MJ Gleeson profits drop amid worsening consumer confidence

(Sharecast News) - Housebuilder MJ Gleeson posted a fall in full-year profits on Thursday amid economic volatility and worsening consumer confidence. In the year to the end of June, profit before tax and exceptional items dropped 43.2% to £31.5m, with revenues down 12.1% at £328.3m. Revenue declined by 4.1% at Gleeson Homes to £320.8m, and by 80.7% at Gleeson Land to £7.5m.

Gleeson said the results were line with expectations, reflecting "shifting buyer demographics".

The company said economic uncertainty has continued to subdue the wider market over the summer months. Gleeson Homes' net reservation rate for the nine weeks to 1 September was 0.43 per site per week, compared with 0.54 over the same period last year. Meanwhile, cancellation rates of 0.10 per site per week were unchanged.

"However, with a steadying mortgage market and the implementation of a range of sales and marketing initiatives, including the introduction of a shared ownership package, we anticipate an increase in our net reservation rates during the Autumn selling season," it said. "We also continue to receive interest in multi-unit transactions, which would further strengthen sales."