Low-cost housebuilder MJ Gleeson has abandoned its plan to sell its strategic land business after it landed the group a profit of £13m.
The Sheffield-based firm had been considering selling that part of the business but has now confirmed that course will not be followed after it saw nine land sales completed during the year, with a further nine sites with planning consent or resolution to grant with the potential to deliver 2,929 plots.
Read more: Gleeson may sell land division
Overall Gleeson boosted profits by 11 per cent to £41.2m after it boosted the average selling price of its homes.
The Sheffield-based firm's homes division increased its volumes by 25 per cent to 1,529 units sold, up from 2018's 1,225.
Operating profit on unit sales up 15% to £30.1m while the average selling price was £128,900.
Overall revenuie was £249.9m
The results come after the firm's CEO quit earlier this year in a row over pay.
Dermot Gleeson, Chairman of MJ Gleeson plc, said: “Our unique business model of building low-cost homes in the North of England and the Midlands and strategic land sales in the South continues to deliver outstanding results. Record volume growth in Gleeson Homes and record profit levels in Gleeson Strategic Land resulted in strong Group profit growth.
"Despite the uncertainties caused by Brexit, demand for our homes continues to be extremely strong. Gleeson Homes is well on track to deliver its milestone target of doubling annual completions to 2,000 units by 2022. Led by a strong and highly experienced management team, the division continues to have significant scope for expansion by building low-cost homes for young, first time buyers and low-income families in a market that is underserved by other housebuilders.
"Following a review of options, we have concluded that retaining Gleeson Strategic Land offers significantly greater long-term value to the Group than selling the business. The division had a record year and continues to benefit from high levels of demand for consented land in prime locations from both large and medium-sized housebuilders. The division has a strong portfolio of sites and anticipates that it will continue to maintain its successful track record in promoting potentially high value developments through the planning system.
Against this background, the Board is confident that the Group will continue to deliver significant growth in both revenue and profits in the current year and beyond.”