Results for the half year ended 31 December 2024
Strongly positioned for a market recovery
Graham Prothero, Chief Executive Officer, commented:
“I am pleased to report a robust performance during the six months to 31 December 2024, despite the market remaining subdued, with Gleeson Homes completing the sale of 801 homes, more than the first half last financial year. Gleeson Homes is making good progress against its growth strategy, opening 8 new build sites and 11 new sales outlets, and we remain confident of growing by circa 10 sales outlets per annum from next year onwards.
Gleeson Land is progressing a number of significant opportunities which we expect to complete during the second half. The business is starting to reap the rewards from its restructured operations and market-leading research and data analytics capabilities, and will continue to grow its portfolio of sites in the second half and beyond. We are already seeing the benefit of the changes to the NPPF, with three planning consents achieved post period end.
At Gleeson Homes, there are early indications of an improving selling season with much stronger net reservation rates in the first four weeks. More importantly, we are pleased with the progress of our site opening programme which will drive sustained growth over the medium-term.”
| H1 24/25 | H1 23/24 | Change | |
| Revenue | |||
| Gleeson Homes | £156.6m | £142.3m | 10.0% |
| Gleeson Land | £1.3m | £9.2m | (85.9%) |
| Total | £157.9m | £151.5m | 4.2% |
| Operating profit by division | |||
| Gleeson Homes | £9.1m | £10.2m | (10.8%) |
| Gleeson Land | (£1.9m) | £1.0m | (290.0%) |
| Group operating profit | £5.1m | £8.8m | (42.0%) |
| Group profit before tax | £3.6m | £7.2m | (50.0%) |
| Net debt | (£18.1m) | (£18.7m) | £0.6m |
| ROCE1 | 8.0% | 9.0% | (100bp) |
| EPS (basic) | 4.8p | 9.6p | (50.0%) |
| Dividend per share | 4.0p | 4.0p | – |
1 Return on capital employed is calculated based on earnings before interest and tax and exceptional items (EBIT), expressed as a percentage of the average of opening and closing net assets for the prior 12 months after deducting deferred tax and cash and cash equivalents net of borrowings.
Gleeson Homes:
- 801 homes sold (H1 23/24: 769)
- Net reservation rate increased to 0.55 per site per week (0.44 excluding multi-unit orders), compared to 0.41 per site per week last year (0.39 excluding multi-unit orders)
- Average selling prices increased by 4.8% to £193,900 (H1 23/24: £185,000)
- Underlying net selling prices on open-market sales increased by 0.8% year-on-year
- Gross margin on home sales of 20.6% (H1 23/24: 24.5%) reflecting flat pricing, sales incentives and extended prelims
- Administrative expenses reduced by 6.9% to £23.1m (H1 23/24: £24.8m)
- Gleeson Partnerships secured a second agreement during the first half and continues to target one per region by the year-end
- Strongly positioned for a market recovery, serving an under-supplied market segment with resilient underlying demand and continuing affordability
- 11 new sales outlets opened (H1 23/24: two outlets opened)
- Increased forward order book of 597 plots (30 June 2024: 559 plots)
- Land pipeline1 18,731 plots on 174 sites (30 June 2024: 19,138 plots on 179 sites)
Gleeson Land:
- No land sales completed (H1 23/24: one land sale)
- £1.3m revenue reflects accounting for a collaborative land swap with a joint venture partner
- Five sites being marketed or in a sales process (H1 23/24: four sites)
- Marketing commenced on a further three sites in January
- Planning achieved on two sites during the first half (H1 23/24: four sites)
- Planning secured on a further three sites in January including the division’s first grey-belt site
- Continued focus on enhancing the depth and quality of the portfolio2 of 73 sites (30 June 2024: 71 sites)
- Bid and win rates doubled, to 5-6 bids per month and c.1/3 success rate
Current trading and outlook:
- The Group is seeing encouraging signs of a recovery in demand
- Net reservation rates increased by 45% to 0.77 in the four weeks to 31 January 2025 (2024: 0.53 in the four weeks to 2 February 2024)
- Strong start to the second half for Gleeson Land, having secured planning permission on three sites in January
- The positive start to the second half, as well as the encouraging momentum generated in the first half, provide the Board with confidence in meeting current market expectations3, including Gleeson Land completing between four and eight site sales in H2
- Longer-term, the Company remains well positioned to deliver sector-leading growth underpinned by Gleeson Homes’ programme of new site openings and a more stable planning environment for Gleeson Land
1 Pipeline refers to sites either purchased, contracted to purchase subject to planning or with terms agreed to be contracted.
2 Portfolio refers to sites under contract or owned.
3 Analyst consensus for FY2025 can be found at: https://www.mjgleesonplc.com/investors/analyst-coverage/