Gleeson hunts cheap sites in Northern England

URBAN regeneration specialist Gleeson is looking to buy cheap sites in the North of England as a result of a “modest” improvement in the housing market.

But the company adds that it is still too early to herald a sustained recovery in the market.

An interim announcement for the six months to the end of December 2009 shows that its revenue from continuing operations has risen to £36m from £30.4 last time.

It also made a pre-tax profit of £300,000 in 2009 compared to a loss of £23.7m in 2008.

Over the same period, its Regeneration and Homes division made an operating loss of £1.5m – compared to a loss of £11.7m in 2008 – on the sale of 101 properties.

But the average price of these houses was £134,000 which was up from £101,000 in 2008.

Its strategic land division made an operating profit of £2.4m after selling two pockets of land in Southern England.

Chairman Dermot Gleeson saidd: “Although very limited in scale, there have been signs of a modest improvement in house buyer interest since the year end and Gleeson Regeneration and Homes is now seeking selectively to acquire new low cost development sites in areas in the North of England where there are opportunities to take advantage of much reduced land values.

“Gleeson Strategic Land completed two profitable land sales in the South of England.

“It is still too early to be confident that the modest improvement in the housing market referred to above heralds a sustained recovery. 

“However, the group continues to have a strong balance sheet and costs across the Group have been substantially reduced without compromising the quality and effectiveness of the group’s skill base. 

“Accordingly, the group is well-placed to withstand, if necessary, a prolonged further period of weak demand and to resume profitable growth once confidence and liquidity return to the market.”