Gleeson: Sales ‘exceeding expectations’ despite planning system woes
Housebuilder Gleeson has nudged up the number of new homes it sold in its most recent financial year, despite what it described as “continuing challenges in the planning system”.
The London-listed firm completed the sale of 1,772 new homes in the year ended June 30, 2024, up 2.8 per cent on the year before, with a forward order book of 559 plots.
It said that 346 of the homes it sold over the period were via multi-unit sale agreements.
Gleeson said it expects its homes division to report an operating profit of around £30m, ahead of market expectations.
The company’s land division sold four sites during the year with Gleeson adding that the timing of the General Election, which coincided with the period-end, resulted in the delay of a “significant disposal” which is now expected to be completed in its next financial year.
Gleeson Land is expected to report an operating profit of around £2m, below market expectations.
The group ended the year with a net cash position of £12.9m compared to £5.2m on June 30, 2023.
Chief executive Graham Prothero said: “We have delivered a solid overall performance with Gleeson Homes exceeding expectations in what has been a challenging year.
“We are making progress against our key strategic priority of significantly scaling up our operations over the medium-term. Looking ahead, we are anticipating an increase in demand for new homes as interest rates begin to come down and consumer confidence returns.
“We also expect Gleeson Land to complete on a number of significant land disposals in the months ahead.
“We also welcome the chancellor’s comments regarding mandatory housing targets, planning reform and other measures to increase substantially the supply of new homes.
“There is much to do if aspiration is to become reality, but the determination that we have seen since the election to get things done marks a positive change in approach. Gleeson is ready to play its part in delivering much needed affordable homes.”