9th Jan 2015 07:50
LONDON (Alliance News) - MJ Gleeson PLC said Friday it expects half-year profits to "show a strong increase" over the same period a year earlier and its full year to be in line with current expectations.
The urban regeneration specialist said it continues to trade well and will release its full results for the six months to December 31 on February 25.
Gleeson said market conditions remain healthy for its Gleeson Homes division. It said it sold 321 homes during the recent half year, up 24% from 258 a year earlier. The unit's forward order book of 299 units is up 23% on 240 a year before.
Gleeson reiterated that it expects to increase completions by 25% in the financial year ending June 30 from 561 units a year before. It said the Gleeson Homes business currently has 39 active sites, versus 33 a year earlier. Its land pipeline consists of 5,267 plots, up 30% on the year before, with a further 1,900 plots set to be acquired.
Its Gleeson Strategic Land division sold a 15-acre site with planning permission for 51 plots, during the recent half, along with the sale of 1.5 acres of commercial land in Thanet, Kent.
Gleeson said it has eight sites in its portfolio with planning permission or a resolution to grant permission. Six of these sites, able to produce 672 plots, are being readied for sale in the current financial year, it said. A further 13 sites are awaiting planning permission and some of these also may be sold during the current financial year.
"The first half performance of both Gleeson Homes and Gleeson Strategic Land has been encouraging as we continue to benefit from our focussed, twin track strategy of providing low cost family homes in the North of England, and strategic land promotion in the South," said Chief Executive Jolyon Harrison. "We expect to report a result for the full year in line with current expectations."
By Tom Waite; [email protected]; @thomaslwaite
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