(Alliance News) - Housebuilder MJ Gleeson PLC on Thursday left its full-year expectations unchanged and reported a fall in interim revenue after its Strategic Land unit failed to complete any sales.
In the six months to December 31, revenue was 19% lower at GBP105.0 million from GBP118.3 million in the year prior. Pretax profit was down 40% to GBP13.3 million from GBP22.3 million.
The laggard, Strategic Land, which recorded no revenue in the half, generated GBP30.3 million in revenue the year prior.
The company reported that a number of land sales, which were expected to be closed in the first half, are now estimated during the second half, as "greater" certainty has returned to the market following the result of the general election in the UK.
MJ Gleeson said: "As previously announced, Strategic Land, which saw an exceptionally strong result for the comparator period, did not complete any sales in the first half. However, the anticipated deal flow in the second half is now materialising with three sites sold, of which one was sold unconditionally and legally completed in January."
In Homes, revenue rose 14% year-on-year during the first half to GBP15.9 million from GBP14.0 million. The division's sales increased by 17% annually to 811 units from 691 units.
Chair Dermot Gleeson said: "We are delighted with the performance of our Homes division, with completions up 17.4% at 811 units. Demand remains strong, with January reservations per site up 5% on last year. We see no signs of this abating. Land remains available at sensible prices and we will be opening a significant number of new sites shortly."
MJ Gleeson upped its first half dividend by 4.3% to 12.0 pence per share from 11.5p.
"The strong performance of Gleeson Homes and anticipated deal flow in Strategic Land for the second half underpin the board's confidence that the Group's results for the full year will be in line with expectations," Chair Gleeson added.
Shares in the company were 2.4% lower at 949.00p each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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MJGleeson (GLE)