MJ GLEESON PLC 15 September 2022
(“Gleeson” or “the Group” or “the Company”)
Audited results for the year ended 30 June 2022
Gleeson, the high-quality affordable housebuilder and land promotion specialist, announces audited results which reflect strong underlying demand.
· Delivered record revenue and profit performances – PBT 1 up 33.1%
· Achieved medium-term strategic objective of delivering 2,000 homes p.a.
· Affordability continuing to underpin strong ongoing demand and reservation levels
· Board expects further profitable growth in FY2023
Gleeson Homes:
· 2,000 homes sold, a 10.4% increase (2021: 1,812)
· Average selling price up 14.7% to £167,300 (2021: £145,800) – underlying increase 11.8%
· Gross profit margin1 on homes sold increased to 29.0% (2021: 28.5%)
· Operating profit1 up 36.9% to £51.2m (2021: £37.4m)
· 23 new sites opened (2021: 27)
· Land pipeline up by 951 plots to 16,814 plots (2021: 15,863 plots)
Gleeson Land:
· Operating profit of £11.1m (2021: £11.1m)
· Six land sales completed during the year (2021: eight)
· Portfolio: 71 sites (2021: 71 sites) with the potential to deliver 20,241 plots (2021: 22,315 plots)
Group:
· Revenue up 29.4% to £373.4m (2021: £288.6m)
· Profit before tax1 up 33.1% to £55.5m (2021: £41.7m)
· Exceptional building safety cost provision of £12.9m
· EPS1 up 34.2% to 78.1p (2021: 58.2p)
· Cash and cash equivalents £33.8m (2021: £34.3m)
· Proposed final dividend of 12p, making total dividend for the year of 18p (2021: 15p)
|
|
2022 |
2021 |
Change |
|
Revenue |
|
|
|
|
Gleeson Homes |
£334.6m |
£265.8m |
25.9% |
|
Gleeson Land |
£38.8m |
£22.8m |
70.2% |
|
Total |
£373.4m |
£288.6m |
29.4% |
|
|
|
|
|
|
Operating profit by division |
|
|
|
|
Gleeson Homes 1 |
£51.2m |
£37.4m |
36.9% |
|
Gleeson Land |
£11.1m |
£11.1m |
– |
|
|
|
|
|
|
Profit before tax and exceptional items |
£55.5m |
£41.7m |
33.1% |
|
Exceptional items – building safety provision |
(£12.9m) |
– |
– |
|
Cash and cash equivalents |
£33.8m |
£34.3m |
(£0.5m) |
|
EPS1 |
78.1p |
58.2p |
34.2% |
|
ROCE2 |
25.4% |
21.4% |
+400bps |
|
Dividend per share (total) |
18.0p |
15.0p |
20% |
1 Stated before exceptional building safety provision
2 Return on capital employed is calculated based on earnings before interest, tax and exceptional items (“EBIT”), expressed as a percentage of the average of opening and closing net assets after deducting deferred tax and cash and cash equivalents net of borrowings
Dermot Gleeson, Chairman, commented:
“This is another excellent performance which reflects not only the strong operational capability of our business but also the continuing structural under-supply of affordable homes for first time buyers on low incomes.
As well as being affordable, our high-quality homes are also very energy efficient, costing significantly less to run than most houses in the UK, particularly in the rented sector. As a result, our homes are much sought after, and demand remains resilient.
Gleeson Land's market remained robust throughout the year and the business delivered a strong result. Demand in the South of England for quality sites with sustainable and implementable residential planning permission remains strong and the division is well-placed to drive further sustainable growth.
The Board has reviewed a range of macroeconomic forecasts and, notwithstanding the current outlook for the broader economy, remains confident that the Group, with its defensive qualities and unique position within the wider house building sector, is well-positioned to deliver further profitable growth in the current financial year.”