(Reuters) -Britain's MJ Gleeson 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
MJ Gleeson Anticipates Profit Decline in Affordable Housing Division
(Reuters) -Britain's MJ Gleeson 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.
(Reporting by Yamini Kalia in Bengaluru; Editing by Sonia Cheema)
