15th Nov 2024 09:14
(Alliance News) - MJ Gleeson PLC on Friday said trading for the year to date continues to progress in line with market expectations, amid a gradual improvement in the industry backdrop.
The Sheffield, England-based housebuilder said it expects to report full-year results in line with current market expectations, citing a company-compiled consensus of GBP28.1 million in pretax profit. This would be a 12% increase from GBP24.8 million last year.
MJ Gleeson also cited a consensus for 1,862 home completions within its Gleeson Homes division for the year, which would represent a 5.0% increase from the 1,772 home sales completed last year.
The company is due to release its half-year results on January 14.
Its Homes division expects to open a total of 27 sale sites during the year, compared to 4 last year, but anticipates selling overall on a lower average number of sites than last year. The division is targeting 10 new sales sites per year.
Meanwhile, its Land division reported "strong demand" for land from large and medium-sized developers. The company expects Gleeson Land to deliver full-year results "materially ahead" of last year as a result, with a number of "significant" second-half sales anticipated.
MJ Gleeson said: "As anticipated, the lack of conviction in the market continued through the autumn. Last week's base rate reduction was welcome and is expected to bolster buyer confidence into the important Spring selling season.
"Gleeson Homes continues to experience margin pressure as a result of higher sales incentives, the impact of multi-unit sales, increased build costs and limited relief from increasing selling prices.
"As the wider market improves, we remain confident in Gleeson Homes' ability to fulfil this ambitious programme of site openings, which will drive the exciting sector-leading growth planned for financial 2026 and beyond."
Shares in MJ Gleeson were down 2.9% at 539.64 pence each in London on Friday morning.
By Emily Parsons, Alliance News reporter
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