REG - MJ Gleeson Plc - AGM Trading Update

MJ GLEESONAnnouncement

15/11/2024 07:00

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RNS Number : 3422M  MJ Gleeson PLC  15 November 2024

MJ Gleeson plc  (GLE.L)

 

AGM Trading Update

15 November 2024

MJ Gleeson plc, the low-cost housebuilder and land promoter, is issuing the
following update ahead of its Annual General Meeting which is being held later
today.

As previously indicated, and for the reasons set out below, the results for
the financial year will be more weighted to the second half than usual. The
Board continues to expect that the results for the year will be in line with
current market expectations(1).

Gleeson Homes

As anticipated, the lack of conviction in the market continued through the
Autumn. Last week's base rate reduction was welcome and is expected to bolster
buyer confidence into the important Spring selling season.

Net reservation rates for the period 1 July to 1 November 2024 increased to
0.56 per site per week (0.47 excluding bulk reservations), from the 0.45 per
site (0.41 excluding bulk reservations) during the same period last year.

Gleeson Homes continues to experience margin pressure as a result of the use
of higher sales incentives, the impact of multi-unit sales, increased build
costs and limited relief from increasing selling prices.

Gleeson Homes has commenced its programme of new site openings, having already
opened 7 new sales sites this financial year. The division expects to open a
total of 27 sales sites during the year (FY2024: 4 sales sites opened), but
will be selling overall on a lower average number of sites than last year,
with fewer sites in H1 than H2. Gleeson Homes will continue the positive
momentum of site openings from FY2026 targeting a net 10 new sales sites per
year.

As the wider market improves, we remain confident in Gleeson Homes' ability to
fulfil this ambitious programme of site openings which will drive the exciting
sector-leading growth planned for FY2026 and beyond.

Gleeson Land

Gleeson Land continues to promote several exciting opportunities. The
prospective reform of the National Planning Policy Framework is expected to
beneficially impact the timing of certain sites.

Strong demand for consented land from large and medium-sized developers
continues to give the Board confidence that Gleeson Land will deliver a full
year result materially ahead of last year, with a number of significant sales
expected to be completed in H2.

A Trading Update for the 6 months to 31 December 2024 will be issued on 14
January 2025.

 

(1) Analyst consensus for FY2025 can be found at:
https://www.mjgleesonplc.com/investors/analyst-coverage/
(https://www.mjgleesonplc.com/investors/analyst-coverage/)

 

 

 

The information contained within this announcement was previously deemed by
the Company to constitute inside information as stipulated by Market Abuse
Regulation (EU) No 596/2014 ("EU MAR") and the retained UK law version of EU
MAR pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2019 (SI
2019/310) ("UK MAR"). With the publication of this announcement via a
Regulatory Information Service, this information is now considered to be in
the public domain. For the purposes of UK MAR, the person responsible for
arranging for the release of this information on behalf of MJ Gleeson plc is
Stefan Allanson, Chief Financial Officer

LEI: 21380064K7N2W7FD6434

Enquiries:

                                                             +44 1142 612 900

   MJ Gleeson plc
   Graham Prothero      Chief Executive Officer
   Stefan Allanson         Chief Financial Officer

 Hudson Sandler                                             +44 207 796 4133 / gleeson@hudsonsandler.com
                                                            (mailto:gleeson@hudsonsandler.com)
 Mark Garraway
 Harry Griffiths

 Singer Capital Markets                                     +44 20 7496 3000
 Shaun Dobson
 Charles Leigh-Pemberton

 Investec                                                   +44 207 597 4000
 Ben Griffiths

 Tom Brookhouse

 

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