Sheffield-based affordable house builder MJ Gleeson plc said its revenue increased 4.2% to £157.9 million in the six months ended December 31 but profit before tax fell 50% to £3.6 million.
Interim dividend was unchanged at 4p per share.
Average selling prices increased by 4.8% to £193,900.
Gleeson said it made a lower gross margin on home sales in the period, reflecting “build cost inflation which was not offset by selling price increases on open-market sales, the impact of discounts on multi-unit transactions, continued extensions to site durations and cost increases on older sites nearing completion.”
It said gross margins are expected to start recovering during the second half “as sites close and a higher proportion of sales are delivered from higher margin sites.”
In its outlook, the firm said: “The positive start to the year, as well as the encouraging momentum generated in the first half, provide the board with confidence of meeting current market expectations …
“Longer-term, the company remains well positioned to deliver sector-leading growth underpinned by Gleeson Homes’ programme of new site openings and a more stable planning environment for Gleeson Land.”
MJ Gleeson CEO Graham Prothero said: “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 8 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.”