Gleeson expects £7.5m profit hit as huge land sale pushed into next financial year

A land deal accounting for half of Gleeson’s forecast plot sales for the current financial year will not complete before its end later this month, with a £7.5m hit to profit expected as a result.

In an update to the market, the land promoter referred to its extensive engagement over the sale of a site which would “account for approximately 50% of the total forecast plots to be sold in FY2026”. 

It said that while “significant progress has been made in respect of the site”, with the “majority of conditions required to achieve formal technical approval” agreed, completion of the transaction was now expected in the first half of the next financial year.

“The Gleeson Land team have cleared almost all of the technical hurdles to facilitate the disposal of the major site and it is frustrating that completion will now fall into the next financial year,” said CEO Graham Prothero.

Two smaller transactions, also expected to complete in FY2026, are now expected to conclude in the first half of FY2027, with Gleeson’s board blaming delays in housebuilders’ decision making, as they review their land buying strategies in light of current economic headwinds.

Housebuilder Berkeley announced earlier this year that it would halt land buying, citing the impact of the Middle East war, falling consumer confidence and impact of building safety regulations.

“There is no doubt that housebuilders, in the south of England, are reviewing and reappraising their land buying strategies and we anticipate these conditions will continue through the next financial year,” said Prothero.

“The good news is that there is continuing demand for the highest quality developments, which is where Gleeson Land is now focused with a portfolio of prime sites. Transactions will take longer but we are confident that sales of prime sites will continue.”

Gleeson said it did expect the sale of one further site in June 2026.

“Notwithstanding the timing differences on completions of the above sites, the Group is encouraged that demand remains solid for high quality sites,” it said.

The firm said Gleeson Homes was trading “in line with management’s expectations for the full year” but that the impact of delayed sales by Gleeson Land was expected to result in a £7.5m hit to the group’s adjusted pre-tax profit, compared with current market expectations.

A company-compiled consensus put current market expectations for the year ending 30 June 2026 at roughly £17.8m. 

The group will issue its full year trading update on 10 July 2026.