Latest news with #MJGleeson
Bloomberg
3 days ago
- Business
- Bloomberg
Stock Movers: European Miners, UBS, MJ Gleeson (podcast)
On this episode of Stock Movers: - Miners could be on the move Tuesday as base metals fall on concern about China's economic outlook, as a gauge of the country's manufacturing activity fell to its lowest level in more than two years. - UBS shares jump as much as 4.1% after Jefferies upgraded the stock to buy from hold, saying that the bank may be reaching a potential turning point on capital, with some clarity expected this week. - MJ Gleeson slashed guidance, citing a slow housing market recovery in the UK and planning delays.
Daily Mail
3 days ago
- Business
- Daily Mail
Higher costs and planning delays hit MJ Gleeson profits
Shares in MJ Gleeson fell sharply on Tuesday with the housebuilder warning higher build costs and weak home price growth would hurt profits this year. The group, which specialises in affordable homes and promoting land for residential development, also highlighted planning delays it expects to continue to weigh on the business into next year. Gleeson had reported solid first half trade with revenues up 4.2 per cent, while the group highlighted 'encouraging signs of a recovery in demand' with reservation rates up 45 per cent over the first four weeks of 2025. But Gleeson told investors the 'pace of the housing market recovery has not been sufficient' to offset 'a number of headwinds' faced through the year. 'These include increased build costs, flat selling prices, the continued use of incentives and several bulk sale transactions,' It said. Gleeson's full-year guidance had also been based on the expected sale of 'extensive land holdings in East Yorkshire'. But delays to this sale mean the group now anticipates that operating profits within its homes business will be 15 to 20 per cent below current expectations. Gleeson Homes' gross margin for the year to 30 June will likely come in 1 per cent below previous guidance, the group said. The unit's 2026's gross margin is expected to see a similar impact. The group's land business, meanwhile, has completed three transactions to date and working to complete a further seven disposals before the year end. Warning signs for the sector? MJ Gleeson shares were down 22 per cent to 402p in early trading, bringing one-year losses to around 28 per cent. The update also weighed on the shares of rivals like Persimmon and Vistry Group, which were down 1.4 and 1.9 per cent, respectively. Analysts at Peel Hunt said: 'There are obvious questions about the read-across to the wider sector. Our sense is that, despite increased affordability, some of the net margin pressure described above will likely be felt across the sector, as the new build market competes with a second-hand sector seeing high stock levels. 'Similarly, planning issues impact all players. We continue to believe the sector needs to see demand-side support to see a material uptick in housing supply.'
Bloomberg
3 days ago
- Business
- Bloomberg
MJ Gleeson Cuts Outlook on Slow UK Recovery, Planning Hurdles
MJ Gleeson Plc slashed guidance, citing a slow housing market recovery in the UK and planning delays. The company, which specializes in affordable housing, now expects operating profit to be around 15%-20% below previous expectations for the year ending June 30, according to a statement Tuesday. It also anticipates its gross margin in the homes division to be about 1% lower than previously forecast.
Reuters
3 days ago
- Business
- Reuters
UK's MJ Gleeson flags profit dip for low-cost housebuilding unit
June 3 (Reuters) - Britain's MJ Gleeson (GLEG.L), opens new tab said on Tuesday its low-cost housebuilding unit Gleeson Homes will report annual operating profit about 15%-20% below expectations, citing higher build costs, flat selling prices and a failed land disposal deal. MJ Gleeson - which specialises in affordable housing - operates two divisions, Gleeson Homes and Gleeson Land. The former accounted for 95% of the company's total revenue in 2024. "The pace of the housing market recovery has not been sufficient to offset the cumulative impact on Gleeson Homes' gross margin of a number of headwinds through the year," the company said in a statement. It added that factors including planning delays, which will result in the business selling from fewer sites than previously forecast, will continue to impact the unit's margins into fiscal year 2026.
