9th Jan 2020 09:07
(Alliance News) - MJ Gleeson PLC on Thursday reported a mixed performance in the first half of its financial year, but said it expects an overall "successful" result for the group at the end of its financial year in June.
The housebuilder said its Homes unit has completed the sale of 811 units during the six months to the end of 2019, up 17% year-on-year from 691 units.
MJ Gleeson said demand for its low-cost homes remains strong, and it is on track to deliver full-year unit completions in line with expectations.
Turning to Strategic Land division, the company warned that a number of land sales, which were expected to be closed in the first half, are now estimated during the second half, as "greater" certainty has returned to the market following the result of the general election in the UK.
More positively, MJ Gleeson said there remains "strong" demand for high-quality consented land from medium and large housebuilders, and this underpins the company's expectation of a "successful" result for the division for the year as a whole.
"Whilst the overall result for the first half will be significantly down on an unusually strong comparator period in Strategic Land, the strong performance of Gleeson Homes and the anticipated deal flow at Strategic Land in the second half mean that the board remains confident that the group's results for the full year to June 30 will be in line with expectations," the company said in its statement Thursday.
For financial 2019, Gleeson reported pretax profit of GBP41.2 million, up 11% from GBP37.0 million the year before, on revenue that grew by 27% to GBP249.9 million from GBP196.7 million.
MJ Gleeson shares were trading 0.6% lower in London on Thursday at 958.54 pence each.
The company said it will report its half-year results on February 13.
By Evelina Grecenko; [email protected]
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