Regeneration specialist reports loss on back of reduced sales and costs of cutting staff
Revenues at urban regeneration specialist MJ Gleeson fell by more than half as it responded to the worst UK market conditions 鈥渋n living memory鈥� according to full-year results out today.
The firm reported a 拢20.8m loss and said that it now employs less than half the number of staff it employed on average in 2007.
It also said it had decided not to offer shareholders a dividend because of the state of trading conditions.
MJ Gleeson's revenue fell to 拢94.6m on a 32% fall in house sales volumes over the year to 30 June 2008, and a 23% decrease in average selling price.
The 拢21m loss compares with a profit of 拢4m last year, and was the result of exceptional costs relating to cutting staff and a payment of 拢4.1m following the settlement of a 鈥渓egacy issue鈥� in the group's former contracting division.
MJ Gleeson also wrote down 拢10.6m on the falling value of its landbank, which now consists of 1,240ha.
Group chair Dermot Gleeson said that the second half of the financial year showed a 鈥渨holly unprecedented decline鈥� in house sales. 鈥淭he poor market conditions experienced during the year to 30 June 2008 have shown no improvement in the first three months of the current financial year,鈥� he said.
鈥淭he board believes that the housing market will not improve until mortgage finance becomes more freely available and confidence returns to the wider economy. The timing of these events is not possible to predict with accuracy, but the board does not anticipate any material improvement before 2010.鈥�
No comments yet