Shares of Sheffield-based affordable house builder MJ Gleeson plc rose as much as 7% on Tuesday after it said it it expects the group’s results for the year will be ahead of last year and in line with current market expectations.
Gleeson issued a trading update for the half-year ended December 31, 2024. The company will report its results for the period on February 11, 2025.
“Gleeson Homes delivered a robust performance, despite activity in the market remaining subdued, completing the sale of 801 homes, slightly ahead of the same period last year (31 December 2023: 769 homes),” said the firm.
“Net reservation rates during the Period increased to 0.55 per site per week (0.44 excluding bulk reservations) from 0.41 per site per week (0.39 excluding bulk reservations) during the same period last year. Gleeson Homes enters the second half of the financial year with a forward order book of 597 plots (31 December 2023: 586 plots).
“The division’s programme of new site openings continues, having opened 11 new sales outlets during the Period (31 December 2023: 2 sales outlets opened).
“Gleeson Partnerships continues to see strong interest from both private rental investors and housing associations, though most of the latter remain unable to commit to transactions pending the Government’s new funding settlement …
“Whilst, as anticipated, Gleeson Land did not complete any sales in the first half, demand for prime consented sites continues to be strong. The division is progressing a number of opportunities with several planning decisions expected early in the second half of the financial year and which should significantly improve performance compared to FY2024.”
MJ Gleeson CEO Graham 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.”