MJ Gleeson, the community regeneration housebuilder and strategic land specialist, reports another strong performance for the year to the end of June with revenue up 20.8% and profit before tax up 63.0%.
Gleeson Homes sold 904 units sold (2015: 751 units) at an average selling price of £125,700 (2015: £123,750).
Operating profits increased to £19.5m (2015: £17.4m). The land pipeline, including conditionally purchased sites, totals 9,284 plots (2015: 7,496 plots).
Gleeson Strategic Land made an operating profit of £10.2m (2015: £8.1m) driven by increase in transactions during the year.
Seven land sales were completed during the year for 191 acres of residential and commercially developable land and five new sites were secured during the year. Portfolio at year end: 68 sites comprising 3,843 acres.
A final dividend of 10.0 pence per share is proposed (2015: 7.3 pence per share), resulting in total dividend for the year up 45% to 14.5 pence per share (2015: 10.0 pence per share).
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.
"Gleeson Homes continues to see strong customer demand for its low cost homes. The opening of two new regional offices and the increase in its land pipeline to 9,284 plots will enable the division to continue to grow in what remains a strong market for low cost homes in the North of England. We have commenced rolling out our distinctive and highly successful business model across a wider geographic area. The potential number of purchasers of Gleeson Homes in this wider area is three times the comparable figure within our current market.
"Similarly, Gleeson Strategic Land continues to see strong demand for consented land in prime locations from a wide range of housebuilders. The division has a strong pipeline of sites, predominantly in the South of England, covering 3,843 acres (2015 3,936 acres), and expects to continue to enjoy a high level of success in promoting commercially attractive sites through the planning system.
"The Board has every confidence in the Group's outlook in both the short and longer term."