Gleeson has scraped into the black with a £300,000 half year pre-tax profit, after making a loss of £23.7m a year ago.
The firm’s turnover for the six months to 31 December 2009 increased 17% to £36m from £30.6m thanks chiefly to an increase in the average price of its home.
Gleeson Regeneration & Homes, which operates predominantly in the northern England, sold 101 homes in the reporting period at an average of £134,000 compared to 150 at £101,000 in the previous year.
Gleeson chief executive Chris Holt said: “We are out of the commercial market altogether now.
“Our focus is on regeneration and homes and our strategic land business. There is definitely demand out there, but then people visit their mortgage lender and it becomes tough.
“We did 101 units over the last six months and we will probably do slightly less than that in the next six months. A huge amount depends on the Spring selling season and the upcoming General Election.”
The group has now left the commercial market completely following the sale of its two remaining property developments.
Chairman Dermot Gleeson said: “Although very limited in scale, there have been signs of a modest improvement in house buyer interest since the year end and Gleeson Regeneration & Homes is now seeking selectively to acquire new low cost development sites in areas in the North of England where there are opportunities to take advantage of much reduced land values.
“It is still too early to be confident that the modest improvement in the housing market referred to above heralds a sustained recovery.
“However, the group continues to have a strong balance sheet and costs across the group have been substantially reduced without compromising the quality and effectiveness of the group’s skill base.”egy for our southern based business, bringing land acquisition opportunities with attractive potential returns to fruition.
“The market for construction is challenging but our quality order book and the spread and depth of our industry leading business across its market sectors continue to be key strengths that will enable us to respond quickly to a market upturn once it occurs.”