Interim Report - Period Ended 31 December 2007

Gleeson (GLE.L), which is in its first full year as a housing regeneration and strategic land specialist, announces its results for the half year to 31 December 2007, a time of extremely challenging market conditions for the housebuilding industry, mainly in consequence of the reduced availability of mortgage finance.

However, there is still significant buying interest in well designed and competitively priced houses and the Board remains convinced that, in the medium to long-term, the housebuilding market and in particular the regeneration sector will provide the Group with attractive opportunities for growth.

Financial Highlights

  • In what is traditionally much the weaker half in terms of financial results, the loss before tax was unchanged at £0.3m on continuing revenue of £48.9m (2006/07: £78.9m).
  • Period end net cash totalled £27.9m (30 June 2007: £38.0m; 31 December 2006: £18.7m).
  • Period end shareholders' funds totalled £179.4m (30 June 2007: £183.3m; 31 December 2006: £178.7m), which equates to net assets per share of 344p.
  • An interim dividend per share of 2.0p (2006/07: 1.9p), up 5.3%, is declared.

Commercial Highlights

  • Gleeson Regeneration & Homes and Gleeson Strategic Land reported a combined operating loss of £0.7m (2006/07: £0.5m). Gleeson Strategic Land recorded no material land transactions during the period, as was the case in the comparable period. 
  • Powerminster Gleeson Services reported an operating profit of £0.4m (2006/07: £0.1m). 
  • Gleeson Capital Solutions reported an operating profit of £0.7m (2006/07: £1.6m).  The prior period included a profit of £1.5m in relation to the disposal of one non-core (i.e. non-housing) PFI investment.

Prospects

With regard to Group prospects, Dermot Gleeson, Chairman, stated, "The Group remains on target to achieve a financial outcome for the full year materially in line with market estimates. However, this could become increasingly difficult to deliver, unless conditions in the housebuilding and commercial property markets show at least some improvement in the near future".

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