Gleeson has seen its pre-tax profit fall in line with expectations as rising building costs and a lack of buyer confidence took their toll.
In its full-year results to 30 June 2025, Gleeson reported pre-tax profit of £20.5million, down 17.5% from the previous year. Meanwhile, the firm’s turnover rose to £366million, up 6%.
The group’s housing arm, Gleeson Homes, saw pre-tax profit drop by 26.4% from £30.3million to 22.3million, while the land division saw a significant increase from £2.2million in 2024 to £7.0million in 2025.
Over the year, Gleeson Homes saw a small increase in homes sales, up from 1,772 to 1,793, while its average reservation rate rose by 37% from 0.52 to 0.71. Excluding multi-unit sales, the net reservation rate increased from 0.44 to 0.53, up 20% year-on-year.
Its average selling price increased by 4.3% to £193,600 from 185,700 but its gross profit margin on homes sold fell to 20.7% from 24.1% the previous year.
Chief executive of Gleeson, Graham Prothero, said: “This year has been challenging for Gleeson, and despite selling more homes relative to FY2024, there have been factors which stalled our momentum. We have taken the actions necessary to benefit the business through FY2026 and ensure the delivery of our strategic objectives.”
“Positively, Gleeson Homes significantly strengthened its forward order book in the year. Market demand has been steady, and we have maintained a robust sales rate, reflected in our net open market reservations rate, up 28% in the second half against the same period last year. Selling prices, however, remained constrained, with incentives continuing at an elevated level, restricting material margin improvement.”
To date, Gleeson has spent £1.3million on restructuring under its Project Transform initiative, which saw the company make changes to its housing business in July, including former chief executive, Mark Knight stepping down.
Graham Prothero continued: “The organisational and management changes implemented in Gleeson Homes to improve performance are already delivering benefits. The new leadership team is operating effectively with shorter reporting lines, strengthened divisional and regional management teams, and more rigorous process compliance, underpinned by increased local empowerment and responsibility.”
“With a stronger and more disciplined business in a stable market, and a busy site opening programme, we are excited about Gleeson Homes’ future growth.”
“We are also very pleased with the progress at Gleeson Land, which achieved improved levels of planning success and new promotion agreements during the year and starts the new financial year with more sites in sale processes. Having delivered a significantly improved result, and strengthened by the recent geographical reorganisation and data research capability, the business is making significant progress towards its objective of becoming the pre-eminent land promoter in the South of England.”
