MJ Gleeson records 25 per cent jump in new home numbers
Shares rose at housebuilder MJ Gleeson today as it recorded a 25 per cent jump in the number of completed homes for this financial year.
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The affordable homes builder told investors it has built 1,529 homes for the year ending 30 June, a quarter up on last year’s total of 1,225.
That sets MJ Gleeson “comfortably on track” to achieving its goal of doubling the number of completed homes to 2,000 per year by 2022, the firm said.
Its Gleeson Homes division also bought up more land to bolster its pipeline for future growth, upping its number of plots 5.6 per cent year on year to hit 13,575 plots.
Of those, 7,050 have been purchased subject to planning permission, while an additional 473 others are set to be acquired.
Meanwhile, its Gleeson Strategic Land arm sold nine land interests with the potential to deliver 1,755 plots for housing development.
The company reiterated full-year guidance, saying it would be “comfortably” in line with expectations.
Shares rose almost four per cent in early morning trading to 765.8p per share.
Gleeson shared the update less than a month after chief executive Jolyon Harrison left the housebuilder over a row with the board about his pay.
Harrison earned almost £3m last year after his basic wage climbed to £505,000 – 20 per cent higher than in 2017.
The board said that after “extensive discussions” with Harrison, “it was not possible” to find a compromise that could allow him to continue as CEO.
That triggered a share price drop of around 10 per cent.
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Today, interim chief executive James Thomson said: “Gleeson Homes’ unique model of acquiring land at low cost and building homes for sale to people predominantly on low incomes in the north of England and the Midlands continues to deliver sustainable growth as we progress towards our target of doubling volumes to 2,000 new homes per year by 2022.
“Both Gleeson Homes and Gleeson Strategic Land have delivered a record performance with the Group’s positive outlook underpinned by continued strong demand.”