MJ Gleeson plc, the low-cost housebuilder and strategic land specialist, is pleased to announce another strong performance with profit before tax up 12%, operating cash flow before dividends up 10% and a proposed final dividend of 23 pence per share, resulting in a total dividend for the year of 32 pence per share, an increase of 33%.
|
|
2018 |
2017 |
Change |
|
|
£m |
£m |
|
|
|
|
|
|
|
Revenue |
196.7 |
160.4 |
+23% |
|
|
|
|
|
|
Operating profit |
36.9 |
33.0 |
+12% |
|
|
|
|
|
|
Profit before tax |
37.0 |
33.0 |
+12% |
|
|
|
|
|
|
EPS |
55.6 |
48.5 |
+15% |
|
|
|
|
|
|
Operating cash flow before dividends |
21.6 |
19.7 |
+10% |
|
|
|
|
|
|
ROCE |
26.6% |
25.4% |
+120bps |
|
|
|
|
|
|
Dividend per share |
32.0p |
24.0p |
+33% |
|
|
|
|
|
|
Cash and cash equivalents |
41.3 |
34.1 |
+21% |
|
|
|
|
|
Another strong performance and a confident outlook
Gleeson Homes:
· Volumes up 21% to 1,225 units sold (2017: 1,013 units)
· Operating profit on unit sales up 20% to £26.2m (2017: £21.8m)
· Operating profit on land sales £nil (2017: £1.0m from two land sales)
· Average Selling Price £125,200 (2017: £122,700) due to higher selling prices and mix
· Land pipeline, including conditionally purchased sites, of 12,852 plots (2017: 11,588 plots)
· Substantial investment in new office locations and central support services
· On track to double sales to 2,000 units p.a. by 2022
Gleeson Strategic Land:
· Operating profit of £12.6m (2017: £12.0m) driven by increase in transactions
· Ten land sales completed during the year with the potential to deliver 1,970 residential plots
· Nine sites with planning consent or resolution to grant with the potential to deliver 2,089 plots
· Portfolio: 61 sites with the potential to deliver 22,838 plots
Final dividend proposed of 23.0 pence per share (2017: 17.5 pence per share), resulting in an increase in the total dividend for the year of 33.3% to 32.0 pence per share (2017: 24.0 pence per share).
Dermot Gleeson, Chairman of MJ Gleeson plc, said:
“Our twin track strategy – the development of low-cost homes for open market sale in the North of England and the Midlands and strategic land sales in the South – delivered another excellent year of increased volumes, profit and cash.
Gleeson Strategic Land had a record year and continues to benefit from high levels of demand for consented land in prime locations from both large and medium-sized housebuilders. The division has a strong portfolio of sites and anticipates that it will continue to maintain its very successful track record in promoting potentially high value developments through the planning system.
Gleeson Homes is on track to deliver its next milestone target of doubling annual completions of low-cost homes between 2017 and 2022 to 2,000 units. Led by a strong and highly experienced management team, who have created a very attractive land pipeline, the division's scope for expansion continues to be underpinned by strong demand from our customers who aspire to home ownership but who are ill-served by the majority of housebuilders.
Against this background, the Board is confident that the Group's unique business model will continue to deliver significant growth in both revenue and profits in the current year and beyond.”