Trading Update
Gleeson Homes operating profit expected 15-20% below expectations; gross margin also weaker.
vs expectations: below
- Gleeson Homes gross margin circa 1% lower than previously expected
- Gleeson Homes operating profit circa 15-20% below current expectations
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MJ Gleeson plc is providing a trading update for the year ended 30 June 2025 ("FY2025").
The pace of the housing market recovery has not been sufficient to offset the cumulative impact on Gleeson Homes' gross margin of a number of headwinds through the year. These include increased build costs, flat selling prices, the continued use of incentives and several bulk sale transactions. Consequently, Gleeson Homes gross margin for the year will be circa 1% lower than previously expected.
The Board's expectation that Gleeson Homes would deliver an overall operating profit in line with market expectations included the profit contribution from a disposal of one of Gleeson Homes' extensive land holdings in East Yorkshire. It is now not expected that this disposal will proceed and consequently Gleeson Homes anticipates reporting an operating profit circa 15% - 20% below current expectations.
Looking ahead, a number of factors will continue to impact Gleeson Homes into FY2026, including planning delays which will see the business selling from fewer sites than previously forecast. Gleeson Homes' gross margin in FY2026 is also expected to be circa 1% lower than market expectations.
Gleeson Land has completed three transactions to date and is continuing work on a further seven disposals anticipated to complete before the year end.
Conference Call
The Company will hold a conference call for analysts and investors at 09:00 this morning. For dial-in details, please email gleeson@hudsonsandler.com
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.