The Yorkshire firm saw revenues rise in the first half of its financial year but was hampered by increasing costs
A Gleeson Homes development(Image: Gleeson Homes)
Housebuilder MJ Gleeson has reported a “robust performance in a subdued market” as revenues increased but profits fell.
The Sheffield firm, which specialises in homes at the lower end of the housing market, has released half year results in which turnover increased 9.6% to £173.1m. But over the same period, operating profit fell by 17.6% to £4.2m.
Gleeson sold 848 homes in the period (up from 801 on the same period last year) and its net reservation rate increased significantly. Average selling prices for its homes went up 2.5% to £198,800.
Its Gleeson Partnerships arm, which focused on building affordable homes for housing associations and private rental investors, secured three further agreements and delivered its first homes. But it was a tougher period for its Gleeson Land division, which fell to a loss despite three land sale transactions in the period and five sites being marketed or in a sales process.
The company said it was “cautiously encouraged by early signs of a recovery in open market demand” with reservation rates in recent weeks up on the end of 2025 though not yet at last year’s levels.
Gleeson said that further changes implemented in January to complete a restructuring of the company would lead to costs of up to £4.5m that would be recognised as exceptional during the second half of the company’s financial year.
Chief executive officer Graham Prothero said: “For the full year, whilst current market expectations remain achievable, a strong Spring selling season remains fundamental to our assumptions in delivering on those expectations and we need to see the recovery gain further momentum. The bulk market has softened further, as investors remain cautious and focused on pricing.
“Margins continue to be pressured as net selling price increases are outpaced by build costs, and we experience increasing regulatory and tax headwinds. We will update our guidance in April 2026 with the benefit of greater trading visibility through to the year end.
“With the right structure and leadership in both businesses, the Group is in a strong position to deliver on its medium-term strategic objectives.”
Gleeson’s results have been released in a week of big announcements from companies in the housebuilding sector. The UK’s largest housebuilder, Barratt Redrow has posted falling half-year profits as it said the late autumn Budget created “significant uncertainty” on top of a lack of homebuyer confidence and spending power. That comes a day after Newcastle firm Bellway had revealed growth in house completions and an increase in its average price.
