Strong demand puts MJ Gleeson on track to hit full-year targets

MJ Gleeson said on Monday that it was on track to deliver full-year results "at least" in line with expectations, after strong demand throughout the first half.

The low-cost housebuilder and land developer sold 951 units in the six months to 31 December, up 17.3% on the same period a year previously.

"We continue to see strong demand for our low-cost homes," it said. "The division opened 17 new sites during the first half year, and expects to open at least another 10 sites during the second half." The firm is on track to be building on 80 sites by the end of the year, and selling on around 65 sites.

All its construction sites remain open, in line with the most recent lockdown restrictions, Gleeson confirmed.

The firm’s land division, Gleeson Strategic Land, sold four sites during the first half, with the sale of a further four "being actively progressed".

Gleeson concluded: "Given the strong demand in Gleeson Homes and the progress made by Gleeson Strategic Land, the board expects the group’s results for the full year to 30 June 2021 to be at least in line with expectations."

Broker Peel Hunt, which has a ‘hold’ rating on the stock, said: "Given the strong performance, we expect the results for the full year to be least in line with forecasts. This is already at least partly reflected in the share price, which has risen 32% in the past three months, and leaves the group trading on around 13x full-year 2022 estimated consensus earnings."

As at 1000 GMT, shares in Gleeson were flat at 784.0p.