MJ Gleeson plc (LSE:GLE) reported a solid first-half performance against a challenging UK housing backdrop, with group revenue increasing 9.6% to £173.1 million. Growth was supported by higher volumes and pricing at its Homes division, alongside improved activity within its Land arm.
Despite the top-line progress, profitability came under pressure. Operating profit declined 17.6% to £4.2 million, while pre-exceptional profit before tax fell 44.4% to £2.0 million. Margins were affected by rising build costs, sales incentives, softer pricing on bulk transactions and wider regulatory and tax headwinds.
Within the Homes division, completions rose to 848 units and average selling prices edged up 2.5%. The forward order book expanded significantly, climbing 64% to 978 plots. The company has also implemented a major operational restructure, which is expected to result in up to £4.5 million of exceptional charges in the second half.
The Land division completed three site disposals during the period, secured planning consent on five sites earmarked for sale in FY2026 and lodged applications on 15 additional sites, creating what management described as a record pipeline. However, the group emphasised that meeting full-year expectations will depend heavily on the strength of the spring selling season, as buyer confidence and market demand remain sensitive.
From an investment standpoint, technical indicators and recent corporate developments lend support to the outlook. Nevertheless, ongoing pressures on profitability and cash flow temper the overall assessment.
More about MJ Gleeson plc
MJ Gleeson operates through two core divisions. Gleeson Homes focuses on traditional brick-built affordable housing across the Midlands and North of England, targeting customers for whom home ownership is typically more affordable than renting. Gleeson Land promotes land for residential development across southern, western and central England.
The group combines commercial delivery with a strong social purpose and sustainability focus, aligning its strategy with multiple UN Sustainable Development Goals.
Leave a Reply