Gleeson

[AsleepInYorkshire]

A housebuilder in a very niche market place.

http://uk.advfn.com/stock-market/london ... s/72517099

Usual caveat - do your own research.

Some impressive numbers and worthy of a little peak. Downside could be that the model may rely upon the government deposit scheme and whilst [I think] this is secure until 2021 it could [possibly] be withdrawn earlier if a new government is elected or quite simply if it is removed in 2021 create a void that Gleeson would not survive. The Gleeson business model is very robust and they work back to known incomes and income multipliers to identify their selling prices. Accordingly this may negate the potential for downside if and when the government deposit scheme is withdrawn.

They will also have to compete with skills shortage issues which will not be something they can overcome easily. They do incentivise their supply chain with early payment. However, ultimately they have to compete with some very well known house builders such as Barratt for example and this will place a burden upon their plans to roll their model out.

I think that the model has been tried and tested before - see Country and Metropolitan Homes [iirc]

Gleeson evolved from a local contractor to move into house building which turned their fortunes [quite literally] around.

[Alaric]

A housebuilder in a very niche market place.

A combination of being a developer in the North and a land-banker in the South. Or at least that's what the linked report seems to be saying.

[AsleepInYorkshire]

Jolyon Harrison CEO Stands Down with Immediate Effect
https://www.youinvest.co.uk/articles/st ... ate-effect

https://www.youinvest.co.uk/articles/in ... -pay-spats
Assuming all dividends were reinvested, Gleeson has returned 728% during his time at the top. That’s nearly 10 times as much as delivered by the FTSE 100 over the same period (73%).


AiY

[Dod101]

I have often looked at Gleeson and similar companies. In fact I hold Mucklow, the subject of a takeover, and Henry Boot. Two of them were enough for me but maybe I will have some Gleeson now that Mucklow will go from my portfolio. I like these small conservative, family oriented companies.

Dod

[Arborbridge]

I sold because I have never over the last 25 years or so ever done well out of B Land or for that matter Land Securities. Every time I get sucked in, the share behaves well for a short time then goes down. Currently we also have the uncertainty of Brexit and the retail sector. I should have sold the lot in February last year but left what I had in my SIPP having sold the holding in the ISA. In February I bought Mucklow at £5.20 which was on a similar yield and still broadly a property share. It was taken out by Londonmetric earlier this year and I sold just before the event at £6.55. I certainly was not looking for that and would much have preferred to have stayed with Mucklow but never mind, I saved myself a loss on B Land and got a good gain out of Mucklow. With the proceeds I bought Gleeson at £8.11. It is another family property/building company and I will be very happy to hold it indefinitely.

With the second sale in September I subscribed to Smithson at £10. Current price £12.3 or so. Now off topic.

To acknowledge Arb's comment, I will wait 5 years and see but so far the sale has worked out fine.

Dod

I can see why you like Gleeson, but how can they maintain that extraordinary dividend growth?

Arb.

[monabri]

A little bit of GLEe.....

https://simplywall.st/stocks/gb/consume ... nvestment/

[Dod101]

I can see why you like Gleeson, but how can they maintain that extraordinary dividend growth?

I should have said that I bought Gleeson just after the CEO left over a dispute over his remuneration. Unfortunately the shares kept going down after my buy at £8.11, so I bought a little more at the beginning of this month at £7.33. Now I think it is just over £8 so that is fine. I like the idea that the Chairman (a Mr Gleeson) turned down the request by the CEO for a bigger increase in his salary than the he the Chairman thought was warranted and even called his bluff!

They have net cash on the Balance Sheet, are in the very modestly priced end of the housing market and seem to produce a good product that people want to buy and at a price they can afford. That, with a very conservative approach to finance, makes for a very good business model. I have been watching them for a while and thought that the upset with the CEO provided a good opportunity at just the time I had some spare cash from the goings on with Mucklow. Maybe the Gleeson family will get an offer they cannot refuse but I would rather stay with these small family companies than take a one off gain.

Dod

[Arborbridge]

I can see why you like Gleeson, but how can they maintain that extraordinary dividend growth?

I should have said that I bought Gleeson just after the CEO left over a dispute over his remuneration. Unfortunately the shares kept going down after my buy at £8.11, so I bought a little more at the beginning of this month at £7.33. Now I think it is just over £8 so that is fine. I like the idea that the Chairman (a Mr Gleeson) turned down the request by the CEO for a bigger increase in his salary than the he the Chairman thought was warranted and even called his bluff!

They have net cash on the Balance Sheet, are in the very modestly priced end of the housing market and seem to produce a good product that people want to buy and at a price they can afford. That, with a very conservative approach to finance, makes for a very good business model. I have been watching them for a while and thought that the upset with the CEO provided a good opportunity at just the time I had some spare cash from the goings on with Mucklow. Maybe the Gleeson family will get an offer they cannot refuse but I would rather stay with these small family companies than take a one off gain.

Dod

I think the rate of dividend increase may not be sustainable - I note the cover has reduced dramatically over the years. And the yield is less than some well known ITs which carry less risk.

Arb.

[Dod101]

I do not for a minute expect another 33% increase in the dividend far less for that to be a sustained increase. It was only up 27.8% at the half year to 31 December last.

Dod