Gleeson sees “solid” performance but profit down 50%

Gleeson has hailed a “solid” half year performance in “an unexciting market”. But it noted the 50% drop in its pre-tax profit and the impact of no land sales and highlighted other challenges, all while striking an upbeat tone.

Speaking to Housebuilder, Graham Prothero, Gleeson’s ceo, said the low cost housebuilder and land promoter had also seen a “bright start” to 2025, with net reservation rates increasing 45% to 0.77 in the four weeks to the end of January, against the equivalent period last year. “But we’re not calling it a recovery.”

During the six months ending December 31 2024, Gleeson Homes sold 801 homes against the 769 of H1 2023/2024. The net reservation rate during the period improved to 0.55 per site per week compared to the 0.41 of last year. The average selling price rose 4.8% to £193,900.

Meanwhile, group pre-tax profit halved to £3.6 million. Prothero said that the absence of land sales had caused a “dramatic effect” in its Land division due to the nature of land transactions, with a first half operating loss of £1.9 million for Gleeson Land.

Accordingly, Gleeson’s group operating profit fell 42% to £5.1 million. Just one land sale, …