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MJ Gleeson PLC on Thursday said it cut its interim dividend by 17% as profit fell, and said it narrowed annual homes completion guidance due to lower net reservations.
For the six months that ended on December 31, the Sheffield, England-based housebuilder and land investor reported a 1.4% fall in total revenue to £171.0 million from £173.5 million the year before, primarily due to a 82% decline in Gleeson Land revenue amounting to £4.3 million, compared to £23.3 million a year earlier.
In Gleeson Homes, the forward order book was significantly lower compared to prior years. As a result, 4.1% fewer homes were sold in the period, at 894 homes compared to 932 homes in the same period a year ago.
Pretax profit fell by 35% to £16.1 million from £24.7 million, as operating profit decreased by 33% to £16.8 million form £25.2 million the year before.
Chief Executive Officer Graham Prothero said: ‘In terms of guidance: confidence, underpinned by improved mortgage rates, is slowly returning to the market, evidenced by improving net reservations. With full-year volumes dependent on the pace of recovery, we now expect to deliver between 1,650 and 1,850 homes.’
MJ Gleeson declared an interim dividend of 5.0 pence per share, down 17% from 6.0p a year prior.
Looking ahead, the company said it has narrowed its full-year completions target to between 1,650 and 1,850 homes. It said net reservations in the last four weeks have doubled from the low levels seen before Christmas, but ‘remain below the levels typically seen this time of the year’.
Net cash as at December 31 amounted to £13.5 million, compared to £33.8 million on June 30.
Shares were up 0.7% at 460.00 pence each on Thursday morning in London.
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