Twelve to 31st to 31st Months to December December 30th June 1999 1998 1999 Unaudited Unaudited Audited £000 £000 £000 Turnover - Continuing Operations 141,091 121,307 298,103 Cost of sales (128,299) (111,643) (271,305) -------- --------- --------- Gross profit 12,792 9,664 26,798 Investment property 2,976 4,152 7,278 income Net operating (10,586) (8,659) (18,946) expenses Share of profit less losses of associated 403 - 529 undertakings -------- ------- ------- Profit on ordinary 5,585 5,157 15,659 activities before interest Interest Receivable 160 314 522 Less: Interest (1,154) (1,317) (2,813) Payable ------- ------- ------- (994) (1,003) (2,291) ------- ------- -------- - Profit on ordinary 4,591 4,154 13,368 activities before taxation Tax on profit on 1,377 1,288 3,846 ordinary activities ------- ------- ------- - Profit on ordinary 3,214 2,866 9,522 activities after taxation Dividends 521 473 2,234 ------- ------- ------- Retained profit 2,693 2,393 7,288 ======= ======= ======= Earnings per share 31.76p 28.32p 94.08p ------- ------- ------- Earnings per share - 31.75p 28.31p 94.04p fully diluted ------- ------- ------- Interim dividend per 5.15p 4.67p share ------- ------- Summarised Consolidated Balance Sheet As at 31st December 1999 As at As at As at 31.12.99 31.12.98 30.06.99 Unaudited Unaudited Audited £000 £000 £000 Fixed assets 88,972 83,838 88,784 ------- ------- ------- Current assets 159,560 140,923 138,984 Creditors: Amounts falling due (119,521) (106,129) (101,449) within one year ------- -------- ------- Net current assets 40,039 34,794 37,535 ------- -------- ------- Total assets less current liabilities 129,011 126,319 118,632 Provisions for liabilities and charges 255 255 269 ------- ------- ------- Net Assets 129,266 118,901 126,574 ======= ======= ======= Summarised Consolidated Cash Flow Statement for the six months to 31st December 1999 Six Months to Six Months to Twelve 31st December 31st December Months to 1999 1998 30th June Unaudited Unaudited 1999 Audited £000 £000 £000 Net cash (out flow) / in (23,610) (31,728) (11,588) flow from operating activities Dividends from joint 0 0 489 ventures Returns on investments 2,070 3,253 5,202 and servicing of finance Taxation (31) (461) (3,160) Capital expenditure and (1,408) 386 (1,556) financial investment Acquisitions and 0 0 (2,030) disposals Equity dividends paid 0 0 (2,052) Management of liquid 0 (16) 5,978 resources Financing 0 (2) (4,946) -------- -------- -------- Increase in net debt (22,979) (28,568) (13,663) ======== ======== ======== Notes 1.The interim statement was approved by the Board of Directors on 22nd March 2000. 2.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 1999 which are set out in the Company's Annual Report. 3.The abridged results for the 12 months to 30th June 1999 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. 4.The interim dividend will be paid on 30th June 2000 to shareholders on the register on 5th June 2000. 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. Chairman's Statement Six Months to 31st December 1999 An encouraging level of growth in turnover and operating profit was achieved across the entire range of the Group's interlinked and mutually supportive operations in the property and construction sectors. A 50% increase in the number of homes sold reflected not only a buoyant housing market, but also the strong appeal to purchasers of properties on our bespoke schemes in urban locations. Gleeson Homes' excellent reputation in this area was recently further enhanced by its success in winning the 'What House?' Awards for both the UK's best regeneration and also best refurbishment schemes. The Engineering Division and the Specialist Subsidiaries performed strongly, whilst improved levels of demand in both the public and private sectors helped the Building Divisions to improve the quality of their order books. Future Prospects Looking ahead, the Board believes the housing market is likely to remain strong in most areas for some time and anticipates that unit sales for the year will reach record levels. The Group's much enlarged commercial property development programme is now gathering pace and the value of property sales in the second half of the year is expected to exceed £20m. The Engineering Division - the largest of the Construction Divisions - is well positioned to continue to benefit from its very strong presence in the water sector where recent awards include two five year partnering contracts for, respectively, Thames Water and Yorkshire Water with a total anticipated value of over £250m. The recent acquisition of Mabey Construction, a specialist rail contractor and service provider, will assist the Group in achieving its medium term objective of establishing a comparable presence in the railway sector. On the 20th March 2000 financial close was achieved on a £45m PFI project to design and construct a Cardiothoracic/Neurosciences Unit at St. George's Hospital, Tooting in South London. This award brings the proportion of the Construction Divisions' current workload either on a partnering basis or for PFI consortia in which the Group is an investor to over 80%. In both cases our early involvement in the design process facilitates effective risk management and the protection of margins. Investment income for the year as a whole will benefit from an increased return from equity stakes in PFI projects. The property investment portfolio, including the Group's rented residential properties, will be revalued at the year end. Against the background of the Group's highest ever half year results and a promising outlook for all its Divisions and Subsidiaries, the Board is declaring an interim dividend of 5.15 pence per share - an increase of 10% over that distributed in 1998/99.

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