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Gleeson jumps on higher completions

Profits for the housebuilder were boosted by bigger land sales
January 8, 2019

Shares in MJ Gleeson (GLE) closed the day trading up 11 per cent after the low-cost housebuilder indicated that profits for the first half to December 2018 will be significantly ahead of previous expectations. Completions grew by 16.5 per cent in the first half, with the company reporting no sign of customer caution.

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Part of this reflects the fact that Gleeson builds on unloved and derelict land within inner cities in the north of England, providing presentable homes at prices that two people on the minimum wage can afford to buy.

The other side of the business – Gleeson Strategic Land – sells consented plots to housebuilders in the south of England. Three plots were sold, but were significantly bigger than the three sold in the previous first half.