Latest news with #profitwarning
Daily Mail
03-06-2025
- 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.'
Yahoo
16-05-2025
- Business
- Yahoo
Workspace warns higher costs and lower rents to hit profits next year
London flexible office company Workspace has warned that higher labour costs and larger companies leaving offices is set to hit its profits in the year ahead. Shares in the firm tumbled by about 12% on Friday morning. The business has previously said confidence among some of its customers has been weakened by wider economic uncertainty. This has led to some larger companies exiting offices and work spaces they rent through Workspace, and a lower rent income at the start of the financial year. Workspace owns a portfolio of about 70 properties across London and the south-east of England, providing units to more than 4,000 businesses. Over the first three months of the year, rents totalled £139 million, slightly higher than the previous quarter. But the company said it is grappling with higher business costs including national insurance contributions and living wages, which both increased from April, as well as additional costs to refinance the business. On Friday, Workspace said it is expecting the combined impact of these factors to impact its trading profit for the year to the end of March 2026 by about £7 million. It had previously been expecting profits to come in between £66 million and £72 million. It is nonetheless still expecting profits for the latest year to meet forecasts, and is set to unveil plans to bring in more businesses and grow its income in its full-year results announcement in June. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
16-05-2025
- Business
- The Independent
Workspace warns higher costs and lower rents to hit profits next year
London flexible office company Workspace has warned that higher labour costs and larger companies leaving offices is set to hit its profits in the year ahead. Shares in the firm tumbled by about 12% on Friday morning. The business has previously said confidence among some of its customers has been weakened by wider economic uncertainty. This has led to some larger companies exiting offices and work spaces they rent through Workspace, and a lower rent income at the start of the financial year. Workspace owns a portfolio of about 70 properties across London and the south-east of England, providing units to more than 4,000 businesses. Over the first three months of the year, rents totalled £139 million, slightly higher than the previous quarter. But the company said it is grappling with higher business costs including national insurance contributions and living wages, which both increased from April, as well as additional costs to refinance the business. On Friday, Workspace said it is expecting the combined impact of these factors to impact its trading profit for the year to the end of March 2026 by about £7 million. It had previously been expecting profits to come in between £66 million and £72 million. It is nonetheless still expecting profits for the latest year to meet forecasts, and is set to unveil plans to bring in more businesses and grow its income in its full-year results announcement in June.
Times
14-05-2025
- Automotive
- Times
Electric car revolution needs a spark
Such is the culture war around the electric car revolution that any new statistic is taken by either the pro or anti lobby as immutable evidence that the other side is being proved wrong. Expressing an actual opinion can feel like being doused in battery acid. Robert Forrester is one of the few people who actually knows what is going on. And as the chief executive of Vertu Motors, the last big new car retailer still listed on the London Stock Exchange, he actually has a duty to share that knowledge. Forrester, as it turns out, is on both sides of the argument. • Vertu Motors issues profit warning, blaming zero-emission mandate On Wednesday Vertu reported a drop in profits directly resulting from the electric
Times
08-05-2025
- Business
- Times
Sir Martin Sorrell's S4 suffers from preference for AI over marketing
Sir Martin Sorrell's S4 Capital followed two profit warnings in the past year with an 11.4 per cent drop in first-quarter sales as tech clients continued spending on AI rather than marketing. The Europe and Middle Eastern region showed the largest fall in like-for-like revenue, down more than 17 per cent from the year before, while the US was down 11 per cent and Asia-Pacific was down by 13.6 per cent. Sorrell, 80, founded S4 Capital six years ago after his controversial departure from WPP after a 33-year career with the FTSE 100 advertising group. The business focuses on the digital advertising market and has grown through the acquisition of the agencies Monks and Mighty Hive, which it combined to form Media Monks. It works
