Gleeson doubles profit, plans dividend payment

Housebuilder and land dealer MJ Gleeson said annual pre-tax profit more than doubled as it underlined its confidence in future trading by saying it hopes to resume dividend payments in 2013.

Pre-tax profit rose to £3.6m for the year to June 30th from £1.6m during the same period a year earlier. Operating profit increased to £3.3m during the period from £0.9m before. Revenue climbed to £41.9m from £41.4m.

The group said that unless there is a further severe downturn in the UK, the group will continue to grow profits in the current year and beyond.

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Gleeson Homes returned to profitability, posting an operating profit of £0.3m compared to a loss of £0.4m earlier.

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 brown field sites in the North of England; and the promotion through the planning system and subsequent sale of high value green field sites in the South."

"The prospect of rising revenue from house sales combined with a planned reduction in the rate of growth of the land bank means that the group expects to become cash generative in the second half of the current financial year and, broadly, to remain so for the foreseeable future."

Underlining its confidence in future trading, Gleeson said it hopes to be able to restart regular dividend payments in 2013.

CJ