AIM-listed firm raises interim dividend by 44.4%
Companies: MJ Gleeson PLC
Urban regeneration and land specialist MJ Gleeson released a solid trading update for the six months to 31 December 2016 on Monday, reporting a 12.8% increase in plot completions, record reservations, strong cash generation and a 44.4% increase in interim dividend.
As anticipated, the firm reported strong first half performance, with unit sales up nearly 13% to 451 (up from 400 last year), revenue growth of 9.4% to c.£55m, and operating profit up 10.4% to £8.5m. Both gross and operating margins improved, with the former hitting c.32% and the latter edging up to 15.5%.
Chairman Dermot Gleeson said the Group had delivered strong performance across the board, with Gleeson Homes on track to deliver its ambitious growth plans and Gleeson Strategic Land "very well placed" to have a positive second half:
"[Home Division]... continues to experience strong demand both in its established operating areas and in the new areas into which it is expanding. Reservations are at record levels...
...Gleeson Strategic Land completed the sale of an additional greenfield site in the South of England during the first week of January and is very well placed to secure further sales during the remaining months of the year."
He added that against this background, he and the Board were confident of delivering results in line with expectations for the full-year.
Shares in MJ Gleeson opened up slightly on Monday, with the firm trading on a forward P/E of 13.6.