Sheffield low-cost housebuilder, MJ Gleeson, lost almost a quarter of its value this morning after warning profits will come in up to 20% below expectations<\/p>\n
In early trading \u00a0MJ Gleeson shares were down 24% to 393p<\/p>\n
In a statement the group, which operates across two divisions \u2013 Gleeson Homes and Gleeson Land, said: \u201cThe previous forecast that Gleeson Homes would deliver an overall operating profit in line with market expectations included the profit contribution from a disposal of one of Gleeson Homes’ extensive land holdings in East Yorkshire.<\/p>\n
\u201cIt is now not expected that this disposal will proceed and consequently Gleeson Homes anticipates reporting an operating profit around 15% – 20% below current expectations.\u201d<\/p>\n
Gleeson added that the pace of the housing market recovery has not been sufficient to offset the cumulative impact on Gleeson Homes’ gross margin of several headwinds through the year. These include increased build costs, flat selling prices, the continued use of incentives and several bulk sale transactions.\u00a0 Consequently, Gleeson Homes gross margin for the year will be circa 1% lower than previously expected.<\/p>\n
Looking ahead, the group said several factors will continue to impact Gleeson Homes into FY26, including planning delays which will see the business selling from fewer sites than previously forecast.\u00a0 Gleeson Homes’ gross margin in FY2026 is also expected to be around 1% lower than market expectations.<\/p>\n
Elsewhere, Gleeson Land has completed three transactions to date and is continuing work on a further seven disposals anticipated to complete before the year end.<\/p>\n","protected":false},"excerpt":{"rendered":"
MJ Gleeson warns that profits will come in up to 20% below expectations after failure of land sale<\/p>\n","protected":false},"author":271992,"featured_media":2078155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"coauthors":[137100],"class_list":["post-2139607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-south-yorkshire","tag-top-story","tag-yorkshire"],"yoast_head":"\n