REG - MJ Gleeson Plc - Audited results for the year ended 30 June 2025
Today 07:00
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RNS Number : 4210Z MJ Gleeson PLC 16 September 2025
16 September 2025
MJ Gleeson plc
("Gleeson", "the Group" or "the Company")
Audited results for the year ended 30 June 2025 ("FY2025")
Full year outturn in line with revised expectations
Focus at Gleeson Homes on performance enhancement and growth trajectory
Gleeson Land set for outperformance over medium term
Graham Prothero, CEO, commented:
"This year has been challenging for Gleeson, and despite selling more homes
relative to FY2024, there have been factors which stalled our momentum. We
have taken the actions necessary to benefit the business through FY2026 and
ensure the delivery of our strategic objectives.
Positively, Gleeson Homes significantly strengthened its forward order book in
the year. Market demand has been steady, and we have maintained a robust sales
rate, reflected in our net open market reservations rate, up 28% in the second
half against the same period last year. Selling prices, however, remained
constrained, with incentives continuing at an elevated level, restricting
material margin improvement.
The organisational and management changes implemented in Gleeson Homes to
improve performance are already delivering benefits. The new leadership team
is operating effectively with shorter reporting lines, strengthened divisional
and regional management teams, and more rigorous process compliance,
underpinned by increased local empowerment and responsibility.
With a stronger and more disciplined business in a stable market, and a busy
site opening programme, we are excited about Gleeson Homes' future growth.
We are also very pleased with the progress at Gleeson Land, which achieved
improved levels of planning success and new promotion agreements during the
year and starts the new financial year with more sites in sale processes.
Having delivered a significantly improved result, and strengthened by the
recent geographical reorganisation and data research capability, the business
is making significant progress towards its objective of becoming the
pre-eminent land promoter in the South of England.
Consequently, the Board currently expects the Group to deliver an overall
result for FY2026 in line with its expectations(5). Looking further ahead, we
believe the combination of a stronger performance from Gleeson Homes and
continued progress at Gleeson Land position the Group well for a period of
sustained growth."
Group financial highlights 2025 2024 Change
Revenue
Gleeson Homes £348.2m £329.0m 5.8%
Gleeson Land £17.6m £16.3m 8.0%
Total £365.8m £345.3m 5.9%
Operating profit by division
Gleeson Homes(1) £22.3m £30.3m (26.4%)
Gleeson Land £7.0m £2.2m 218.2%
Profit before tax and exceptional items £21.9m £24.8m (11.7%)
Profit before tax £20.5m £24.8m (17.3%)
Cash, net of borrowings and overdraft (£0.8m) £12.9m (£13.7m)
EPS (pre-exceptional items)(1) 28.9p 33.1p (12.7%)
ROCE(2) 8.6% 10.1% (150 bp)
Dividend per share (total) 11.0p 11.0p nil
Divisional highlights
Gleeson Homes:
· 1,793 homes sold (2024: 1,772)
o Reservation rates for the year averaged 0.71 per site per week, up 37%
(2024: 0.52). Excluding multi-unit sales(3), net reservation rates were up 20%
at 0.53 per site per week (2024: 0.44)
· Forward order book 845 plots (2024: 559)
· Average selling prices increased by 4.3% at £193,600 (2024:
£185,700)
o Underlying(4) selling prices increased by 0.6%
· Gross profit margin on homes sold of 20.7% (2024: 24.1%)
· Operating profit(1) of £22.3m (2024: £30.3m)
· Four partnership agreements signed (2024: one signed)
· 68 build sites (30 June 2024: 79) of which 57 are active sales
sites (30 June 2024: 62)
· Land pipeline increased by 500 plots to 19,638 plots (2024:
19,138)
Gleeson Land
· Seven land transactions completed (2024: four)
· Eight sites with planning or resolution to grant for 1,343 plots
(2024: seven sites, 1,473 plots)
· Six sites, with consent for 1,252 plots, in a sale process (2024:
three sites, 923 plots)
· Ten sites awaiting a planning decision (2024: 11 sites)
· 13 new site promotion agreements signed (2024: five)
· Portfolio: 77 sites (2024: 71) with the potential to deliver
18,401 plots (2024: 16,911)
Current trading and outlook
Gleeson Homes' open-market net reservation rates have seen an improvement, in
a stable market, and in the 11 weeks to 12 September 2025 were 0.54 per site
per week compared with 0.50 per site per week over the comparable period last
year, an increase of 8%. Cancellation rates were 0.12 per site per week
compared with 0.11 per site per week over the comparable period last year.
The business has a strong pipeline, and our growth plans are based on an
ambitious programme of site openings from land already under control, with the
pace constrained only by a planning system that continues to be
under-resourced.
Since the year end we have signed two further partnership transactions, with
several further opportunities in negotiation. We continue to target circa 20%
of home sales from partnership sites, which will be supported in the medium
term by the continuing demand for PRS and the Government's recently announced
funding package for the affordable market.
The Board remains confident that, in delivering its objective of selling 3,000
new homes per annum, Group profitability could broadly triple and the Company
would resume its position as the fastest growing listed housebuilder in the
UK.
With a number of sites close to achieving planning and others in sale
processes, Gleeson Land is well placed to deliver another robust performance
in FY2026 and is strongly positioned for significant growth from FY2027.
The Group starts the new year with a stronger forward order book and a stable
sales rate in Gleeson Homes and a strengthened portfolio in Gleeson Land.
(1) Stated before exceptional restructuring costs of £1.3m in 2025 and £nil
in 2024. Basic EPS for 2025 was 27.1p per share.
(2) Return on capital employed is calculated based on earnings before
interest, tax and exceptional items ("EBIT"), expressed as a percentage of the
average of opening and closing net assets after deducting deferred tax and
cash and cash equivalents net of borrowings.
(3) A multi-unit sale is a sale of 5 or more properties to either a private
investor or Registered Provider for affordable rent.
(4) Underlying selling price changes are based on average reported revenue
changes on open market completions, on sites with completions in both the
current and previous periods, adjusted for the effect of garage mix and bed
mix.
(5) Analyst consensus for FY2025 and FY2026 can be found at:
https://www.mjgleesonplc.com/investors/analyst-coverage/
(https://www.mjgleesonplc.com/investors/analyst-coverage/)
Analyst presentation
A presentation by Graham Prothero, CEO, and Stefan Allanson, CFO, will be held
at 09:30 this morning at The Storey Club, 100 Liverpool Street, London EC2M
2AT.
The presentation will be webcast live and will be available via our website at
www.mjgleesonplc.com/investors (http://www.mjgleesonplc.com/investors) or via
the following link: https://brrmedia.news/GLE_FY25
(https://url.uk.m.mimecastprotect.com/s/ASBwC1wWqH6PAjDFLfYtV3rlR?domain=brrmedia.news)
About MJ Gleeson plc
MJ Gleeson plc comprises two divisions: Gleeson Homes and Gleeson Land.
Gleeson Homes, under the banner of "Building Homes. Changing Lives" builds
high-quality affordable homes across the Midlands and North of England. To
meet customer demand, and without compromising affordability, the range of
homes available extends from one-bed apartments to five-bedroom houses. With a
two-bedroom home available from £100,000, a key objective is to ensure that
on all of our developments, a meaningful proportion of homes are affordable to
a couple earning the National Living Wage. Buying a Gleeson home typically
costs less than renting a similar property. All Gleeson homes are traditional
brick built semi or detached homes.
As a high-quality, affordable housebuilder, Gleeson has strong and inherent
sustainability credentials. Its social purpose underpins the Company's
strategy and Gleeson measures itself closely against UN SDGs 5, 8, 11, 12, 13
and 15. More details on the Company's approach to sustainability can be found
at: www.mjgleesonplc.com/sustainability
(https://mjgleesongroupplc.sharepoint.com/sites/F/Shared%20Documents/STATS/2022-23%20Interim%20December%202022/Trading%20Update%2013%20Jan%2023/mjgleesonplc.com/sustainability?xsdata=MDV8MDF8fGUzYWI2M2VjZTFjZTQyZGM4MjQwMDhkYjljYTkzYWU3fGEzM2JkYjE1N2UyNTQzOGFiMWZkNWM1MjNhODg2NmY5fDB8MHw2MzgyNzYwMjI4NTQ3MTM5MjB8VW5rbm93bnxWR1ZoYlhOVFpXTjFjbWwwZVZObGNuWnBZMlY4ZXlKV0lqb2lNQzR3TGpBd01EQWlMQ0pRSWpvaVYybHVNeklpTENKQlRpSTZJazkwYUdWeUlpd2lWMVFpT2pFeGZRPT18MXxMMk5vWVhSekx6RTVPbUV6TVRneU4yUmlPREUxWlRRMk0yRmhaV1ZqTXpBMFpUTm1OR1JqWWpCbVFIUm9jbVZoWkM1Mk1pOXRaWE56WVdkbGN5OHhOamt5TURBMU5EZzBNekV3fDE3YTdlMzIyM2NmODRmM2QxZmU4MDhkYjljYTkzYWU1fGM5ODNjZDZjZjU1YjQ0NDFiYWI4ODg4YjlhOGY3MDdj&sdata=STFJdDFUVXk1UEcweTI3ak9GUk9UK0k3ajZUdEcwV3JFdEhURkJWZTFKVT0%3D&ovuser=a33bdb15-7e25-438a-b1fd-5c523a8866f9%2Cmgarraway%40hudsonsandler.com)
.
Gleeson Land, which operates under the banner of 'Promoting Land. Unlocking
Value' is the Group's land promotion division operating in the South, West and
Central England. Gleeson Land identifies development opportunities and works
with landowners and stakeholders to both enhance the value of the property and
to promote land through the residential planning system, ultimately managing
the sale of these sites to other developers on behalf of landowners.
Enquiries:
MJ Gleeson plc +44 1142 612 900
Graham Prothero, Chief Executive Officer
Stefan Allanson, Chief Financial Officer
Invicomm (Financial PR) m (mailto:mjgleeson@invicomm.com) jg (mailto:mjgleeson@invicomm.com) leeson@i
(mailto:mjgleeson@invicomm.com) nvicomm.com (mailto:mjgleeson@invicomm.com)
Mark Garraway +44 7771 860938
Kim Looringh-van Beeck +44 20 3422 0208
Singer Capital Markets (Joint Broker) +44 20 7496 3000
Charles Leigh-Pemberton
Oliver Platts
Peel Hunt LLP (Joint Broker) +44 20 7418 8900
Ed Allsopp
Pete Mackie
The person responsible for arranging the release of this announcement on
behalf of the Company is Stefan Allanson, Chief Financial Officer.
LEI: 21380064K7N2W7FD6434
Chair's Statement
I am delighted to be addressing shareholders for the first time in my capacity
as Chair.
Whilst our market remained broadly stable through the year we were pleased to
achieve significantly improved sales rates.
Gleeson Homes' profits continued to be impaired by margin pressures, and the
executive team took the decision to implement organisational and management
changes to strengthen leadership and compliance with operational procedures.
We moved quickly to implement operational changes, the benefits of which are
already becoming evident. We are optimistic that we are on track to deliver
our medium term growth strategy.
Board
On 23 April 2025, James Thomson stepped down from his role as Chair of the
Board. I assumed the interim role of Chair, as well as Chair of the Nomination
Committee, and, on 4 July 2025, was appointed as Chair of the Board. I remain
as Chair of the Audit Committee on an interim basis whilst an external search
is in progress to appoint a further independent non-executive director to fill
this role.
Strategy
We remain committed to our medium-term objective of 3,000 new homes per annum,
which could result in profitability broadly tripling and Gleeson resuming its
position as the fastest growing listed housebuilder in the UK.
Our strategy remains unchanged, with a clear focus on addressing the country's
need for affordable, high-quality new-build homes, and the resulting economic
and social benefits that this brings. For Gleeson Homes, our vision of
"Building Homes. Changing Lives" remains our key focus. At Gleeson Land, the
team is focused on creating value for their landowner customers through the
planning system: "Promoting Land. Unlocking Value".
We have further developed relationships with key partners, and signed four
further partnership deals in the year, with partnership interest in new and
existing sites remaining strong and anticipated to increase over the coming
months, following the Government's recently announced funding and rent
settlement for Housing Associations.
The Government's changes to the planning system are welcome, and there are
early signs of improvement, but more needs to be done to increase the
efficiency and consistency of the planning and regulatory systems in order to
expedite the provision of much-needed new homes. For Gleeson Homes, this
reinforces our view of the importance of building on brownfield land and the
provision of affordable homes. For Gleeson Land, the reforms should help
secure planning where there is a mandatory housing requirement and satisfy the
growing demand from other developers for high-quality consented land.
Building safety
The Group remains wholly committed to remediating legacy life-critical
fire-safety issues as quickly as possible and has a dedicated senior resource
overseeing the management of building safety issues. During the year one
further building was identified, having potentially been developed by the
Group through a joint venture, as well as a small low-rise development (below
11m) that the Group was involved with developing, which requires minor works.
The overall provision of £11.9m at 30 June 2025 (2024: £12.4m) remains
appropriate for the remediation of these buildings. We continue to make
progress with more buildings in assessment or remediation works in progress,
and with two buildings now substantially complete.
People
I would like to thank all Gleeson colleagues for their commitment and support
in this difficult year. Our latest employee survey showed high levels of
engagement and continuing high levels of satisfaction. Importantly we also
retained our Gold accreditation from Investors in People. The hard work of our
teams, and their commitment to our vision, mission and values underpin the
delivery of our strategy.
Our independently assessed people engagement score of 84% compared favourably
to the industry benchmark of 82%, and we remain in the top quartile of all
surveyed companies this year. Our response rate across the Group was 87%,
reflecting the importance of the survey to both the business and our people.
I am pleased that during the year the Group's EDI strategy was formally
launched and is being embedded across the business.
Sustainability and our commitment to Science Based Targets
We were delighted to have our greenhouse gas reduction targets validated by
the Science Based Targets initiative in May 2025, representing an important
step forward in our commitment to near-term and net-zero targets, which are
underpinned by comprehensive forecasts and a proposed route to achieve these
ambitious goals.
Gleeson Homes' core mission remains fully aligned with UN Sustainable
Development Goal 11, the first target of which is "access for all to adequate,
safe and affordable housing". Our analysis of completed sites in areas of high
crime demonstrates how our developments help in reducing crime, vividly
illustrating the social value that building new homes in 'tough' areas can
bring. Our Sustainability Committee and the wider business are focused on our
three pillars of sustainability: People, Communities and the Environment, with
targets set and actively managed throughout the year.
Dividend
Subject to shareholder approval at the 2025 Annual General Meeting, the
Company intends to pay a final dividend of 7.0 pence per share on 21 November
2025 to shareholders on the register at the close of business on 24 October
2025. This brings the total dividend for the year to 30 June 2025 to 11.0
pence per share, which is covered 2.6 times by normalised earnings. The Group
has an established policy of targeting a range of three to five times dividend
cover relative to full year earnings. Notwithstanding this policy, which
remains unchanged, the Board is comfortable recommending a lower level of
dividend cover on this occasion, reflecting their confidence in the medium
term outlook.
Fiona Goldsmith
Chair
15 September 2025
Chief Executive's Statement
Overview
This year has been challenging for Gleeson, and despite selling more homes
relative to FY2024, there have been factors which stalled our momentum. We
have taken the actions necessary to benefit the business through FY2026 and
ensure the delivery of our strategic objectives.
The margin pressure experienced in Gleeson Homes is not unique to our business
with continued build cost inflation, alongside static demand and selling
prices, necessitating the use of incentives and extending site durations.
These challenges were exacerbated in Gleeson Homes not only by legacy issues
but also by some issues around process and compliance with procedures
resulting in build cost increases in excess of provisions. It became clear to
me early in the financial year that the structure and leadership of Gleeson
Homes required fundamental review, and we moved quickly to implement change
through Project Transform, deploying a team from across the business, to
conduct that review and recommend remedial actions. During the second half of
the year we moved at pace to restructure the business, culminating in the
leadership and organisational changes externally announced on 4 July 2025.
These margin challenges led to a full year performance which was below our
initial expectations. With the benefit of the actions we have taken already
becoming evident, I am confident that Gleeson Homes will deliver a stronger
performance in the current financial year.
The area of the housing market in which we operate is comparatively stable,
and we are maintaining a robust sales rate. We have identified specific
opportunities to broaden our customer demographic by expanding our range of
homes, with the inclusion of five-bedroom houses, and the introduction of
one-bed apartments to edge-of-town locations will improve our competitiveness
in faster-selling suburban areas.
With a stronger and more disciplined business operating in a broader market,
we are excited for the future. We have a business capable and on-track to
deliver our objective of 3,000 homes per year.
We are also very excited for the prospects at Gleeson Land. Following the
reorganisation into three operating areas announced last year and the
successful use of its leading data analytics capability, the business is
further building on its excellent reputation among landowners and agents,
resulting in a strong pipeline of opportunities.
Gleeson Land is expecting to submit at least 18 new planning applications in
the first half of FY2026. Having delivered a strongly improved result, the
business is enjoying strong momentum. The team added 13 new promotion
agreements to the portfolio during FY2025 and is making significant progress
towards its objective of becoming the pre-eminent land promoter in the South
of England.
Group results
The Group generated revenue of £365.8m (2024: £345.3m) and delivered profit
before tax and exceptional items of £21.9m (2024: £24.8m), and profit before
tax of £20.5m (2024: £24.8m).
The Group ended the year with net borrowings of £0.8m (2024: net cash
£12.9m) and continues to have a strong balance sheet and significant
liquidity to invest in new sites and future growth.
Gleeson Homes
Gleeson Homes sold 1,793 homes (2024: 1,772), of which 205 were sold via
private multi-unit sale agreements (2024: 346). This outturn is an improvement
on the prior year, although fell short of our ambitions. Whilst some of this
can be attributed to external factors, including the protracted planning
system, the pace of delivery is a focus for the current financial year.
It was pleasing to see average selling prices increase by 4.3% to £193,600
(2024: £185,700) including the impact of fewer multi-unit sales, increase in
bed mix and an increase in underlying sales prices of 0.6%.
Net reservation rates including multi-unit sales for the full year increased
to 0.71 per site per week (2024: 0.52) and excluding multi-unit sales
increased to 0.53 (2024: 0.44). Cancellation rates reduced from 18% to 17%.
Net reservations on open-market sales in the first half were up 13% on the
prior year period and in the second half were up 28% on the prior year period.
A lack of recovery in the wider housing market, flat selling prices, lack of
funding for Housing Associations and higher than anticipated build costs
resulted in both lower volumes and lower margins than we had expected at the
beginning of the financial year. This, combined with the cumulative impact of
extended site durations, resulted in a reduction in gross margin to 20.7%
(2024: 24.1%).
The reduction in gross profit margin was partly offset by tightly controlled
administrative expenses, resulting in an operating profit before exceptional
items of £22.3m (2024: £30.3m) and an operating profit margin of 6.4% (2024:
9.2%).
The division enters the new financial year with a stronger forward order book
of 845 plots (31 December 2024: 597 plots, 30 June 2024: 559 plots).
Gleeson Homes opened 13 new build sites in the year and was building on 68
sites at 30 June 2025 (2024: 79 build sites). We have retained a healthy
pipeline of 164 sites at 30 June 2025 (2024: 179 sites), with our total number
of pipeline plots increasing to 19,638 plots (2024: 19,138 plots).
We signed four further partnership deals in the year, despite the difficulties
presented by the Government's delayed announcements on a funding and rent
settlement for Housing Associations, and have a growing pipeline of sites
under discussion with partners.
Project Transform: Gleeson Homes reorganisation
"Project Transform" was initiated in the autumn of 2024. The
review identified the need to implement organisational and management changes
in order to shorten reporting lines, empower the divisional leadership teams
and strengthen regional management as well as reinforcing controls and driving
local ownership and accountability. The changes have been successfully
implemented at pace, and we are already beginning to see the benefits.
The reorganisation saw the removal of the role of Gleeson Homes' Chief
Executive with the two Divisional Managing Directors now reporting directly to
me. We also created the new role of Chief Operating Officer, with
responsibility for central functions, driving performance and governance.
Again, that function reports directly to me. Whilst retaining six regions, we
have combined the management teams of Greater Manchester & Merseyside and
Cumbria into a single leadership team which is affording significant
operational synergies. The reorganisation is improving agility, autonomy,
ownership and responsiveness in regional performance, and visibility and
control at centre.
This will ensure stricter adherence to operating procedures and tighter
control of costs. I believe we will see a marked improvement in performance
and delivery, improving pace and quality of build and management and control
of costs.
Gleeson Homes: a blueprint for growth
Alongside our focus on restoring margin performance we have a number of
priorities to ensure a return to profitable growth at Gleeson Homes.
· Land pipeline and sites
The pace of our site purchasing and site opening plans has been negatively
impacted by planning delays which, compounded by the time taken to secure
utility connections, delayed the opening of new sales sites, leading to lower
than expected volumes and increased preliminary costs.
Overall, we opened fewer than expected build sites in the second half of the
year and the number of sales sites will, therefore, be lower during FY2026.
However, with a more advanced pipeline of sites, we expect to open between 20
and 30 build and sales sites and anticipate ending FY2026 with more sales
sites.
Gleeson Homes can comfortably reach 3,000 units per annum by selling from 100
sites at an average net reservation rate of 0.60 units per site per week.
Our margins are expected to improve as we open new sites and deliver greater
efficiencies under a more disciplined approach to building. However,
significant margin improvement will also depend upon build cost inflation and
a market recovery that enables increased selling prices and reduced
incentives.
· Partnerships
Our Partnerships strategy is a key element in our growth plans and accelerates
our overall objective of delivering 3,000 new homes per annum.
Our partnerships team worked hard in the year to build the Gleeson
Partnerships brand, establishing wider relationships with potential partners
and working with other areas of the business to improve our house type
portfolio to better appeal to the partnership market.
We welcome the additional funding for affordable housing and the rent
settlement announced by the Government, but the delays in the announcement of
the quantum and allocation of this funding led to uncertainty from some of our
potential partners, subduing the market in the year, a position we anticipate
continuing until at least until Spring 2026. Despite this, we signed four new
deals in the year, and continue to expect 20% of our home sales in the medium
term to be from partnership sites. Of the land bids submitted in the year,
around one fifth of these involved partnership discussions at the land bid
stage.
· Portfolio
We have further broadened our house-type range to include one-bedroom and
five-bedroom homes, in response to demand. The one-bedroom units will improve
our flexibility, density and competitiveness in more suburban locations,
whilst the five-bedroom units will broaden our target customer demographic,
including home movers and downsizers.
· Quality and affordability
Our strategy continues to support our vision of "Building Homes. Changing
Lives." and our mission of "Changing lives by building affordable, quality
homes, where they are needed, for the people who need them most".
Our commitment to quality and affordability remains key to our operating
model. We are currently in a process of transition from our previous customer
service evaluation, provided independently by In-House, to the NHBC/HBF
Survey, which will be published for all housebuilders from March 2026. The
transition is a significant change for the team, moving from a telephone
survey (with naturally higher response rates) to email and post, and capturing
data not only at eight weeks but also at nine months following occupation.
This additional data will allow us to focus on key areas of improvement, which
will be supported by the organisational changes and will focus attention on
build programmes and quality.
We are making good progress with the transition, but this additional focus was
at least in part responsible for a slight but disappointing dip in our
recommend score for FY2025 from five-star to four-star. Our performance under
the NHBC survey is improving fast. We anticipate our initial published grading
at four-star for the 2025 calendar year. Our scores are strengthening as the
year progresses and as the team becomes more familiar with encouraging
customers to respond, and we are firmly focused on achieving five-star for the
2026 calendar year.
Our homes remain highly affordable, with 78% of the homes we sold in the year
affordable to a couple on the National Living Wage. The average selling price
of a Gleeson home at £193,600 is 34% lower than the average selling price of
new build homes in our geographic regions at £295,000. Increases in the
National Living Wage also mean that affordability has improved at the lower
end of the market, and mortgage payments as a percentage of take-home pay
remain low in the North of England and East Midlands at 26.3% relative to the
UK average of 34.3%.
Gleeson Land
Gleeson Land generated an operating profit of £7.0m (2024: £2.2m) completing
the sale of five sites under planning promotion agreements, with the potential
to deliver 996 plots for housing development. Two further sites were
transacted in the year, one land swap (206 plots) with a joint venture
provider, and the sale of an option agreement on a site purchased in the year.
This result does not yet reflect the significant progress being made in the
business, with more sites achieving planning consent during the year and a
significant increase in new site promotion agreements secured, reflecting the
strengthened team, its strong market reputation and its market leading use of
analytics.
The division ended the year with a strong portfolio, having eight sites
consented or with resolution to grant, which have the potential to deliver
1,343 plots for housing development (2024: seven sites, 1,473 plots), and a
further ten sites awaiting a planning decision or in appeal, with the
potential to deliver 2,864 plots for housing development (2024: 11 sites,
3,045 plots).
Gleeson Land's portfolio comprises 77 sites, with the potential to deliver
18,401 plots, and 25 acres of commercial land (2024: 71 sites, 16,911 plots,
25 acres of commercial land). The majority of these sites are held under
promotion or option agreements.
Gleeson Land: positioned for growth
The strengthened team under Guy Gusterson has added further expertise in
planning, technical and land, and invested in developing sector leading
analytics capabilities. Combined with our greater regional focus, this has
allowed us to review a greater number of sites and in greater depth, giving us
a better understanding of the residential development potential, and greater
confidence of achieving planning permissions.
In addition, we have doubled site win rates and increased our bid rates
significantly. As it can typically take nine months to contractually secure a
site, these improvements are just beginning to be reflected in our portfolio
numbers.
The regional structure has allowed for closer relationships with landowners
and agents, raising brand awareness and improving customer satisfaction as
shown in our recent satisfaction survey, where we received a net promoter
score of 88.9% and a customer satisfaction rating of 100%.
We expect FY2026 profitability to remain broadly flat compared to FY2025 with
significant growth expected from FY2027.
We have planning consent for the vast majority of the plots expected to
contribute to gross profit during the current financial year although this
includes one site, representing circa 50% of those plots, which is dependent
on finalisation of a technical solution within the period.
Current trading and outlook
Gleeson Homes' open-market net reservation rates have seen an improvement, in
a stable market, and in the 11 weeks to 12 September 2025 were 0.54 per site
per week compared with 0.50 per site per week over the comparable period last
year, an increase of 8%. Cancellation rates were 0.12 per site per week
compared with 0.11 per site per week over the comparable period last year.
The business has a strong pipeline, and our growth plans are based on an
ambitious programme of site openings from land already under control, with the
pace constrained only by a planning system that continues to be
under-resourced.
Since the year end we have signed two further partnership transactions, with
several further opportunities in negotiation. We continue to target circa
20% of home sales from partnership sites, which will be supported in the
medium term by the continuing demand for PRS and the Government's recently
announced funding package for the affordable market.
The Board remains confident that, in delivering its objective of selling 3,000
new homes per annum, Group profitability could broadly triple and the Company
would resume its position as the fastest growing listed housebuilder in the
UK.
With a number of sites close to achieving planning and others in sale
processes, Gleeson Land is well placed to deliver another robust performance
in FY2026 and is strongly positioned for significant growth from FY2027.
The Group starts the new year with a stronger forward order book and a stable
sales rate in Gleeson Homes and a strengthened portfolio in Gleeson Land.
Graham Prothero
Chief Executive Officer
15 September 2025
Business Review - Gleeson Homes
2025 2024
Homes sold 1,793 1,772
Average selling price £193,600 £185,700
Operating profit* £22.3m £30.3m
Operating margin* 6.4% 9.2%
*Stated before exceptional restructuring costs of £1.3m in 2025 and £nil in
2024.
2025 2024 2023 2022 2021
Plots owned 7,511 7,420 7,674 8,478 7,930
Plots conditionally purchased 12,127 11,718 9,701 8,336 7,933
Total plots in pipeline 19,638 19,138 17,375 16,814 15,863
Results
Gleeson Homes completed the sale of 1,793 homes during the year (2024: 1,772),
an increase of 1.2% on the previous year. Of the homes sold, 205 were sold via
private multi-unit agreements (2024: 346).
Revenue increased by 5.8% to £348.2m (2024: £329.0m) due to the increase in
homes sold, land sales of £1.2m (2024: £nil) and an increase in the average
selling price (ASP) of homes sold during the year by 4.3% to £193,600 (2024:
£185,700). This increase was driven by a lower proportion of sales under
multi-unit agreements at lower ASP, house type mix and higher underlying
selling prices which were up 0.6%, offset by changes in mix of site locations.
Gross margin on homes sold decreased to 20.7% (2024: 24.1%) reflecting the
impact of build cost inflation, the increased use of incentives to secure
sales, additional costs in respect of legacy sites approaching closure and the
cumulative impact of other build costs increases and extended site durations.
Despite the increase in the volume of homes sold and the increase in average
selling price, the decrease in gross margin resulted in gross profit
decreasing by 9.0% to £72.1m (2024: £79.2m).
Administrative expenses, which include sales and marketing costs, increased by
£0.8m to £50.0m before exceptional items (2024: £49.2m) driven by
inflationary cost increases and further investment in IT infrastructure and
retail space running costs. Other operating income amounted to £0.1m (2024:
£0.3m). Consequently, operating profit before exceptional items decreased by
26.4% to £22.3m (2024: £30.3m) and operating margin decreased from 9.2% to
6.4%.
Market demand
Gleeson Homes reservation rates improved over the year, but are still below
historic levels as consumer confidence remains weak due to sustained
macroeconomic uncertainty. Net reservation rates over the second half of the
financial year, excluding multi-unit sales, averaged 0.64 per site per week,
up 28% on the previous year.
Interest rates peaked in the previous financial year, with the latest
reduction announced in August 2025 to 4.0%. Whilst affordability has improved,
especially in the North and Midlands, consumer confidence remains fragile. For
the medium and longer term, the critical need for new housing in our regions,
coupled with good affordability and a structural undersupply, means that there
is a vast, underserved market of customers. We also anticipate increasing
demand in partnerships, as the continuing demand from private rental
investment is supplemented by renewed interest from the Housing Associations
from Spring 2026.
Partnership agreements
Our partnerships team spent the year actively building our brand, forging
strong partner relationships and refining our house type offerings to better
serve the partnership market.
• Qualified as a Homes England Investment Partner, allowing us to
receive funding under the Affordable Homes Programme.
• Developed our 'Partnerships Toolkit', a suite of resources to support
our services to partners and ensure standardisation of our partnership
product, which will drive efficiencies on these sites.
• Established strong connections with a range of partners, including
registered providers and single-family housing providers (SFH).
Sites
Gleeson Homes opened 13 new build sites during the year and started the new
financial year with 68 active build sites (2024: 79), of which 57 were
actively selling (2024: 62). Due to the continued difficulties experienced
with the planning system, there have been delays in opening build sites
meaning that sales sites are now opening later than expected. Our average
active build sites and sales sites were 76 and 63 respectively (2024: 79 and
65 sites).
Gleeson Homes' developments are located across the North of England and
Midlands, with plans to continue expanding in existing regions. The business
expects to open between 20 and 30 build sites during the current financial
year and be building and selling on more sites by 30 June 2026.
Pipeline
The pipeline of owned and conditionally purchased sites increased by 2.6% to
19,638 plots on 164 sites at 30 June 2025, representing over ten years of
sales (2024: 19,138 plots on 179 sites). Of the total plots, 7,511 plots are
owned (2024: 7,420 plots) and 12,127 plots have been conditionally purchased
subject to receiving planning permission (2024: 11,718 plots).
During the year, 25 new sites were added to the pipeline, whilst 24 sites were
completed and 16 sites did not proceed to purchase.
Business Review - Gleeson Land
2025 2024
Site transactions 7 4
Plots sold 996 520
Gross profit £11.1m £5.3m
Operating profit £7.0m £2.2m
2025 2024
Plots held under option 3,665 4,817
Plots held under promotion agreement 13,536 11,610
Plots held freehold 1,200 484
Total plots in portfolio 18,401 16,911
2025 2024
Consented (including resolution to grant) 8 7
Awaiting planning 10 11
Allocated 5 5
Unallocated 54 48
Total sites in portfolio 77 71
Results
During the year, Gleeson Land completed seven land transactions. Five sites
with residential planning permission for 996 plots (2024: four sites, 520
plots) were sold under planning promotion agreements. In addition, Gleeson
Land completed a land swap (206 plots) with a collaborative partner in which
the division took 100% control of one agreement in exchange for relinquishing
its interests in another agreement, and completed the sale of an option
agreement for £1.0m on a site purchased in the year. The five promotion
agreement sites sold in the year totalled 149 gross acres (2024: 85 acres).
As a result, revenue from land sales increased to £17.6m (2024: £16.3m).
Total gross profit for the year was £11.1m (2024: £5.3m). Gross profit is
stated after increases to inventory provisions of £0.5m during the year
(2024: £3.3m increase) which reflects the outcome of planning decisions and
our assessment of the planning prospects for individual sites.
Overheads for the business increased to £4.1m (2024: £3.1m) reflecting the
continued investment in executing the division's growth strategy. The increase
in gross profit partly offset by the increase in overheads resulted in an
operating profit for the division of £7.0m (2024: £2.2m).
Following the changes to the National Planning Policy Framework in December
2024, Gleeson Land have identified a number of sites that will come forward
earlier than previously expected. We enter the current year having sold one
site with a further ten sites awaiting planning approval. We expect this trend
to continue as the Government commits to fixing the issues in the planning
system and the wider housing market.
Gleeson Land has prioritised investing in a high quality, highly experienced
and motivated team to ensure we provide the best possible service in the land
promotion market. Regionalising the business has allowed us to take a more
focused approach and utilise local expertise in our selected regions. In
addition, the continued investment in our Research and Analytics team has
enabled the use of market leading data analytics capabilities, enhancing the
process of analysing sites, winning bids and securing planning permissions.
Planning
This year, Gleeson Land submitted planning applications on six sites with the
potential to deliver 925 plots (2024: four sites, 483 plots) and achieved
planning consent or resolution to grant on seven sites (2024: five sites).
After the disappointment of the previous year where we had planning permission
refused on six sites, including five that went to appeal, only two sites were
refused planning permission during the year, with both of these sites
subsequently successfully appealed. This is reflective of signs of improvement
within the planning system, however the continuing issue with resources is
still acting as a blocker to the supply of consented land and new housing
developments.
We ended the year with ten sites awaiting a decision on planning applications
or in appeal (2024: 11 sites). The business has a strong immediate pipeline,
with eight sites either with planning permission or resolution to grant, with
the potential to deliver 1,343 plots for housing development (2024: seven
sites, 1,473 plots).
Portfolio
During the year, 13 high-quality new sites (2,732 plots) were added to the
portfolio, secured under planning promotion agreements.
At 30 June 2025, the business had a portfolio totalling 77 sites (2024: 71
sites) with the potential to deliver 18,401 plots (2024: 16,911 plots) plus 25
acres of commercial land (2024: 25 acres). A significant proportion of the
portfolio is held under option and promotion agreements with landowners, which
means we benefit from initial lower investment and mitigate the risks
associated with fluctuating land values.
The portfolio includes a variety of sites with differing planning statuses,
allowing for both immediate and long-term growth opportunities. We play a
critical role in the housing supply chain, essential for unlocking development
in areas where new homes are most needed. Our planning approach centres on
delivering well-designed developments that not only enrich communities and
address local needs, including affordable housing, but also provide the
significant benefit of green open spaces.
Having regionalised the business into three distinct operating regions;
Southern, Western and Central, Gleeson Land has a more focused approach and
leverages local expertise to grow share in its selected regions. The enhanced
bench-strength is enabling margin to be maintained whilst growing volume,
ultimately improving returns year on year.
Award winning customer focus
We commissioned an independent expert, In-house Research, to conduct a
satisfaction survey with our customers, including landowners and land agents.
We received a weighted net promoter score of 88.9% and a customer satisfaction
rating of 100%. Tom Weston, Chief Executive of In-house Research, commented:
"Achieving a 100% satisfaction rating is a testament to the professionalism,
transparency, and client-focused approach of Gleeson Land. In an industry
where strong relationships and trust are key, these results demonstrate the
high regard in which Gleeson is held by its landowner and agent partners."
Our aim is to embed a customer centric culture into everything we do. In our
recent employee engagement survey, 100% of our staff agreed that "the company
takes time to listen to our customers' needs" and "our customers are the heart
of our company". As a team, we are laser-focused on making sure that our
customers feel valued in all of our dealings with them and we demonstrate the
value that we bring as the most reliable and professional land promoter in the
industry.
Financial Review
Introduction
The business has faced several challenging headwinds this year, and while we
have seen some signs of improvement, the market remains nervous. Despite these
headwinds we increased net reservation rates to 0.71 per site per week over
the year (2024: 0.52). Excluding multi-unit sales net reservation rates
improved by 20% to 0.53 per site per week (2024: 0.44) and Gleeson Homes
delivered 1.2% volume growth during the year.
Margins faced increasing pressure during the year, driven by the impact of
build cost inflation, the increased use of incentives to secure sales,
additional costs in respect of legacy sites approaching closure and the
cumulative impact of other build cost increases in excess of provisions, and
extended site durations.
Gleeson Homes has a clear pathway to reach its medium-term objective of
delivering 3,000 homes per annum, in a more stable market environment, by
opening significantly more sites each year than it expects to complete. This
trajectory will be accelerated through the addition of further partnership
agreements.
Our medium-term objective of 3,000 new homes per annum could see profit before
tax broadly triple and Gleeson resume its position as the fastest growing
listed housebuilder in the UK.
Revenue
Group revenue increased 5.9% to £365.8m (2024: £345.3m) with increases in
both Gleeson Homes and Gleeson Land.
Gleeson Homes' revenue increased by 5.8% to £348.2m (2024: £329.0m). The
number of homes sold increased by 1.2% to 1,793 (2024: 1,772) despite the
average number of sales sites, at 62.8, being slightly lower than the previous
year (2024: 64.8 average sales sites). The average selling price ("ASP") at
£193,600 was 4.3% higher than the previous year (2024: £185,700) driven by a
lower proportion of multi-unit sales and a larger house-type mix, an increase
in underlying selling prices which were up 0.6% which was marginally offset by
regional mix. Revenue includes £1.2m for the sale of surplus land in the
year.
Gleeson Land completed seven land transactions in the year (2024: four), which
included a collaborative land swap with a joint venture partner and the sale
of a site under an option agreement with revenue recognised for the
non-refundable premium received. As a result, revenue increased by 8.0% to
£17.6m (2024: £16.3m). We commence the new financial year in a strong
position with eight sites with consent or resolution to grant (2024: seven
sites) and ten sites awaiting a planning decision (2024: 11 sites).
Gross profit
Gross profit for the Group decreased by 1.5% to £83.2m (2024: £84.5m),
driven by a £5.8m increase in Gleeson Land gross profit to £11.1m (2024:
£5.3m) being more than offset by a £7.1m decrease in the gross profit in
Gleeson Homes to £72.1m (2024: £79.2m). The gross profit margin for Gleeson
Homes decreased to 20.7% (2024: 24.1%) reflecting additional costs on a number
of older sites, increased fixed site costs as site durations extended, the
impact of multi-unit and affordable sales and the greater use of sales
incentives. Gross profit includes one land sale in the year generating £0.2m
gross profit. Gross profit margin on home sales excluding this land sale was
20.7%.
The Gleeson Land gross profit includes an increase in inventory provisions of
£0.5m (2024: £3.3m).
Administrative expenses
Administrative, sales and marketing expenses excluding exceptional costs
increased by £1.7m (3.0%) in the year to £57.9m (2024: £56.2m) reflecting
investment in the Gleeson Land management team, inflationary cost increases in
Gleeson Homes which were partly offset by reduced headcount, and increased
site maintenance costs in Gleeson Homes.
Profit for the year
Group operating profit before exceptional items reduced to £25.4m (2024:
£28.6m), an 11.2% decrease on the prior year. This was due to lower operating
profit in Gleeson Homes of £22.3m (2024: £30.3m) offset by an increase in
Gleeson Land operating profit to £7.0m (2024: £2.2m). Group overheads were
in line with the prior year at £3.9m (2024: £3.9m).
Net finance expenses decreased to £3.5m (2024: £3.7m) due to the impact of
lower interest rates during the year and lower borrowings. As a result, the
Group delivered profit before tax and exceptional items of £21.9m (2024:
£24.8m). Profit before tax after exceptional items was £20.5m (2024:
£24.8m).
Exceptional items
The £1.3m exceptional cost incurred in the year (2024: nil) relates to the
reorganisation of the Gleeson Homes business. Following the identification of
further cost to complete increases in the year, structural and management
changes were implemented in order to position the business for controlled
growth, whilst addressing margin issues.
Tax
The tax charge of £4.7m (2024: £5.5m) represents an effective tax rate of
23.0% against the headline rate of 25.0%. The most significant factor
benefitting the Group's tax charge is land remediation relief, whereby relief
is granted on an additional 50% of qualifying remediation expenditure. Many of
our sites are on brownfield land and require significant remediation prior to
use.
Profits for the year are below the thresholds for residential property
developers' tax ("RPDT"), which was effective from 1 April 2022 and applies to
profit from residential property development activity on profits over £25.0m.
Profit after tax
Profit after tax for the year decreased 18.1% to £15.8m (2024: £19.3m).
Pre-exceptional profit after tax decreased by 12.4% to £16.9m (2024:
£19.3m).
Earnings per share
Basic earnings per share decreased by 18.1% to 27.1 pence (2024: 33.1 pence).
Pre-exceptional basic earnings per share decreased by 12.7% to 28.9 pence
(2024: 33.1 pence).
Return on capital employed
Return on capital employed decreased 150 basis points to 8.6% (2024: 10.1%)
caused by the reduction in profit.
Balance sheet
During the year to 30 June 2025, shareholders' funds increased by 3.4% to
£307.7m (2024: £297.7m). Net assets per share increased to 527 pence, an
increase of 3.3% year on year (2024: 510 pence).
Non-current assets increased during the year by 20.4% to £11.8m (2024:
£9.8m). This was mostly due to an increase in land receivables due over one
year in Gleeson Land of £3.2m, offset by a reduction in property, plant and
equipment of £0.8m with a lower level of capital expenditure compared to the
previous year and a reduction in deferred tax assets.
Current assets increased by 10.7% to £407.6m (2024: £368.2m). Inventories
increased by 10.3% to £380.8m (2024: £345.2m) as a result of the increased
investment in both Gleeson Homes and Gleeson Land, including the purchase of a
site in Gleeson Land for £6.9m over which we have sold an option that we
expect to be exercised within 12 months of the year end. Trade and other
receivables increased by £9.8m to £19.0m as a result of receivables on
Gleeson Land's sales during the year amounting to £6.8m, and VAT receivable
of £3.6m. We ended the year with net borrowings of £0.8m as a result of the
investment in land assets and higher receivables (2024: cash and cash
equivalents £12.9m).
Cash and bank facilities
The Group has a committed facility with Lloyds Bank plc and Santander UK plc
with a facility limit of £135m. The facility has been extended by one year
and will expire in October 2027 but has a further one year uncommitted
extension option which we expect to utilise. The facility provides the Group
with the liquidity to invest in new sites and support Gleeson Homes growth
plans.
Dividends
Subject to shareholder approval at the 2025 Annual General Meeting, the
Company intends to pay a final dividend of 7.0 pence per share on 21 November
2025 to shareholders on the register at the close of business on 24 October
2025. This brings the total dividend for the year to 30 June 2025 to 11.0
pence per share, which is covered 2.6 times by normalised earnings. The Group
has an established policy of targeting a range of three to five times dividend
cover relative to full year earnings. Notwithstanding this policy, which
remains unchanged, the Board is comfortable recommending a lower level of
dividend cover on this occasion, reflecting their confidence in the medium
term outlook.
Stefan Allanson
Chief Financial Officer
15 September 2025
AUDITED CONSOLIDATED INCOME STATEMENT
for the year ended 30 June 2025
2024
2025 2025 2025 Total
Pre-exceptional items Exceptional items Total
(note 3)
£000 £000 £000 £000
Revenue 365,817 - 365,817 345,345
Cost of sales (282,652) - (282,652) (260,811)
Gross profit 83,165 - 83,165 84,534
Administrative expenses (57,920) (1,343) (59,263) (56,233)
Other operating income 137 - 137 252
Operating profit 25,382 (1,343) 24,039 28,553
Finance income 141 - 141 109
Finance expenses (3,636) - (3,636) (3,813)
Profit before tax 21,887 (1,343) 20,544 24,849
Tax (5,030) 309 (4,721) (5,543)
Profit for the year attributable to the equity holders of the parent 15,823 19,306
16,857 (1,034)
Earnings per share
Basic 28.88 p 27.11 p 33.13 p
Diluted 28.88 p 27.11 p 33.04 p
AUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2025
2024
2025 2025 2025 Total
Pre-exceptional items Exceptional items Total
(note 3)
£000 £000 £000 £000
Profit for the year 16,857 (1,034) 15,823 19,306
Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Change in fair value of shared equity receivables at fair value 67 - 67 171
Other comprehensive income
for the year (net of tax) 67 - 67 171
Total comprehensive income/(expense) for the year 15,890 19,477
16,924 (1,034)
AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2025
2025 2024
£000 £000
Non-current assets
Property, plant and equipment 8,495 9,269
Trade and other receivables 3,304 243
Deferred tax assets - 317
11,799 9,829
Current assets
Inventories 380,847 345,234
Trade and other receivables 18,951 9,283
UK corporation tax 1,286 767
Cash and cash equivalents 6,490 12,934
407,574 368,218
Total assets 419,373 378,047
Non-current liabilities
Trade and other payables (11,287) (6,614)
Provisions (7,736) (10,073)
Deferred tax liabilities (73) -
(19,096) (16,687)
Current liabilities
Loans and borrowings (5,000) -
Bank overdraft (2,269) -
Trade and other payables (79,822) (60,594)
Provisions (5,520) (3,024)
(92,611) (63,618)
Total liabilities (111,707) (80,305)
Net assets 307,666 297,742
Equity
Share capital 1,169 1,168
Share premium 15,843 15,843
Own shares (232) (456)
Retained earnings 290,886 281,187
Total equity 307,666 297,742
AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2025
Share capital Share premium Own shares Retained earnings Total
equity
£000 £000 £000 £000 £000
At 1 July 2023 1,167 15,843 (743) 269,749 286,016
Profit for the year - - - 19,306 19,306
Other comprehensive income - - - 171 171
Total comprehensive income for the year - - - 19,477 19,477
Share issue 1 - - - 1
Purchase of own shares - - (106) - (106)
Utilisation of own shares - - 393 (393) -
Share-based payments - - - 218 218
Movement in tax on share-based payments taken directly to equity - - - (284) (284)
Dividends - - - (7,580) (7,580)
Transactions with owners, recorded directly in equity 1 - 287 (8,039) (7,751)
At 30 June 2024 1,168 15,843 (456) 281,187 297,742
Profit for the year - - - 15,823 15,823
Other comprehensive income - - - 67 67
Total comprehensive income for the year - - - 15,890 15,890
Share issue 1 - - - 1
Purchase of own shares - - (69) - (69)
Utilisation of own shares - - 293 (217) 76
Share-based payments - - - 660 660
Movement in tax on share-based payments taken directly to equity - - - (210) (210)
Dividends - - - (6,424) (6,424)
Transactions with owners, recorded directly in equity 1 - 224 (6,191) (5,966)
At 30 June 2025 1,169 15,843 (232) 290,886 307,666
AUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 June 2025
2025 2024
£000 £000
Operating activities
Profit before tax 20,544 24,849
Depreciation of property, plant and equipment 4,272 4,621
Share-based payments 660 218
Profit on redemption of shared equity receivables (57) (182)
Increase/(decrease) in provisions including exceptional items 159 (382)
Loss on disposal of property, plant and equipment 414 466
Finance income (141) (109)
Finance expenses 3,636 3,813
Operating cash flows before movements in working capital 29,487 33,294
Increase in inventories (35,613) (608)
(Increase)/decrease in receivables (12,708) 4,224
Increase/(decrease) in payables 23,313 (9,323)
Cash generated from operating activities 4,479 27,587
Tax paid (5,061) (5,572)
Finance costs paid (3,364) (4,029)
Net cash (used in)/generated from operating activities (3,946) 17,986
Investing activities
Proceeds from disposal of shared equity receivables 185 678
Interest received 138 31
Purchase of property, plant and equipment (2,045) (2,039)
Net cash used in from investing activities (1,722) (1,330)
Financing activities
Increase in loans and borrowings 5,000 -
Net proceeds from issue of shares 1 1
Purchase of own shares (69) (106)
Dividends paid (6,424) (7,580)
Principal element of lease payments (1,553) (1,196)
Net cash used in financing activities (3,045) (8,881)
Net (decrease)/increase in cash and cash equivalents (8,713) 7,775
Cash and cash equivalents at beginning of period 12,934 5,159
Cash and cash equivalents at end of period, net of bank overdrafts 4,221 12,934
NOTES TO THE FINANCIAL INFORMATION
for the year ended 30 June 2025
1. Accounting policies
Statement of compliance
The Group Financial Statements have been prepared and approved by the
directors in accordance with UK-adopted International Accounting Standards and
with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards.
Notes on the preliminary statement
The financial information set out above does not constitute the Group's
statutory accounts for the years ended 30 June 2025 ("2025") or 30 June 2024
("2024"), but is derived from those accounts. Statutory accounts for 2024 have
been delivered to the Registrar of Companies, and those for 2025 will be
delivered in due course. The auditors have reported on those accounts; their
reports were (i) unqualified, (ii) did not include a reference to any matters
to which the auditors drew attention by way of emphasis without qualifying
their report and (iii) did not contain a statement under section 498 (2) or
(3) of the Companies Act 2006.
Cautionary statement
This Report contains certain forward-looking statements with respect to the
financial condition, results, operations and business of MJ Gleeson plc. These
statements and forecasts involve risk and uncertainty because they relate to
events and depend upon circumstances that will occur in the future. There are
a number of factors that could cause actual results or developments to differ
materially from those expressed or implied by these forward-looking statements
and forecasts. Nothing in this Report should be construed as a profit
forecast.
Directors' liability
Neither the Company nor the Directors accept any liability to any person in
relation to this Report except to the extent that such liability could arise
under English law. Accordingly, any liability to a person who has demonstrated
reliance on any untrue or misleading statement or omission shall be determined
in accordance with section 90A of the Financial Services and Markets Act 2000.
Basis of preparation
The accounting policies adopted in the preparation of these accounts are
consistent with those described in the Annual Report and Accounts for the year
ended 30 June 2024.
Going concern
The Group has a committed revolving credit facility with Lloyds Bank plc and
Santander UK plc with a facility limit of £135m. During the year, the
uncommitted one-year extension option was exercised and the facility now
expires in October 2027 (previously October 2026). The facility has a further
one-year uncommitted extension option provided by both banks.
At the balance sheet date, the Group had borrowings of £5.0m (2024: £nil),
cash and cash equivalents of £6.5m (2024: £12.9m) and an overdraft of £2.3m
(2024: £nil). Borrowings net of cash, therefore, was £0.8m and the total
unused facility was £127.7m (2024: £135m).
Current forecasts are based on the latest budget and plan approved by the
Board in July 2025. This reflected a cautious view on the trading outlook
based on the current market conditions and the degree of macro-economic risk.
These forecasts were then subject to a range of sensitivities including a
severe but plausible scenario together with the likely effectiveness of
mitigating actions. The assessment considered the combined impact of a number
of realistically possible, but severe and prolonged changes to principal
assumptions from a downturn in the housing and land markets including:
• a reduction in Gleeson Homes sales volumes of
approximately 20% with no recovery;
• a reduction in Gleeson Homes selling prices by 5%
permanently; and
• a delay on Gleeson Land transactions and a 10% fall in
land selling values.
Under these sensitivities, after taking certain mitigating actions, the Group
continues to have a sufficient level of liquidity, operate within its
financial covenants and meet its liabilities as they fall due.
1. Accounting policies (continued)
Based on the results of the analysis undertaken, the Directors have a
reasonable expectation that the Company and the Group have adequate resources
available to continue in operation for the foreseeable future and operate in
compliance with the Group's bank facilities and financial covenants. As such,
the financial statements for the Company and the Group have been prepared on a
going concern basis.
2. Segmental analysis
The Group is organised into the following two operating divisions under the
control of the Executive Board, which is identified as the Chief Operating
Decision Maker as defined under IFRS 8 "Operating Segments":
· Gleeson Homes
· Gleeson Land
All of the Group's operations are carried out entirely within the United
Kingdom. Segmental information about the Group's operations is presented
below:
2025 2025 2025 2024
Pre-exceptional items Exceptional items Total Total
(note 3)
£000 £000 £000 £000
Revenue
Gleeson Homes 348,249 - 348,249 329,006
Gleeson Land 17,568 - 17,568 16,339
Total revenue 365,817 - 365,817 345,345
Divisional operating profit
Gleeson Homes 22,253 (1,343) 20,910 30,301
Gleeson Land 6,996 - 6,996 2,151
29,249 (1,343) 27,906 32,452
Group administrative expenses (3,867) - (3,867) (3,899)
Group operating profit 25,382 (1,343) 24,039 28,553
Finance income 141 - 141 109
Finance expenses (3,636) - (3,636) (3,813)
Profit before tax 21,887 (1,343) 20,544 24,849
Tax (5,030) 309 (4,721) (5,543)
Profit for the year 16,857 (1,034) 15,823 19,306
Revenue in the Gleeson Homes segment primarily relates to the sale of
residential properties. In addition, within revenue for Gleeson Homes is
£1,215,000 relating to land sales (2024: £nil). There was no revenue
recognised in respect of partnership arrangements during the year to 30 June
2025 (2024: £nil). All revenue for the Gleeson Land segment is in relation to
the sale of land interests and overages on the sale of land. There is no
revenue relating to Group activities.
No single customer accounted for more than 10% of revenue (2024: one single
customer accounted for 13.4% in Gleeson Homes).
Balance sheet analysis of business segments:
2025 2024
Net assets/ (liabilities) Net assets/ (liabilities)
Assets Liabilities Assets Liabilities
£000 £000 £000 £000 £000 £000
Gleeson Homes 352,143 (92,195) 259,948 329,927 (76,029) 253,898
Gleeson Land 58,805 (9,931) 48,874 34,158 (2,582) 31,576
Group activities 1,935 (2,312) (377) 1,028 (1,694) (666)
Cash and cash equivalents/ (borrowings and 6,490 (7,269) (779) 12,934 - 12,934
bank overdrafts)
419,373 (111,707) 307,666 378,047 (80,305) 297,742
3. Exceptional items
Reorganisation
During the year there was a reorganisation of the Gleeson Homes division, the
purpose of which was to shorten reporting lines, empower the divisional
leadership teams and strengthen regional management. This process involved the
consultation of a number of employees prior to the year end and principally
two regions, Greater Manchester & Merseyside and Cumbria, whilst remaining
separate operating regions, will now come under a single leadership team. In
addition, as part of the leadership changes, the role of Gleeson Homes Chief
Executive was removed.
The restructuring expense of £1,343,000 included redundancy costs of
£852,000 and legal and consultancy costs of £491,000. The amount, combined
with the number of colleagues directly and indirectly impacted by the
reorganisation, and the fact that this was a one-off cost, made this an
exceptional item in the year. As at 30 June 2025, £625,000 remained as a
provision.
4. Tax
2025 2024
£000 £000
Current tax
Current year expense 4,609 5,699
Adjustment in respect of prior years (68) (352)
Current tax expense for the year 4,541 5,347
Deferred tax
Current year expense 115 107
Adjustment in respect of prior years 65 89
Deferred tax expense for the year 180 196
Total tax charge for the year 4,721 5,543
Corporation tax has been calculated at 23.0% of assessable profit for the year
(2024: 22.3%). The applicable UK corporation tax rate is 25.0%.
The charge for the year can be reconciled to the profit per the consolidated
income statement as follows:
2025 2024
£000 £000
Profit before tax 20,544 24,849
Profit before tax multiplied by the standard rate of UK corporation tax 25.0% 5,136 6,212
(2024: 25.0%)
Tax effect of:
Expenses not deductible for tax purposes 50 114
Non-qualifying depreciation 120 123
Adjustment for share-based payments 180 45
Land remediation relief (741) (739)
Impact of change in tax rate on deferred tax 14 -
Adjustments in respect of prior years - current tax (68) (352)
Adjustments in respect of prior years - deferred tax 65 89
Residential property developers tax - 51
Movement in deferred tax not recognised (35) -
Total tax charge for the year 4,721 5,543
Tax recognised on equity-settled share-based payments 2025 2024
£000 £000
Deferred tax related to equity-settled share-based payments 210 284
Total tax recognised on equity-settled share-based payments 210 284
5. Dividends
2025 2024
£000 £000
Amounts recognised as distributions to equity holders in the year:
Interim dividend for the year ended 30 June 2025 of 4.0p (2024: 4.0p) 2,336 2,332
per share
Final dividend for the year ended 30 June 2024 of 7.0p (2023: 9.0p) 4,088 5,248
per share
6,424 7,580
A final dividend of 7.0 pence per share has been proposed for the year ended
30 June 2025, equating to £4,088,000 (2024: £4,088,000). This is subject to
approval by shareholders at the AGM on 14 November 2025 and has not been
recognised in these financial statements.
6. Earnings per share
The calculation of basic and diluted earnings per share is based on the
following data:
2025 2024
Earnings £000 £000
Profit for the year 15,823 19,306
Exceptional items (note 3) 1,343 -
Tax on exceptional items (309) -
Profit for the year - pre-exceptional items 16,857 19,306
2025 2024
No. 000 No. 000
Number of shares
Weighted average number of ordinary shares for the purposes of 58,370 58,281
basic earnings per share
Effect of dilutive potential ordinary shares:
- Share-based payments - 154
Weighted average number of ordinary shares for the purposes of 58,370 58,435
diluted earnings per share
2025 2024
pence pence
Basic earnings per share 27.11 33.13
Diluted earnings per share 27.11 33.04
Basic earnings per share - pre-exceptional items 28.88 33.13
Diluted earnings per share - pre-exceptional items 28.88 33.04
7. Related party transactions
During the year ended 30 June 2021, the Group exchanged contracts on a
conditional agreement to purchase an area of land from Hampton Investment
Properties Ltd ("HIPL") for £1,050,000. HIPL is a company in which North
Atlantic Smaller Companies Investment Trust plc ("NASCIT"), a substantial
shareholder in the company, holds a majority investment. In addition,
Christopher Mills, a Non-Executive Director of the Company, is considered a
related party by virtue of his interest in and directorship of NASCIT and his
position as a Director of HIPL. The land, if purchased, will form part of a
new Gleeson Homes site being developed in the ordinary course of business.
Approval of this purchase was granted by the majority of shareholders at the
AGM in December 2019.
Other than disclosed above, there were no other transactions with key
management personnel in either the current or prior year.
Statements of Directors' Responsibilities
The full Statement of Directors' Responsibilities is made in respect of the
Annual Report and Accounts and the financial statements, not the extracts from
the financial statements as set out in this announcement.
The 2025 Annual Report and Accounts comply with the United Kingdom's Financial
Conduct Authority Disclosure Guidance and Transparency Rules in respect of the
requirement to produce an annual financial report.
We confirm that to the best of our knowledge:
· the Group and Company financial statements, contained in the 2025
Annual Report and Accounts, which have been prepared in accordance with
UK-adopted International Accounting Standards and in conformity with the
requirements of the Companies Act 2006, give a true and fair view of the
assets, liabilities, financial position and profit of the Group and loss of
the Company; and
· the Strategic Report, contained in the 2025 Annual Report and
Accounts, includes a fair review of the development and performance of the
business and the position of the Group and Company, together with a
description of the principal risks and uncertainties that it faces.
The Directors consider that the 2025 Annual Report and Accounts, taken as a
whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Group and Company's position and
performance, business model and strategy.
By order of the Board
Graham Prothero
Stefan Allanson
Chief Executive
Officer
Chief Financial Officer
15 September 2025
The 2025 Annual Report and Accounts is to be published on the Company's
website, mjgleesonplc.com, in due course and sent out to those shareholders
who have elected to continue to receive paper communications. Copies will be
available from The Company Secretary, 6 Europa Court, Sheffield Business Park,
Sheffield, S9 1XE.
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