Housebuilder forecasts ‘encouraging prospects’ for 2024
Low-cost housebuilder and land promoter MJ Gleeson said it expected full-year results for 2023 to be in line with expectations in a trading update to the London Stock Exchange today.
The Sheffield firm said it completed more than 1,700 homes during the year, slightly down on 2022’s figure of 2,000 homes. Average sale prices rose 11%, helping to offset sector-wide increases in labour and material costs.
The firm reveal a roadmap to scale operations over the long term, including broadening its model, exploring partnerships, and expanding its land footprint, will hold a capital markets day at its Petersmiths Park development in Nottingham today.
It ended the year with cash reserves of £5m and no debt (2022: £34m and no debt) following a restructuring that reduced its regional management teams from nine to six and moved to a standardised operating structure.
It said buyer demographics had altered, with 50% first-time buyers, down from 2022’s 70% figure, and a rise in over-55 buyers from 10% to 20%, and said it expected these proprtions to continue, giving encouraging prospects for the nest 12 months.
Chief executive Graham Prothero said, “We are pleased with the year’s performance in a challenging economic environment. We have taken advantage of the quieter market to restructure Gleeson Homes, putting the business in great shape to grow as the market recovers. I am hugely impressed with the resilience of our team, who remained focused and committed through that process to deliver these results. This gives me confidence in achieving our potential.
“As we will describe later today at our Capital Markets Day, the changes we are implementing in the business for the new financial year will further improve our competitiveness in the current market, and position us well for gradual stabilisation in the economy.
“We are also very excited about the longer-term prospects for the business and look forward to setting out later today why we believe that Gleeson is well-placed to scale significantly over the long-term, realising its true potential.”
