Housebuilder MJ Gleeson reports 42% of purchasers using Help to Buy initiative

The firm, which has offices in Wynyard and Chester-le-Street, said full year profits to June 2015 could exceed expectations.

Ground cutting at Beck View, Gleeson Homes new development at Cargo Fleet, Middlesbrough
Ground cutting at Beck View, Gleeson Homes new development at Cargo Fleet, Middlesbrough

Property business MJ Gleeson plc said it continues to be driven by the Government’s Help to Buy initiative, with 42% of purchasers in the year to date taking advantage of the scheme.

The firm issued a trading update for the period from January 1 2015 to April 30 2015, updating shareholders on what it described as encouraging progress in its two divisions.

The firm operates two division, Gleeson Strategic Land, a land promotion business mainly focused in the South of England, and Gleeson Homes, an urban regeneration specialist which builds affordable predominantly in the North of England.

The Gleeson Homes business, which has offices in Wynyard, Teesside, and in Chester-le-Street, County Durham, said it has continued to perform well and total sales for the year to date, comprising reserved, contracted and completed homes are up by 12% on last year.

The division now expects to record at least 730 completions in the year to June 30 2015, a 30% increase on the 561 units completed in the prior year.

The group will also once again enter the next financial year with a strong forward order book.

Gleeson Homes currently has 41 active sites, compared with 37 at the same stage last year, with a total of 5,801 plots either owned or conditionally purchased.

The business is in active discussions regarding the acquisition of a further 13 sites which, if purchased, will add 1,855 plots to the regeneration land pipeline, taking the total number of plots to in excess of 7,750.

Meanwhile, within Gleeson Strategic Land, the strategic portfolio has 68 sites totalling 3,887 gross acres, which has the potential to deliver 20,900 plots.

Overall, the board said it is encouraged by the performance of both Gleeson Homes and Gleeson Strategic Land in the period under review and remains confident that there will be further substantial improvements in the group’s trading performance in both the current year and beyond.

Underlying profit for the full year, excluding the write down in investments and the cost of the restructuring successfully completed in December 2014, is expected to be in line with current expectations and could exceed expectations.

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