Revenues set to take a hit at listed house builder
Sheffield-headquartered house builder MJ Gleeson says it expects group revenue for FY2020 will be about £145m, compared to 2019’s figure of £249.9m.
In a trading update released today, the company says it has brought back 275 of the 456 staff furloughed in April.
In total, 30% of its staff remain furloughed, but the business expects all staff will have returned to work by 30 July 2020.
MJ Gleeson says safe-working protocols are having an impact on its productivity and build rate.
However, it believes it can manage to improve productivity and build rate by introducing new working practices, while continuing to comply with COVID-19 Secure protocols.
Its update adds: “Sites are re-opening as planned and customer demand is recovering strongly.
“Of our 67 build sites 62 have so far re-opened and construction activity has recommenced on 43 sites with activity initially focused on preparing site infrastructure and ground-level works.
“Sales offices and show homes have reopened on 40 sites and will reopen on a further 15 sites by the end of this month.
“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.
“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).”
