M.J. Gleeson, a leading U.K. house builder, has announced a decrease in pretax profit for fiscal 2023, citing lower home sales as the primary reason. Despite cautiousness regarding ongoing economic risks, the company remains optimistic about the current year.
Economic Uncertainty Continues to Impact the Market
The wider market has been subdued throughout the summer months due to economic uncertainty, according to M.J. Gleeson. However, the company anticipates an increase in net reservation rates during the autumn season. Factors contributing to this positive outlook include a stabilizing mortgage market as well as the introduction of various sales and marketing initiatives, including a shared ownership package.
Profit and Revenue Figures
Pretax profit for the year ending June 30 amounted to £30.5 million, compared to £42.6 million the previous year. M.J. Gleeson reported that revenue also declined from £373.4 million to £328.3 million during the same period. The decrease in sales was observed in both Gleeson Homes, which experienced a 14% decline in homes sold (1,723 in total), and Gleeson Land. Revenue at Gleeson Land fell by 81% to £7.5 million, primarily due to house builders adopting a more cautious approach in response to the economic environment.
“While market conditions improve, we anticipate significant growth in the future,” stated M.J. Gleeson.