MJ Gleeson's homes sales soar

MJ Gleeson Group on Friday reported a 65 per cent increase in sales of homes in the UK during the last half of 2012 despite a tough housing market.

MJ Gleeson Group on Friday reported a 65 per cent increase in sales of homes in the UK during the last half of 2012 despite a tough housing market.

In a trading update ahead of its half year results ended December 31st, the company said its unit Gleeson Homes made £33.2m in the sales of reserved, contracted and completed homes.

It sold 164 private development homes during the period, an increase of 53% compared with the previous year's total of 107.

With the inclusion of units sold to Housing Associations, sales for the period totalled 165 homes, compared to 130 in 2011.

The UK Government's FirstBuy scheme, which provides support to first-time buyers by way of a 20% equity loan, helped boost business.

Gleeson recently secured an additional £2.0m in funding from the scheme, which will assist about 170 first time buyers.

Another factor driving sales was demand for green field residential land in the South of England from the major housebuilders.

During the period its division Gleeson Strategic Land sold three sites, with a combined acreage of 13 acres.

Planning permission was also achieved on a 133-unit site at Grove, Oxfordshire and an 18-unit site at Hunston, West Sussex. The sites will be marketed for sale in 2013.

Jolyon Harrison, Chief Executive, said: "The performance in the first half of the financial year of both Gleeson Homes and Gleeson Strategic Land is encouraging, with profits expected to be significantly ahead of last year.

"The housing market remains challenging. The group, however, remains on track to deliver a strong and sustained improvement in its performance."

Shares rose 5.16% to 183.25p at 9:14 Friday.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
The FTSE 100 has clawed back above 7,000 – how much higher can it go?
UK stockmarkets

The FTSE 100 has clawed back above 7,000 – how much higher can it go?

The FTSE 100 index has risen to over 7,000 for the first time in over a year – it now sits just above where it was in 1999. But its era of neglect cou…
19 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021