MJ Gleeson accelerates growth plans with £20 million banking agreement
Urban regeneration specialist MJ Gleeson Group plc has agreed a new £20m revolving credit facility with Lloyds Bank Commercial Banking to accelerate its growth plans.
The Group, which was founded in Sheffield more than 100 years ago, will use the facility to capitalise upon renewed confidence in the housing market by increasing its number of outlets in key geographic territories and acquiring additional land for development.
Gleeson specialises in building affordable housing on brownfield land in the North of England and also enhances the value of green field sites by achieving residential planning consents in the South.
Improved conditions in the housing market, combined with the Group’s tightly focussed business model helped deliver 49 per cent revenue growth for the year to June 2013. Gleeson Homes, the Group’s housebuilding division, sold 406 units during this period compared with 279 the previous year.
Jolyon Harrison, Chief Executive Officer, at MJ Gleeson Group, said: “This facility strengthens our financial position and provides us with the additional flexibility and capacity for growth. Forward orders are significantly ahead of last year and we are confident our focussed strategy will continue to deliver positive results.”
The Group, which generated sales of £60.7m in the year ending June 2013, employs 215 people from its offices in Sheffield, Bury, Fleet and Sunderland.
David Hunt, Relationship Director at Lloyds Bank Commercial Banking, said: “MJ Gleeson’s most recent set of results clearly demonstrates the strength of the Group’s business model. The new facility gives the Group additional liquidity to unlock value from its existing land bank as well as well as acquiring further development sites.”
Dean Gormley from Sheffield law firm Irwin Mitchell advised Lloyds Bank Commercial Banking.
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