Housebuilder’s record results powered by huge demand for affordable homes
Housebuilder MJ Gleeson has delivered record revenue and profit performances, with its pre-tax profits up 33.1% in its audited results for the year ended 30 June 2022.
The Sheffield-headquartered company has seen its revenues climb 29.4% to £373.4m (2021: £288.6m) along with pre-tax profits of £55.5m (2021: £41.7m).
A total of 2,000 of its homes were sold, a 10.4% increase (2021: 1,812), with the firm’s land pipeline up by 951 plots to 16,814 plots (2021: 15,863 plots).
Dermot Gleeson, chairman, said: “This is another excellent performance which reflects not only the strong operational capability of our business but also the continuing structural under-supply of affordable homes for first time buyers on low incomes.
“Gleeson Land’s market remained robust throughout the year and the business delivered a strong result. Demand in the South of England for quality sites with sustainable and implementable residential planning permission remains strong and the division is well-placed to drive further sustainable growth.
“The Board has reviewed a range of macroeconomic forecasts and, notwithstanding the current outlook for the broader economy, remains confident the Group, with its defensive qualities and unique position within the wider house building sector, is well-positioned to deliver further profitable growth in the current financial year.”
MJ Gleeson says it believes the affordability and energy-efficiency of its homes will continue to make them highly attractive to young, first time buyers.
The Group adds it continues to maintain a strong financial position with a well-capitalised balance sheet, ending the year with cash and cash equivalents of £33.8m (2021: £34.3m).
It also continues to have a £105m borrowing facility available, provided by Lloyds Bank and Santander UK, which was undrawn at year end.