Gleeson raises £16m through placing to meet future demand

The Sheffield-based firm said that as soon as the safe resumption of building is permitted, it will focus on homes for key and critical workers. The cash will be used to accelerate the resumption of building on existing sites and speed up the opening of new sites.

James Thomson, Gleeson's chief executive, said: “This money will help position our company, once Covid-19 restrictions are lifted, to move quickly and support our customers, many of whom are the key workers that continue to provide an incredible service to our country, by supplying the much needed high quality, low-cost homes that they deserve.

"We want Gleeson to emerge, ready to take advantage of the positive market fundamentals, to re-open and build-out our existing sites, continue to deliver our high quality, low cost homes for our customers, the majority of whom are first time buyers on low and average incomes, and where possible accelerate new sites that we own and build out our pipeline of sites and strategic land sales."

He said that Gleeson's two, three and four bedroom homes are very affordable and start at just £90,000.

"Home ownership changes lives and we want to do our part alongside the Government to restart the housing industry and to get Britain building again. We remain committed to our growth strategy which we are confident will maximise both our sales and earnings for our shareholders," he added.

The placing was conducted by way of an accelerated bookbuild process and saw strong demand from existing and new investors. Liberum acted as sole bookrunner on the Placing.

A number of board members subscribed for shares.