MJ Gleeson (GLE) Trading Update summary

Trading performance and financial highlights

• Completed 1,772 new home sales in FY2024, a 2.8% increase year-on-year, with operating profit expected around £30 million, ahead of market expectations.

• Net reservation rates averaged 0.63 per site per week, with improved cancellation rates and a forward order book of 559 plots, a higher proportion for open market sales compared to last year.

• Ended the period with net cash of £12.9 million, up from £5.2 million last year, due to strong working capital control and fewer site openings.

• Gleeson Land completed four site sales but faced planning delays, with one significant disposal delayed due to election timing, resulting in an expected operating profit of £2 million, below expectations.

• Achieved five-star recommendation status in all six operating regions, reflecting a strong focus on quality.

Strategic developments and partnerships

• Entered the first partnership agreement with a major housing association, enabling development of a challenging site and supporting future growth, with further deals under negotiation.

• Additional partnership announcements are expected in the coming months, with a full briefing planned.

• Multiple new build sites opened, with 79 sites at year-end, 62 of which are actively selling.

• Strategic focus on building a more predictable land portfolio and strengthening regional teams.

• Aiming to scale up to 3,000 new homes per annum in the medium term.

Market conditions and outlook

• Sales rates were steady but impacted by delayed interest and mortgage rate reductions; demand for affordable new homes is expected to strengthen in FY25, with growth accelerating into FY26.

• Consumer confidence and reservation rates are closely tied to interest rate expectations, with recent trends showing stabilization but awaiting a boost from potential rate cuts.

• Gleeson Land expects a strong FY2025 performance with a more stable operating environment and several land disposals ahead.

• The land market has rebounded, with strong interest and competitive pricing for sites, especially in high-value areas.

• Positive government signals on housing targets and planning reform are seen as supportive for future growth.