Another trading update released today [click to view].
Not a great deal of detail, however, it does appear to show the dire state of the housing sector!
Gleeson Homes completed the sale of 691 units during the period, an increase of 16.5% on the previous first half-year’s total of 593 unit completions.
We continue to see strong demand for our low-cost homes, supporting both increased build activity on existing sites and the opening of new sites across our target geographic area. Our two pilot offices in Penrith and Ashington recently became fully-staffed area offices. Our target market remains strong and our customers have maintained their confidence. We do not see any signs of customer caution.
It is obvious that the markets are seeing though this apparent misguided optimism, since GLE is showing a change in the sp of ~9% (according to IG). Oh, just a minute that is a gain of 9%, so maybe the market is actually seeing through the current media pessimism!!
I suppose the real test will be to see if the sp can stay above the 700 level over the coming weeks, especially in view of the impending media blitz on behalf of project fear (which of course will have next to nothing to do with reality, but will, I suspect, influence some).