MJ Gleeson has stated that it expects to deliver profits in line with current market expectations, despite operating in a "subdued" housing market that "lacks confidence".

The housebuilder said its profit before tax and exceptional items are set to reach between £21m and £22.5m in the year to 30 June 2025, while its operating profit is expected to reach between £21.7m and £23m, in line with expectations.

It added that in this period, it completed the sale of 1,793 homes, while also holding a forward order book of 845 plots, compared to 559 in the year to 30 June 2024.

However, Gleeson Homes’ gross margin has "come under pressure" through the year due to the impact of a number of headwinds, including build costs, flat selling prices and planning delays.

As a result, MJ Gleeson said it has identified the need to implement some organisational and management changes. This includes the chief executive at Gleeson Homes, Mark Knight, stepping down from the role and leaving the business.

Furthermore, the former finance director at Gleeson Homes, Simon Topliss, has been appointed to the newly created role of chief operating officer.

The reorganisation is set to results in a cash cost of £1.2m, which will be listed as an exceptional term in its 2025 financial year accounts.

The firm said in its outlook that it does not see a “short-term catalyst for any substantial improvement” in the UK housing market, but it added that there are customers for well-located homes at the right price, as reflected its robust sales rate.

Looking ahead, it expects to reach a profit before tax of around £24.5m in the 2026 financial year, which is at the lower end of current market expectations.

Chief executive officer at MJ Gleeson, Graham Prothero, described the year to 30 June 2025 as "challenging".

He concluded: "As well as external factors, it had become clear that our commercial delivery was not where we needed it to be. Over the last nine months we have therefore been implementing at pace management changes which will significantly benefit the business through FY2026 and beyond.

"These changes will also ensure the delivery of our strategic objectives.

"Whilst we do not expect any significant economic recovery in the short-term, we are maintaining a robust sales rate. This, along with our remedial actions, gives me confidence that we have a stronger business which will deliver our projections for the current year and our significant growth plans over the medium-term."

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