Housebuilder MJ Gleeson said the UK’s ‘housing market lacks confidence’ in a trading statement released on Friday that underscored the difficulties the builder faced over the last year.
MJ Gleeson delivered results in line with market expectations for the year ended 30 June 2025, despite facing significant operational challenges that have prompted a major reorganisation at its Gleeson Homes division.
The Group expects to report a profit before tax and exceptional items of between £21.0m and £22.5m for FY2025. This would represent a marginal decline from the £24.8m recorded last year.
Gleeson Homes completed the sale of 1,793 homes during the year, marginally up from 1,772 homes in the previous year, though multi-unit sales fell to 205 from 346.
Net reservation rates showed encouraging signs of recovery, averaging 0.88 per site per week over the past six months compared to 0.63 in the second half of FY2024. Excluding multi-unit agreements, reservation rates improved significantly to 0.64 per site per week, whilst cancellation rates decreased to 14% from 18%.
MJ Gleeson Management Shake-up
However, mounting pressures on gross margins and operational issues have triggered substantial changes. Mark Knight has stepped down as Chief Executive of Gleeson Homes and left the business entirely.
The company has restructured its operations under two divisions: Scott Stothard, joining from Vistry where he was Divisional Chair, will run the Central division, whilst Andy Davies continues to lead the Northern division. Both will report to Graham Prothero.
Simon Topliss, previously Gleeson Homes Finance Director, has been appointed to the newly created role of Chief Operating Officer with responsibility for central functions, performance and governance.
Challenges and Reorganisation
The reorganisation follows a comprehensive review launched in autumn 2024 under “Project Transform” after issues around process compliance and cost overruns were identified. The company cited cumulative headwinds including increased build costs, flat selling prices, planning delays, and legacy site issues as factors that prevented anticipated margin improvements.
The restructuring will cost approximately £1.2m in exceptional items but is designed to shorten reporting lines, empower divisional leadership teams, and strengthen regional management whilst improving oversight and compliance.
Outlook
The board remains cautious about market conditions. They made this abundantly clear in this trading update.
“The housing market lacks confidence and remains subdued and the Board does not see a short-term catalyst for any substantial improvement,” the company stated.
For FY2026, the board expects profit before tax and exceptional items of around £24.5m, at the lower end of current market expectations. It would mark an increase on the current years’ trading but would still be lower than FY2024.
MJ Gleeson, like all housebuilders, needs the UK property market to pick up.