Housebuilder MJ Gleeson reports sharp revenue fall as it resumes construction work

To date, the Company has brought back from furlough 275 of the 456 staff furloughed in April. In total, 30% of staff remain furloughed but the Company expects that all staff will have returned to work by 30 July 2020.

The Board, therefore, expects group revenue for FY2020 will be circa £145m, compared with 2019's £249.9m.

The forward order book for sales in the next financial year currently stands at £135.2m on 940 plots (30 June 2019: £87.6m on 677 plots).

The Company announced last month that it would begin to implement its plan for a phased restart of activity on sites.

"Sites are re-opening as planned and customer demand is recovering strongly," it said.

"Of our 67 build sites 62 have so far re-opened and construction activity has recommenced on 43 sites with activity initially focussed on preparing site infrastructure and ground-level works. Plot build activity is recommencing in a phased and controlled manner. By the end of this month plot build activity will have recommenced on the majority of sites."

"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."

Sales offices and show homes have reopened on 40 sites and will reopen on a further 15 sites by the end of this month. Virtual show home tours have been launched on the Company’s website and the Gleeson Key Worker Priority Programme launched in May 2020 is generating strong interest.

Reservation levels, which had, in the past months, fallen to 25% of pre-Covid levels, have increased significantly in the last two weeks with reservations at 70% of pre-Covid levels.

"We continue to see price increases being achieved on newly released plots for sale on most sites and incentives remaining low. We have not experienced any impact on lender valuations.

," it said.

The Company enabled 43 customers to complete their purchase and move into their homes during April and May bringing year to date sales to 1,037 homes by 31 May 2020. Completions are expected to continue at a similar pace during June.