MJ GLEESON PLC

Business and Financial Review • Jan 11, 2013

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RNS Number : 3136V

Gleeson(M J)Group PLC

11 January 2013

11 January 2013

MJ GLEESON GROUP PLC

TRADING UPDATE

MJ Gleeson Group plc (GLE.L) is today issuing the following Trading Update ahead of its Half Year Results to 31 December 2012, which will be released on Thursday 28 February 2013. 

Gleeson Homes

Gleeson Homes sold 164 private development homes during the period, an increase of 53% compared with the previous year's total of 107.  With the inclusion of units sold to Housing Associations, the total for the period is 165 homes, compared to 130 in the comparable period.

Total sales, comprising reserved, contracted and completed homes, rose by 65% to £33.2m.

The Government's FirstBuy scheme, which provides support to first time buyers by way of a 20% equity loan, has been very popular with our customers.  We have recently secured an additional allocation of £2.0m of FirstBuy funding, which will provide assistance to about 170 first time buyers.

During the period Gleeson Homes has continued to increase its landbank of plots with the addition of 331 plots.  The landbank of plots at 31 December comprises 2,099 plots owned with a further 1,530 plots conditionally purchased, which, if acquired, will increase the landbank to in excess of 3,600 plots.

Gleeson Strategic Land

Demand for green field residential land in the South of England from the major housebuilders remains strong.  During the period Gleeson Strategic Land sold three sites, with a combined acreage of 13 acres. 

Contracts were exchanged for the sale of the first phase of a 77 acre site in Thanet, in which the Group has 50% interest.  The works to install the infrastructure for the whole of the site have now commenced.

During the period, planning permission was achieved on a 133 unit site at Grove, Oxfordshire and an 18 unit site at Hunston, West Sussex.  Both sites are being marketed for sale in 2013.

The strategic land portfolio continues to be replenished. During the period, agreements were entered into regarding six new sites, comprising 126 acres.

The Group's cash balances at 31 December 2012 stood at £10.4m.

Jolyon Harrison, Chief Executive, commented:

"The performance in the first half of the financial year of both Gleeson Homes and Gleeson Strategic Land is encouraging, with profits expected to be significantly ahead of last year.  The housing market remains challenging.  The Group, however, remains on track to deliver a strong and sustained improvement in its performance."

Enquiries:

M J Gleeson Group plc                                                                       

Jolyon Harrison                       Chief Executive Officer           0114 261 2900

Alan Martin                              Chief Financial Officer            01252 360 300   

Notes to Editors

MJ Gleeson Group plc operates in the house building sector through the following business units; Gleeson Homes, which focuses on estate regeneration and housing development on brownfield land in the North of England; and Gleeson Strategic Land, which purchases options over land in the South of England with the objective of enhancing the value of the site concerned by securing residential planning permission.

This information is provided by RNS

The company news service from the London Stock Exchange

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