Revenues and profits down at housebuilder amidst difficult market conditions

Sheffield-headquartered housebuilder, Gleeson Homes, says it has managed a robust performance amidst tough conditions as it publishes its results for the half year ended 31 December 2023.

Total revenues were down 11.4% to £151.5m (H1 2022/23: £171m), while pre-tax profits fell 55.3% to £7.2m (H1 2022/23: £16.1m).

769 homes were sold during the period, (H1 22/23: 894), which the business says reflects conditions experienced across the market.

Graham Prothero, chief executive officer, said: “In common with others within the sector, we experienced margin pressures arising from increased sales incentives, extended site durations and multi-unit sales.

“This has been exacerbated by additional costs on a number of older sites, which were brought to light by new management teams put in place following the organisational restructuring implemented last year.

“Against the backdrop of improving mortgage rates, we are seeing positive signs of a recovery in demand. We expect this to continue into the seasonally busier selling period over the coming weeks and months.

“The business has traded well in difficult conditions and is well-placed to capitalise on a recovery in the market and resume its exciting growth strategy.”

A restructuring of operations completed in June 2023, and the company says this is delivering the expected full year cost savings.

It says it is continuing to tightly manage overheads, while ensuring capacity to invest for a return to strong rates of growth.

Gleeson Homes notes the pace of recovery remains uncertain, so it is maintaining a cautious outlook.

In its outlook statement, the business adds it remains to be seen what impact the General Election will have on the strength of recovery this year.