30th Sep 2013 07:50
LONDON (Alliance News) - Urban regeneration and strategic land specialists MJ Gleeson Group PLC Monday reported an increase in pretax profit and revenue for the full year, reflecting a strong performance across its business.
The company posted pretax profit of GBP5.8 million for the period ended 30 June, up from GBP3.0 million a year earlier, while revenue jumped 49% to GBP60.7 million from GBP40.8 million in 2012.
Gleeson attributed the rise to a strong performance from both its two divisions: homes and strategic land.
During the period, Gleeson Homes sold 406 homes, up 46% from 279 a year earlier. Revenue for the division increased to GBP47.9 million from GBP32.6 million.
Gleeson said the proportion of homes sold from new, higher-margin sites rose from 31% in the prior year to 75%.
The Strategic land division, which buys and sells building plots, saw revenue increase to GBP12.7 million, from GBP8.2 million in 2012.
Gleeson said demand for greenfield residential land in the South of England from the major housebuilders remained strong throughout the year. As a result, the business unit was able to complete seven land sales, with a combined acreage of 42.5 acres.
The forward book was up 141% to GBP25.9 million, from GBP10.8 million last year, representing 221 units, while the landbank consisted of 3,860 plots including purchased sites, up from 3,790 plots in 2012.
The company declared a final dividend of 2.0 pence, bringing the total payout to 2.5 pence. Last year, shareholders benefited from a special dividend of 5.0 pence.
Gleeson shares were trading at 330.00 pence Monday morning, down 10.00p or 2.9%, having opened higher and touching 360.00p.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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