11th Feb 2026 12:19
(Alliance News) - MJ Gleeson PLC on Wednesday cited cost inflation for a "subdued" first-half, despite sales improving on an annual basis.
Shares in the Sheffield, England-based housebuilder fell 9.6% to 37.05 pence around noon on Wednesday in London, and have lost 27% over the past year.
MJ Gleeson's pretax profit in the first half was less than half the prior year's level, slipping to GBP1.7 million from GBP3.6 million.
Revenue rose 9.7% to GBP173.1 million during the six months ended in December from GBP157.9 million, but higher selling prices failed to offset creeping inflation.
Cost of sales rose to GBP138.4 million in the first-half from GBP126.1 million on-year, while adminstrative expenses increased to GBP30.9 million from GBP26.8 million. Finance expenses were up to GBP2.3 million from GBP1.5 million.
Gleeson Homes saw its gross sales margin contract to 19.8% from 20.6%, despite selling 848 homes in the first half, up from 801 a year earlier. Average selling prices increased 2.5% to GBP198,000 from GBP193,900, and were about 1.7% higher on an underlying basis, the company said. It ended December with a forward order book of 978 plots, up 64% from 597 a year prior.
Gleeson Land made progress with three sales in the first half, versus none the previous year, and secured planning permission for five sites, which it plans to sell in financial 2026. The division ended the first half with 77 sites in its portfolio, up from 73 on-year.
MJ Gleeson kept its interim dividend flat at 4.0p per share.
Chief Executive Graham Prothero sees full-year expectations as "achievable", provided a strong spring selling season. According to MJ Gleeson's website, market consensus puts annual pretax profit at GBP39.6 million, compared with GBP20.5 million in 2025.
"We need to see the recovery gain further momentum," Prothero explained.
"The bulk market has softened further, as investors remain cautious and focused on pricing. Margins continue to be pressured as net selling price increases are outpaced by build costs, and we experience increasing regulatory and tax headwinds."
Nonetheless, Prothero maintained that performance was "robust", and that the company was said "cautiously encouraged by open market buyer activity over the last five weeks".
"We will update our guidance in April 2026 with the benefit of greater trading visibility through to the year end," the CEO added.
By Holly Munks, Alliance News reporter
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