Profits and revenues up at listed house builder

Sheffield-headquartered house builder MJ Gleeson has seen its pre-tax profits rise 52.6% to £20.3m (H1 19/20: £13.3m) in its results for the half-year ended 31 December 2020.

The Group, which now expects its full year results set to be “significantly ahead” of current market forecasts, also reports a revenue rise of 35.8% to £142.6m (H1 19/20: £105.0m).

It adds that all Government furlough grants of £1.3m were repaid in full on 28 January 2021.

James Thomson, chief executive of the Group, said: “This was a very robust performance reflecting the strong demand – even in difficult times – for the high-quality, low-cost homes that Gleeson Homes builds for first time buyers, many of whom are key workers, as well as from buyers of consented land brought to market by Gleeson Strategic Land.

Gleeson Homes opened a record 17 sites during the first half, enters the second half with a strong forward order book and now expects to deliver 1,775 homes in the current financial year.

“The timing of opening sites for sales means that we are comfortably on track to deliver our original target of 2,000 homes next financial year.

Gleeson Strategic Land is experiencing strong demand for consented land from both medium and large-sized housebuilders and has a healthy pipeline of sites, four of which are in a sale process and expected to complete in the second half of the financial year.

“The Group is well-placed for the future. In the absence of any unforeseen circumstances, the Board is confident results for the full year to 30 June 2021 will be significantly ahead of current market consensus.”

Thomson cautioned that despite this optimism, there is still considerable uncertainty around the timing and speed of economic recovery amidst the ongoing pandemic.