5th Dec 2019 09:46
(Alliance News) - MJ Gleeson PLC on Thursday said it expects to deliver annual results in line with forecasts amid a strong performance by its Home unit.
The housebuilder said it has experienced a "strong" demand at its Homes division, with net reservations since the start of its current financial year up more than 10% compared with the same period last year.
Gleeson said Homes has a pipeline of 13,042 plots with a gross development value of GBP1.7 billion, of which 6,910 plots are owned and 6,132 are conditionally purchased.
"Strong demand, good mortgage availability and our ability to offer attractive levels of affordability to our customers, means the outlook for the division remains very positive," said Chair Dermot Gleeson.
Looking ahead, Gleeson said it expects the Homes unit to record an increase in completions for the first half of 10% compared with the prior half year total of 691 units. For its financial year to the end of June 2020, the company said it plans to deliver an increase in completions of at least 10% versus prior year's 1,529 units.
Turning to the Strategic Land division, the company said it continues to see "strong" demand for consented land. MJ Gleeson said it expects results for the first half to be lower than the usual, as the majority of the division's land sales are expected in the second half of its financial 2020. Normally the majority of sales are made in the first half, the company said.
"Against this background the board remains confident that the group's results for financial 2020 will be in line with expectations," added Dermot Gleeson.
The stock was trading 0.6% lower in London on Thursday morning at 813.52 pence a share.
By Evelina Grecenko; [email protected]
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