MJ Gleeson plc
(“the Company” or “the Group”)
(GLE.L)
Re DLUHC pledge
Following extensive discussions between the housebuilding sector and the Department for Levelling Up, Housing and Communities (“DLUHC”), in respect of remediating those buildings with life-critical fire-safety issues, the Company welcomes the resolution that has been reached.
DLUHC has requested that 53 companies in the sector, including MJ Gleeson, sign a Pledge confirming that they will take responsibility for performing or funding mitigation works to address life-critical fire-safety issues on buildings over 11 metres in which the Company had some involvement in developing and to secure withdrawal of those buildings from the Building Safety Fund and ACM Funds. The Board confirms that it has signed the Pledge and returned it to DLUHC in good faith.
The Company was involved in the development of 15 buildings over 11 metres (none of which were over 18 metres) before exiting from its legacy businesses and dedicating itself to low-cost housebuilding and land promotion.
The Board is not aware of any material fire-safety issues in respect of the 15 buildings it was involved in. However, it feels that in signing the Pledge and by accepting its accompanying commitments, it is prudent to undertake a further assessment of each of the 15 buildings to determine that this remains the case. The Board aims to conclude the assessment by 30 June 2022. Should any remedial works at any of the buildings be required under the expanded scope of the Pledge, the Company will notify the market as appropriate.
James Thomson, Chief Executive of MJ Gleeson plc commented:
“Leaseholders should not have to pay for any costs associated with life-critical fire-safety issues and I support the Government's efforts to engage the wider industry in remediating buildings made unsafe by life-critical fire-safety issues. The housebuilding sector has responded positively to this initiative and is playing a proactive role and at significant cost. We will continue to work constructively with DLUHC and the wider sector to ensure that this issue is resolved expeditiously.”