Gleeson has reported a pre-tax loss in its latest annual results after incurring one-off restructuring and remediation costs.
For the year to 30 June, the housebuilder saw a loss of £2.7million, down 113% on the previous year. Its operating profit also fell by 90%, dropping from £24million to £2.4million. The Group reported exceptional costs £13.6million, a significant increase from £1.3million in2025. However, the Group saw its revenue rise by 12.1%, rising to £410million from £365.8million. Gleeson Homes saw a 14.9% rise to £400million while Gleeson Land’s revenue dropped 43.2% to £10million.
Gleeson Homes saw home sales increase by almost 10% during the period, reaching 1,968 compared to 1,793 the previous year. Its reservation rate also improved by 8%, averaging 0.77 per site per week, although excluding multi-unit sales, the rate fell by 4% to 0.51. Gleeson Homes saw its average selling price increase by 3.8%, reaching £201,000.
Meanwhile, the company’s land division completed five land transactions during the year, down from seven in 2025. Gleeson Land reported an operating loss of £0.7million, significantly down from the £7million recorded in 2025. The land branch reported five sites with planning or resolution to grant planning for 2,553 plots, compared to eight sites totalling 1,343 plots in 2025. A further four sites, with consent for 2,482 plots, are in the process of being sold, while 24 more sites are currently awaiting a planning decision.
Gleeson Homes’ recent figures represented a drop in activity, with open-market net reservation rates in the nine weeks to 6 September falling to 0.44 per site per week, down from 0.55 the previous year, which the business says was impacted by a much weaker August than usual.
Prolonged planning bottlenecks and Gleeson’s site pipeline rationalisation will see Gleeson Homes operating from slightly fewer sites in FY2027, and into FY2028, than previously planned. The Group says that build cost inflation continues to outpace selling price increases, and this, along with continuing regulatory and tax burdens which continue to be imposed on residential development, will slow the pace of margin recovery.
Looking ahead, the Board expects the Group to deliver an overall result for FY2027 in line with current market expectations.
Graham Prothero, CEO, commented: “I am pleased to report that in a subdued market we delivered a robust performance underpinned by the delivery of 1,968 homes, up by nearly 10% against the prior year. Gleeson Homes entered the new financial year with a forward order book of 848 homes.”
“During the year we moved at pace to implement significant structural and operating changes under Project Transform. As a result, Gleeson Homes has been overhauled and is a much-improved business, with strengthened leadership at both Executive and Regional levels, more effective processes and clearer reporting lines. It is in a much stronger position to manage through the challenging market environment we are experiencing today.”
“To optimise Gleeson Homes’ performance, we are also working hard on a number of business initiatives including enhancing our partnerships strategy, land-buying, product design, customer journey and brand identification.”
“Importantly, recognising that this subdued market may not improve anytime soon, we are focused on managing the business as efficiently as possible and taking a prudent stance on cash, working capital and site acquisitions.”
“Looking ahead, given the market backdrop, an absolute priority is to maintain the strength of our balance sheet. Along with our focus on managing the business prudently, the Board has also taken the view that the dividend should reflect the challenging environment, proposing a lower final dividend in line with our capital allocation policy. This will give us greater flexibility in deploying capital for the medium-term benefit of the business.”
“Following a year of intense activity, implementing fundamental business change, we now have a Homes business that is operationally much stronger and a Land business well-placed to meet the continuing needs of developers for high-quality consented sites. With the focused and disciplined approach we are now taking, we are confident for the future prospects of the Group.”
