Strong performance across the Group and confident in outlook
Gleeson Homes:
· Operating profit increased to £22.8m (2016: £19.5m)
· 1,013 units sold (2016: 904 units)
· Average Selling Price £122,700 (2016: £125,700) due to completion of the final legacy site and mix
· Target to double unit sales to 2,000 p.a. within 5 years
· Land pipeline, including conditionally purchased sites, of 11,588 plots (2016: 9,284 plots)
Gleeson Strategic Land:
· Operating profit of £12.0m (2016: £10.2m) driven by increase in transactions during the year
· Eight land sales completed during the year with the potential to deliver 841 residential plots
· Planning consent secured during the year for 1,495 residential plots
· Portfolio: 65 sites with the potential to deliver 21,505 plots
Final dividend of 17.5 pence per share proposed (2016: 10.0 pence per share), resulting in total dividend for the year up 66% to 24.0 pence per share (2016: 14.5 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 strategic land sales in the South – delivered another excellent year of increased volumes, margins, profit and cash.
Gleeson Homes achieved its milestone target of 1,000 unit sales per annum and has set a new milestone target of 2,000 unit sales per annum within the next 5 years. Affordability remains very attractive and demand exceeds supply, with buyers queueing on site opening days. The division opened another area office in Nottinghamshire, bringing the total number of area offices to seven plus two pilot offices, and has a pipeline of owned and conditionally purchased sites containing 11,588 plots, equivalent to more than 11 years of sales at current build rates.
Gleeson Strategic Land also had a record year and continues to benefit from strong demand for consented land in prime locations from both medium sized and large housebuilders. The division has a strong pipeline of sites, predominantly in the South of England, which have the opportunity of developing 21,505 plots, and anticipates continuing to enjoy a high level of success in promoting commercially attractive sites through the planning system.
The Board is confident in the Group's short and longer term outlook.”