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Retrenched Gleeson safeguards profits

26 Sep 11 MJ Gleeson Group saw its revenues fall 11% in the year to 30 June 2011 " from £46.5m to £41.4m - but profitablity was boosted

Dermot Gleeson
Dermot Gleeson

Last year’s £300,000 operating loss became a £900,000 operating profit this time. Profit before tax was £1.5m (2010: £400,000).

Revenue for Gleeson Regeneration and Homes increased by 56% to £35.4m (2010: £22.7m).  Revenue for Gleeson Strategic Land fell from £10.5m to £5.8m.

Gleeson Commercial Property Developments, which contributed £13.2m in 2010, completed its disposal programme and made no revenue in the past year.

Chairman Dermot Gleeson said: "During the year, conditions in the housing market remained challenging.  However, the selling prices of new homes remained generally stable and towards the end of the period there was a welcome increase in the number of higher loan to value mortgages available for first time buyers.  Against this background, the group, which has net cash balances, continued to increase its selling outlets and residential landholdings in the north of England and to enter new option and promotion agreements with landowners in the south.

“The short term outlook for housing demand remains difficult to predict.  However, the board continues to be confident that the group's strategic focus on low cost brownfield  development in the north of England and on the promotion and sale of high value green field sites in the south, will ensure a strong and sustainable improvement in performance."

Retrenchment at Gleeson reduced the average number of employees during the financial year down to 100, compared with 285 the year before.

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