MJ Gleeson PLC Trading Update (1159K)

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RNS Number : 1159K

MJ Gleeson PLC

05 July 2017

5 July 2017

MJ GLEESON PLC

TRADING UPDATE

MJ Gleeson 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 2017, and ahead of reporting preliminary results on Monday, 25 September 2017.

Trading Update

There will be a visit for investors and analysts today to Gleeson Homes' Kilner Park development in South Yorkshire. The visit is intended to give greater insight into Gleeson Homes' day to day operations and no new material information will be provided, beyond what is disclosed in this announcement.

Gleeson Homes

Gleeson Homes is a housing regeneration specialist, working in challenging communities to provide new, low cost homes for sale to people on low incomes in the North of England.

Gleeson Homes sold 1,013 homes during the year, an increase of 12.1% compared with the previous year's total of 904. Reservations during the last six months were 45% higher than the same period last year.

Gleeson Homes remained active in purchasing sites in both existing and new areas during the year. The land pipeline of owned and conditionally purchased plots at 30 June 2017 increased by 24.8% compared to the prior year, totaling 11,588 plots, of which 6,268 plots have been purchased subject to planning permission. In addition, there are a further 465 plots which are in the pipeline to be acquired.

Gleeson Homes is currently active on 59 sites and anticipates an increase to more than 60 sites during the coming year.

A new area office was opened during the year in Nottinghamshire, which is already active and profitable. There are now 7 area offices and we will continue to grow the Gleeson Homes footprint by opening area offices in areas adjoining existing operations.

The division has reached its interim target of building 1,000 new homes a year and is setting a new target of building 2,000 new homes a year within 5 years.

Gleeson Strategic Land

Gleeson Strategic Land is a land promotion business that enhances the value of land by securing mainly residential planning consents and operates predominantly in the South of England.

During the year Gleeson Strategic Land sold eight land interests comprising 126 acres with the potential to deliver 841 plots for housing development.

The business has commenced the current financial year in a strong position. Eleven sites with planning permission have the potential to deliver 2,353 plots for housing development and a 60 bed care home. Four of these sites are in a legal process for sale.

The strategic portfolio comprises 65 sites which could deliver 21,505 plots plus a 60 bed care home and 67 acres of commercial land.

Summary

The Group continued to generate strong cash flows and increased its cash balances at 30 June 2017 to GBP34.0m (30 June 2016: GBP23.2m).

As a result of the strong performance in the financial year, the Board is confident that the results for the financial year will exceed the top end of expectations.

Jolyon Harrison, CEO, commented:

"Gleeson Homes begins the current financial year in its strongest ever position, demand remains strong as is evidenced by the queues forming at site openings and reservations are at record levels.

We ended the financial year having achieved our interim target of building 1,000 homes per year and are setting a new target of doubling that number within 5 years.

Gleeson Strategic Land also continues to experience strong demand from both large and mid-sized housebuilding customers for consented land.

We have built a platform from which we expect to continue robust, profitable growth."

 
 Enquiries: 
 
  MJ Gleeson plc                                       01142 612900 
 Jolyon Harrison         Chief Executive Officer 
  Stefan Allanson         Chief Financial Officer 
 Instinctif Partners 
  Mark Garraway 
  Helen Tarbet 
  James Gray                                         020 7457 2020 
 N+1 Singer 
  Shaun Dobson 
  Alex Laughton-Scott                                020 7496 3000 
 Liberum 
  Neil Patel 
  Richard Bootle                                     020 3100 2111 
 

Notes to Editors

MJ Gleeson 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 enters into promotion or option agreements over land, predominantly in the South of England, with the objective of enhancing the value of the site concerned by securing residential planning permission.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 05, 2017 02:00 ET (06:00 GMT)