MJ Gleeson (GLE) Trading Update summary

Financial performance and trading update

• FY 2025 profit before tax and exceptionals expected within market expectations of £21.0m–£22.5m, with 1,793 homes delivered and operating profit for Gleeson Homes also within expectations (£21.7m–£23.0m).

• Gleeson Land completed seven site disposals, with operating profit at the lower end of £7.0m–£8.4m expectations.

• Net reservation rates rose 28% year-on-year to 0.64 per site per week, excluding bulk sales and partnerships.

• Year-end net debt was £800,000, compared to a cash position of £12.9m last year, due to timing differences.

• Forward order book for Gleeson Homes increased to 845 plots from 559 plots a year earlier.

Operational and management changes

• Project Transform initiated a comprehensive review, identifying the need for management changes to improve process compliance and cost control.

• Mark Knight stepped down as CEO of Gleeson Homes; new divisional leadership and Simon Topliss as COO appointed.

• Central, Northern, Greater Manchester, Merseyside, and Cumbria regions consolidated under new leadership to leverage synergies.

• New structure shortens reporting lines, empowers divisional leadership, and strengthens regional management.

• Reorganisation to cost £1.2m as an exceptional item in FY2025 accounts.

Market environment and outlook

• Housing market remains subdued with no short-term catalysts for improvement, but robust sales rates continue.

• Fewer site openings than anticipated due to planning system delays, but a strong pipeline supports growth ambitions.

• FY 2026 profit before tax and exceptionals forecast at or around £24.5m, the lower end of market expectations.

• Gleeson Land’s FY 2026 performance expected to mirror FY 2025, with delivery weighted to the latter part of the year.

• Partnership business prospects improved by government grant funding.