11th Feb 2021 09:58
(Alliance News) - MJ Gleeson PLC on Thursday posted a significant rise in its earnings for its first half as it forecast full year results to be "significantly ahead" of market consensus.
Shares in the housebuilder were trading 4.5% higher at 769.44 pence each on Thursday morning in London.
For the six months ended December 31, MJ Gleeson posted pretax profit of GBP20.3 million, up 53% from GBP13.3 million the year prior. This was as revenue climbed 36% to GBP142.6 million from GBP105.0 million.
Earnings per share was up 44% to 28.2p from 19.6p.
By unit, Gleeson Homes contributed GBP134.4 million in revenue, up 28% from the first half of financial 2020, while Strategic Land contributed GBP8.2 million compared to zero the year before.
Sheffield-based MJ Gleeson said homes sold increased 17% to 951 homes from 811, with average selling price also rising 9.1% to GBP140,600 from GBP128,900. It highlighted it has a land pipeline of 14,937 plots, up from 13,801 plots year-on-year.
Dividend payouts were resumed as the company declared an interim dividend of 5.0p, adding it expects the payout to represent a third of the total annual payout. Last year, the dividend for the first half of financial 2020 was cancelled due to Covid-19 related uncertainty.
Looking ahead, Chief Executive James Thomson said: "We currently expect Gleeson Homes to deliver 1,775 homes and Gleeson Strategic Land to complete further sales in the current financial year. Consequently, in the absence of further Covid-related disruption or other unforeseen circumstances, the board is confident that results for the full year to June 30, 2021 will be significantly ahead of current market consensus."
As at December 31, MJ Gleeson had cash of GBP31.6 million, up from GBP30.6 million the year prior.
By Ife Taiwo; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
MJGleeson