22nd Feb 2016 09:09
LONDON (Alliance News) - Urban regeneration and strategic land company MJ Gleeson PLC on Monday said pretax profit almost quadrupled in the first half of 2016, putting it in line to meet its full year expectations.
MJ Gleeson hiked its interim dividend by 67% to 4.5 pence from 2.7p the previous year, after reporting an increase in both revenue and pretax profit for the six months to end-December.
Pretax profit for the period stood at GBP11.3 million, up from GBP3.9 million, whilst MJ Gleeson's revenue was up 52% to GBP64.8 million, after a strong year for the Gleeson Homes division, which sold 400 units, up 25% year-on-year from 321 units. Average selling price of the units was slightly higher at GBP125,000, from GBP124,600.
MJ Gleeson also posted a strong first half for its Gleeson Strategic Land division, which sold four sites, with a combined size of 151 acres. In the same period last year, the company sold two sites, with a combined size of 17 acres. Its revenue in the division increased by GBP12.3 million to GBP14.7 million for the period, reflecting this increased activity.
The company added it will be opening a new regional office in Liverpool during the second half of its financial year.
"The group has delivered a strong performance across both divisions. At Gleeson Homes, continued strong growth will be achieved through a combination of further sales growth in our existing areas and targeted geographic expansion. Land continues to be available at sensible prices and demand for low cost homes remains strong," said Chairman Dermot Gleeson.
"In Strategic Land, we are seeing a more balanced phasing of sales over the course of the financial year," Gleeson added.
Shares in MJ Gleeson were down 1.2% at 587.73p on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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