3rd Dec 2020 10:34
(Alliance News) - Housebuilder MJ Gleeson PLC on Thursday said it is "minded" to resume dividend payments in 2021 on the back of a "strong" interim performance to date.
Shares in the company were 12% higher at 780.88 pence each in London on Thursday morning.
The housebuilder, hosting its annual general meeting on Thursday, had decided against a dividend in its year ended June 30.
Trading so far this in the new financial year has been promising, helped by the housing sector being deemed an essential service during the latest lockdown in England. MJ Gleeson now expects its annual performance to top current expectations.
Chair Dermot Gleeson said: "The board recognises the importance of dividend payments to shareholders. In the light of our strong performance to date and the positive outlook, the board is minded to resume dividend payments during the course of 2021. However, any final decision will depend on the circumstances at the time."
Gleeson added that build and sales activity at the Gleeson Homes division is back to pre-Covid levels.
"During the second lockdown all our sites continued to build and sell efficiently within Covid-secure protocols. We expect this to continue in the newly established three-tier system of restrictions," Chair Gleeson explained.
In the six months ending December 31, the Gleeson Homes unit is forecast to post a 15% year-on-year rise in sales revenue.
Demand for its low-cost homes "remains strong" with selling prices also rising, Gleeson added.
"The average selling price on new reservations since the start of the financial year has been 9% higher than in the same period last year," Gleeson explained.
MJ Gleeson also has a land pipeline of 13,938 plots valued at GBP2.0 billion. The company said 7,298 plots are owned and 6,640 are conditionally purchased.
Meanwhile, Gleeson Strategic Land has had an uptick in activity since the start of the current financial year.
" The division's land pipeline currently consists of 72 sites which have the potential to deliver approximately 23,560 plots. The portfolio includes 12 sites which now have planning permission," Chair Gleeson added.
"Importantly, the division is actively working on the sale of seven sites. Most of these transactions are at an advanced stage. This level of activity underpins our confidence that the full year outturn in Gleeson Strategic Land will be in line with expectations."
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
MJGleeson