MJ Gleeson plc Half-Year Report to December 2021

MJ GLEESON PLC

Results for the half-year ended 31 December 2021

On track for 2,000 homes this financial year | Strong demand for consented land

Full year results set to be ahead of current market expectations

Group:

• Revenue up 21.7% to £173.5m (H1 20/21: £142.6m)
• Profit before tax up 21.7% to £24.7m (H1 20/21: £20.3m)
• EPS¹up 22.0% to 34.4p (H1 20/21: 28.2p)
• 6p interim dividend (H1 20/21: 5p)

Gleeson Homes:

• 932 homes sold

o  Up 14.9% on the pre-Covid half-year to 31 December 2019 (H1 19/20: 811 homes)

o  Down 2.0% on prior half-year which was flattered by delayed completions carried over from the first Covid-19 lockdown (H1 20/21: 951 homes)

o  55% bought through Help to Buy, down from 69% last year

• Average selling price up 14.7% to £161,200 (H1 20/21: £140,600)
• Operating profit increased 9.8% to £22.5m (H1 20/21: £20.5m)
• Eight new sites opened (H1 20/21: 17 sites opened) – 17 new sites expected to open in H2
• Land pipeline of 16,242 plots (June 2021: 15,863 plots)

Gleeson Land:

• Three land sales completed in H1 (H1 20/21: four land sales)
• A further three sites currently being marketed
• Strong demand for consented sites
• Three new sites added to the portfolio (H1 20/21: five sites added)
• Portfolio of 71 sites (June 2021: 71 sites)

¹ All results classified as continuing for the half-year ended 31 December 2021

²   Return on capital employed is calculated based on earnings before interest and tax from continuing and discontinued operations, expressed as a percentage of the average of opening and closing net assets for the prior 12 months after deducting deferred tax balances and cash net of borrowings.

James Thomson, Chief Executive of MJ Gleeson plc, commented:

“The Group performed strongly during the first half and this result, and indeed our performance throughout the pandemic, is evidence of the underlying strength of the business. We expect Gleeson Homes to deliver 2,000 homes this financial year and Gleeson Land to complete further sales in the second half of the financial year. Consequently, in the absence of any further Covid-19 or supply chain related disruption, the Board is confident that results for the full year to 30 June 2022 will be ahead of market expectations.

Demand for our much-needed affordable homes continues unabated. Meanwhile, a focus on investing in our people, organisational structure, training and processes means that the business, supported by a robust financial position, is operationally and structurally very well positioned to achieve further controlled growth. We expect to announce our next medium-term strategic targets at the time of the full-year results.

Working in cooperation with local and national government to ensure the continued delivery of low-cost affordable homes for first time buyers, we can look to the next stage of the Group's development with confidence.”

A presentation by James Thomson, CEO and Stefan Allanson, CFO, which will also be webcast, will be held at 11:00am today. To attend:

• by webcast, visit the company website: https://www.mjgleesonplc.com/investorsor access via the following link: https://webcasting.brrmedia.co.uk/broadcast/61e69ef87eb59509ae2f84c5  
• by telephone, please dial-in using the below details:

o  Number: +44 (0)330 336 9601

o  Code: 9557159