MJ GLEESON PLC

Management Reports • Nov 28, 2014

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 2753Y

Gleeson(M J)Group PLC

28 November 2014

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 2014 to 31 October 2014.

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

The market conditions for Gleeson Homes remain healthy, with strong customer demand in all of our regions. 

The business performed strongly during the period with 206 completions (2013: 132).  The current forward order book totals 360 units (2013: 275 units).  The Board expects to record an increase in completions in the year to 30 June 2015 of not less than 25% against the prior year total of 561 units.

The business currently has 40 active sites, compared with 33 in the corresponding period, with a further net 6 sites due to open by 30 June 2015.  Gleeson Homes currently has a land pipeline of 5,116 plots, of which 3,457 are owned and 1,659 are conditionally purchased, along with a further 1,700 further plots actively being considered.

The Government's Help to Buy schemes remains popular, with 45% of customers taking advantage of the scheme to assist in the purchase of their home. In addition, our own bespoke purchaser assistance packages continue to be attractive.

Gleeson Strategic Land

Gleeson Strategic Land consists of 66 sites, totalling 3,913 gross acres, which have the potential to deliver approximately 21,100 units.

The division performed in line with expectations during the period, enhancing its portfolio, progressing sites through the planning system, and benefiting from the continuing improvement in the prices that developers are willing to pay for green field residential land in the South of England.

There are currently eight sites with planning permission or a resolution to grant permission. Six of these sites, which will deliver 643 plots, are being progressed for sale in the current financial year.

In addition, there are 13 sites where the division is currently awaiting either the determination of a planning application or the outcome of a planning appeal.   It may also be possible to sell a number of these sites in the current financial year. 

Outlook

The Board expects results for H1 2014 to show a strong increase over H1 2013.  Based on the current level of trading in Gleeson Homes and the potential for further site sales in Gleeson Strategic Land in the second half, the Board now believes that the out-turn for the year to 30 June 2015 will exceed current expectations.

28 November 2014

Enquiries:

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

This information is provided by RNS

The company news service from the London Stock Exchange

END

IMSFMMZMVRNGDZG