MJ Gleeson swings to full-year loss, cuts dividend

(Sharecast News) - MJ Gleeson said on Tuesday that it swung to a full-year pre-tax loss in a 'subdued' market, as it took a hit from exceptional costs of £13.6m.

In the year to the end of June, the housebuilder swung to a statutory pre-tax loss of £2.7m from a profit of £20.5m the year before. Adjusted operating profit fell 37% to £16m.

Gleeson said further work undertaken to restructure the business led to a £13.6m exceptional charge in the year. "Whilst this impacts the current year result, this will allow us to move forward in a much stronger position to progress our strategy as the market recovers," it said.

Total revenue rose 12.1% to £410m, with revenue at Gleeson Homes up 14.9% at £400m, but revenue at Gleeson Land down 43.2% at £10m.

The company slashed its dividend per share to 5p from 11p. Gleeson said that given the market backdrop, it was "an absolute priority" to maintain the strength of its balance sheet, hence the dividend reduction.

Chief executive Graham Prothero said: "I am pleased to report that in a subdued market we delivered a robust performance underpinned by the delivery of 1,968 homes, up by nearly 10% against the prior year. Gleeson Homes entered the new financial year with a forward order book of 848 homes.

"During the year we moved at pace to implement significant structural and operating changes under Project Transform. As a result, Gleeson Homes has been overhauled and is a much-improved business, with strengthened leadership at both executive and regional levels, more effective processes and clearer reporting lines. It is in a much stronger position to manage through the challenging market environment we are experiencing today."

At 1310 BST, the shares were up 0.8% at 248.44p.

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