MJ Gleeson (GLE) investor relations material

Trading performance and market environment

• Net reservation rates were 0.88 per site per week, slightly above last year, reflecting resilient trading despite recent softening in leads and visitors.

• Selling prices for both open market and partnership sales have been broadly stable, with modest build cost inflation and a focus on margin protection.

• Incentives offered to buyers are around 4.4%, consistent throughout the year.

• Demand has been relatively even across regions, with some strength in the Midlands and North East, and a trend toward selling larger homes.

• The business remains cautious due to ongoing geopolitical uncertainty, recent softening in footfall, and its potential impact on customer confidence and mortgage affordability.

Operational updates and restructuring

• Restructuring includes consolidating Yorkshire regions and relocating sites to the Midlands, expected to generate annualized overhead savings of about £0.9 million, with related costs up to £3.1 million recognized as exceptional items.

• A provision of £5.2–£7.1 million will be established for rectification costs on legacy sites, mainly related to road adoption issues, to be incurred over several years and excluded from adjusted results.

• Project Transform aims to improve efficiency, reduce overhead, and focus investment on regions with optimal growth prospects.

• The shift in land acquisition strategy will rebalance the portfolio toward faster-selling suburban areas over the next two to three years.

Land and build cost environment

• Progress continues on the sale of five sites, with one major transaction representing about 50% of expected gross profit for the year, estimated at £6 million, pending technical approval.

• Land market remains cautious, with fewer credible bidders per site and more due diligence, but no signs of collapse.

• Build cost inflation has been modest, with labor rates flat and minor increases in materials, particularly plastics and delivery surcharges.