MJ Gleeson: Planning setbacks hit profit
Housebuilder MJ Gleeson has blamed planning setbacks in the UK for a decline in operating profit.
Overall revenue at Gleeson rose by 5.2 per cent from £328.3m to £345.3m, although profit before tax fell by 21.3 per cent to £24.9m.
The company – split into a land division and homebuilding division – said that Gleeson Land sold four sites during the year, up by one year on year, and that it had 11 sites awaiting a planning decision, down by 18 in 2023.
Gleeson Homes “exceeded expectations”, it said, with 1,772 new homes sold over the period versus 1,723 in 2023 and an operating profit of £30.3m, although this was down from £35m in 2023.
It said profit was held back by the “vagaries of the planning system”, higher interest rates during the year, and increased borrowing.
Still, Gleeson added that the business was well-positioned for growth and “what is expected to be a more stable planning environment.”
“We welcome the Government’s proposed policy reforms with a focus on affordable housebuilding and planning reform,” he added.
Gleeson said it aimed to deliver 3,000 new homes per year and said its profit before tax could “broadly triple” if this was achieved, and the firm would “resume its position as the fastest growing listed housebuilder in the UK”.
Chief executive officer Graham Prothero said: “I am pleased to report a resilient financial performance, delivering results in line with expectations, and good progress against our strategic growth objectives.
We were also pleased that Gleeson Homes received a strong customer recommendation score of 95.3 per cent, achieving five-star status in each of our six regions.
“We have continued to invest in growth, building Gleeson Homes’ pipeline of sites and total plots, and are now set to return to opening more sites each year than are completed, underpinning strong volume growth in future years.”