MJ Gleeson (LON:GLE) have seen a mixed performance in its first half, but have remained confident to deliver expectations. The firm said that it expects an overall “successful” result for the firm at the end of its financial year in June.

Shares in Gleeson trade at 948p (-1.60%). 9/1/20 13:05BST.

The householder said that its Homes unit had sold 811 units during the half year period to end 2019, which saw a 17% climb year on year from the 691 figure.

Additionally, Gleeson said that the demand for its low cost homes remains strong and is on track to deliver full-year unit completions in line with expectations.

In its Strategic Land division, the company said that due to a number of land sales which will be closed in the first half, these have shifted to the second half

Gleeson added that “greater” certainty has returned to the market following the result of the general election in the UK.

MJ Gleeson gave shareholders a positive note as they highlighted the fact that there is still strong demand demand for high-quality consented land from medium and large house builders, and this underpins the company’s expectation of a “successful” result for the division for the year as a whole.

For financial 2019, the firm reported pretax profit of £41.2 million, which showed growth by 11% from the £37 million a year ago.

Thee company is set to unveil its half-year results on February 13.

“Whilst the overall result for the first half will be significantly down on an unusually strong comparator period in Strategic Land, the strong performance of Gleeson Homes and the anticipated deal flow at Strategic Land in the second half mean that the board remains confident that the group’s results for the full year to June 30 will be in line with expectations,” the company said in its statement Thursday.

MJ Gleeson give shareholders renewed optimism

At the start of December, the firm saw its shares dip however it gave shareholders a confident outlook which seems to have been backed up today.

The firm said it expects to deliver annual results in line with forecasts backed up by a strong performance by its Home unit.

The house builder said it has experienced a “strong” demand at its Homes division, with net reservations since the start of its current financial year up more than 10% compared with the same period last year.

Gleeson said Homes has a pipeline of 13,042 plots with a gross development value of £1.7 billion, of which 6,910 plots are owned and 6,132 are conditionally purchased.

“Strong demand, good mortgage availability and our ability to offer attractive levels of affordability to our customers, means the outlook for the division remains very positive,” said Chair Dermot Gleeson.

The Homebuilding market

As Gleeson alluded to, British homebuilders have seen to found a new spark following Johnson’s landslide victory in the December election.

Homeserve (LON:HSV) seem to be performing well, in similar fashion to Gleeson. In November the firm said that revenue had risen on organic growth and contributions from mergers and acquisitions.

Homeserve additionally announced the acquisition of a 79% stake in eLocal Holdings LLC for $140 million on debt and cash free terms. For Homeserve’s current financial year to the end of March, eLocal is expected to add around $5 million to adjusted operating profit, rising to $16 million in the 20201 financial year further investment.

Bovis and Galliford agree merger deal

Additionally, two titans in the industry in Galliford Try (LON:GFRD) and Bovis Homes Group plc (LON:BVS) agreed a merger deal late in 2019.

The deal is valued at £1.44 billion, after Galliford rejected a £1.05 billion bid from rival Bovis for its Linden Homes and Partnerships & Regeneration businesses back in May.

In September the two confirmed they had resumed talks. Bovis was to issue shares worth £675 million and pay £300 million in cash, combined with £100 million of Galliford debt.

The two firms announced that the terms from the September agreement were unchanged, and will see will see Bovis issue 63.8 million new shares to Galliford, valued at £675 million, pay £300 million in cash, and take over Galliford’s £100 million debt.

Following the Boris bounce, British homebuilders have been given renewed optimism after some clarity has been given in British Politics.

The update from Gleeson today will please shareholders, however much uncertainty lies in British EU negotiations and other political affairs, which still could leave the property market cautious.