MJ Gleeson backs 2020 expectations amid 'strong' demand

In an update ahead of its annual meeting, the company said demand at Gleeson Homes was strong, with net reservations since the start of the year to 30 June 2020 up more than 10% compared to the same period last year.

Gleeson said land continues to be available at "sensible" prices and the pipeline remains "strong".

The homes business has a pipeline of 13,042 plots with a gross development value of £1.7bn, of which 6,910 plots are owned and 6,132 are conditionally purchased.

"Strong demand, good mortgage availability and our ability to offer attractive levels of affordability to our customers, means the outlook for the division remains very positive," it said.

Gleeson Homes is expected to post a 10% increase in completions for the half year to the end of December 2019 and a 10% rise in completions for FY2020.

The company also said its Strategic Land segment continues to experience strong demand for consented land, with the majority of the division's land sales expected in the second half of FY2020.

"Accordingly, and in line with our expectations, results for the first half are expected to be lower than the unusually high results for the first half last year," it said.

Gleeson said the division's land pipeline currently consists of 64 sites with the potential to deliver about 22,175 plots. The portfolio includes 10 sites which now have planning permission.

"Against this background the board remains confident that the group's results for FY2020 will be in line with expectations," it said.

At 1300 GMT, the shares were down 0.8% at 811.68p.