16th Sep 2019 08:59
(Alliance News) - MJ Gleeson PLC on Monday raised its annual dividend, as profit and revenue saw double-digit increases on a strong operational performance.
For the financial year to the end of June, the low-cost housebuilder reported a pretax profit of GBP41.2 million, an 11% rise from GBP37.0 million the year before, on revenue that grew by 27% to GBP249.9 million from GBP196.7 million.
MJ Gleeson declared a final dividend of 23.0 pence per share, bringing the total payout to 34.5p, up 8% from 32.0p the prior year.
In the Gleeson Homes division, the group sold 1,529 units, up 25% from 1,225 the year before, with a higher average selling price at GBP128,900 from GBP125,200.
MJ Gleeson's land pipeline, including conditional purchased sites, rose to 13,375 plots from 12,852 plots the prior year.
In the Strategic land segment, MJ Gleeson made nine land sales in the year, with a further nine with either planning consent or a resolution to grant consent. As at June 30, the group has a portfolio of 60 sites with the potential to deliver 21,730 plots.
In April, MJ Gleeson announced the appointment of advisers to explore several options for the Strategic Land segment, including its sale. However, following consideration, the company said on Monday it has concluded that there would be greater value in keeping the unit rather than in selling it.
Looking ahead, MJ Gleeson said that Gleeson Homes is on-track to double its sales to 2,000 units per annum by 2022.
"Record volume growth in Gleeson Homes and record profit levels in Gleeson Strategic Land resulted in strong group profit growth. Despite the uncertainties caused by Brexit, demand for our homes continues to be extremely strong. Gleeson Homes is well on track to deliver its milestone target of doubling annual completions to 2,000 units by 2022," said Chair Dermot Gleeson.
"Following a review of options, we have concluded that retaining Gleeson Strategic Land offers significantly greater long-term value to the group than selling the business. The division had a record year and continues to benefit from high levels of demand for consented land in prime locations from both large and medium-sized housebuilders," Gleeson added.
Shares in MJ Gleeson were down 0.5% at 846.00 pence on Monday morning.
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