Latest news with #GrahamProthero
The Independent
04-07-2025
- Business
- The Independent
No short-term recovery expected in housing market, says MJ Gleeson
Housebuilder MJ Gleeson said the UK housing market 'lacks confidence' and is not expected to substantially improve in the short term. It came as the Sheffield-based company said profits over the past year have been hit by planning delays, the absence of a market recovery and rising costs. The company said it had also come under pressure from a combination of 'increased build costs and flat selling prices' in its Gleeson Homes business. On Friday, the company announced an overhaul of management in the homes business as part of efforts to reduce costs. The London-listed firm said Mark Knight has stepped down from his role of chief executive of Gleeson Homes as a result and left the business. MJ Gleeson said the group has seen some interest from customers but pointed to prolonged weakness in demand. The company said: 'The housing market lacks confidence and remains subdued and the board does not see a short-term catalyst for any substantial improvement. 'However, as reflected in our robust sales rate, there are customers for well-located homes at the right price.' The company said it completed the sale of 1,793 homes in the year to June, up slightly from 1,772 homes a year earlier. It added that profits for the past year are set to be within market guidance of between £21 million to £22.5 million. It said profits for next year are however set to be at the 'lower end' of expectations. Graham Prothero, chief executive of MJ Gleeson, said: 'This was a challenging year for Gleeson. 'As well as external factors, it had become clear that our commercial delivery was not where we needed it to be. 'Over the last nine months we have therefore been implementing at pace management changes which will significantly benefit the business through full-year 2026 and beyond. 'These changes will also ensure the delivery of our strategic objectives.'
Daily Mail
04-07-2025
- Business
- Daily Mail
MJ Gleeson overhauls homes leadership as weak housing demand continues to weigh on profits
Shares in London-listed homebuilders fell on Friday after MJ Gleeson revealed a leadership overhaul of its homes business and lowered annual profit expectations. The Sheffield-based group, which built the Crucible Theatre, has ensured tough trading conditions in 2025, amid higher build costs and a slower-than-expected recovery in housing demand. And Gleeson told shareholders on Friday capacity issues in the planning system have delayed site openings, resulting in fewer locations being operational than anticipated this year. While the firm has enjoyed a strong sales rate, bosses said they cannot see a 'short-term catalyst for any substantial improvement'. Gleeson now anticipates pre-tax profits for the 2026 financial year to be approximately £24.5million, which is at the bottom end of forecasts. For the year ending June 2025, it expects to report profits of between £21million and £22.5million, compared to £24.8million in the previous 12 months. It said gross margins in its homes arm had suffered multiple headwinds, including higher build costs, flatlining selling prices, and bulk sale transactions. Gleeson has also been impacted by planning problems that have held back the launch of higher-margin sites, legacy site issues, and cost overruns related to process and compliance with procedures. Graham Prothero, chief executive of MJ Gleeson, said the firm had experienced a 'challenging year'. He added: 'As well as external factors, it had become clear that our commercial delivery was not where we needed it to be.' As a result, the company is implementing some organisational changes to its Gleeson Homes segment to try and shorten reporting lines, improve oversight, and bolster regional management. Gleeson Homes chief executive Mark Knight has resigned as part of a management overhaul, while Fiona Goldsmith and Simon Topliss have been appointed as chair of its board and chief operating officer, respectively. Gleeson Homes is holding on to its six regions but within two divisions, while the Greater Manchester, and Merseyside and Cumbria regions will be overseen by a single leadership team. Gleeson expects to recognise about £1.2million in exceptional cash costs from the reorganisation. Prothero added: 'Over the last nine months, we have therefore been implementing at pace management changes which will significantly benefit the business through FY2026 and beyond. 'These changes will also ensure the delivery of our strategic objectives. Whilst we do not expect any significant economic recovery in the short term, we are maintaining a robust sales rate. 'This, along with our remedial actions, gives me confidence that we have a stronger business which will deliver our projections for the current year and our significant growth plans over the medium-term.' MJ Gleeson shares were 5.7 per cent lower at 366p on Friday morning, making them the FTSE All-Share Index's biggest faller and taking their losses to around 31 per cent over the past year. The updated dragged FTSE 100-listed rivals Barratt Redrow and Berkeley Group more than 2 per cent lower, while FTSE 250 Vistry was down 3.5 per cent by midmorning. Analysts at Peel Hunt said: 'The trading backdrop remains subdued, with high levels of competition from the second-hand market and a lack of any demand support for first-time buyers. '[MJ Gleeson] shares have fallen 18 per cent in the past three months vs the sector. 'This leaves the business attractively placed vs the peer group. 'We still see significant potential over the medium and longer term, asoutlets return to a net growth position, the group trades through lower margin sites, and sees an improvement in margins and returns.'
