MJ Gleeson hikes dividend as land sales boost annual results

Urban regeneration and land trading group MJ Gleeson reported an increase in annual pre-tax profits and revenues, on the back of strong land sales and a solid housing market.

In the 12 months to 30 June, pre-tax profit surged 41.8% year-on-year to £17.3m, while revenue jumped 44.4% to £117.6m, boosted by an increase in the number of units sold by its Gleeson homes business, which rose from 561 to 751 in the period.

Revenue was also boosted by a 1.8% increase in the average selling price of the units to £123,750, while the land pipeline for the homes division rose from 5,065 plots to 7,496 plots.

Gleeson added the profit in its strategic land unit almost doubled to £8.1m, as the firm acquired eight sites for its portfolio after completing the sale of another three.

"Our twin track strategy - the development of low-cost homes for open market sale in the North of England and strategic land sales in the South - continues to deliver excellent results, which provide strong grounds for optimism concerning the group's future prospects," said group chairman Dermot Gleeson.

"Following a robust start to the year, the board believes the group has scope to deliver results for the full year towards the upper end of expectations."

The London-listed company added it will pay a final dividend of 7.3p per share, a 48.9% year-on-year increase, while the total dividend rose 67% from the corresponding period in 2014 to 10.0p.