Gleeson struggles against ‘cautious developers’


MJ Gleeson has reported diminished Group revenue and profits in its latest results – amid economic volatility and increased caution among developers.  

Credit: MJ Gleeson.

Gleeson saw a 12.1% decrease in revenue for the year to 30 June 2023, and a 43.2% fall in pre-tax profit. 

The Group’s Land division in particular saw a precipitous loss in revenue for the financial period.  

Gleeson Homes sold 1,723 properties down from 2,000 in 2022, with a gross profit margin of 27% (2022: 29%). Its medium-term goal is to deliver 3,000 homes a year. 

Gleeson Land achieved three land sales during the year, compared to six in 2022. 

“I believe we have a resilient business operating in an undersupplied market segment, a robust balance sheet, great prospects and an excellent team to ensure that we continue to successfully navigate the current environment and take full advantage of the significant opportunities ahead,” said Graham Prothero, CEO. 

Group highlights 


  • Gleeson Homes: £320.8 million (FY2022: £334.6 million 
  • Gleeson Land: £7.5 million (FY2022: £38.8 million) 

Total: £328.3 million (FY2022: £373.4 million) 

Operating profit 

  • Gleeson Homes: £35 million (FY2022: £51.2 million) 
  • Gleeson Land: £1 million (FY2022: £11.1 million) 

Profit before tax: £31.5 million (FY2022: £55.5 million) 

Cash: £5.2 million (FY2022: £33.8 million) 

Earnings per share (EPS): 42.9 pence (FY2022: 78.1 pence) 

Return on capital employed (ROCE) was reported at 13%, compared to 25.4% the previous year.  

The dividend per share total value was 14 pence (FY2022: 18 pence).  


Gleeson remains cautious around continuing risks in the wider economy and any further impact on customer demand.  

Adding: “As market conditions improve, we look forward to returning to significant growth.” 

Prothero said: “I am pleased to report a robust performance despite the impact on buyer confidence as a result of current economic volatility. We maintained an acceptable sales rate, supported by our first multi-unit and investor sales. 

Adding: “We took advantage of the quieter market to restructure Gleeson Homes, right-sizing the business for current market conditions and, more importantly, creating a standardised operating platform for the exciting growth which lies ahead. We continued to secure excellent opportunities in our landbank, and we have entered the new financial year in good shape. 

Gleeson Land achieved impressive planning successes, and continues to see good demand for consented land, with the rate of conversion partially constrained by increased caution among developers. The business is successfully adding to an already strong portfolio and is strengthening both its regional coverage and research and analysis capabilities.” 

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