Revenue hits £250m in record year for housebuilder
Sheffield-headquartered listed housebuilding firm MJ Gleeson has reported a record year of trading, with revenues soaring 27% to £250m.
Reporting on the year ended 30 June 2019, the business said its pre-tax profits also rose 11%, up from £37m last year to £41m in the current period.
The listed firm operates two divisions – Gleeson Homes and Gleeson Strategic Land. MJ Gleeson said the record performance had led to a board decision to keep Strategic Land within the group; after previously stating it could look to dispose of the division.
It homes business saw volumes rise 25% to 1,529 units sold (2018: 1,225 units). The average selling price stood at £128,900 (2018: £125,200)
Its land pipeline, including conditionally purchased sites, stands at 13,575 plots (2018: 12,852 plots)
Gleeson Homes said the business was “well on track” to achieving its target of 2,000 units a year by 2022.
Its Strategic Land division completed nine land sales during the year. Its portfolio now has 60 sites with the potential to deliver 21,730 plots.
Dermot Gleeson, Chairman of MJ Gleeson, 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.”
