Listed housebuilder and land promoter MJ Gleeson has reported reduced house sales but said it was pleased with its performance in a “challenging economic environment”.
In a trading update for the year ended 30 June 2023, the company reported that Gleeson Homes completed the sale of 1,723 homes during the period, compared to 2,000 homes sold the previous year. During the second half of the year, 829 homes were sold, down from 1,068 in 2021/22.
Gleeson said this reflected the downturn in the wider economy and the impact of higher interest rates on buyer confidence.
However, the average selling price of Gleeson homes sold during the year increased by 11.3 per cent to £186,200.
During the year, the group completed the restructuring of Gleeson Homes from nine regional management teams to six and moved to a standardised operating structure. The process resulted in annualised administrative overhead cost savings of £3.2m, at a one-off cost of £1m.
Gleeson Homes opened three new build sites during the year, starting the new financial year with 82 sites, of which 71 are actively selling.
Gleeson Land sold three sites with the potential for 413 housing development plots during 2022/23. Its portfolio as of 30 June 2023 included six sites with either planning permission or resolution to grant and which have the potential for 1,400 plots.
Guy Gusterson was appointed as managing director of Gleeson Land during the year.
Graham Prothero, chief executive at MJ Gleeson, said: “We are pleased with the year’s performance in a challenging economic environment. We have taken advantage of the quieter market to restructure Gleeson Homes, putting the business in great shape to grow as the market recovers. I am hugely impressed with the resilience of our team, who remained focused and committed through that process to deliver these results. This gives me confidence in achieving our potential.
“The changes we are implementing in the business for the new financial year will further improve our competitiveness in the current market, and position us well for gradual stabilisation in the economy.
“We are also very excited about the longer-term prospects for the business and look forward to setting out later today why we believe that Gleeson is well-placed to scale significantly over the long-term, realising its true potential.”
MJ Gleeson is headquartered in Sheffield with its Strategic Land division based in Fleet.
Source : InsiderMedia