Pressure on the profit margins from building contracting has counteracted the “excellent results” from housebuilding, says M J Gleeson, on announcing its annual results.
While turnover has increased by 20% to £92m, trading profit increased by only 7% to £3.5m. However, rents, which are up 38% to £1.76m, and increased bank interest of £1.26m enabled a 15% lift in pre-tax profits to £6.5m (£5.7m).
Furthermore, owing to last year’s overprovision, corporation tax has been reduced from £2.15m to just over £1m.
Earnings per share have increased to 54.30p (35.07p) and a final dividend of 4.8p per share is being recommended, to bring the total 6.66p.
Gleeson says that, following the valuation of its development on London Wall, a surplus of £3.9m has been added to the revaluation reserve.
