Turnover nears £250m at MJ Gleeson

Turnover nears £250m at MJ Gleeson

Turnover has grown to almost £250m at MJ Gleeson, boosted by a record performance from both its housebuilding and strategic land businesses.

The listed company reported revenue of £249.9m for the year ended 30 June 2019, up 27 per cent from £196.7m in 2017/18.

Pre-tax profit also grew by 11 per cent to £41.2m from £37m the year before.

Gleeson Homes sold 1,529 units during the period, up 25 per cent from 1,225, with the average selling price also increasing to £128,900 from £125,200.

Gleeson Strategic Land completed nine land sales during the year. It now has a portfolio comprising 60 sites with the potential for 21,730 plots. MJ Gleeson has now made the decision to retain this business within the group, having revealed earlier this year that it was considering options, including a potential sale.

Dermot Gleeson, chairman of MJ Gleeson, said: "Record volume growth in Gleeson Homes and record profit levels in Gleeson Strategic Land resulted in strong group profit growth.

"Despite the uncertainties caused by Brexit, demand for our homes continues to be extremely strong. Gleeson Homes is well on track to deliver its milestone target of doubling annual completions to 2,000 units by 2022. Led by a strong and highly experienced management team, the division continues to have significant scope for expansion by building low-cost homes for young, first time buyers and low-income families in a market that is underserved by other housebuilders.

"Following a review of options, we have concluded that retaining Gleeson Strategic Land offers significantly greater long-term value to the group than selling the business. The division had a record year and continues to benefit from high levels of demand for consented land in prime locations from both large and medium-sized housebuilders."