Profits and revenues up for Sheffield housebuilder

Profits and revenues up for Sheffield housebuilder
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M J Gleeson, the Sheffield-based housebuilder and strategic land specialist, has reported a spike in revenue and operating profits in results revealed this morning (16 Sep).

Revenue for the year to 30 June 2019 rose 27% on 2019 to reach £249.9 million, while operating profit was up 11% to £41 million.

There was also an 11% rise in profit before tax, which stood at £41.2 million.

Chairman Dermot Gleeson said: “Our unique business model of building low-cost homes in the North of England and the Midlands and strategic land sales in the South continues to deliver outstanding results. Record volume growth in Gleeson Homes and record profit levels in Gleeson Strategic Land resulted in strong Group profit growth.

“Despite the uncertainties caused by Brexit, demand for our homes continues to be extremely strong. Gleeson Homes is well on track to deliver its milestone target of doubling annual completions to 2,000 units by 2022.

“Led by a strong and highly experienced management team, the division continues to have significant scope for expansion by building low-cost homes for young, first time buyers and low-income families in a market that is underserved by other housebuilders.

“Following a review of options, we have concluded that retaining Gleeson Strategic Land offers significantly greater long-term value to the Group than selling the business. The division had a record year and continues to benefit from high levels of demand for consented land in prime locations from both large and medium-sized housebuilders.

“The division has a strong portfolio of sites and anticipates that it will continue to maintain its successful track record in promoting potentially high value developments through the planning system.

“Against this background, the Board is confident that the Group will continue to deliver significant growth in both revenue and profits in the current year and beyond.”