19th Nov 2013 10:06
LONDON (Alliance News) - Urban regeneration and strategic land specialists MJ Gleeson Group PLC Tuesday said both its divisions performed strongly between July 1 and October 31 and expects strong results in 2014.
In an interim management statement, the company said its homes arm saw reservations increase to 253, compared with 150 in the previous period with a forward order book currently comprising 275 units.
The company said Gleeson Homes is in active discussions to acquire a further 20 sites which, if purchased, will add 1,980 plots to the regeneration land pipeline, taking the total number of plots to in excess of 5,860.
It said around 25% of completions during the period were achieved on a shared equity basis, with around 16% of completions using the UK government's "Help to Buy" initiative.
Gleeson expects more people to take advantage of the scheme which grants buyers of newly built homes a 20% equity loan from the government on top of a 5% deposit.
The Strategic Land division, which buys and sells building plots, achieved planning permission on three sites which will deliver a combined total of 380 units.
Gleeson said ten planning applications with the potential to deliver a total of 927 units were submitted during the period and the business is in negotiations regarding a further six sites, totalling 1,030 units.
The company said it expects results for the half-year 2014 to show a strong increase over the same period in 2013.
"With an expected 25% increase in completions in Gleeson Homes overall in the current financial year, the Board now believes that the out-turn for the year to 30 June 2014 will significantly exceed current expectations," Gleeson said.
The stock was trading at 346.80 pence Tuesday morning, up 11.80 pence or 3.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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