MJ Gleeson (GLE) Trading Update summary

Financial performance and trading update

• FY 2025 profit before tax and exceptionals expected within market expectations of £21–22.5m, with 1,793 homes delivered and operating profit for Gleeson Homes in line with expectations of £21.7–23m.

• Gleeson Land sold seven sites, expecting operating profit at the lower end of £7–8.4m range, ending the year with net debt of £800k due to timing differences, compared to net cash of £12.9m in FY2024.

• Net reservation rates rose 28% year-on-year to 0.64 per site per week, and the forward order book for Gleeson Homes increased to 845 plots from 559 plots a year earlier.

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

Market conditions and outlook

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

• Planning system capacity issues have delayed site openings, resulting in fewer operational sites than anticipated for FY 2026.

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

• Medium-term target of 3,000 homes remains unchanged, with confidence in achieving significant growth.

• Strong pipeline and process improvements support medium-term growth ambitions.

Management and operational changes

• Project Transform initiated a comprehensive review, leading to management changes aimed at shortening reporting lines, empowering divisional leadership, and reinforcing controls.

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

• Greater Manchester, Merseyside, and Cumbria regions consolidated under a single leadership team to leverage operational synergies and reduce overhead.

• Central and Northern divisions restructured, with operational synergies expected from new leadership.

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