MJ Gleeson FY to beat market views amid 'strong' demand

In a very brief update, the company said strong demand for new homes has led to higher selling prices, "which has more than offset recent increases in certain material costs". In addition, demand for high-quality consented land from large and medium-sized housebuilders has returned to pre-Covid levels.

Gleeson is scheduled to release an update following the year end in July.

At 0815 BST, the shares were up 3% at 888.67p.

House broker Liberum, which rates the shares at 'buy', lifted its price target to 1,060p from 1,000p.

"Over 60% of Gleeson’s customers are key workers, and circa 80% first-time buyers. Most of these will have found deposit accumulation easier over the last year. We see over 20% upside to our raised target price, based on valuing Homes as a growth business and Strategic Land as a perpetuity.

"We expect a five-year compound annual growth rate of 15% for Homes’ completions to 2022 despite the pandemic."