MJ Gleeson sees profits soar by 63 per cent

Press shots, MJ Gleeson - Gleeson Homes
Press shots, MJ Gleeson - Gleeson Homes
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Analysts put a buy notice on house builder MJ Gleeson after it delivered a profit before tax of £22.3m, up 63 per cent from its last figures.

The Sheffield-based low-cost home builder delivered an increase in the interim dividend of 27.8 per cent to 11.5p per share.

Its average selling price went up by 2.4 per cent to £127,000 with another nine sites having been handed planning permission.

Dermot Gleeson, Chairman of MJ Gleeson, said: “The Group has once again delivered an excellent performance, increasing operating profit in both divisions.

“Gleeson Homes’ growth plans remain on track.

“We see no signs of customer caution and demand remains robust.

“Land remains available at sensible prices in both existing and new geographic areas. The two pilot offices in Penrith, Cumbria and Ashington, Northumberland have become full area offices, increasing the number of area offices to ten.

“Gleeson Strategic Land completed the same number of site sales as in the first half of the prior year, but the sites sold were significantly larger this half.

“Demand for consented sites remains strong from both large and medium-sized developers.

“Against this background, the Board is confident that the Group will deliver a result for the full year at least in line with expectations.”

Analysts at Liberum hailed the results saying: “Management expects full year profits at least in line with expectations and we leave PBT estimates unchanged.

“However, with seven strategic sites being marketed and a very strong order book in Homes, we are very confident in our H2 expectations.

“Gleeson easily warrants its premium to the other housebuilders as it is delivering 3-4x faster volume growth without absorbing cash significantly and at much lower risk.”