Housebuilder says it has strong foundations for a return to growth
Sheffield-headquartered housebuilder, MJ Gleeson, has reported a resilient set of results amidst another difficult year for its sector.
Publishing its audited results for the year ended 30 June 2024, the company, which comprises two divisions – Gleeson Homes and Gleeson Land, records revenues of £345.3m (2023: £328.3m) and pre-tax profits of £24.8m (2023: £31.5m).
In 2024 Gleeson Homes sold 1,772 homes (2023: 1,723) and had 79 build sites (30 June 2023: 82) of which 62 are actively selling (30 June 2023: 71).
Gleeson Land had seven sites with planning or resolution to grant in 2024 (2023: six), with 11 sites awaiting a planning decision (2023: 18 sites).
Graham Prothero, CEO, said: “I am pleased to report a resilient financial performance, delivering results in line with expectations, and good progress against our strategic growth objectives.
“Gleeson Homes exceeded expectations, completing the sale of 1,772 new homes and delivering an operating profit of over £30m. We have continued to invest in growth, building Gleeson Homes’ pipeline of sites and total plots, and are now set to return to opening more sites each year than are completed, underpinning strong volume growth in future years.
“Profits in Gleeson Land were held back by the vagaries of the planning system, but the business has continued to implement its growth strategy, deepening its regional presence and embedding data and analytics throughout its processes.
“The business is now well positioned for growth, benefiting from a strong land pipeline and, with the election behind us, what is expected to be a more stable planning environment.”
MJ Gleeson adds that in delivering its medium-term objective of 3,000 new homes per annum, the company anticipates its profitability could broadly triple.
It notes July’s reduction in interest rates raised confidence among its customers.
The firm says it was “deeply moved” by the findings of the Grenfell Tower Inquiry and is committed to remediating life-critical fire-safety issues as quickly as possible.
It states: “We moved swiftly to contact all building owners and management companies and have continued to make progress in the assessment and remediation work required.
“In some cases, progress has been slower than we would have liked as some building owners and management companies have been unwilling to respond or to permit the required investigations.
“Our progress has been further slowed by the lack of capacity at the regulatory authorities, delaying the time it takes to obtain sign-off on proposed works. However, we will shortly complete works on the first buildings and are progressing as fast as we are permitted on others.”
