(Alliance News) - Shares in MJ Gleeson PLC rose on Monday after it reported higher house selling prices and said its full-year results will be "significantly" ahead of expectations.
The Sheffield-based housebuilder and land investor said its average selling price stood 15% higher than a year ago at GBP167,300 in its financial year ended June 30, due to a 12% increase in underlying selling prices and changes in mix.
"Strong selling price increases offset significant material and labour cost increases experienced across the sector in the period," it explained.
In its second half, it sold 1,068 homes, up 24% from 861 a year ago.
The company said its pipeline of owned and conditionally purchased sites increased by 6.0% to 16,814 plots as at the end of June.
"Following such a strong performance, the board expects the results for the financial year to 30 June 2022 to be significantly ahead of market expectations and remains confident in the group's future prospects," said MJ Gleeson.
In addition, the firm said it has started the new financial year in a strong position.
"Notwithstanding the ongoing congestion in the planning system and the wider macro-economic environment, the board believes that the scale of pent-up demand for low-cost homes will continue to drive significant growth into 2023 and beyond," said Chief Executive James Thomson.
The housebuilder will release its full-year results on September 15.
Shares in MJ Gleeson were up 2.0% at 524.00 pence in London on Monday morning.
By Tom Budszus; tombudszus@alliancenews.com
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