9th Jul 2021 08:53
(Alliance News) - MJ Gleeson PLC on Friday said its annual results will top market expectations and match pre-virus levels.
The housebuilder said pretax profit for the financial year ended June 30 will be in line with two years earlier. MJ Gleeson posted pretax profit of GBP41.2 million in financial 2019, on revenue of GBP249.9 million. In financial 2020, revenue dropped 41% to GBP147.2 million, with pretax profit tumbling 86% to GBP5.6 million.
Chief Executive Officer James Thomson said: "I am pleased to announce that pretax profit is expected to be in line with that achieved in 2019, our last financial year before the impact of the pandemic."
In the financial year just ended, the company sold 1,812 homes, a record number for its Gleeson Homes division, up 69% annually and 19% higher than financial 2019's levels.
The average selling price climbed 11% to GBP145,800 amid a UK housing market boom since the end of the first lockdown last year.
"Demand remains robust. The division has entered the new financial year in a strong position with a forward order book standing at GBP134.1 million on 841 plots," MJ Gleeson added.
"The board re-affirms its target of delivering 2,000 units in the year to June 2022."
In its Gleeson Strategic Land, aimed at securing residential planning consents, sold eight sites in the year just gone.
"The business has commenced the current financial year in a strong position. 6 sites with planning permission, or resolution to grant, have the potential to deliver 2,210 plots for housing development. Three of these sites are in a process for sale," MJ Gleeson added.
Shares in the company were 3.2% higher at 898.00 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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