MJ Gleeson (LSE:GLE) said it expects its full-year results to "significantly" exceed market forecasts, with "strong first-time buyer demand" intensified by an acute shortage of new homes set to continue unabated.
The housebuilder sold 2,000 homes in the year to 30 June 2022, 10.4% more than the previous year, which had seen a boost from delayed completions caused by the first Covid-19 lockdown. Home sales in the second half of the year were up 24% to 1,068 homes.
Average selling prices rose by 14.7% to £167,300 during the year due to underlying selling price increases of 12% and changes in mix, the company said.
It noted that higher selling prices offset an increase in material and labour costs, adding that the availability of labour and material fell throughout the second half.
Gleeson said the affordability of its homes "will continue to help mitigate the impact of both inflationary pressures and higher interest rates on Gleeson customers".
The company said it opened 23 new build sites during the year, beginning the new financial year at 87 sites of which 61 are actively selling, though the planning system continues to be congested.
Its pipeline of owned and conditionally purchased sites increased by 6.0% on 160 sites as at end-June, representing over eight years of sales.
"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 James Thomson, chief executive.
The group ended the year with £33.8mln in cash and no debt compared to £34.3mln cash and no debt a year earlier.
When Gleeson earlier this year signed the DLUHC Pledge in respect of remediating any buildings over 11 metres with life-critical fire safety issues, it said that it was not aware of any such issues in respect of the 15 buildings it had been historically involved in developing, but that it would carry out a further assessment to determine that this remained the case.
It said today that the initial assessment has been concluded and that it is "making good progress" on undertaking a more comprehensive review, which is expected to be concluded by the end of the summer.
Shares of the company were trading 4.25% higher at 535.86p.