Gleeson outperforms expectations

Gleeson Homes has achieved its medium-term objective of doubling home sales within five years by completing the sale of 2,000 homes in the year to 30th June 2022.

This was 10.4% more than in the previous year, which had benefitted from delayed completions carried over from the first Covid-19 lockdown in spring 2020.

Home sales in the second half of the financial year (the first six months of 2022) were up 24% on last year.

Gleeson said that selling price increases had offset the ‘significant’ material and labour cost increases and the availability of labour and materials eased throughout the second half of the year.

The average selling price of Gleeson homes sold during the year increased by 14.7% to £167,300.

Its homes are also selling more quickly – 34 days from plot release to reservation, down from 49 days in the previous year.

Gleeson Homes opened 23 new build sites during the year, starting the new financial year in July with 87 sites (compared to 81 a year ago). This has been achieved despite the ongoing congestion in the planning system which continues to impact the time taken to obtain planning consent, agree pre-start conditions and acquire sites, the company said.

The group ended the year with cash balances of £33.8m and no debt (30 June 2021: £34.3m cash and no debt).

On the back of this, the board expects results for the financial year to 30th June 2022 to be ‘significantly ahead of market expectations’.

Chief executive James Thomson said: “This is a very strong out-turn for the year. I am particularly delighted that, by completing the sale of 2,000 homes during the year, we delivered on our strategic objective of doubling home sales within five years, meaning that we have been able to supply more affordable housing to those that need it most.

“We have started the new financial year in a strong position. Notwithstanding the ongoing congestion in the planning system and the wider macro-economic environment, the board believes that the scale of pent-up demand for low-cost homes will continue to drive significant growth into 2023 and beyond.”

MJ Gleeson is scheduled to report its audited full year results on 15th September 2022.

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