In February Gleeson reported that in the first six months of its financial year it had racked up a loss of ВЈ24m on a turnover of just ВЈ30m.The group has imploded dramatically in recent years having managed to make a mess of both its former house building and its construction activities.
Gleeson currently describes itself as an urban regeneration and strategic land specialist.
The group’s interim management statement made on the Stock Exchange today provides a trading update covering the period since 1 January 2009.
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Gleeson operates:
as a house builder, mainly in the north of England, with a focus on the regeneration of urban areas in partnership with or for public bodies
a strategic land development business, mainly in the south of England
a facilities management business, mainly in the north of England
a specialist business unit that hunts out PFI opportunities
When Gleeson last called the trading environment just three months ago, it stated that the market conditions facing the house building industry were the "worst in living memory".
Today’s statement comments: “Since that time, consumer confidence has remained very low. There has been continuing downward pressure on selling prices and values.
“Whilst welcome, the recent announcement by the government of a number of new measures to support the housing market appears to have done little, at least as yet, to restore confidence.
Gleeson Strategic Land has not sold any sites with planning permission and is not expected to do so in the year to 30 June 2009. The group reports that: “The board will continue to resist the temptation to sell land at a discounted value merely in order to meet year-end targets.”
Gleeson Capital Solutions continues to progress potential PFI opportunities and is one of two final bidders on two PFI prospects in the north of England.
Powerminster Gleeson Services continues to be cash generative.
The Group remains cash positive.
Today’s statement reports: “The board does not expect revenue in the second half of the financial year to exceed that achieved in the first half; and, due to the continuing decline of values, it is expected that there will be further exceptional write-downs at the year end.”
