9th Jul 2020 10:51
(Alliance News) - MJ Gleeson PLC on Thursday expressed a confident outlook going forward despite its sales falling by almost a third in its most recently ended financial year.
The low-cost housebuilder reported the sale of 1,072 homes during the year to the end of June, a reduction of 30% compared with the previous year's total of 1,529.
More positively, the company said a forward order book is standing at GBP145.3 million on 1,033 plots, versus GBP87.6 million on 677 plots a year prior.
MJ Gleeson noted that net daily reservations over the last four weeks have risen to more than 80% of pre-Covid-19 levels with the majority reserved at prices higher than in January and February.
The land pipeline of owned and conditionally purchased plots at June 30 increased by 1.7%, MJ Gleeson said, compared to the prior year end, totalling 13,801 plots on 149 sites.
During the year Gleeson's Strategic Land unit sold two land interests with the potential to deliver 195 plots for housing development.
The division's total portfolio comprises 68 sites, with the potential to deliver 23,314 plots, and 44 acres of commercial land.
MJ Gleeson noted that prior to Covid-19, the Strategic Land division was seeing strong interest in its consented sites. As the land market reopens this interest is returning.
The company said it ended the year with cash balances of GBP76.8 million. In addition, it has a GBP10 million committed overdraft facility which is currently undrawn.
"The impact of Covid-19 on the financial 2020 results is as expected. What is pleasing is that the business has demonstrated its underlying resilience in the face of enormous challenges and we are starting the new financial year in a strong position," said Chief Executive James Thomson.
"We are confident that, if the current market improvement continues, the group will see a rapid recovery in financial 2021," added Thomson.
MJ Gleeson shares were trading 0.3% lower in London on Thursday at 687.95 pence each.
By Evelina Grecenko; [email protected]
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