
Low cost housebuilder Gleeson says it expects full year results to be ahead of last year despite the market remaining “subdued”.
The Sheffield-based developer said it has delivered a robust performance having completed the sale of 801 homes in the first half of the year, slightly ahead of the 769 completed in same period last year. Analysts expect the firm’s pre-tax profits to reach nearly £28m, compared with last year’s total of £24.8m.
That comes as Gleeson is expected to complete 1,868 homes in the current financial year versus the 1,772 completed last year. CEO Graham Prothero described it as an encouraging performance.
Net reservation rates during the period increased to 0.55 per site, per week, from 0.41 per site per week during the same time last year. Forward orders for the builder going into the second half of the year were 597 plots, up from 586 plots.
Gleeson opened 11 new sales outlets during the first half compared with just two in the same period last year. In an updated to investors on the London Stock Exchange, it said its partnerships business had seen strong interest from private rental investors and housing associations but warned the latter were unable to commit to deals until the Government’s new funding settlement.
No sales were completed during the half year across the firm’s land development business, though bosses said demand for prime consented sites was still strong. Gleeson said it was working on a number of opportunities with some planning decisions expected to come early in the second half of the financial year – fuelling hopes that performance would significantly improve compared to 2024.
Mr Prothero said: “We are pleased to have delivered an encouraging performance during the first half, with Gleeson Homes increasing its completions compared to the first half last year.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber