Interim Management Statement

RNS Number : 1489M

Gleeson(M J)Group PLC

19 May 2010

 



Wednesday 19 May 2010

 

M J GLEESON GROUP PLC

INTERIM MANAGEMENT STATEMENT

Gleeson (GLE.L), the urban regeneration and strategic land specialist, announces its Interim Management Statement, covering the period from 1 January 2010 to 19 May 2010, in accordance with the UK Listing Authority's Disclosure and Transparency Rules.

Our Operations

Gleeson operates:

·      as a housebuilder, mainly in the North of England, with a particular focus on the physical, social and economic regeneration of urban areas in partnership with or for public bodies;

·      a strategic land development business, mainly in the South of England, that enhances the value of land, principally held under option, through the planning process;

·     a facilities management business, mainly in the North of England, that focuses on the long-term planned and reactive maintenance programmes of housing and property owning organisations; and 

·      a specialist business unit that takes the lead in developing PFI opportunities that bring work to the Group's housebuilding and facilities management businesses. 

In the period, the Group completed the disposal of the remaining commercial property developments.

Gleeson Regeneration & Homes

The modest improvement in market conditions referred to in the Chairman's Statement accompanying the half year results has been maintained.  Buyer interest remains at higher levels and there have been some signs of improvement in mortgage availability, although most lenders continue to require a low loan-to-value ratio.

Private completions are ahead of the comparable period last year with selling prices generally stable and on some sites showing improvement.  A review of house designs took place in the period, resulting in a consolidation of the number of house designs the Group will construction in the future, which has helped to improve the efficiency of supply chain management and to achieve a significant reduction in build costs.  Construction on sites is increasing but remains strictly tied to sales rates.  In the period, the Group acquired one new low cost development site in the North of England and further land acquisitions are anticipated.

Gleeson Strategic Land

As expected, Gleeson Strategic Land did not sell any sites with planning permission during the period.  However, as shown by the sales achieved in the first half of the year, the demand for development land from housebuilders has increased and further sites are likely to be sold before the financial year end.

Gleeson Capital Solutions

Gleeson Capital Solutions continues to progress potential PFI opportunities and is one of two final bidders on a PFI social housing prospect in the North of England.

Powerminster Gleeson Services

Powerminster Gleeson Services continues to be profitable and cash generative and is managing to maintain margins within a sector which is becoming more competitive.

Group financial position

The Group's strong balance sheet enabled the payment of a special dividend in March 2010 of £7.9m.  The cash balance at 30 April 2010 was £12.4m.  If there had been no special dividend, this would have matched the cash balance at 31 December 2009.

Outlook

The Group expects trading to remain stable.  However, a sustained upturn in house sales must await a further increase in both mortgage availability and consumer confidence.  Meanwhile, the Group will continue to focus on rigorous cost control and on the acquisition of low cost land in the North of England in order to provide growth opportunities once more normal conditions return.

M J Gleeson Group plc Integration House Rye Close Ancells Business Park Fleet Hampshire   GU51 2QG

By order of the Board Dermot Gleeson Chairman

Enquiries:

M J Gleeson Group plc                                                                                        01252 360 300

Chris Holt (Group Chief Executive)

Alan Martin (Group Finance Director)

 

END

 

 

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