Profits and revenues climb at listed house builder
Sheffield-headquartered MJ Gleeson says it is track for 2,000 homes this financial year, and is enjoying continued strong demand for consented land.
Issuing its results for the half-year ended 31 December 2021, the company reports revenues up 21.7% to £173.5m (H1 20/21: £142.6m) and pre-tax profits up 21.7% to £24.7m (H1 20/21: £20.3m).
James Thomson, chief executive, who will be speaking at the upcoming Invest North 2022 virtual conference, said: “The Group performed strongly during the first half and this result, and indeed our performance throughout the pandemic, is evidence of the underlying strength of the business.
“We expect Gleeson Homes to deliver 2,000 homes this financial year and Gleeson Land to complete further sales in the second half of the financial year.
“Consequently, in the absence of any further Covid-19 or supply chain related disruption, the Board is confident that results for the full year to 30 June 2022 will be ahead of market expectations.”
The Group’s Gleeson Homes division says it sold 932 homes over the latest half year period, up 14.9% on the pre-Covid half-year to 31 December 2019 (H1 19/20: 811 homes).
The Gleeson Land division completed three land sales (H1 20/21: four land sales), with a further three sites currently being marketed.
The updated however notes the planning system remains an area of concern, with urgent reform required including better resourced local planning authorities, and clear and transparent local plans.
Adding: “These views are widely shared by the industry and, without some level of investment, delays in the planning system will continue to limit the supply of consented land and risks holding back housing delivery.”
MJ Gleeson says the heavily publicised supply chain pressures – including labour and material prices and availability remain – but are starting to show signs of easing on certain materials.
The company states: “The impact of these has been managed through the strong relationships that we have with our suppliers and subcontractors, and the unprecedented cost increases that have been offset by selling price inflation.
“Government figures show that skills shortages accounted for 36% of all construction vacancies. This skills shortage combined with wage inflation remains a challenge for the wider industry.”
James Thomson is one of the confirmed speakers for Invest North 2022 where he will be part of the ‘Making the North a home: The housing challenge’ session alongside Mike Palin, acting director of cities and conurbations at Homes England and Amir Hussain, founder & CEO of Yeme Architects. The session will explore how investment in housing is central to the ambition to make the North a great place to live for everyone. The session will also look at delivering new homes at scale and pace can be a challenge when balancing those demands against viability, sustainability and suitability.
Curated by TheBusinessDesk.com and its headline sponsor Squire Patton Boggs, and supported by Northern Powerhouse Investment Fund, TransPennine Express, Mott Macdonald, Campaigner, Influential and becg; Invest North is a one day virtual conference that will bring together political and business leaders to discuss and address how rhetoric can be transformed into realistic economic growth for the North.
In addition to the packed one day conference, Invest North 2022 will also include a networking dinner on 3 March at the Radisson Edwardian in Manchester, where attendees will swap pixels for plates continue and develop the conversations from the conference and share views on the opportunities, challenges and even next steps for the North as the region continues to forge ahead a new destiny in the wake of challenges. Tickets for the networking dinner are available now and include a drink on arrive and a three course dinner.