Gleeson confident of performance

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HOUSEBUILDER MJ Gleeson Group said it remains confident there will be further substantial improvements in the group’s trading performance in both the current year and beyond.

The firm, which was founded in Sheffield more than 100 years ago, said although planning delays have created some uncertainty with respect to the exact number of land sales that will be achieved within the current financial year, the group’s profit for the full year is expected to be in line with, or possibly better than, current market expectations.

In an interim management statement for the three months to March 31, the group which operates two divisions - Gleeson Homes and Gleeson Strategic Land – said Gleeson Homes has continued to perform well with reservations significantly higher than the prior period.

The business currently has 37 active sites, compared with 29 in the corresponding period last year and expects to record more than 540 completions in the year to June 30, a 33 per cent increase on the 406 units completed in the prior year.

Total sales year to date, comprising reserved, contracted and completed homes, are up 63 per cent on last year, meaning that the group will enter the next financial year with a strong forward order book.

The group said its Strategic Land division continued to perform in line with expectations, enhancing its portfolio and progressing sites through the planning system.

The business currently has eight sites with planning permission. Six of these sites, comprising 706 plots, are being progressed for sale in the current financial year. If all of these sales are achieved, the division will contribute a higher level of profit than in any financial year since 2007, it said.