MJ Gleeson (GLE) Trading update summary

Financial performance and trading update

• Adjusted Group Profit Before Tax for FY2026 is expected to be in line with market expectations, supported by strong delivery from Gleeson Homes and delays in Gleeson Land site sales.

• Gleeson Homes completed 1,968 home sales, up 9.8% year-on-year, including first partnership completions and increased multi-unit sales.

• Net reservation rates averaged 0.77 per site per week, with a forward order book of 848 plots, slightly up from the previous year.

• Gleeson Land completed five site sales, with three delayed into FY2027, resulting in a small operating loss.

• The Group ended the year with net debt of £2.6m and maintains a prudent approach to working capital and site acquisitions.

Operational highlights and restructuring

• Project Transform was successfully implemented, resulting in improved leadership, clearer processes, and empowered regional teams at Gleeson Homes.

• 13 new build sites were opened, starting the new year with 63 build sites, of which 53 are active sales sites.

• Five new partnership deals were secured, covering 254 homes, despite market challenges.

• Build cost inflation from Middle East conflict was less severe than expected, but ongoing regulatory and tax pressures continue to challenge margins.

• Planning system improvements have occurred, but bottlenecks remain, leading to slightly fewer sites in FY2027.

Outlook and strategic positioning

• The outlook for FY2027 is uncertain due to macroeconomic and political factors, including a new UK government.

• The Group is positioned to benefit from market recovery, with a stronger Homes business and a high-quality land portfolio.

• Extensive remedial actions and operational restructuring have strengthened the business for future opportunities.