MJ Gleeson (GLE) H1 2025 earnings summary

Executive summary

• Delivered a robust first half in a subdued market, with 801 homes sold (up 4.2% year-over-year) and revenue up 10.0% to £156.6m–£157.9m, despite margin pressures from incentives and no land sales.

• Gleeson Land completed no sales in H1 but made progress on opportunities, with 4–8 completions expected in H2 and pipeline strengthened by new planning consents.

• Net reservation rates improved 45% in early 2025, with forward order book up 6.8% and strong partnership interest.

• Gleeson Homes opened 8 new build sites and 11 new sales outlets, supporting future growth.

• Board confident in meeting full-year expectations, underpinned by sector-leading growth ambitions and improved planning environment.

Financial highlights

• Group revenue grew 4.2% to £157.9m; operating profit fell 42% to £5.1m; profit before tax dropped 50% to £3.6m.

• Gleeson Homes operating profit down 10.8% to £9.1m; gross margin declined to 20.6% due to higher incentives and cost inflation.

• Gleeson Land posted an operating loss of £1.9m due to no land sales.

• Overhead costs reduced by 6.9% to £23.1m; administrative expenses also down 6.9%.

• Net debt at period end was £18.1m, slightly lower year-over-year; net assets at £297.2m.

Outlook and guidance

• Margins expected to recover in H2 and continue improving, with early H2 trading showing a 45% increase in net reservation rates.

• Confident in full-year outlook, underpinned by strong order book and anticipated land sales; 4–8 land site sales targeted in H2.

• Interim dividend of 4p per share declared, unchanged year-over-year; dividend cover policy reiterated at 3–5x earnings.

• Targeting at least 3,000 units per annum in the medium term, with growth in outlets and land pipeline supporting ambitions.

• Longer-term growth underpinned by new site openings and improved planning environment.