MJ Gleeson increases its 2017 interim dividend by 44%

DividendMax Ltd.

Gleeson Homes:

o Unit sales increased 12.8% to 451 units (H1 15/16: 400)

o Revenue increased 9.4% to £54.7m (H1 15/16: £50.0m)

o ASP down 2.9% to £121,400 (H1 15/16: £125,000) due to development mix

o Gross margin improved to 31.9% (H1 15/16: 30.6%)

o Operating profit increased by 10.4% to £8.5m (H1 15/16: £7.7m)

o Operating margin increased to 15.5% (H1 15/16: 15.4%)

o Land pipeline, including conditionally purchased sites, of 10,454 plots (June 2016: 9,284 plots)

o Geographic expansion continues, with more site openings planned in existing and new areas

Gleeson Strategic Land:

o Completed 3 land sales (H1 15/16: 4 land sales) and generated turnover of £8.3m (H1 15/16: £14.7m)

o Operating profit decreased by 4.8% to £4.0m (H1 15/16: £4.2m) due to phasing in the prior half year, as expected

o 13 sites in the portfolio have either planning permission or a resolution to grant permission (H1 14/15: 10 sites)

o Full year Strategic Land result expected to be broadly in line with last year

Operating & investing cash flows increased to £8.6m (H1 15/16: £2.2m outflow)

Interim dividend increased 44.4% to 6.5 pence per share (H1 15/16: 4.5 pence)