MJ Gleeson to pay special divi

26th Sep 2011 07:56

Housebuilder and land dealer MJ Gleeson said the outlook remains difficult to predict as it tripled pre-tax profit while revenue declined.The urban regeneration and strategic land specialist said pre-tax profit rose to £1.5m in the year to 30 June 2011 from £0.4m the year before. Revenue fell to £41.4m from £46.5m previously.Revenue for Gleeson Regeneration and Homes increased 56% to £35.4m during the year. Revenue for Gleeson Strategic Land fell from £10.5m to £5.8m. Gleeson Commercial Property Developments revenue fell from £13.2m to £nil after it completed its disposal programme in 2010.The average selling price fell to £124,000 from £131,000, reflecting the group's policy of progressively increasing the number of units sold in the North, rather than the South of England.Gleeson said it has taken advantage of reduced land prices in the North of England to build up a substantially enlarged landbank. The landbank, including conditionally purchased sites, totals in excess of 2,400 plots.Chairman Dermot Gleeson commented, "During the year, conditions in the housing market remained challenging. However, the selling prices of new homes remained generally stable and towards the end of the period there was a welcome increase in the number of higher loan to value mortgages available for first time buyers.""The short term outlook for housing demand remains difficult to predict. However, the board continues to be confident that the group's strategic focus on low cost brownfield development in the North of England and on the promotion and sale of high value green field sites in the South, will ensure a strong and sustainable improvement in performance."A special dividend of 5p per share has been recommended and will be paid to shareholders 16 December 2011.CJ