Business
Strategic Review
Strategic Review.
About this update from Mj Gleeson Plc
[{"type":"text","content":"\n Gleeson(M J)Group PLC\n31 March 2006\n\n\n\n M J GLEESON GROUP PLC\n Strategic Review\n\nFollowing a comprehensive strategic review focused on the creation of\nshareholder value, Gleeson has decided to concentrate on, and substantially\nincrease its involvement in, three related areas:\n\n • Housing Regeneration\n • Commercial Property Development\n • Strategic Land Trading\n\nWith regard to the Group's other activities:\n\n • The Group's highly regarded Engineering Division and Concrete Repairs\n Limited, which is the market leader in its sector, are both performing\n strongly. However, neither sits well within the Group's new business model.\n Moreover, the Board is aware that both businesses are likely to be of\n considerable interest to a range of parties who are committed to growth in\n the UK construction sector. The Board's objective will be to secure\n purchasers who can offer good value to shareholders, whilst providing\n enhanced career opportunities for the employees concerned.\n\n\n • The Group will undertake an orderly sale of its commercial property\n investment portfolio and non-housing PFI investments.\n\n\n • Gleeson Homes' activities outside the housing regeneration sector will\n be substantially reduced. In consequence, there will be a significant\n reduction in its non-strategic land holdings.\n\n\nHousing Regeneration\n\nThe Group's regeneration operations will comprise: housing for sale, mainly on\nland provided by local authorities and other public bodies; maintenance and\nrefurbishment services for social housing providers, particularly in the context\nof the Government's Decent Homes Initiative; and social housing PFI projects.\nEach of these three areas offers continuity of work over extended contractual\nperiods, reliable margins, improved returns on capital, and very substantial\nopportunities for growth.\n\nGleeson Regeneration already has a very strong position as a partner of choice\nfor local authorities and other public bodies seeking to promote affordable\nhousing for sale. The division's existing portfolio of development agreements\nand appointments as preferred bidder is expected to generate the construction\nand sale of more than 7,000 homes over the next 10 years, and further successes\nare anticipated.\n\nMaintenance and refurbishment services will be provided by Powerminster...