MJ Gleeson PLC sees recovery but full-year revenue to slump

PLC () said customer demand is recovering after sites began reopening a month ago.

However, revenue for the year to June 30 is expected to slump 42% to £145mln.

READ: Persimmon and MJ Gleeson to re-open sales offices in England

The forward order book for sales in the next financial year currently stands at £135mln on 940 plots, against last year’s £87mln on 677 plots.

The housebuilder has restarted construction activity on 43 out of 67 sites, although the safety protocols are hitting productivity and build rate.

Sales offices and show homes have reopened on 40 sites and another 15 will resume trading by the end of June.

The firm, which has implemented virtual show home tours, saw reservation levels rising to 70% of pre-pandemic figures from only a quarter seen at the beginning of lockdown.

During April and May, 43 customers completed their purchase and moved into their homes, a pace expected to continue this month.

brought back from furlough 275 of the 456 staff furloughed in April but everyone is expected to go back to work by July 30.

“Social distancing and other health & safety measures will make building more inefficient, lowering our gross margin expectations, and we also expect overheads to rise in support of future growth,” analysts at house broker Liberum commented.

“Gleeson remains one of our favourite housebuilders as we are convinced that its strong exposure to first-time buyers (80%) and low price points will prove the most resilient parts of the housing market.”

Shares dipped 1% to 719.11p on Monday morning.

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