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MJ Gleeson Reports Strong Profit Rise

House building and development firm MJ Gleeson has reported a strong rise in profits and turnover for the last year.

For the year up to June 30, 2016, MJ Gleeson posted a £28.2 million profit before tax, which is a 63% rise on the previous year’s £17.3 million, on revenue up 21% to £142.1 million (from £117.6 million last year).

The Gleeson group is made up of two businesses: strategic land trading, mainly in the south of England and housebuilding on brownfield land in the north of England.

The operating profit at Gleeson Homes rose to £19.5 million (up from £17.4 million last year) and the average selling price was £125,700 (from £123,750 in 2015).

During the year, Gleeson sold 904 new homes (751 in 2015) which has put its 1,000 a year target firmly in sight.

The board said: “We expect to reach this target, on an annualised run rate basis, during the financial year ending 30th June 2017. Once this milestone is reached, we will outline new medium term growth targets.”

The division’s land pipeline rose to a record high of 117 sites (97 in 2015), made up of 9,284 plots owned or conditionally purchased (7,496 in 2015). The board said that Gleeson Homes intends to start building low cost homes on every site as soon as planning permission has been obtained.

Chairman Dermot Gleeson 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 – goes from strength to strength, delivering increased margins, profits and cash.

“We are in a strong position to deliver further growth. Market demand remains strong and Gleeson Homes’ growing land pipeline provides the opportunity to open new sites in both existing and new regions in the north of England and the Midlands.”

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BDC 318 : Jul 2024