MJ Gleeson sees FY results at top end of expectations

Housebuilder MJ Gleeson said on Wednesday that its full-year results are likely to exceed the top end of expectations amid strong demand, as it announced plans to double housing completions within the next five years.

The company, which is due to report its full-year preliminary results in September, said Gleeson Homes sold 1,013 homes during the year, up 12.1% from the previous year's total of 904. Meanwhile, reservations in the last six months were 45% higher than the same period last year.

The land pipeline of owned and conditionally purchased plots at the end of June rose by 24.8% compared to the prior year, totalling 11,588 plots, of which 6,268 plots have been purchased subject to planning permission. In addition, there are a further 465 plots in the pipeline to be acquired.

Chief executive officer Jolyon Harrison said: "Gleeson Homes begins the current financial year in its strongest ever position, demand remains strong as is evidenced by the queues forming at site openings and reservations are at record levels.

"We ended the financial year having achieved our interim target of building 1,000 homes per year and are setting a new target of doubling that number within five years."

Harrison said Gleeson Strategic Land also continues to experience strong demand from both large and mid-sized housebuilding customers for consented land.

Liberum expressed confidence that the company's plans to double housing completions is deliverable as the group has the land, sites and forward sales in place, as well as the track record of delivering growth.

"We are confident that demand will remain robust given pent-up demand and limited competition for its unique low cost homes. We have upgraded EPS estimates by 4-5% to reflect its volume ambitions as well as the stronger than expected outturn to 2017."

At 0920 BST, the shares were up 4.6% to 655p.