In the six months to 31 December 2021, group revenue increased by 21.7% to £173.5m while pre-tax profit also increased by 21.7% to £24.7m .
James Thomson, the managing director of MJ Gleeson, said the band’s performance throughout the pandemic provided proof of the band’s underlying strength.
He added: “We expect Gleeson Homes to deliver 2,000 homes this fiscal year and Gleeson Land to achieve further sales in the second half of the fiscal year. Therefore, in the absence of any other disruption related to Covid-19 or the supply chain, the Board is confident that results for the full year to June 30, 2022 will exceed market expectations.
“The demand for our much-needed affordable housing continues unabated. Meanwhile, a focus on investing in our people, organizational structure, training and processes means that the company, backed by a solid financial position, is operationally and structurally very well positioned to achieve new objectives.We plan to announce our next medium-term strategic objectives during the annual results.
“By working in cooperation with local and national government to ensure the continued delivery of low-cost, affordable housing for first-time buyers, we can look forward to the next stage of the group’s development with confidence.”
Gleeson reports record trade as the country’s key workers flock to buy value for…
In a statement, the company said: “Demand for our homes is supported by the affordability of the homes we have been building for a market that has been chronically underserved for decades.
“Although interest rates are expected to rise this year, they are expected to remain historically low.
“As a result, a Gleeson home will remain within reach of a couple earning the National Living Wage and without any need for purchase assistance. The cost of owning a Gleeson home is significantly lower than the cost of renting and will therefore remain even with modest interest rate hikes.”
The company said it had secured funding for First Homes under the government’s early delivery scheme.
“First Homes will provide affordable homes at discounted prices in our developments specifically for first-time buyers – something we have been doing for many years,” the company said. “Deposit Unlock, an industry-led program, is also important in helping first-time buyers on the property ladder and will sit alongside other products, including condominiums, to support our customers.”
However, MJ Gleeson said the planning system remains a concern, as highlighted in a recent report by the Built Environment Committee.
“The report calls for urgent reform, including better resourced local planning authorities and clear and transparent local plans,” the company said. “These views are widely shared by the industry and, without some level of investment, delays in the planning system continue to limit the supply of consented land and risk hampering the delivery of housing.”
Supply chain pressures, including pricing and availability of labor and materials, persist, but are beginning to show signs of easing on some materials, the company said.
The company added: “Our prices and material availability remain, but are starting to show signs of easing on some materials.
“The impact of these has been managed thanks to the strong relationships we have with our suppliers and sub-contractors, and the unprecedented cost increases which have been offset by inflation in sales prices. Government figures show that skills shortages accounted for 36% of all vacancies in construction. This skills shortage combined with wage inflation remains a challenge for the entire industry.”
“There is universal agreement that a solution to legacy building security issues is urgently needed and that tenants should not have to bear the associated costs. We have therefore advocated with the government for a fiscal solution to industry-wide involving the participation of all stakeholders – including architects, specifiers, insurers, material producers, suppliers and developers – and which would therefore be both proportionate and pragmatic.”