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MJ Gleeson's half-year results to be significantly ahead of prior year's

"We continue to see strong demand for our low-cost homes, supporting both increased build activity on existing sites and the opening of new sites across our target geographic area," Gleeson said
Man building a house
"We do not see any signs of customer caution," Gleeson said

MJ Gleeson PLC (LON:GLE), the house builder and strategic land specialist, said it continues to see strong demand for its homes.

In the second half of 2018 – the first half of the company’s fiscal year – it completed the sale of 691 units, up 16.5% on the 593 units sold in the same period of 2017.

READ: MJ Gleeson reports increase in house-building activity

Gleeson Strategic Land sold three sites during the period, as it did in the corresponding six-month period of 2017, but this time around the sites sold were larger and will, therefore, lead to the division's half-year results being considerably higher than those of the prior year comparable period.

For the group as a whole, the board expects the half-year results will be significantly ahead of the same period of 2017 and that full-year results will be at least in line with expectations.

In a note to clients, the analysts at City broker Liberum Capital said: “We maintain our Buy recommendation and see over 30% TSR upside to our unchanged 835p target price, based on the sum of the parts, valuing Gleeson as a small growing business rather than a housebuilder as its target market is much more undersupplied than the overall market and affordability not a constraint at its average selling price of £125,000.”

In late morning trading, MJ Gleeson shares were 10.9% higher at 730p.

 -- Adds analyst comment, share price -- 


 

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