Gleeson returns to profit but sees revenue drop

Urban regeneration and land specialist Gleeson has reported a drop in revenue but a return to profit in its latest interim figures.

It said today that results for the six months to December 31 showed pretax profits of £400,000, with an operating result of £200,000 profit against a £200,000 loss for 2010.

Revenue from continuing operations dropped to £18.8m for the period against £24m for 2010.

Gleeson said sales had declined by 24% to 130 from 171 in 2010 owing to “the timing of sales to registered social landlords”.

It added that average selling prices had decreased from £122,000 to £117,000 due to a change in the mix of property type.

Chairman Dermot Gleeson said housing market conditions had remained relatively stable and that Gleeson Regeneration and Homes had substantially increased activity in the north of England, as well as achieving “an encouraging increase” in site visitors and private development completions.

“The board remains confident that the group’s focus on low cost brownfield developments in the north of England and on the promotion and sale of high-value green-field sites in the south will provide a strong and sustainable improvement in the Group’s performance,” he said.