A NORTH-EAST housebuilder says it will continue expanding its presence across the region after a record order book doubled profits.

MJ Gleeson Group says pre-tax profits increased 110 per cent to £12.2m for the year to June 30, with orders 71 per cent higher at £44.2m.

The firm added its homes division saw operating profits rise to £9.4m in the period, with sales increasing 38 per cent to 561.

The company has offices in Chester-le-Street and Wynyard Park, near Stockton, and is overseeing a number of North-East projects, including 76 properties on the former Lamplas caravan part maker site, in Leadgate, near Consett.

It also has homes in Stanley, County Durham, and Ushaw Moor, near Durham City, and bosses told The Northern Echo it is targeting cheaper land, including potential areas in Bishop Auckland and Middlesbrough.

Dermot Gleeson, MJ Gleeson Group’s chairman, said the firm’s successes showed the market was turning.

He said: “The outlook remains highly encouraging.

“Demand for low cost family homes continues to be strong among our core customer base and our forward order book is at a record high.

“Our commitment to ensuring our homes remain affordable to low income buyers means we don’t anticipate a significant in sales prices.

“However, the substantial increase in the size of the land bank achieved over the last year means there is considerable scope to generate significant further, year on year, profit growth by means of an increase in sales volume.”

Gleeson’s land business, which focuses on buying sites across the South and securing residential planning consent, was also buoyed by higher operating profits, which stood at £4.8m from £3.5m last year.

Its forward land planning means the group now has more than potential 5,000 plots.

Mr Gleeson added: “We have continued to substantially expand our land bank, taking advantage of the relatively low land prices in target geographies in the North.”

Gleeson’s work on the Lamplas factory site was approved by councillors earlier this year, with permission granted for 11 two-bedroom semis, 47 three-bedroom semis, 14 three-bedroom detached and a quartet of four-bedroom detached properties.

The area was left vacant when Lamplas moved to new premises in Castleside, near Consett.