MJ GLEESON PLC

Business and Financial Review • Nov 19, 2013

National Storage Mechanism | Additional information

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RNS Number : 3443T

Gleeson(M J)Group PLC

19 November 2013

Gleeson (MJ) Group PLC

(GLE.L)

Interim Management Statement

Gleeson (GLE.L), the urban regeneration and strategic land specialist, announces its Interim Management Statement, covering the period from 1 July 2013 to 31 October 2013.

Gleeson has two divisions:

·      Gleeson Homes An urban regeneration specialist in the North of England, with a particular focus on low cost family homes

·      Gleeson Strategic Land A strategic land promotion business, mainly in the South of England, that enhances the value of land through the planning process and sells it to developers

Gleeson Homes

Gleeson Homes saw a strong performance during the period with 132 completions (2012: 60) and 253 reservations (2012: 150).  With a forward order book currently comprising 275 units, the Board expects to record an increase in completions in the year to 30 June 2014 of not less than 25% against the prior year.

The business currently has 33 active sites, compared with 27 in the corresponding period. Gleeson Homes is in active discussions regarding the acquisition of a further 20 sites which, if purchased, will add 1,980 plots to the regeneration land pipeline, taking the total number of plots to in excess of 5,860.

Around 25% of completions during the period were achieved on a shared equity basis, with around 16% using the Government's "Help to Buy" initiative, a proportion which is expected to increase moderately as more of our customers choose to take advantage of this popular scheme.

Gleeson Strategic Land

Gleeson Strategic Land continued to perform in line with expectations during the period, enhancing its portfolio and progressing sites through the planning system. In line with increasing activity in the housing market, there has been a further improvement in the prices that developers are willing to pay for green field residential land in the South of England.

The business achieved planning permission on three sites which will deliver a combined total of 380 units.  In addition, ten planning applications with the potential to deliver a total of 927 units were submitted during the period; and the business is also in negotiations regarding a further six sites, totalling 1,030 units.

The planning system continues, in some local authority areas, to be characterised by lengthy and unnecessary delays.  Nonetheless, Gleeson Strategic Land expects to see a significant increase in the year to 30 June 2014 in total sales revenue compared to the prior year.

Outlook

The Board expects results for H1 2014 to show a strong increase over H1 2013.  With an expected 25% increase in completions in Gleeson Homes overall in the current financial year, the Board now believes that the out-turn for the year to 30 June 2014 will significantly exceed current expectations.

19 November 2013

Enquiries:

MJ Gleeson Group plc		Tel: +44 1252 360 300
Jolyon Harrison	Chief Executive Officer
Alan Martin	Chief Financial Officer
College Hill		Tel: +44 20 7457 2020
Mark Garraway
Helen Tarbet
N+1 Singer
Shaun Dobson		Tel: +44 20 7496 3000
Jenny Wyllie

This information is provided by RNS

The company news service from the London Stock Exchange

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