NEWS :: General
Preliminary Announcement 24 September 2009
24 September 2009
Gleeson (GLE.L), the urban regeneration and strategic land specialist, announces its results for the year to 30 June 2009.
During the year, market conditions in the housebuilding sector
continued to deteriorate, as indicated in the Interim Announcement
of 25 February 2009 and the Interim Management Statement of 15 May
2009. Since the year end, however, there have been some signs
of improvement in buyer interest.
Key Points - Financial
. Revenue from continuing operations decreased by 42% to £55.0m
(2008: £94.6m), mainly reflecting substantial reductions in both
units sold and average selling price.
. Excluding exceptionals, the pre-tax loss was £8.3m (2008:
£3.4m).
. Exceptional charges totalled £46.0m (2008: £17.4m), of which
£44.6m (2008: £12.3m) was non-cash and related to downward asset
revaluations.
. The loss before tax from continuing operations was £54.3m (2008:
£20.8m), equating to a loss per share of 109.3p (2008:
39.9p).
. Year end total shareholders' equity decreased by 35% to £103.4m
(2008: £159.2m), representing net assets per share of 197p (2008:
304p), also down 35%.
. Year end net cash totalled £10.9m, which compares with £7.1m at
31 December 2008 and £21.9m at 30 June 2008. Since the year
end, net cash has risen to £16.0m.
Key Points - Commercial
. Gleeson Regeneration & Homes and Gleeson Strategic Land made
an operating loss of £ 43.7m (2008: £16.3m) on revenue of £34.2m
(2008: £64.0m); excluding exceptionals, the loss was £6.3m (2008:
£1.2m).
. Gleeson Regeneration & Homes sold 317 (2008: 436) units, down
27%, at an average selling price of £102,000 (2008: £149,000), down
32%, reflecting a higher proportion of sales to registered social
landlords.
. Gleeson Strategic Land made no land sales, but increased its
portfolio of options to 3,755 (2008: 3,621) acres
. Powerminster Gleeson Services (social housing maintenance) traded
well, making an operating profit of £1.0m (2008: £1.1m) on revenue
of £18.7m (2008: £19.5m), and increased its already substantial
order book to £169.5m (2008: £158.8m).
. Gleeson Commercial Property Development (in run-off) now has only
three sites remaining.
. The central overhead reduced by 41% to £3.6m (2008: £6.1m), of
which £0.6m (2008: £0.7m) was exceptional.
Current Trading and Prospects
Dermot Gleeson, Chairman, stated "Although conditions in the
housing market remain very difficult, particularly in respect of
regeneration areas in the North of England, recent months have seen
some signs of improvement in buyer interest. Visitor levels have
increased, selling prices appear to be stabilising, at least for
the time being, and reservations in the current financial year are
ahead of prior year comparables.
It is too early, however, to call an end to the downturn. Mortgage
availability remains very restricted and a high proportion of sales
at the lower end of the market are only possible on a shared equity
basis. Moreover, it remains to be seen how severely the
continuing rise in unemployment will affect housing demand.
Against this background, the Group's main focus will continue to be
on rigorous cost control and cash generation. This will enable it
to lay the solid foundations on which sustained growth can be
achieved once more normal conditions return."
Enquiries:
M J Gleeson Group
plc
01252-360 300
Chris Holt (GCEO)
Alan Martin (GFD)
Bankside Consultants
Charles
Ponsonby
020-7367 8851
