Gleeson interim profit jumps more than a fifth

Gleeson Homes has reported a 21.7% increase in pre-tax profit for the first half of the year, saying it is on course to beat its target of completing 2,000 homes over 12 months.

The urban regeneration specialist, in its results for the six months to 31 December, reported turnover of £173.5m, up 17.5% on the £147.6m posted the previous year. Pre-tax profit increased from £20.3m to £24.7m.

The developer sold 932 homes in the first six months of the year. This was down slightly on the 951 for the same period the previous year. Gleeson said this was due to delayed completions due to the covid-19 lockdown inflating the previous year’s figure. It said the 932 figure is 14.9% up on the comparable period in 2019.

The firm expects to deliver more than 2,000 homes in the full year, beating the 1,812 homes delivered the previous year and hitting a target it first set itself in 2017.

The average selling prices of Gleeson properties rose 14.7% to £161,000, it opened eight new sites with a further 17 expected in the second half of the year.

Gleeson also called for an “industry-wide” solution to the issue of funding for fire safety remediation works on blocks between 11 and 18 metres in height.

This follows housing secretary’s Michael Gove announcement of a £4bn cladding fund and his threat to stop housebuilders trading if they don’t contribute.

The firm said: “There is universal agreement that a solution to legacy building safety issues is urgently needed and that leaseholders should not have to bear any related costs.

“We have therefore been advocating with the government an industry-wide, fiscal-based solution involving participation from all stakeholders - including architects, specifiers, insurers, materials producers, suppliers and developers - and which would therefore be both proportionate and pragmatic.”