MJ Gleeson PLC
LSE:GLE
MJ Gleeson PLC
MJ Gleeson Plc engages in the provision housing services. The company is headquartered in Sheffield, South Yorkshire and currently employs 645 full-time employees. The firm operates through two segments: Gleeson Homes and Gleeson Land. The Gleeson Homes segment primarily relates to the sale of residential properties. The Gleeson Land segment is in relation to the sale of land interests. The company operates in South of England and East, North of England and the Midlands. The Company’s subsidiaries include Gleeson Developments Limited, Gleeson Regeneration Limited, Gleeson Developments (North East) Limited and Gleeson Strategic Land Limited.
MJ Gleeson Plc engages in the provision housing services. The company is headquartered in Sheffield, South Yorkshire and currently employs 645 full-time employees. The firm operates through two segments: Gleeson Homes and Gleeson Land. The Gleeson Homes segment primarily relates to the sale of residential properties. The Gleeson Land segment is in relation to the sale of land interests. The company operates in South of England and East, North of England and the Midlands. The Company’s subsidiaries include Gleeson Developments Limited, Gleeson Regeneration Limited, Gleeson Developments (North East) Limited and Gleeson Strategic Land Limited.
Revenue Growth: Group revenue rose 9.6% year-on-year, with both Gleeson Homes and Gleeson Land contributing to the increase.
Margin Pressure: Group operating profit fell 17.6% and gross margin at Gleeson Homes declined to 19.8%, due to increased bulk sales, build cost inflation, and higher overheads.
Sales Rates: The open market sales rate improved to 0.55, but remains significantly below the prior year’s 0.79 and below management’s desired level.
Market Outlook: Management is cautiously optimistic about demand recovery but is not fully confident in sustaining improved sales rates; guidance remains but is subject to market developments in the next few weeks.
Project Transform: The company completed the second phase of its operational restructure, focusing on margin recovery, regional accountability, and cost control.
Planning Challenges: Planning delays and regulatory headwinds continue to constrain site openings and growth, with 43 sites currently awaiting planning.
Incentives & Pricing: Average house price increased 1.7% like-for-like, but incentives given to buyers are running at 4.5%, eating into margins.
