Trading Update

MJ GLEESON

03/06/2025 07:03

RNS Number : 1859L

MJ Gleeson PLC

03 June 2025

 

3 June 2025

(The "Group" or the "Company")

Trading Update

MJ Gleeson plc is providing a trading update for the year ended 30 June 2025 ("FY2025").

The pace of the housing market recovery has not been sufficient to offset the cumulative impact on Gleeson Homes' gross margin of a number of headwinds through the year. These include increased build costs, flat selling prices, the continued use of incentives and several bulk sale transactions.  Consequently, Gleeson Homes gross margin for the year will be circa 1% lower than previously expected.

The Board's expectation that Gleeson Homes would deliver an overall operating profit in line with market expectations included the profit contribution from a disposal of one of Gleeson Homes' extensive land holdings in East Yorkshire. It is now not expected that this disposal will proceed and consequently Gleeson Homes anticipates reporting an operating profit circa 15% - 20% below current expectations.  

Looking ahead, a number of factors will continue to impact Gleeson Homes into FY2026, including planning delays which will see the business selling from fewer sites than previously forecast.  Gleeson Homes' gross margin in FY2026 is also expected to be circa 1% lower than market expectations.

Gleeson Land has completed three transactions to date and is continuing work on a further seven disposals anticipated to complete before the year end.

 

ENDS

Conference Call

The Company will hold a conference call for analysts and investors at 09:00 this morning.  For dial-in details, please email gleeson@hudsonsandler.com

 

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:

MJ Gleeson plc
+44 1142 612 900
Graham Prothero, Chief Executive Officer
Stefan Allanson, Chief Financial Officer
Hudson Sandler
+44 207 796 4133 / gleeson@hudsonsandler.com
Alex Brennan
Harry Griffiths
Singer Capital Markets
+44 20 7496 3000
Shaun Dobson
Charles Leigh-Pemberton
Investec
+44 207 597 4000
Ben Griffiths
David Anderson
Tom Brookhouse


  

About MJ Gleeson plc 

MJ Gleeson plc comprises two divisions: Gleeson Homes and Gleeson Land. 

Gleeson Homes is the leading low-cost, affordable housebuilder with the vision of "Building Homes. Changing Lives." Focusing on areas where affordable housing is most needed in the Midlands and North of England, Gleeson Homes' average selling price was £193,900, 34% lower than other housebuilders average selling price of £291,700 in the same geographic regions. This means that a couple earning the National Living Wage can afford to buy a home on any Gleeson Homes development.

Gleeson Land, which operates across the South of England, is the Group's land promotion division. To deliver on its vision of "Promoting Land. Unlocking Value", the division carefully identifies sustainable development opportunities which it then promotes through the residential planning system and sells on behalf of the landowner. Gleeson Land is a pioneer of data analytics in the land promotion space, which it leverages to secure new promotion agreements and deliver successful planning outcomes.  

In July 2023, the Company held a Capital Markets Day titled 'Putting in place the foundations for growth', where it set a medium-term target within a stable market environment to reach 3,000 annual completions.

More details on the Company can be found at: https://www.mjgleesonplc.com/  

 

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