NEWS :: General
Interim Announcement 24 February 2010
24 February 2010
Gleeson (GLE.L), the urban regeneration and strategic land specialist, announces its results for the six months to 31 December 2009.
Key Points - Financial
. Revenue from continuing operations increased by 17% to
£36.0m (2008: £30.6m)
. A pre-tax profit on continuing operations of £0.3m (2008:
loss £23.7m) was made
. Net cash increased in the period by £9.5m to £20.4m and
today stands at £28.1m
. Concluding that the Group has excess cash, the Board has
decided to pay a special dividend per share of 15p
Key Points - Commercial
. Gleeson Regeneration & Homes made an operating loss
of £1.5m (2008: loss of £11.7m) on the sale of 101 (2008: 150)
units, down 33%, at an average selling price of £134,000 (2008:
£101,000), up 33%
. Like-for-like sales showed a modest increase in price; the
increase in average selling price was primarily a result of a
change in the mix of product sold
. Gleeson Strategic Land made an operating profit of £2.4m
(2008: loss of £3.0m) on the sale of two land sales (2008: nil),
generating revenue of £9.8m (2008: £nil), and increased its
portfolio of options to 3,858 (2008: 3,793) acres
. Powerminster Gleeson Services' operating profit slightly
decreased to £0.2m (2008: £0.3m), but the order book increased to
£163m (2008: £158m)
. The Group continued the run-off of Gleeson Commercial
Property Developments with property disposals in the period
generating revenue of £3.6m. Subsequent to the period end,
the Group completed the sale of its last two remaining commercial
property developments.
. Group overheads further reduced to £1.1m (2008: £2.7m)
Current Trading and Prospects
Dermot Gleeson, Chairman, stated: "Although very limited in scale, there have been signs of a modest improvement in house buyer interest since the year end and Gleeson Regeneration & Homes is now seeking selectively to acquire new low cost development sites in areas in the North of England where there are opportunities to take advantage of much reduced land values. Gleeson Strategic Land completed two profitable land sales in the South of England.
It is still too early to be confident that the modest improvement in the housing market referred to above heralds a sustained recovery. However, the Group continues to have a strong balance sheet and costs across the Group have been substantially reduced without compromising the quality and effectiveness of the Group's skill base. Accordingly, the Group is well-placed to withstand, if necessary, a prolonged further period of weak demand and to resume profitable growth once confidence and liquidity return to the market."
Enquiries:
M J Gleeson Group
plc
01252-360 300
Chris Holt (GCEO)
Alan Martin (GFD)
Bankside Consultants
Charles
Ponsonby
020-7367 8851
Rose
Oddy
020-7367 8853
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