MJGleeson Regulatory News (GLE)

14 Nov 2007 07:01

Gleeson(M J)Group PLC14 November 2007 Wednesday 14 November 2007 M J GLEESON GROUP PLC INTERIM MANAGEMENT STATEMENT Gleeson is today issuing its first Interim Management Statement, covering theperiod from 1 July 2007 to 14 November 2007, as required by the UK ListingAuthority's Disclosure and Transparency Rules. The Interim Management Statement contains forward looking statements which: • have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report; and • should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, that underlie such forward looking information. This Interim Management Statement has been prepared for the Group as a whole. Ittherefore emphasises matters which are significant for the parent company andits subsidiaries when viewed as a single unit. Our Operations Gleeson operates as a residential house-builder with a particular focus on thephysical, social and economic regeneration of urban areas controlled by localauthorities or other public bodies. The Group has a specialist business unitthat takes the lead in developing new PFI opportunities that bring work to theGroup's various business units. In addition, the Group operates a strategic landdevelopment business that enhances the value of land, principally held underoption, through the planning process, and a facilities management business thatfocuses on the long-term planned and reactive maintenance programmes of housingand property owning organisations. The Group's commercial property developmentbusiness, as previously announced, is no longer committing to new projects andis in the process of developing out and subsequently disposing of its currentportfolio in an orderly manner. The recent turbulence in the financial markets has restricted the supply ofmortgage credit to prospective house buyers. This, combined with the currenthigh level of interest rates in the UK, has resulted in a lower number ofvisitors to our housing sites than during the comparable period last year and aslowing down in the number of legal completions. However, as long as interestrates do not continue to rise, unemployment remains materially unchanged and the"credit crunch" proves to be short-lived, the general economic environment inwhich the Group operates should remain positive. Recent Government announcements with regard to the house-building sector and inparticular the affordable element of this sector, allied to the long-termmaintenance requirements of social housing, are very encouraging and confirm theBoard's belief that its transformation programme, which was designed to focus onthese sectors, will bring long-term rewards to shareholders. Progress during the Period The Group achieved financial close on the Cheshire Extra Care Homes PFI project.This has resulted in the Group receiving a success fee and the Group'sfacilities management business will benefit from a long-term contract once theCare Homes are constructed. In addition, the project will provide £65m ofrevenue for Gleeson Building Limited, a management buy-out vehicle in which theGroup retains an equity interest.The Group was selected as preferred bidder for the Leeds Independent Living PFIproject, which is expected to achieve financial close in the year to 30 June2009. The Group has been short listed for the Zero Carbon challenge housing projectfor English Partnerships at Hanham Hall, Bristol. As was the case in the comparable period last year, no strategic landtransactions were completed. The Group has maintained a net cash positive balance during the period and hasnot drawn down on any of its available facility. Outlook The Group's trading outlook currently remains in line with market expectations.On 14 December 2007, the Group will be holding its Annual General Meeting, whena further update will be provided. The Group remains focused on developing its operational ability to achieve asignificantly improved return on sales and capital employed. M J Gleeson Group plc By order of the BoardIntegration House Dermot GleesonRye Close ChairmanAncells Business ParkFleetHampshire GU51 2QG Enquiries: M J Gleeson Group plc 01252-360 3000Paul Wallwork (Group Chief Executive)Chris Holt (Group Finance Director) Bankside Consultants LimitedCharles Ponsonby 020-7367 8851 This information is provided by RNS The company news service from the London Stock Exchange