15th Jun 2020 09:04
(Alliance News) - MJ Gleeson PLC on Monday reported a surge in reservation activity, but warned that revenue for financial 2020 will be 42% lower year-on-year due to the Covid-19 pandemic.
Shares in the housebuilder were down 1.8% at 712.80 pence each in London.
MJ Gleeson expects group revenue for the year ending June 30 to be around GBP145 million, down sharply from GBP249.9 million a year ago.
Reservation levels, which in recent months had fallen to 25% of pre-Covid levels, have increased significantly in the past two weeks to 70% of normal, the company said.
The company completed 43 sales during April and May, bringing year-to-date sales to 1,037 homes by May 31. Completions are expected to continue at a similar pace during June.
MJ Gleeson's forward order book for sales in financial 2021 currently stands at GBP135.2 million on 940 plots versus GBP87.6 million on 677 plots in financial 2019.
The Sheffield, England-based company has re-opened 62 of its 67 build sites, with construction activity recommencing on 43 sites. Sales offices and show homes have reopened on 40 sites and will reopen on a further 15 sites by the end of June.
"Current safe-working protocols are, as expected, having an impact on productivity and build rate. However, we believe there is scope to improve productivity and build rate by the introduction of new working practices within the Covid-19 Secure protocols," MJ Gleeson said.
To date, the company has brought back 275 of the 456 staff furloughed in April. In total, 30% of staff remain furloughed but the company expects all staff to returned to work by July 30.
MJ Gleeson opened three new-build sites in the final quarter of financial 2020, with a further one opening in the next two weeks, bringing the total number of build sites to 71 as at June 30 versus 69 a year ago. The company originally planned to open 17 new sites in the fourth quarter of financial 2020.
The company's land division, Gleeson Strategic Land, completed the sale of two small sites before the end of March and will not complete any more sales before June 30.
By Tapan Panchal; [email protected]
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