MJ Gleeson (GLE)

Sector:

Construction and Building Materials

Index:

FTSE Small Cap

570.00p
   
  • Change Today:
      8.00p
  • 52 Week High: 570.00
  • 52 Week Low: 350.00
  • Currency: UK Pounds
  • Shares Issued: 58.38m
  • Volume: 24,564
  • Market Cap: £332.78m
  • RiskGrade: 213

Interim profits slide at MJ Gleeson

By Abigail Townsend

Date: Thursday 15 Feb 2024

LONDON (ShareCast) - (Sharecast News) - MJ Gleeson posted a slide in half-year profits on Thursday, but flagged "encouraging" signs of improving demand for the rest of the year.
The housebuilder, a specialist in low-cost and affordable housing, sold 769 homes in the six months to 31 December, compared to 894 a year earlier.

Total revenues fell 11% to £151.5m, while operating profits tumbled 48% to £8.8m. Pre-tax profits slumped 55% to £7.2m.

The average selling price for homes sold in the period decreased 0.8% to £185,000.

The UK housing market has been hit hard by higher borrowing costs, a spike in mortgage rates, record levels of inflation and the cost of living crisis.

However, mortgage rates have started to ease in recent months, while interest rates have been left on hold since August.

With inflation now well off its peak, most analysts agree the Bank of England will cut rates this year.

Graham Prothero, chief executive, said: "The results for the half-year reflect a robust performance given conditions in the housing market during 2023.

"In common with others within the sector, we experienced margin pressures from increased sales incentives, extended site durations and multi-unit sales. This has been exacerbated by additional costs on a number of older sites."

MJ Gleeson said it was already seeing "encouraging signs of a recovery in demand", however, with net reservations rates of 0.50 in the five weeks to 9 February compared to 0.46 a year previously.

It also reiterated its full-year guidance.

"Against the backdrop of improving mortgage rates, we are seeing positive signs of a recovery in demand," Prothero said. "We expect this to continue into the seasonally busier selling period over the coming weeks and months."

As at 1015 GMT, shares in MJ Gleeson were down 1% at 495.5p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

MJ Gleeson Market Data

Currency UK Pounds
Share Price 570.00p
Change Today 8.00p
% Change 1.42 %
52 Week High 570.00
52 Week Low 350.00
Volume 24,564
Shares Issued 58.38m
Market Cap £332.78m
RiskGrade 213

MJ Gleeson Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
12.55% above the market average12.55% above the market average12.55% above the market average12.55% above the market average12.55% above the market average
35% below the sector average35% below the sector average35% below the sector average35% below the sector average35% below the sector average
Price Trend
58.19% above the market average58.19% above the market average58.19% above the market average58.19% above the market average58.19% above the market average
26.83% above the sector average26.83% above the sector average26.83% above the sector average26.83% above the sector average26.83% above the sector average
Income
41.13% below the market average41.13% below the market average41.13% below the market average41.13% below the market average41.13% below the market average
81.25% below the sector average81.25% below the sector average81.25% below the sector average81.25% below the sector average81.25% below the sector average
Growth
35.24% below the market average35.24% below the market average35.24% below the market average35.24% below the market average35.24% below the market average
46.34% below the sector average46.34% below the sector average46.34% below the sector average46.34% below the sector average46.34% below the sector average

What The Brokers Say

Strong Buy 4
Buy 2
Neutral 1
Sell 0
Strong Sell 0
Total 7
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

MJ Gleeson Dividends

  Latest Previous
  Interim Final
Ex-Div 29-Feb-24 26-Oct-23
Paid 02-Apr-24 24-Nov-23
Amount 4.00p 9.00p

Trades for 24-May-2024

Time Volume / Share Price
16:04 15,000 @ 567.00p
16:35 2,794 @ 570.00p
16:35 231 @ 570.00p
16:35 477 @ 570.00p
16:35 273 @ 570.00p

MJ Gleeson Key Personnel

CFO Stefan Allanson
CEO Graham Prothero

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