Change at the top for MJ Gleeson
Fiona Goldsmith has been confirmed as permanent chair of the Sheffield-headquartered property group, while Mark Knight has departed as chief executive of its housebuilding division.
In a trading update issued as Gleeson reached the end of its financial year, group chief executive Graham Prothero 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.”
The group said that “Gleeson Homes’ gross margin had come under pressure through the year due to the cumulative impact of a number of headwinds,” adding that an internal review had identified the need to make organisational and management changes.
The main change is that Knight has stepped down from his role of chief executive of Gleeson Homes and left the business.
Andy Davies will continue to run the Northern division, with the central division run by Scott Stothard, who is joining the business from Vistry, where he was divisional chair. Both will report directly to Prothero.
Simon Topliss, previously Gleeson Homes’ finance director, takes on the newly created role of chief operating officer, with responsibility for central functions, driving performance and governance. He will also report to Prothero.
MJ Gleeson is expected to deliver a profit before tax and exceptional items for FY2025 within current market expectations, which range from £21m to £22.5m. The homes division completed the sale of 1,793 homes, slightly ahead of 2024’s 1,772 homes, with 205 sold via multi-unit sales.
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A day after the trading update, MJ Gleeson updated the market with news of a directorate change, confirming that interim chair Fiona Goldsmith will take on the role full-time.
Goldsmith joined the board in October 2019, having previously held senior executive finance roles at First Choice Holidays and Landsec. She has also served as a non-executive director at Walker Greenbank. Currently, she is a NED and chair of the audit and risk committee of KCOM Group.
In addition, Gleeson NED Nicola Bruce has been appointed senior independent director with immediate effect. A further NED is being sought.
Goldsmith said: “Since joining the Board of MJ Gleeson, I have been impressed with the business and the colleagues who work tirelessly to build affordable high quality homes for the people who need them most.
“I look forward to working with my Board colleagues and supporting Graham Prothero, and his executive team, as we deliver on our strategy to significantly grow the business over the medium term.”
Gleeson’s trading update picked out a number of factors affecting the business, including increased build costs and flat selling prices, along with the cost of mitigating actions including the continued use of incentives and several bulk sale transactions.
Planning delays, the absence of an anticipated wider market recovery and further costs arising from legacy site issues meant that the margin improvement expected in H2 did not materialise, the group said.
Additionally, it was reported, “issues around process and compliance with procedures within the business, which were resulting in cost overruns, had been identified in the summer of 2024. Immediate actions did not fully address these and a comprehensive review of the business, under the banner of Project Transform, was initiated in the autumn. The review identified the need to implement some organisational and management changes.”
The changes should shorten reporting lines, empower divisional leadership teams and strengthen regional management as well as reinforcing controls and driving local ownership and accountability, Gleeson said.
