MJ Gleeson on track to meet market expectations for the year
Low-cost housebuilder and land promoter said on Tuesday that full-year results were set to be ahead of last year and in line with market expectations.
In an update for the half year to the end of December, the company hailed a "robust" performance, despite activity in the market remaining subdued. It completed the sale of 801 homes, slightly ahead of the 769 homes completed in the same period a year earlier.
Net reservation rates increased to 0.55 per site per week from 0.41 and Gleeson Homes is entering the second half of the financial year with a forward order book of 597 plots, up from 586 at the end of December 2023.
The company said Gleeson Partnerships continues to see strong interest from both private rental investors and housing associations, though most of the latter remain unable to commit to transactions pending the government's new funding settlement.
As expected, Gleeson Land did not complete any sales in the first half, but demand for prime consented sites continues to be strong, it said.
It added that the segment is progressing a number of opportunities with several planning decisions expected early in the second half of the financial year and which should "significantly" improve performance compared to FY2024.
Chief executive Graham Prothero said: "We are pleased to have delivered an encouraging performance during the first half, with Gleeson Homes increasing its completions compared to the first half last year."
At 1000 GMT, the shares were up 6.8% at 472.50p.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.