MJ Gleeson PLC Trading Update & Notice of Results (5963M)
January 13 2023 - 2:00AM
UK Regulatory
TIDMGLE
RNS Number : 5963M
MJ Gleeson PLC
13 January 2023
MJ Gleeson plc
(GLE.L)
13 January 2023
Trading Update & Notice of Results
("the Company" or "the Group")
MJ Gleeson plc, the low-cost housebuilder and land promoter,
provides a trading update for the half-year ended 31 December 2022
(the "period"). The Company will report results for the period on
Thursday, 16 February 2023.
Graham Prothero joined the Board as CEO on 1 January 2023,
succeeding James Thomson who replaced Dermot Gleeson as
Non-Executive Chairman.
Gleeson Homes completed the sale of 894 homes during the
half-year, 4.1% fewer than the half-year to 31 December 2021. This
reflected the weaker market and considerably higher mortgage costs
as a consequence of the mini-budget in September 2022. Despite
this, selling prices have remained stable.
Cancellation rates reduced during the six weeks to Christmas,
with only 6.5 plot cancellations per week compared to 11.5 plot
cancellations per week in the previous six weeks to mid-November.
Gross reservations during the seasonally quieter six weeks before
Christmas were 22.2 per week, 25% lower than the 29.5 gross
reservations per week in the same period last year.
The Company is continuing to successfully secure land which
meets strict hurdle rates whilst tightly managing working capital
on both land purchases and new build sites until the pace of the
market's recovery becomes clearer. Net cash balances at 31 December
2022 were GBP13.5m (31 December 2021: GBP38.2m).
Gleeson Homes acquired three sites during the period and opened
three new build sites. The division had 87 active build sites (31
December 2021: 83) and was actively selling on 68 sites (31
December 2021: 60) and the Company expects to be selling on circa
66 sites by 30 June 2023.
Gleeson Land sold one site during the period. The business has
had several recent planning successes, and a further three sites
are being actively progressed for sale. Gleeson Land is continuing
to see strong demand for high quality consented land from
housebuilders looking beyond the current wider uncertainty in the
housing market.
Gleeson Homes enters the second half of the financial year with
a forward order book of 319 plots (31 December 2021: 616 plots).
However, we are cautiously optimistic of a recovery during 2023,
due to a number of factors, including that mortgage rates continue
to fall from the highs experienced in October 2022, and the need
for low-cost, high-quality homes remains acute. A couple earning
the National Living Wage (which is set to increase by 9.7% on 1
April 2023) can still afford to buy a home on any one of our sites.
In addition, there continues to be growing interest from new
customers who might previously have considered a more expensive
property built by another developer but in the current economic
environment are attracted by Gleeson's more affordable price
points.
As previously stated, the outturn for the current financial year
is dependent upon the pace of recovery in the housing market over
the coming months. A further update will be provided with the
interim results on 16 February 2023.
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of the company is Stefan Allanson, Chief Financial
Officer.
LEI: 21380064K7N2W7FD6434
Enquiries:
MJ Gleeson plc Tel: +44 1142 612 900
Graham Prothero Chief Executive Officer
Stefan Allanson Chief Financial Officer
Hudson Sandler Tel: +44 20 7796 4133
Mark Garraway Tel: +44 7771 860 938
Charlotte Cobb Tel: +44 7795 422 131
Singer Capital Markets Tel: +44 20 7496 3000
Shaun Dobson
Liberum Tel: +44 20 3100 2222
Neil Patel
Kate Bannatyne
About MJ Gleeson:
MJ Gleeson plc is the leading low-cost, affordable housebuilder
listed on the London Stock Exchange. Gleeson Homes' customers are
typically young, first-time buyers, with a median income of
GBP25,000. Its two-bedroom homes start from around GBP115,000.
Gleeson's vision is "Building Homes. Changing Lives", prioritising
areas where people need affordable housing the most.
Buying a Gleeson Home often costs less than renting a similar
property. All Gleeson homes are traditional brick built semi or
detached homes which include a driveway and front and rear gardens.
Gleeson offers a wide mix of layouts with two, three or four
bedrooms.
Gleeson Land is the Group's land promotion division, which
identifies development opportunities and works with stakeholders to
promote land through the residential planning system.
As a high-quality, affordable housebuilder, Gleeson has strong
and inherent sustainability credentials. Its social purpose
underpins the Company's strategy, and Gleeson measures itself
closely against UN SDGs 5, 8, 11, 12, 13 and 15.
More details on the Company's sustainability approach can be
found at: mjgleesonplc.com/sustainability/
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