1st Jul 2005 07:00
Gleeson(M J)Group PLC01 July 2005 M J GLEESON GROUP PLC PRE-CLOSE STATEMENT The Board of MJ Gleeson Group plc announces that the trading performance in itscore operations - housebuilding, civil engineering and property - remainedstrong in the second half of the year to 30 June 2005. Discussions are at a very advanced stage regarding the management buy-out of thebuilding division (the "MBO") and an announcement is expected to be madeshortly. In the Interim Announcement of 22 March 2005, it was reported that the losses inthe building division for the first half of the year were £16.6 million.However, further substantial potential losses have been identified on a numberof recently completed contracts for which the final accounts have not beensettled. Provision for these losses will be made in the Group results for theyear to 30 June 2005. On the assumption that the MBO proceeds, the buildingdivision will be classified as a discontinued operation and the losses incurredwill be treated as exceptional in the Group accounts. For the year to 30 June 2005, Group profit before exceptional costs relating tothe building division is expected to be well ahead of market expectations.However, after these exceptional costs, the result is expected to besignificantly below expectations. The losses in the building division, combinedwith restructuring costs, are likely to result in a modest reduction in theoverall net assets of the Group at 30 June 2005 when compared to the position atthe end of the 2004 financial year. The strong performance of the Group's core operations in the year to 30 June2005 gives the Board confidence for the future, and the Board proposes to retainits progressive dividend policy. Enquiries:M J Gleeson Group plc 020-8644 4321Dermot Gleeson (Chairman)Terry Massingham (Chief Executive)Colin McLellan (Finance Director) Bankside Consultants Limited 020-7367 8851Charles Ponsonby This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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