News

More cost cuts at Gleeson

19 November 2008 16:05:00

Falling sales and lower prices continue to hurt MJ Gleeson's balance sheet, with the housebuilder set to take an £11.2m charge due to asset write-downs and cost cutting.

In September, the group reported a £20.8m loss for the year to June versus a profit of £8.3m a year earlier, having taken a £17.4m exceptional charge, including £10.6m of asset valuation write-downs.

A further cost reduction programme is expected to result in a total charge of £1.6m this year, with an annualised benefit in future years put at £3.7m, of which £1.6m will be realised in the current financial year.

The annualised cash saving is estimated at £3.5m.

Gleeson is due to move out of its head office in Hampshire by the end of September next year, after which the HQ will move to Sheffield.

All data suppied by Digital Look (15 minute delay)




Risk Warning

There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddeson, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.