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2 July 2012
MJ GLEESON GROUP PLC
MJ Gleeson Group plc (GLE.L), the urban regeneration and strategic land specialist, is today issuing the following trading update following the end of its financial year on 30 June.
Gleeson Homes sold 406 homes during the year, an increase of 44% compared with the previous year's total of 279. The proportion of units sold on recently acquired, higher margin sites improved significantly compared to the prior year. Of the units sold, 75% were from the higher margin sites compared to last year's 31%. The higher proportion of profitable units sold, along with the increase in the volume of sales, substantially improved the profitability of the business unit for the year.
During the year Gleeson Homes remained very active in purchasing and starting on sites. On 30 June it had 34 open sites, compared to 28 sites at the commencement of the year. The landbank of plots at the year-end comprised 3,868 plots of which 1,240 plots are conditionally purchased. In addition, there are a further 2,000 plots which are in the pipeline to be acquired.
The forward order book for Gleeson Homes at 1 July 2013 totalled £25.9m representing 221 homes, an improvement of 141% on last year's total of £10.8m.
Gleeson Strategic Land
Gleeson Strategic Land continues to take advantage of the strong demand for green field residential land in the South of England from the major housebuilders.
During the year Gleeson Strategic Land disposed of seven sites on which it had obtained residential planning consents. These comprised 42.5 acres and delivered 439 plots for development. The disposals occurred in the business unit's core area of activity of Southern England.
The land portfolio continued to be replenished with good quality opportunities. Gleeson Strategic Land secured new option or promotion agreements on ten sites, comprising 203 acres with the potential to deliver a further 1,200 plots. A number of these new sites will be the subject of immediate planning applications and therefore have the potential to deliver profit in the short term.
The Group will deliver a level of profitability from the business units for the year ending 30 June 2013, materially ahead of market expectations. In addition to the strong trading performances of the business units, the Group will be recording an exceptional credit arising from the sale of its last remaining PFI investment, as previously announced, and the expected release of a prior year provision.
The Group continues to be in a strong cash position with cash balances at 30 June 2013 of £9.7m.
The Group plans to announce its preliminary results on Friday 27 September 2013.
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.
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