Interim Results - 6 Months to 31 December 1999

Gleeson(M J)Group PLC
23 March 2000


TELEPHONE CONTACT:            Dermot Gleeson, Chairman
0181 644 4321                 David Eyre, Group Managing Director
                              Colin McLellan, Finance Director

M J GLEESON GROUP PLC
1999/00 INTERIM STATEMENT
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS TO 31ST DECEMBER 1999
                                                                     
                                                               
                                Six             Six         
                             Months          Months            Twelve
                            to 31st         to 31st         Months to
                           December         December        30th June
                               1999            1998              1999
                          Unaudited        Unaudited          Audited
                                                                      
                               £000            £000              £000
Turnover                                                       
 -  Continuing Operations  141,091          121,307           298,103
                                                                    
Cost of sales             (128,299)        (111,643)         (271,305)        
                  
                           --------        ---------         ---------
                                                 
                                                                     
Gross profit                 12,792           9,664            26,798
Investment property           2,976           4,152             7,278
income                                        
Net operating              (10,586)          (8,659)          (18,946)
expenses                          
Share of profit less                                                 
losses of associated           403               -                529
undertakings
                           --------         -------           -------
                                  
Profit on ordinary            5,585           5,157            15,659
activities before
   interest
                                                                     
Interest Receivable     160             314             522          
Less:  Interest     (1,154)          (1,317)         (2,813)          
Payable                   
                    -------         -------         -------          
                      
                               (994)         (1,003)           (2,291)
                            -------          -------          --------
                                                  -
                                                                     
Profit on ordinary            4,591           4,154            13,368
activities before
taxation
                                                                     
                                                                     
Tax on profit on              1,377           1,288             3,846
ordinary activities
                            -------          -------           -------
                                                  -
Profit on ordinary            3,214           2,866             9,522
activities after
taxation
                                                                     
Dividends                       521             473             2,234
                            -------          -------           -------
Retained profit               2,693           2,393             7,288
                            =======          =======           =======
                                                                     
Earnings per share           31.76p          28.32p            94.08p
                            -------          -------           -------
Earnings per share -         31.75p          28.31p            94.04p
fully diluted
                            -------          -------           -------
                                                                     
Interim dividend per          5.15p           4.67p                  
share
                            -------         -------           

Summarised Consolidated Balance Sheet
As at 31st December 1999
                                      As at         As at       As at
                                   31.12.99      31.12.98    30.06.99
                                  Unaudited     Unaudited     Audited
                                                                     
                                       £000          £000        £000
                                                                     
Fixed assets                         88,972        83,838      88,784
                                    -------       -------     -------
Current assets                      159,560       140,923     138,984
                                                                     
Creditors: Amounts                                                  
falling due
                                  (119,521)     (106,129)   (101,449)
within one year
                                    -------      --------     -------
 Net current assets                  40,039        34,794      37,535
                                    -------      --------     -------
Total assets less current                                            
 liabilities                        129,011                   126,319
                                                  118,632
                                                                     
Provisions for                                                       
liabilities and
  charges                               255                       255
                                                      269
                                    -------       -------     -------
 Net Assets                         129,266       118,901     126,574
                                    =======       =======     =======

Summarised Consolidated Cash Flow Statement
for the six months to 31st December 1999

                              Six Months to  Six Months to     Twelve
                              31st December  31st December  Months to
                                       1999           1998  30th June
                                  Unaudited      Unaudited       1999
                                                              Audited
                                                               
                                       £000          £000        £000
                                                                     
Net cash (out flow) / in            (23,610)      (31,728)    (11,588)
flow from operating
activities
                                                                     
Dividends from joint                      0             0         489
ventures
                                                                     
Returns on investments                2,070         3,253       5,202
and servicing of finance
                                                                     
Taxation                                (31)         (461)     (3,160)
                                                                     
Capital expenditure and              (1,408)          386      (1,556)
financial investment                                  
                                                                     
Acquisitions and                          0             0      (2,030)
disposals                                               
                                                                     
Equity dividends paid                     0             0      (2,052)
                                                                     
Management of liquid                      0           (16)      5,978
resources
                                                                     
Financing                                 0            (2)     (4,946)
                                   --------       --------    --------
Increase in net debt                (22,979)       (28,568)   (13,663)
                                   ========       ========    ========

Notes

1.The interim statement was approved by the Board of
  Directors on 22nd March 2000.

2.The interim accounts have been prepared in
  accordance with the accounting policies adopted in the
  preparation of the accounts for the year ended 30 June
  1999 which are set out in the Company's Annual Report.

3.The abridged results for the 12 months to 30th June
  1999 do not constitute Statutory Accounts within the
  meaning of S240 of the Companies Act 1985. The Auditors'
  Report on these Accounts was unqualified and did not
  contain any statement under S237 Companies Act 1985.

4.The interim dividend will be paid on 30th June 2000
  to shareholders on the register on 5th June 2000.

5.In accordance with FRS 14, the earnings per share
  figure is based on a weighted average number of shares
  which excludes 99,500 shares on which dividends have been
  waived.

6.Copies of this interim announcement will be
  circulated to shareholders and will also be available
  from the Company Secretary at Haredon House, London Road,
  North Cheam, Surrey, SM3 9BS.



Chairman's Statement

Six Months to 31st December 1999

An  encouraging level of growth in turnover and operating profit  was 
achieved  across the  entire  range  of  the Group's interlinked and mutually
supportive operations in the property and construction sectors.

A  50% increase in the number of homes sold reflected not only a buoyant
housing market, but also the strong appeal to  purchasers  of properties on
our bespoke  schemes  in urban locations.  Gleeson Homes' excellent reputation
in this area was recently further enhanced by its success in winning  the
'What House?' Awards for both the UK's  best regeneration and also best
refurbishment schemes.

The  Engineering Division and the Specialist Subsidiaries performed  strongly,
whilst improved levels of demand  in both  the  public and private sectors
helped the Building Divisions to improve the quality of their order books.

Future Prospects

Looking  ahead, the Board believes the housing market  is likely  to remain
strong in most areas for some time  and anticipates  that  unit sales for  the
year  will  reach record levels.

The Group's much enlarged commercial property development programme is now
gathering pace and the value of property sales  in  the  second half of the
year  is  expected  to exceed £20m.

The   Engineering   Division  -  the   largest   of   the Construction
Divisions - is well positioned  to  continue to  benefit  from its very strong
presence in  the  water sector   where  recent  awards  include  two  five  
year partnering contracts for, respectively, Thames Water  and Yorkshire 
Water with a total anticipated value  of  over £250m.   The recent acquisition
of Mabey Construction,  a specialist  rail  contractor and service  provider, 
will assist  the Group in achieving its medium term  objective of 
establishing  a comparable presence  in  the  railway sector.

On the 20th March 2000 financial close was achieved on  a £45m   PFI   project
to design and construct a Cardiothoracic/Neurosciences Unit at St. George's
Hospital, Tooting in South London.

This  award  brings  the proportion of  the  Construction Divisions' current
workload either on a partnering  basis or for PFI consortia in which the Group
is an investor to over  80%.   In both cases our early involvement  in  the
design process facilitates effective risk management  and the protection of
margins.

Investment  income for the year as a whole  will  benefit from  an  increased 
return from  equity  stakes  in  PFI projects.   The property investment
portfolio,  including the  Group's  rented  residential  properties,  will  
be revalued at the year end.

Against  the background of the Group's highest ever  half year  results  and 
a  promising  outlook  for  all   its Divisions  and  Subsidiaries, the Board
is  declaring  an interim dividend of 5.15 pence per share - an increase of
10% over that distributed in 1998/99.