Housebuilder now turning attention to hitting 3,000 homes a year target after restructuring
Housebuilder and land trader Gleeson said consumer confidence is beginning to return in the wake of interest rate cuts.
The firm, which has undergone a restructuring in the past 18 months, said turnover in the year to June edged up 5% to £345m but pre-tax profit slipped 21% to £25m.
The firm was hit with just over £1m of exceptional costs, the bulk of which saw it spend £975,000 on redundancy costs.
Gleeson said net reservation rates have been improving recently and in the 10 weeks to 6 September said the rate was 0.50 per site per week compared with 0.39 per site per week over the comparable period last year, an increase of 28%.
It added that with a number of sites close to achieving planning and in sale processes, Gleeson Land is expected to deliver an improved performance in FY2025.
Chief executive Graham Prothero said: “Gleeson Homes exceeded expectations, completing the sale of 1,772 new homes [up from 1,723 last year] and delivering an operating profit of over £30m.”
He added: “Looking ahead, we welcome the government’s proposed policy reforms with a focus on affordable housebuilding and planning reform, which should benefit both Gleeson Homes and Gleeson Land.
“Having spent the last year and a half on positioning the business for growth and introducing several related strategic initiatives, we now look forward to executing our strategy and delivering our growth target of 3,000 annual completions.”
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