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Trading statements

Gleeson to exceed top end of forecasts

05 July 2017 07:23

MJ Gleeson expects full-year results to exceed the top end of forecasts.

And the group said Gleeson Homes had begun the current financial year in its strongest ever position, group chief executive Jolyon Harrison said.

A trading update said that 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.

It continued: "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."

The group said a new area office was opened during the year in Nottinghamshire, which was already active and profitable.

It said: "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."

The statement continued: "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.

"The Group continued to generate strong cash flows and increased its cash balances at 30 June 2017 to £34.0m (30 June 2016: £23.2m).

"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."

Chief executive Jolyon Harrison said: "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."

Story provided by StockMarketWire.com

Related Company: GLE

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