Sheffield-based affordable house builder MJ Gleeson said its revenue increased 9.6% to £173.1m but profit before tax fell 52.8% to £1.7 million in the half year to December 31, 2025.
The company’s shares fell about 8%.
On current trading and outlook, MJ Gleeson said: “We are cautiously encouraged by early signs of a recovery in open market demand. Net reservation rates on open-market sales of 0.55 in the five weeks to 6 February 2026 are up 38% on the 3 months to December 2025 albeit not yet at the levels experienced during the same five-week period last year.
“Gleeson Land starts the second half with planning permission in place on all sites expected to sell by the end of the financial year, all of which are in an active sale process or being marketed. Gleeson Land is expected to complete five promotion agreements during the second half with the outlook for future years strengthened by a record period of planning activity with applications submitted on 15 sites.
“For the full year, whilst current market expectations remain achievable, a strong Spring selling season remains fundamental to our assumptions in delivering on those expectations and we need to see the recovery gain further momentum.
“The bulk market has softened further, as investors remain cautious and focused on pricing. Margins continue to be pressured as net selling price increases are outpaced by build costs, and we experience increasing regulatory and tax headwinds. We will update our guidance in April 2026 with the benefit of greater trading visibility through to the year end.”
MJ Gleeson CEO Graham Prothero said: “We are pleased to have delivered a robust performance in a subdued market environment and ended the first half with a strong forward order book boosted by three further partnership agreements and are cautiously encouraged by open market buyer activity over the last five weeks which has seen a recovery from the first half.
“We have implemented further changes to complete the operational restructure of Gleeson Homes and to improve the efficiency of the overhead base.
“Gleeson Land completed three sale transactions and had its busiest ever period of planning activity that will deliver high-value consented sites over the coming years. The outlook for the business is exciting and the division is well positioned to deliver on its growth potential.”