Housebuilder says it remains on course to meet full-year expectations
Housebuilder Gleeson said pre-tax profit fell last year as expected with the firm’s bottom line being hit by rising build costs and nervous customers.
The firm, which also has a land business, said in its full year results this morning that pre-tax profit in the year to June was down 17.5% to £20.5m on turnover up 6% to £366m.
Chief executive Graham Prothero said: “This year has been challenging for Gleeson, and despite selling more homes relative to FY2024, there have been factors which stalled our momentum. We have taken the actions necessary to benefit the business through FY2026 and ensure the delivery of our strategic objectives.
“The board remains confident that, in delivering its objective of selling 3,000 new homes per annum, Group profitability could broadly triple and the Company would resume its position as the fastest growing listed housebuilder in the UK.”
The firm said it spent £1.3m on restructuring costs under an initiative called Project Transform, which saw the firm announce a rejig of its housing business in July with housing boss Mark Knight leaving.
Prothero, a former chief executive of Galliford Try who joined Gleeson at the start of 2023, said the firm’s performance had been hampered in previous years by “some issues around process and compliance with procedures resulting in build cost increases in excess of provisions”.
He added: “It became clear to me early in the financial year that the structure and leadership of Gleeson Homes required fundamental review. During the second half of the year we moved at pace to restructure the business, culminating in the leadership and organisational changes announced in July.”
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The firm sold 1,793 homes during the period, up from 1,772, while reservation rates averaged at 0.71 per site per week, up 37% on last time.
Analyst Anthony Colding at RBC Capital Markets said: “There are positives to take from these results and the tone of today’s statement is very much that Gleeson is back on its front foot. However, profitability in FY2026 is expected to be broadly flat with significant growth expected in FY2027.
“Gleeson is aspiring to deliver jam tomorrow but execution risks remain. FY2026 will be a year of transition, a time to tell if Project Transform is working.”
The firm’s housing business, Gleeson Homes, saw turnover rise 6% to £348m while its land business, which sells land for housing development, saw sales jump 8% to £17.6m.
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