REG - MJ Gleeson Plc - Trading Update

MJ GLEESONAnnouncement

Today 07:01

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RNS Number : 6971C  MJ Gleeson PLC  01 May 2026

 

MJ Gleeson plc

("MJ Gleeson" or the "Group")

 

Trading Update

MJ Gleeson plc is providing a trading update covering the 11 weeks to 24 April
2026 ("the Period").

 

Gleeson Homes

 

Trading

 

Gleeson Homes has experienced resilient trading through the period since 11
February, when the Group announced its H1 results. Net reservation rates for
the 11 weeks to 24 April were 0.88 per site per week (0.59 excluding bulk
reservations) compared to 0.86 per site per week (0.64 excluding bulk
reservations) during the same period last year.

 

There has been modest build cost inflation since the start of the calendar
year whilst underlying selling prices on open-market and partnership sales
have been broadly stable. Protecting margin continues to be a priority.

 

Restructuring & legacy site cost provisions

 

Following the successful implementation of Project Transform, we continue to
seek opportunities to improve the business, sharpening efficiency, mitigating
overhead costs and focusing our investment into those regions and locations
where we see optimal prospects for controlled growth.

 

From 1 July, the Yorkshire East region will be integrated into Yorkshire South
and West. The creation of one Yorkshire region, and reallocation of certain
sites into the Midlands region, will improve the efficiency of those regions,
refocus our investment into higher return land opportunities and generate
annualised regional overhead savings of £0.9m. The related costs are
estimated at up to £3.1 million, comprising cash restructure costs of £0.3m
and the non-cash impairment of certain conditionally purchased land assets of
between £1.5m and £2.8m, and will be recognised as an exceptional item
in the full-year accounts.

 

Our new management teams have identified issues on previously completed legacy
developments, mainly in Yorkshire, which require rectification in order to
achieve adoption of the roads (and other statutory services) by the relevant
Local Authorities. As we work through these issues we expect to establish cost
provisions in the current financial year estimated at between £5.2 million
and £7.1 million, for remedial works to be undertaken over the next three to
four years. It is expected that Adjusted results(1) for the current financial
year will exclude these legacy site provisions.

 

Gleeson Land

 

Gleeson Land continues to progress the sale of five sites including one site
which represents approximately 50% of total plots forecast to be sold during
the year. In respect of that project, we have made good progress on the
required technical solution, which has now been accepted by the highways
authority. The timing of conclusion of the sale is subject to formal technical
approval. We will provide an update when we are clearer on that timing.

FY2026 outturn

 

With greater visibility across Gleeson Homes' Spring selling season and
subject to Gleeson Land completing its major land sale, the Board expects that
Adjusted Group Profit before Tax(1) for the year ending 30 June 2026 will be
in line with market consensus(2).

 

Graham Prothero, CEO, commented:

 

"We are pleased that Gleeson Homes' trading performance has been resilient in
an uncertain market environment.

 

"Whilst it is frustrating that further work is required on a number of legacy
sites, I am pleased with the determination of our new management teams to
identify and rectify legacy issues which now allows Gleeson Homes to look
forward with confidence.

 

"It is too early to forecast the degree to which the crisis in the Middle East
will impact customer confidence, mortgage affordability and build cost
inflation over the coming months. We have recently seen some softening in
footfall and reservations, and limited increases in the cost of some
materials. This, together with ongoing challenges with planning and site
viability, prompts even higher than usual caution in how we manage the
business, including land investment decisions, into the next financial year.

 

"However, following the successful implementation of Project Transform, which
has driven a greater focus on operational effectiveness and efficiency, the
business as a whole is now in a much stronger position to manage through this
period of uncertainty and capitalise on the significant opportunities we see
ahead when the market returns to growth."

 

Graham Prothero, CEO, and Stefan Allanson, CFO, will host a conference call at
08:00 this morning. Institutional investors and analysts can register
at mjgleeson@stoneway.co (mailto:mjgleeson@stoneway.co)  their interest in
joining the call.

 

(1) Adjusted Operating Profit and Adjusted Group Profit Before Tax will be
determined in accordance with the Group's accounting policies and, while the
classification of these costs remain under review, Adjusted Operating Profit
and Adjusted Group Profit Before Tax are currently expected to exclude
 exceptional items and the additional completed site cost provisions which,
in total, amount to between £7.0m and £10.2m. These adjustments are in
addition to £0.3m exceptional items recognised in the interim results and the
estimated £4.5m exceptional costs of restructuring the Greater Manchester
Merseyside region announced in February 2026.

(2) The company compiled consensus of Group Profit Before Tax and Exceptional
items for the year ending 30 June 2026 is £18.2m with a range of £12.9m to
£20.5m and can be found
at: https://www.mjgleesonplc.com/investors/analyst-coverage/
(https://www.mjgleesonplc.com/investors/analyst-coverage/)

 

Enquiries:

 

MJ Gleeson plc
         +44 1142 612 900

Graham Prothero, Chief Executive Officer

Stefan Allanson, Chief Financial Officer

 

Stoneway (Financial PR)
                        mjgleeson@stoneway.co
(mailto:mjgleeson@stoneway.co)

Mark
Garraway
+44 7771 860938

Kim Looringh-van
Beeck
+44 20 3422 0208

 

Singer Capital Markets (Joint broker)           +44 20 7496 3000

Shaun Dobson

Charles Leigh-Pemberton

 

Peel Hunt (Joint
broker)                                +44 20
7418 8900

Ed Allsopp

Tom Graham

 

 

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

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