MJGleeson Regulatory News (GLE)

Gleeson (MJ) Group PLC

(GLE.L)

Interim Management Statement

Gleeson (GLE.L), the urban regeneration and strategic land specialist, announces its Interim Management Statement, covering the period from 1 January 2014 to 31 March 2014.

Gleeson has two divisions:

· Gleeson Homes An urban regeneration specialist in the North of England, with a particular focus on low cost family homes

· Gleeson Strategic Land A strategic land promotion business, mainly in the South of England, that enhances the value of land through the planning process and sells it to developers

Gleeson Homes

Gleeson Homes has continued to perform well with reservations taken in the period significantly higher than the prior period. The business currently has 37 active sites, compared with 29 in the corresponding period last year.

The Board expects to record more than 540 completions in the year to 30 June 2014, a 33% increase on the 406 units completed in the prior year.

Total sales year to date, comprising reserved, contracted and completed homes, are up 63% on last year, meaning that the Group will enter the next financial year with a strong forward order book. 

Gleeson Homes is in active discussions regarding the acquisition of a further 10 sites which, if purchased, will add 1,300 plots to the regeneration land pipeline, taking the total number of plots to in excess of 6,100.

The Government's "Help to Buy" initiative continues to be a popular scheme for our customers, with 31% of the completions in the year taking advantage of the scheme.

Gleeson Strategic Land

Gleeson Strategic Land continued to perform in line with expectations during the period, enhancing its portfolio and progressing sites through the planning system. In line with increasing activity in the housing market, there has been a further improvement in the prices that volume housebuilders are willing to pay for green field residential land in the South of England.

The business currently has eight sites with planning permission. Six of these sites, comprising 706 plots, are being progressed for sale in the current financial year. If all of these sales are achieved, the division will contribute a higher level of profit than in any financial year since 2007.

The strategic portfolio consists of 67 sites totalling 3,811 gross acres, which have the potential to deliver 21,900 plots. There are currently 15 sites either with submitted planning applications or with a planning appeal lodged, which have the potential to deliver 100 acres of commercial land, a 60 bed nursing home and in excess of 2,000 plots.

Outlook

The Board is encouraged by the achievements of both Gleeson Homes and Gleeson Strategic Land and remains confident that there will be further substantial improvements in the Group's trading performance in both the current year and beyond. Although planning delays have created some uncertainty with respect to the exact number of land sales that will be achieved within the current financial year, the Group's profit for the full year is expected to be in line with, or possibly better than, current market expectations.

25 April 2014

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