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British homebuilder MJ Gleeson recorded a 17.3% fall in annual pretax profit to GBP 20.5 million (USD 27.9 million) for the fiscal year ending June 2025, affected by rising construction costs, flat selling prices, planning delays, and a failed land deal. Despite this, the company entered the new fiscal year with a strong forward order book of 845 plots, up from 597 at the end of December 2024. Analysts noted that the results indicate recovery potential, and shares rose 1.8% to 347 pence, reflecting positive investor sentiment.
British homebuilder MJ Gleeson, known for constructing affordable homes in the North of England and the Midlands, reported a pretax profit of £20.5 million for the fiscal year ending June 2025, down from GBP 24.8 million the previous year. The decline of 17.3% was attributed to higher build costs, flat selling prices, planning delays, and a failed land transaction. Advertisement
The company began the new fiscal year with a stronger forward order book. Gleeson Homes, its main business, held 845 plots under order as of June 2025, compared with 597 plots at the end of December 2024. This increase reflects improving demand despite the challenges faced during the prior year.
CEO Graham Prothero highlighted that the combination of a stronger performance from Gleeson Homes and ongoing progress at Gleeson Land positions the group well for sustained growth in the coming period. He emphasized that the company is managing the current market pressures and focusing on building its order pipeline.
Shares of MJ Gleeson rose 1.8% to 347 pence in early trading, reflecting investor confidence in the company's forward outlook. Analysts from RBC Capital Markets noted that while the profit decline is notable, the results indicate that Gleeson is regaining momentum and returning to a proactive growth stance.
MJ Gleeson continues to operate in a challenging UK housing market, where construction costs have been rising and the pace of sales recovery has been slower than anticipated. The company's results highlight the impact of operational and market factors, while its growing forward order book suggests resilience and potential for growth in the affordable housing segment.
Source: Reuters
5th Jun, 2025
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