Gleeson’s interims confirm another period of significant growth (PBT +131% to £11.3m) and a strong performance from both divisions. The Group is well on track to meet full year expectations following the latest forecast upgrades in December. In our view, Gleeson is unique amongst the listed housebuilders. It sells good quality affordable homes to first time buyers on low incomes in the North of England, often helping to regenerate challenging communities. At the same time it achieves sector leading earnings growth and above average margins. Management’s ambition now extends beyond the original 1,000 home target and we see potential for significant scale to be added over coming years. Gleeson remains one of our Best Ideas for 2016.
