The Group's Full Year results were ahead of analysts expectations.
Companies: MJ Gleeson PLC
Developer MJ Gleeson (LON: GLE) Full Year results have been released today, with figures that have beat consensus forecasts.
Revenue increased 13% to £160.4m and Profit Before Tax rose 17% to 33%. Earnings Per Share also rose 14% while cash flow increased 42% to £34m.
A final dividend of 17.5p has also been proposed, bringing the Full Year dividend to 24p - an increase of 66% on FY16.
The Group operates two divisions, one selling low-cost homes in the North of England and the second selling land in the South. Gleeson Homes experienced "very strong demand" with "long queues" on launch days, while the land division had a "record year", Management said.
Brokers N+1 Singer and Liberum both released research notes detailing their positive take on the Full Year results.
"PBT and EPS increased by 17% and 14% respectively and were both slightly ahead of our recently upgraded forecasts. The statement strikes a confident tone and once more highlights the scale of the opportunity for Gleeson’s unique model, underscored by the new 2,000 home target. We nudge up our FY18 and FY19 EPS forecasts by 1%."
Commenting on the dividend hike, Liberum said that:
"The 66% increase in dividend shows management’s confidence in the prospects for continued growth with limited capital requirements (as it buys land very cheaply), and the strong balance sheet."
Shares in the Group were up over 5% in early morning trading.
GLE's share price has grown exponentially since 2012 as Revenue steadily grew and Profit margins expanded - Operating Profit and Net Profit experienced CAGR growth of 98% and 72% respectively in the five years to 2016.