Key worker demand for affordable homes boosts sales at MJ Gleeson

Affordable housing developer MJ Gleeson reported a jump in homes sold in the first half due to demand from key workers and first time buyers.

MJ Gleeson said revenue was up 35.8 per cent to £142.6m and profit before tax increased 52.6 per cent to £20.3m.

Earnings per share in the six months ended 30 December were up 43.9 per cent to 28.1p and the firm announced it will resume dividends with a 5p per share payout.

Homes sold during the period jumped 17.3 per cent to 951 and the average selling price was also up 9.1 per cent to £140,600.

It opened a record number of new sites, rising from five in the first half of the previous year to 17 in the latest reporting period.

James Thomson, chief executive of MJ Gleeson, said: “This was a very robust performance reflecting the strong demand – even in difficult times – for the high-quality, low-cost homes that Gleeson Homes builds for first time buyers, many of whom are key workers, as well as from buyers of consented land brought to market by Gleeson Strategic Land.”

He added: “The Group is well-placed for the future. In the absence of any unforeseen circumstances, the Board is confident that results for the full year to 30 June 2021 will be significantly ahead of current market consensus.”