Gleeson optimistic following H1 results
The housebuilder made a total of £157.9m in revenue from its homes and land activities for the period, a 4.2% increase on H1 2023/24, however its group operating profit of £5.1m is 42% lower than the same period for the previous year.
Looking ahead, the company is optimistic that H2 will reap rewards following a strong start to the year for Gleeson Land, which secured planning permission for three sites in January.
The company predicts Gleeson Land will complete between four and eight site sales in H2 amid a more stable planning environment, while Gleeson Homes remains poised to deliver growth based on a number of new site openings.
Highlights for Gleeson Homes in H1 2024/25 include 801 homes sold, an increase of 4.8% in average selling prices, and a reduction of 6.9% to £23.1m of admin expenses.
Net reservation rate increased to 0.55 per site per week (0.44 excluding multi-unit orders), compared to 0.41 per site per week last year (0.39 excluding multi-unit orders).
The company said it was strongly positioned for a market recovery, noting the demand for affordable housing in an under-supplied market.
As for its pipeline, the company has 18,731 plots split between 174 sites.
Gleeson Land, meanwhile, didn’t complete any sales in H1, however five sites are currently being marketed or in a sales process, with planning achieved on two sites during H1 and on a further three already in January this year, including the division’s first grey-belt site.
Graham Prothero, chief executive, commented: “I am pleased to report a robust performance during the six months to 31 December 2024, despite the market remaining subdued, with Gleeson Homes completing the sale of 801 homes, more than the first half last financial year.
“Gleeson Homes is making good progress against its growth strategy, opening eight new build sites and 11 new sales outlets, and we remain confident of growing by circa 10 sales outlets per annum from next year onwards.
“Gleeson Land is progressing a number of significant opportunities which we expect to complete during the second half.
“The business is starting to reap the rewards from its restructured operations and market-leading research and data analytics capabilities, and will continue to grow its portfolio of sites in the second half and beyond.
“We are already seeing the benefit of the changes to the NPPF, with three planning consents achieved post period end.
“At Gleeson Homes, there are early indications of an improving selling season with much stronger net reservation rates in the first four weeks. More importantly, we are pleased with the progress of our site opening programme, which will drive sustained growth over the medium-term.”
