Sheffield-based affordable house builder MJ Gleeson has cut its dividend from 11p per share to 5p to “reflect the challenging environment” as the firm made a loss before tax of £2.7 million for the year to June 30, 2026, despite revenue rising 12.1% to £410 million.
MJ Gleeson CEO Graham Prothero said: “I am pleased to report that in a subdued market we delivered a robust performance underpinned by the delivery of 1,968 homes, up by nearly 10% against the prior year. Gleeson Homes entered the new financial year with a forward order book of 848 homes.
“During the year we moved at pace to implement significant structural and operating changes under Project Transform.
“As a result, Gleeson Homes has been overhauled and is a much-improved business, with strengthened leadership at both Executive and Regional levels, more effective processes and clearer reporting lines. It is in a much stronger position to manage through the challenging market environment we are experiencing today.
“To optimise Gleeson Homes’ performance, we are also working hard on a number of business initiatives including enhancing our partnerships strategy, land-buying, product design, customer journey and brand identification.
“Importantly, recognising that this subdued market may not improve anytime soon, we are focused on managing the business as efficiently as possible and taking a prudent stance on cash, working capital and site acquisitions.
“Gleeson Land had to adapt to a slowdown in sales owing to a more cautious land market. The business continued to strengthen its portfolio submitting a record number of 18 planning applications and securing 13 high-quality new sites.
“Looking ahead, given the market backdrop, an absolute priority is to maintain the strength of our balance sheet.
“Along with our focus on managing the business prudently, the Board has also taken the view that the dividend should reflect the challenging environment, proposing a lower final dividend in line with our capital allocation policy. This will give us greater flexibility in deploying capital for the medium-term benefit of the business.
“Following a year of intense activity, implementing fundamental business change, we now have a Homes business that is operationally much stronger and a Land business well-placed to meet the continuing needs of developers for high-quality consented sites. With the focused and disciplined approach we are now taking, we are confident for the future prospects of the Group.”