First half profits rocket 190% at MJ Gleeson
URBAN regeneration homebuilder MJ Gleeson saw profits jump almost 190% year-on-year in the six months to 31 December.
The company, which builds affordable properties under its Gleeson Homes brand, recorded £11.3m pre-tax profit in the first half of its financial year, up from £3.9m on 2014/15.
Revenue was up 52.1% to £64.8m, while earnings per share jumped 175.3% to 16.6p. The firm’s interim dividend was 4.5p, up from 2.7p the previous year.
The Sheffield-based builder saw its unit sales in Gleeson Homes up 25.6% to 400. Gross margin rose from 28.8% to 30.6%. Average selling price rose £400 to £125,000, in line with the company’s strategy of producing affordable and starter homes, predominantly in the north of England.
Its Strategic Land division saw operating profit rise from £700,000 in H1 2014/15 to £4.2m this financial year. The business, which acquires and prepares land for sale to other developers in the South, sold four sites totaling 151 acres in H1.
Dermot Gleeson, chairman of MJ Gleeson, said the business plans to maintain growth through expansion in existing and new geographic areas.
“We have identified a location for a new regional office in Liverpool which is set to open in the second half of the financial year,” he said. “Land continues to be available at sensible prices and demand for low cost homes remains strong.
“In Strategic Land, we are seeing a more balanced phasing of sales over the course of the financial year.”
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