MJ Gleeson Reports Higher Revenue but Lower Profit Amid Margin Pressure and Delayed Land Transactions
MJ Gleeson reported an increase in revenue to £410 million for the year ended June 2026, driven by a nearly 10% rise in home completions. However, adjusted profit before tax fell to £10.8 million due to margin compression and higher build costs exceeding price growth. The company's operating margin narrowed from 6.4% to 5.0%, with elevated incentives and multi-unit sales contributing to the decline. Exceptional charges of £13.6 million, including restructuring costs and site impairments, further impacted earnings. Gleeson Land results were affected by delayed land transactions, while partnership delivery accounted for a significant portion of home completions. Management expects 2027 performance to align with market expectations but noted ongoing uncertainty around land-sale timing. The board proposed a final dividend of 1 pence per share, bringing the full-year payout to 5 pence, which it described as prudent given current economic conditions.
Topics: adjusted profit decline dividend announcement exceptional charges operating margin compression revenue growth