MJ Gleeson shares jump on dividend restart plan

The low-cost home builder said build and sales activity had returned to pre-coronavirus levels and that it expected all sites to continue operating. under the UK government's tiered system of restrictions.

The average selling price on new reservations since the start of the financial year has been 9% higher than a year earlier, the company said in a statement before its annual general meeting.

With a strong pipeline of land and 80 active building sites compared with 64 a year ago Gleeson said it expected sales revenue at its Gleeson Homes division to rise by more than 15% in the first half from a. year earlier. The strategic land division has seen business pick up since the start of the current year in June, it added.

"Overall, driven by the strong performance in Gleeson Homes and the encouraging level of activity in Gleeson Strategic Land, the board now expects the group to deliver a result for the full year ahead of current expectations," Gleeson said in an update before Thursday's annual meeting.

The company's shares rose 12.8% to 787.12p at 14:45 GMT.

Gleeson's profit for the year to the end of June fell more than 80% after it was forced to close its sites during the first coronavirus lockdown. The company scrapped its annual dividend but on Thursday it said it was likely to restart payments to shareholders in the current year.

"In the light of our strong performance to date and the positive outlook, the board is minded to resume dividend payments during the course of 2021," the company said. "However, any final decision will depend on the circumstances at the time."

After the AGM Gleeson said it would consult with shareholders after almost four in 10 votes went against its remuneration report.