Housebuilder MJ Gleeson has parted company with a key executive and said it is not expecting to see any substantial improvement in the 海角视频 housing market in the short term.
The Sheffield-based firm said profits over the past year have been hit by planning delays, the absence of a market recovery and rising costs. The company said it had also come under pressure from a combination of “increased build costs and flat selling prices” in its Gleeson Homes business.
The London-listed firm announced an overhaul of the management team in its homes business with Mark Knight stepping down from his role of chief executive of Gleeson Homes.
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In a trading update, Gleeson said the number of homes it had completed in its 2025 financial year was slightly up on previous levels at 1.793. Reservation rates and the company’s forward order book also rose, and it said that profits for the past year are set to be within market guidance of between £21m to £22.5m
It said profits for next year are set to be at the “lower end” of expectations, however, adding that “the housing market lacks confidence and remains subdued and the board does not see a short-term catalyst for any substantial improvement.”
Graham Prothero, chief executive of MJ Gleeson, said: "This was a challenging year for Gleeson. 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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Gleeson’s update came as 海角视频 housebuilding activity returned to growth in June for the first time in nine months and the downturn across the construction sector showed signs of easing.
The latest S&P Global construction purchasing managers’ index (PMI) showed a reading of 48.8 last month, improving from 47.9 in May. Any reading below 50 means the sector is shrinking but the rate of decline was the slowest in six months.
Housebuilding was the best-performing area of the industry last month, with residential activity returning to growth for the first time since September, albeit marginally. It follows a boost to the housing industry in recent months as first-time buyers raced to complete purchases before stamp duty relief was cut in April, and 海角视频 interest rates have been cut to the lowest level in two years.