'We delivered a robust operating result': MJ Gleeson updates market
House builder MJ Gleeson said it delivered a robust operating result over the last financial year despite facing a subdued housing market.
MJ Gleeson also revealed that the impact on build cost inflation arising from the conflict in the Middle East has been less severe than anticipated.
The statement added: “However, we expect that inflationary pressure will continue, compounding the effect of the myriad of regulatory and tax burdens recently imposed on residential development. Together these continue to challenge viability, and are likely to restrict near-term margin recovery.”
MJ Gleeson plc comprises two divisions: Gleeson Homes, which builds homes across the Midlands and North of England, and Gleeson Land, which is the group's land promotion division operating in the South, West and Central England.
The Sheffield-based group said it is expected to deliver an adjusted group profit before tax for the year ended 30 June 2026 in line with current market expectations.
It said this included a “robust performance” from Gleeson Homes and the previously announced delays to site sales in Gleeson Land.
The consensus for adjusted group profit before tax for the year is £10.1m, with a range of £8.9m to £11.0m.
MJ Gleeson said: “Whilst there have been significant improvements in the wider planning system, much more needs to be done to free up planning bottlenecks which have constrained Gleeson Homes' outlets, and will result in the business operating from slightly fewer sites in FY2027 (full year 2027) than previously planned.
“Following the successful implementation of Project Transform during FY2026, Gleeson Homes ends the year as a much improved business, with significantly strengthened leadership at both executive and regional levels, clearer processes and reporting, and fully empowered regional teams.”
Gleeson Land completed the sale of five sites during the year and, following the expected completion of three transactions being delayed into the next financial year, will report a small operating loss, the statement said.
Graham Prothero, the chief executive of MJ Gleeson plc, commented: "Against the backdrop of a continuing subdued housing market and widely signalled caution in the land market, we delivered a robust operating result.
"More importantly, this performance was achieved whilst also implementing an extensive operational restructuring in Gleeson Homes.
"Following the delivery of ‘Project Transform’, we enter the new financial year with Gleeson Homes in far better shape.
"We cannot predict when the housing market will recover, but we can be confident that, with a much stronger homes business, delivering highly affordable, high-quality homes, and a land division promoting an enviable portfolio, we are in good shape to leverage the market recovery when it materialises."
Commenting on outlook, MJ Gleeson said: “The outlook for the new financial year is uncertain as a result of the economic impacts of geo-political events and potential policy changes with a new UK Government.
The statement added: “Following the extensive remedial actions undertaken at Gleeson Homes and the further additions to Gleeson Land's high-quality portfolio, the group is ready to benefit from a recovery in market conditions.”