Latest news with #MJGleeson
Business Recorder
05-07-2025
- Business
- Business Recorder
UK shares mixed as investors assess fiscal worries
LONDON: London's main stock indexes closed mixed on Friday, with investors assessing domestic fiscal worries and the rate cut path, while weak global investor sentiment persisted ahead of a US tariff deadline. The blue-chip FTSE 100 was unchanged on the day but notched up a second weekly gain, while the domestically-focussed FTSE 250 lost 0.7% on Friday and ended the week lower. The midcap index had logging its largest quarterly gain in more than four years by the close of trade on Monday, but then came under pressure as U-turns on welfare reforms blew a hole in Finance Minister Rachel Reeves' budget plans. The reform bill passed on Tuesday, but with limited cost-reduction measures from the initially expected 5 billion pounds ($6.83 billion) in savings, leading to concerns of raised taxes or spending cuts elsewhere. S&P Global said the inability to make modest cuts to welfare spending showed the government's 'limited budgetary room for manoeuvre'. Homebuilder stocks led sectoral losses on Friday, dropping 2.1% after MJ Gleeson warned of profit being at the lower end of market expectations for fiscal 2026 due to subdued demand. The group slumped 6.7% and was the top decliner on the smallcap index. Larger peers Vistry, Persimmon and Taylor Wimpey fell 2.8%, 1.3% and 1.6%, respectively. Industrial metal stocks fell, tracking lower metal prices. Anglo American, Antofagasta and Glencore slipped more than 1% each. Atalya lost 3%. The Bank of England's Alan Taylor said on Friday that cutting interest rates now would be better than waiting and risking cutting them later in a hurry. Traders are currently pricing in an 80% chance of a rate cut in August, according to LSEG data.
Reuters
04-07-2025
- Business
- Reuters
UK shares fall amid domestic fiscal worries, looming tariff deadline
July 4(Reuters) - London's main stock indexes fell on Friday, weighed down by domestic fiscal worries and weaker global sentiment ahead of a looming tariff deadline. As of 0910 GMT, the benchmark FTSE 100 (.FTSE), opens new tab was down 0.3%, while the domestically-focussed FTSE 250 (.FTMC), opens new tab lost 0.7%. Both indexes are set to end the week lower. The midcap index ended the second quarter on Monday by logging its largest quarterly gain in over four years, but has since come under pressure as U-turns on welfare reforms have blown a hole in Finance Minister Rachel Reeves' budget plans. The reform bill passed on Tuesday, but with limited cost-reduction measures from the initially expected 5 billion pounds ($6.83 billion) in savings, leading to concerns of raised taxes or spending cuts elsewhere. S&P Global said the inability to make modest cuts to welfare spending showed the government's "limited budgetary room for manoeuvre." Among sectors, homebuilder stocks (.FTNMX402020), opens new tab led sectoral losses on Friday, dropping 2% after MJ Gleeson (GLEG.L), opens new tab warned of profit being at the lower end of market expectations for fiscal 2026 due to subdued demand. The group slumped 6.7% and was the top decliner on the smallcap index. Larger peers Vistry (VTYV.L), opens new tab, Persimmon (PSN.L), opens new tab and Taylor Wimpey (TW.L), opens new tab fell 3.1%, 1.6% and 1.5%, respectively. Industrial metal stocks (.FTNMX551020), opens new tab fell, tracking lower metal prices. Anglo American (AAL.L), opens new tab, Antofagasta (ANTO.L), opens new tab and Glencore (GLEN.L), opens new tab slipped over 1% each. Atalya lost 3%. On the economic data front, S&P's UK construction PMI showed Britain's construction industry downturn reduced in June with homebuilding growth, but commercial building tumbled due to economic worries. Elsewhere, global markets were subdued after U.S. President Donald Trump said Washington will start sending letters with tariff rates to countries on Friday. Britain remains one of the only countries to have cinched a deal with the U.S. Among individual stocks, greeting card and gifting retailer Moonpig (MOONM.L), opens new tab fell nearly 6% to the bottom of the midcap index after a rating downgrade by Deutsche Bank. ($1 = 0.7323 pounds)
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.'
Yahoo
16-06-2025
- Business
- Yahoo
European Undervalued Small Caps With Insider Buying For June 2025
As European markets grapple with renewed uncertainty due to U.S. trade policy and escalating geopolitical tensions in the Middle East, small-cap stocks have experienced notable volatility, as reflected by a 1.57% decline in the STOXX Europe 600 Index. In this environment, identifying companies with strong fundamentals and potential for growth can be particularly appealing to investors looking for opportunities amid broader market fluctuations. Name PE PS Discount to Fair Value Value Rating Morgan Advanced Materials 11.8x 0.5x 34.62% ★★★★★☆ Europris 19.2x 1.0x 35.38% ★★★★☆☆ Tristel 29.3x 4.1x 8.87% ★★★★☆☆ AKVA group 18.4x 0.8x 48.25% ★★★★☆☆ Close Brothers Group NA 0.6x 39.71% ★★★★☆☆ Italmobiliare 11.5x 1.5x -209.43% ★★★☆☆☆ Fuller Smith & Turner 12.0x 0.9x -55.12% ★★★☆☆☆ SmartCraft 43.6x 7.8x 30.41% ★★★☆☆☆ H+H International 32.2x 0.7x 46.62% ★★★☆☆☆ Seeing Machines NA 2.2x 48.38% ★★★☆☆☆ Click here to see the full list of 78 stocks from our Undervalued European Small Caps With Insider Buying screener. Here we highlight a subset of our preferred stocks from the screener. Simply Wall St Value Rating: ★★★★★★ Overview: MJ Gleeson is a UK-based company primarily engaged in urban regeneration and residential property development, with operations in land promotion through Gleeson Land and home building via Gleeson Homes, and it has a market cap of approximately £0.36 billion. Operations: The company generates revenue primarily from Gleeson Homes, contributing £343.33 million, while Gleeson Land adds £8.40 million. Over recent periods, the gross profit margin has decreased to 22.32%, indicating a decline in profitability relative to earlier figures such as 34.26%. Operating expenses have consistently impacted net income margins, with the latest figure at 4.70%. PE: 13.7x MJ Gleeson, a player in the European market, is drawing attention due to its potential for growth and insider confidence. Between January and May 2025, insiders purchased shares, signaling trust in the company's trajectory. Despite relying solely on external borrowing for funding—considered higher risk—the company forecasts earnings growth of 17.93% annually. This positions it as an intriguing option among smaller stocks with room for expansion in the housing sector. Click here to discover the nuances of MJ Gleeson with our detailed analytical valuation report. Review our historical performance report to gain insights into MJ Gleeson's's past performance. Simply Wall St Value Rating: ★★★☆☆☆ Overview: WH Smith operates as a retail company with a focus on travel and high street locations, boasting a market capitalization of approximately £1.95 billion. Operations: The company's revenue is primarily derived from its Travel segment, which significantly outpaces the High Street segment. Over time, the gross profit margin has shown an upward trend, reaching 63.82% in February 2025. Operating expenses are a major component of costs, with sales and marketing consistently being the largest expense category. Despite fluctuations in net income margin due to varying non-operating expenses and other factors, recent periods indicate some recovery in profitability metrics. PE: 193.1x WH Smith, a notable player in travel retail, is capturing attention with its strategic moves and financial maneuvers. Recently, Palliser Capital acquired nearly 5% of the company to scrutinize leverage and capital allocation for better shareholder returns. The firm repurchased 2.2 million shares for £27 million by April 2025, showcasing confidence in its prospects despite reporting a net loss of £43 million for the half-year ending February 2025. Leadership changes in India signal an ambitious revenue tripling goal over four years under Shantanu Chakravartty's guidance. With travel revenue up 7% year-on-year as of May 31, WH Smith is poised to benefit from focused growth initiatives amidst high debt levels and evolving market dynamics. Unlock comprehensive insights into our analysis of WH Smith stock in this valuation report. Assess WH Smith's past performance with our detailed historical performance reports. Simply Wall St Value Rating: ★★★☆☆☆ Overview: NOTE is a technology company specializing in manufacturing and supplying electronics to various industries, with a market capitalization of SEK 6.88 billion. Operations: The company generates revenue primarily from Western Europe (SEK 2.99 billion) and the Rest of World (SEK 905 million). Its cost structure is dominated by the cost of goods sold, which has consistently been a significant portion of revenue. Notably, the gross profit margin has shown variability, reaching as high as 13.54% in recent periods. PE: 18.2x NOTE AB's recent performance highlights its potential as an undervalued opportunity among European small companies. Despite a slight dip in Q1 sales to SEK 1,003 million from SEK 1,055 million last year, net income rose to SEK 65 million. Insider confidence is evident with Director Johan Hagberg purchasing shares worth approximately SEK 600,416 in April. Although reliant on external borrowing for funding, NOTE forecasts a promising earnings growth of 13% annually. The company anticipates Q2 sales between SEK 950-1,050 million. Get an in-depth perspective on NOTE's performance by reading our valuation report here. Gain insights into NOTE's historical performance by reviewing our past performance report. Get an in-depth perspective on all 78 Undervalued European Small Caps With Insider Buying by using our screener here. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:GLE LSE:SMWH and OM:NOTE. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
