5th Jul 2016 07:54
LONDON (Alliance News) - MJ Gleeson PLC on Tuesday said it is confident its full-year results will meet the top end of its expectations, noting that it continues to see strong demand for its low-cost homes, and said the UK's vote to leave the European Union has not affected its core customer base.
Gleeson shares were up 6.6% at 479.71 pence early Tuesday.
The urban regeneration and strategic land specialist said that, within its Gleeson Homes division, it sold 904 homes during the year ended June 30, up 20% from the 751 sold the year earlier, and said it was on track for its target of building 1,000 new homes a year and beyond, in the near term. The Gleeson Homes division is a housing regeneration specialist operating in the North of England.
MJ Gleeson said during the year it remained active in purchasing sites, with its land pipeline of owned and conditionally purchased plots on June 30 some 24% ahead of the same period the prior year at 9,284, of which 4,927 have been purchased subject to planning permission. In additional there are a further 997 plots which are in the pipeline to be acquired, MJ Gleeson said.
The company is currently active on 48 sites, it said, and anticipates an increase to more than 50 sites over the coming year.
Meanwhile, in Gleeson Stategic Land, which enhances the value of land by securing residential planning consents, MJ Gleeson said it successfully disposed of seven land interests comprising of 91 acres with the potential to deliver 822 plots for housing development and 100 acres of commercial land.
Gleeson Strategic Land began the current financial year in a strong position, with one site conditionally sold and a further three in the legal process for sale, MJ Gleeson said, noting that it also currently has 10 sites with planning permission and a further four sites with resolutions to grant planning permission subject to entering legal agreements.
The strategic portfolio comprises 68 sites, totalling 3,843 gross acres, the company said, which could deliver 21,051 plots plus a 60-bed care home and 24 acres of commercial land.
At year end, its cash balance stood at GBP23.3 million, up from GBP15.8 million a year earlier, and MJ Gleeson said it was confident its results for its financial year will meet the top end of expectations.
"Gleeson Homes continues to see strong demand for its low cost homes. The EU referendum has not affected our core customer base for whom the decision to become home owners is not influenced significantly by market or media sentiment. Similarly, in Gleeson Strategic Land, early indications point to a continuing commitment on the part of our mid-sized housebuilding customers, who have short land banks which they need to continue to replenish," said Chief Executive Jolyon Harrison.
By Hannah Boland; [email protected]; @Hannaheboland
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