Focus on North of England sees profits soar for Gleeson

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Housebuilder MJ Gleeson saw its profits grow by more than 60 per cent with shareholders in the Sheffield-based firm set to receive a strong dividend following an outstanding year.

The community regeneration housebuilder and strategic land specialist saw revenue up 20.8%, profit before tax up 63.0%, with a proposed final dividend of 10.0p per share.

Gleeson Homes saw 904 units sold and operating profit increased to £19.5m with an average selling price of £125,700 (2015: £123,750).

Gleeson Strategic Land meanwhile reported operating profits of £10.2m (2015: £8.1m) driven by increase in transactions during the year.

Dermot Gleeson, Chairman of MJ Gleeson plc, said: “Our twin track strategy – the development of low cost homes for open market sale in the North of England and strategic land sales in the South – goes from strength to strength, delivering increased margins, profits and cash.

“Gleeson Homes continues to see strong customer demand for its low cost homes. The opening of two new regional offices and the increase in its land pipeline to 9,284 plots will enable the division to continue to grow in what remains a strong market for low cost homes in the North of England. We have commenced rolling out our distinctive and highly successful business model across a wider geographic area. The potential number of purchasers of Gleeson Homes in this wider area is three times the comparable figure within our current market.

“Similarly, Gleeson Strategic Land continues to see strong demand for consented land in prime locations from a wide range of housebuilders. The division has a strong pipeline of sites, predominantly in the South of England, covering 3,843 acres (2015 3,936 acres), and expects to continue to enjoy a high level of success in promoting commercially attractive sites through the planning system.

“The Board has every confidence in the Group’s outlook in both the short and longer term.”