Grim outlook for Gleeson

15th May 2009 08:55

House builder and facilities management firm M J Gleeson expects revenues in the second half of its financial year to be below first half levels, and flagged that it expects to make further write-downs in the value of its assets.The company remains in cash conservation mode having seen little sign of an improvement in trading conditions since its interim announcement on 25 February, when it said market conditions facing the house building industry were the ‘worst in living memory’.Furthermore, the board is not expecting any significant upturn in housing demand in the near future.The company’s strategic land division has not sold any sites with planning permission and does not expect to do so before the end of the company’s financial year, which runs to the end of June.On a brighter note, its Capital Solutions subsidiary is one of two final bidders on two Private Finance Initiatives in the north of England, while Powerminster Gleeson Services has improved its year-on-year revenue and profit, and remains cash generative.