Transformation from contractor to regeneration specialist sees company post £8m profit following last year's £12m loss
Land developer MJ Gleeson has reported a return to profit in its full year results after its successful transformation from a contractor to regeneration specialist.
The group announced a pre-tax profit of £8.3m for the year to 30 June, compared with a £12.3m loss in 2006. Revenue increased to £194.3m from £189m last year.
It said performance at all of its ongoing business units had improved and that those it is withdrawing from, Gleeson Properties and Gleeson Construction Services, had also produced “satisfactory” results.
But chairman Dermot Gleeson said the group would delay a decision on return of cash to shareholders, which was raised as a possibility last year, until the impact of recent instability in the financial markets on house prices was clearer.
He said: “The recent turbulence in the financial markets has resulted in mortgage lenders becoming more cautious. This, combined with higher interest rates, has had a marked impact on buyer confidence and house prices in many parts of the country.
“At this stage it is not clear how protracted or severe this market adjustment is likely to be.”
But he said the board was confident it would respond effectively “to the challenges and opportunities ahead.”