Gleeson snaps up cheap northern land
Urban regeneration specialist Gleeson has bolstered its landbank on the back of low prices while boosting operating profits up to £3.3 million and holding revenue steady.
In its full-year results to 30 June 2012, the firm posted revenue of £41.9m, up from £41.4m the year before.
Gleeson Homes returned to the black, posting an operating profit of £0.3m, up from a £0.4m loss last year, while three PFI investment sales generated £7.5m in proceeds.
The housing business also increased private developments sold by 50 per cent, while the firm said it had taken advantage of low land prices in the North to build up a landbank of more than 3,790 plots.
Forward orders stood at £10.8m in July, with reservations up for the year by 66 per cent.
MJ Gleeson Group chairman Dermot Gleeson said: “The group enjoys a very strong and competitive presence in the two sectors of the market on which it now concentrates: low-cost housing development on brownfield sites in the North and the promotion through the planning system and subsequent sale of high-value greenfield sites in the South.
“In consequence, the board is confident that, barring a further severe downturn in the UK economy generally, the group will continue to grow profits in the current year and beyond.”
Gleeson aims to generate cash in the second half of the year with house sale revenue expected to rise, along with an expected slowdown in the growth of its landbank, and hopes to restart regular divident payments in 2013.