Shares of Sheffield-based affordable house builder MJ Gleeson got some respite on Friday, rising about 9%, after it published a trading update covering the 11 weeks to April 24, 2026.
The shares have fallen more than 50% for the past year.
The firm said its Gleeson Land business “continues to progress the sale of five sites including one site which represents approximately 50% of total plots forecast to be sold during the year.”
On FY2026 outturn, the firm said: “With greater visibility across Gleeson Homes’ Spring selling season and subject to Gleeson Land completing its major land sale, the board expects that Adjusted Group Profit before Tax for the year ending 30 June 2026 will be in line with market consensus.”
The company compiled consensus of group profit before tax and exceptional items for the year ending June 30, 2026, is £18.2 million with a range of £12.9 million to £20.5 million.
The company said in its update: “Gleeson Homes has experienced resilient trading through the period since 11 February, when the Group announced its H1 results. Net reservation rates for the 11 weeks to 24 April were 0.88 per site per week (0.59 excluding bulk reservations) compared to 0.86 per site per week (0.64 excluding bulk reservations) during the same period last year.
“There has been modest build cost inflation since the start of the calendar year whilst underlying selling prices on open-market and partnership sales have been broadly stable. Protecting margin continues to be a priority …
“Our new management teams have identified issues on previously completed legacy developments, mainly in Yorkshire, which require rectification in order to achieve adoption of the roads (and other statutory services) by the relevant Local Authorities.
“As we work through these issues we expect to establish cost provisions in the current financial year estimated at between £5.2 million and £7.1 million, for remedial works to be undertaken over the next three to four years. It is expected that Adjusted results1 for the current financial year will exclude these legacy site provisions.”
MJ Gleeson CEO Graham Prothero said: “We are pleased that Gleeson Homes’ trading performance has been resilient in an uncertain market environment.
“Whilst it is frustrating that further work is required on a number of legacy sites, I am pleased with the determination of our new management teams to identify and rectify legacy issues which now allows Gleeson Homes to look forward with confidence.
“It is too early to forecast the degree to which the crisis in the Middle East will impact customer confidence, mortgage affordability and build cost inflation over the coming months.
“We have recently seen some softening in footfall and reservations, and limited increases in the cost of some materials.
“This, together with ongoing challenges with planning and site viability, prompts even higher than usual caution in how we manage the business, including land investment decisions, into the next financial year.
“However, following the successful implementation of Project Transform, which has driven a greater focus on operational effectiveness and efficiency, the business as a whole is now in a much stronger position to manage through this period of uncertainty and capitalise on the significant opportunities we see ahead when the market returns to growth.”