Mj Gleeson Plc · LSE:GLE
Mj Gleeson — FY2014 Earnings Presentation
20 slides from Mj Gleeson's earnings presentation, Jun 30, 2014
Slide 1: Results for the Year Ended 30 June 2014
MJ GLEESON GROUP PLC Results for the Year Ended 30 June 2014
Slide 2: Another year of strong progress
Another year of strong progress > Excellent financial performance > Operating profit up 101% to £12.1m (2013: £6.0m) > Profit before tax up 110% to £12.2m (2013: £5.8m) > Record forward order book up 71% to £44.2m representing 356 units (30 June 2013: £25.9m) > Final dividend of 4.9p (2013: 2.0p), b
Slide 3: Financial Review
Financial Review Alan Martin, Chief Financial Officer 3
Slide 4: Strong financial performance
Strong financial performance > Revenue up 34% to £81.4m (2013: £60.7m) > Operating profit up 101% to £12.1m (2013: £6.0m) > Profit before tax up 110% to £12.2m (2013: £5.8m) > Net cash at year end £13.7m (2013: £9.9m) > Net assets at year end £128.1m (2013: £112.1m) > Net assets per share up 14% to
Slide 5: Gleeson Homes
Gleeson Homes > Revenue up 47% to £70.6m (2013: £47.9m) > 38% increase in homes sold to 561 (2013: 406) > Average Selling Price £121,000 (2013: £118,000) > Gross profit margin increased to 29.2% (2013: 27.8%) > Pre-exceptional 28.1% (2013: 25.6%) > Operating profit £9.4m (2013: £4.0m) > Operating pr
Slide 6: Gleeson Homes
Gleeson Homes > Number of outlets continue to grow: • Average of 33 sales outlets 600 550 (2013:28) 500 • 35 sales outlets at June 2014 450 400 • 10 further sales outlets 350 300 expected this year 250 200 150 100 > Transition to new sites: 50 0 • 84% sold from new, higher 2011 2012 2013 2014 margin
Slide 7: Strategic Land
Strategic Land > Operating profit up 37% to £4.8m on revenues of £10.8m (2013: £12.7m) > Seven land sales completed in the period totalling 85 acres (2013: seven, 42.5 acres) > Potential to deliver 617 plots for development > Seven new agreements secured 236 acres (2013: ten agreements, 203 acres) >
Slide 8: Income Statement
Income Statement Jun-14 Jun-13 £m £m Revenue 81.4 60.7 Operating Profit Homes 9.4 4.0 Strategic Land 4.8 3.5 Group overhead (2.2) (1.4) 12.1 6.0 Interest income 0.1 (0.2) Profit before tax 12.2 5.8 Tax (Exceptional credit £8.3m (2013: £4.2m)) 5.5 4.3 Discontinued operations (0.20) 1.3 Profit after t
Slide 9: Cash & Bank Facilities
Cash & Bank Facilities > Group generated £3.8m cash in the year (2013: £3.9m utilised) > Net cash balance at 30 June 2014 - £13.7m (2013: £9.9m) > Cash generated from operating activities (including working capital movements) - £5.3m (2013: £8.9m utilised) > Cash generated from investing activities
Slide 10: Dividend
Dividend > Regular dividend payments recommenced in 2013 > Final dividend of 4.9 pence per share proposed (2013: 2.0 pence per share) > If approved, total dividend for the year will be 6.0 pence per share (2013: 2.5 pence per share) > The Board intends to continue to follow a progressive dividend po
Slide 11: Business Review
Business Review Jolyon Harrison, Chief Executive 11
Slide 12: Gleeson Homes: Unique model, limited competition
Gleeson Homes: Unique model, limited competition Strong Sustainable drivers for business increasing model UK housing stock Government Low cost of home land ownership stimulation Local Authorities Limited like competition Regeneration credentials No part Acceptable to exchange Planners Significant an
Slide 13: Gleeson Strategic Land
Gleeson Strategic Land 1. Specialist business • Mutually beneficial agreements with landowners • Promotion through the planning process • Sale to volume housebuilders in South of England • Take % of market value; costs reimbursed 2. Profitable & cash generative • 7 sites – 85 acres – sold in the yea
Slide 14: Homes: Favourable market environment
Homes: Favourable market environment > Market leader in our target regions with no direct competition > Ready supply of land in need of regeneration, at low prices > Excellent relationships with local authorities and communities > Core customer base increasingly confident > Large untapped markets in
Slide 15: Harnessing the opportunity
Harnessing the opportunity > Focussing on growing sales and landbank in areas where there is a large untapped market > Bishop Auckland, Blackpool, Bootle, Doncaster, Grimsby, Leeds, Middlesbrough, Rochdale, Wigan > Expanding sales outlets to focus on opportunity by target geography > Actions taken t
Slide 16: Current Trading and Outlook
Current Trading and Outlook > Focussed strategy implemented in 2009 continues to deliver growth > Record forward order book of £44.2m representing 356 units (2013: £25.9m) > On track to deliver our Homes unit target of 1,000…and beyond > Recommended dividend of 4.9 pence per share signals confidence
Slide 17: Appendix
Appendix 17 gleeson
Slide 18: Gleeson Homes: Own purchase assistance packages
Gleeson Homes: Examples of own purchase assistance packages We offer to market their existing home through an estate agent and we will Advance to Buy pay the stamp duty and £500 towards legal fees. Aspire to Own We pay 5% deposit, valuation fees and £500 towards legal fees. If the customer has saved
Slide 19: Balance sheet
Balance sheet £m Jun-14 Jun-13 Movement Homes 83.2 73.9 9.3 Strategic Land 29.3 26.0 3.3 Group / Discontinued activities 1.9 2.3 (0.4) Cash 13.7 9.9 3.8 128.1 112.1 16.0 19
Slide 20: MJ Gleeson Group plc
MJ GLEESON GROUP PLC Results for the Year Ended 30 June 2014