MJ Gleeson sees half-year 'significantly ahead' amid strong demand

In the half-year to 31 December 2018, completions were up 16.5% on the previous year at 691 amid continued strong demand for Gleeson's homes.The group said its target market remains strong and its customers have maintained their confidence.

"We do not see any signs of customer caution," it said.

During the period, Gleeson Strategic Land sold three sites, the same number as the previous first half-year. These were larger sites and will lead to the division's half-year results being considerably higher than those of the prior year comparable period.

"The board expects the group's results for the half-year to be significantly ahead of those of the previous first half-year and results for the full year to 30 June 2019 to be at least in line with expectations."

Liberum maintained its' buy' recommendation on the stock and said it sees over 30% total shareholder return upside to its unchanged 835p target price, based on sum of the parts. This values Gleeson as a small growing business rather than a housebuilder as its target market is much more under supplied than the overall market and affordability not a constraint at its average selling price of £125,000, it said.

The brokerage said that the 16.5% jump in completions is a stronger result than implied by Gleeson's update on 6 December, when it flagged growth of approximately 10%.

At 1015 GMT, the shares were up 3% to 677.64p.