MJ Gleeson (GLE) Trading Update summary

Trading performance and financials

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

• Net cash at period end was £12.9 million, up from £5.2 million last year, driven by strong working capital control and fewer site openings.

• Net reservation rates averaged 0.63 per site per week, with improved cancellation rates and a forward order book of 559 plots.

• Results for the year are anticipated to be broadly in line with market expectations.

Land and partnerships

• Gleeson Land completed four site sales, but one significant disposal was delayed due to the general election and planning issues, resulting in an expected operating profit of about £2 million, below expectations.

• The first partnership agreement was signed, enabling development of a challenging site with a major housing association; more partnerships are expected soon, with a strategy briefing planned.

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

• Strong interest and competitive pricing are seen in the land market, especially in high-value areas.

Market dynamics and outlook

• Average selling prices held steady, with net pricing up 1.5% after accounting for increased incentives; build costs are broadly flat.

• Reservation rates were strong early in the year, cooled in April due to mortgage rate uncertainty, but have since stabilized.

• Growth is anticipated to accelerate into FY2026, supported by new outlet openings in FY2025.

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