Resilient performance at housebuilder amidst subdued market
Sheffield-headquartered housebuilder, MJ Gleeson, says it is seeing encouraging signs of a recovery in demand as it issues its results for the half year ended 31 December 2024.
The business, which operates across two divisions – Gleeson Homes and Gleeson Land – reports total revenues of £157.9m (H1 23/24 £151.5m) and group pre-tax profits of £3.6m (H1 23/24 £7.2m).
Graham Prothero, chief executive officer, said: “I am pleased to report a robust performance during the six months to 31 December 2024, despite the market remaining subdued, with Gleeson Homes completing the sale of 801 homes, more than the first half last financial year.
“Gleeson Homes is making good progress against its growth strategy, opening eight new build sites and 11 new sales outlets, and we remain confident of growing by circa 10 sales outlets per annum from next year onwards.
“Gleeson Land is progressing a number of significant opportunities which we expect to complete during the second half.
“The business is starting to reap the rewards from its restructured operations and market-leading research and data analytics capabilities, and will continue to grow its portfolio of sites in the second half and beyond.”
The company adds it is well positioned for a market recovery, noting that it serves an under-supplied part of the market with resilient underlying demand and continuing affordability.
It states there are early indications of an improving selling season with much stronger net reservation rates in the first four weeks.
MJ Gleeson says that while it anticipates the market will continue to recover over the coming months, helped by further interest rate cuts, “the timing and trajectory of that recovery remains uncertain.”
And the business stresses it continues to tightly manage costs while ensuring it has capacity to open new sites and deliver strong rates of growth as the market recovers.
