MJ Gleeson Announces Organisational Changes to Improve Gleeson Homes Performance
Why we think this is bad
The trading update from MJ Gleeson plc highlights several challenges faced by the company, particularly in its Gleeson Homes division. While the Group's overall profit is expected to be within market expectations, the division's gross margin came under pressure due to a combination of external factors and internal issues. The housing market remains subdued, and the company does not foresee a short-term recovery. These negative factors outweigh the positives, leading to an overall BAD sentiment score.
Key Points
- Group profit before tax and exceptional items expected within market expectations of £21.0m to £22.5m
- Gleeson Homes division faced pressure on gross margins due to external and internal factors
- Planning delays pushed back the opening of new higher-margin sites
- Housing market remains subdued with no short-term recovery expected
- Organisational changes implemented to improve performance and delivery at Gleeson Homes
- FY2026 profit before tax and exceptional items expected at or around £24.5m
Summary
MJ Gleeson plc announced a trading update for the year ended 30 June 2025 (FY2025). The Group is expected to deliver a profit before tax and exceptional items within current market expectations, which range from £21.0m to £22.5m. However, the Gleeson Homes division faced several challenges, including pressure on gross margins, planning delays, and a subdued housing market. To address these issues, the company is implementing organisational and management changes to strengthen regional management, improve oversight, and drive local ownership and accountability. The Board expects profit before tax and exceptional items for FY2026 to be at or around £24.5m, the lower end of current market expectations.