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MJ Gleeson Plc - Final Results 2019



Audited results for the year ended 30 June 2019


MJ Gleeson plc, the low-cost housebuilder and strategic land specialist, is pleased to announce another strong performance with profit before tax up 11%, earnings per share up 10% and a proposed final dividend of 23.0 pence per share, resulting in a total dividend for the year of 34.5 pence per share, an increase of 8%.


















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Another strong performance and a confident outlook


Gleeson Homes:

  • Volumes up 25% to 1,529 units sold (2018: 1,225 units)
  • Operating profit on unit sales up 15% to £30.1m (2018: £26.2m)
  • Average Selling Price £128,900 (2018: £125,200)
  • Land pipeline, including conditionally purchased sites, of 13,575 plots (2018: 12,852 plots)
  • Well on track to achieving target of 2,000 units p.a. by 2022


Gleeson Strategic Land:

  • Operating profit of £13.0m (2018: £12.6m)
  • Nine land sales completed during the year
  • Nine sites with planning consent or resolution to grant with the potential to deliver 2,929 plots
  • Portfolio: 60 sites with the potential to deliver 21,730 plots
  • Board decision to keep Strategic Land within the Group


Dermot Gleeson, Chairman of MJ Gleeson plc, said:

 "Our unique business model of building low-cost homes in the North of England and the Midlands and strategic land sales in the South continues to deliver outstanding results. Record volume growth in Gleeson Homes and record profit levels in Gleeson Strategic Land resulted in strong Group profit growth.

Despite the uncertainties caused by Brexit, demand for our homes continues to be extremely strong. Gleeson Homes is well on track to deliver its milestone target of doubling annual completions to 2,000 units by 2022. Led by a strong and highly experienced management team, the division continues to have significant scope for expansion by building low-cost homes for young, first time buyers and low-income families in a market that is underserved by other housebuilders.

Following a review of options, we have concluded that retaining Gleeson Strategic Land offers significantly greater long-term value to the Group than selling the business. The division 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 successful track record in promoting potentially high value developments through the planning system.

Against this background, the Board is confident that the Group will continue to deliver significant growth in both revenue and profits in the current year and beyond."