Mj Gleeson Plc · LSE:GLE
Mj Gleeson — FY2025 Earnings Presentation
68 slides from Mj Gleeson's earnings presentation, Sep 16, 2025
Slide 1: Results for the year ended 30 June 2025
Results for the year ended 30 June 2025 16 September 2025
Slide 2: Contents
Contents Review of FY2025 3 Financial Performance 9 Operations & Strategy 19 Summary & Outlook 33 Appendices 36 Graham Prothero Stefan Allanson CEO CFO Guy Gusterson Scott Stothard Andrew Davies Simon Topliss MD, DMD, Central, DMD, Northern, COO, Gleeson Land Gleeson Homes Gleeson Homes Gleeson Home
Slide 3: Review of FY2025
Review of FY2025 MJ Gleeson PLC 3
Slide 4: Operating effectively in a stable market
Operating effectively in a stable market Gleeson Homes: • 1,793 homes sold (2024: 1,772) • Net reservation rate on open-market sales up 20% at 0.53 per site/week • Strong forward order book up 51% • Partnerships reputation growing, with encouraging deal flow • Good progress in addressing operational
Slide 5: Impacted by a year of margin pressure
Impacted by a year of margin pressure • A sector-wide challenge • Build cost inflation, static demand & selling prices, higher incentives & extended site durations • Exacerbated by Gleeson Homes specific issues • Some process weakness and poor procedural discipline • Commercial challenges required m
Slide 6: Building a more effective business
Building a more effective business • Leadership strengthened at divisional and regional level • Process discipline tightened • Structural and management changes implemented, including: • Divisional Managing Directors reporting directly to Graham Prothero • New role of Chief Operating Officer to over
Slide 7: Gleeson Homes: a blueprint for growth
Gleeson Homes: a blueprint for growth • Delivery of Project Transform • Optimising land pipeline and site openings • Enhancing the house-type portfolio • Building out Partnerships strategy • Maintaining affordability and ensuring quality MJ Gleeson PLC 7
Slide 8: Encouraging early start
Encouraging early start Net reservations • Recent open market sales rate up 8% over prior year: up 8% v prior year • 11 weeks to 12 September 2025: 0.54 (11 weeks to 13 September 2024: 0.50) Cancellations • Affordability strong, and demand steady, but uneven and lacking conviction • Proactive and ta
Slide 9: Financial Performance
Financial Performance MJ Gleeson PLC 9
Slide 10: Group income statement
Group income statement Year ended Year ended 30 June 30 June Change Notes £ million 2025 2024 Gleeson Homes 348.2 329.0 5.8% Homes sold up 1.2%, ASP up 4.3%, land sale of £1.2m Gleeson Land 17.6 16.3 8.0% 7 site transactions (2024: 4) Revenue 365.8 345.3 5.9% Gleeson Homes* 22.3 30.3 (26.4%) Operati
Slide 11: Gleeson Homes
Gleeson Homes • Homes sold up 1.2% to 1,793 (2024: 1,772) • 205 private multi-unit sales (2024: 346) • 1,588 open market sales (2024: 1,426) • ASP up 4.3% to £193,600 (2024: £185,700) • +0.6% increase in underlying selling prices* • Revenue up 5.8% to £348.2m (2024: £329.0m) • Includes £1.2m land sa
Slide 12: Gleeson Homes
Gleeson Homes • Overheads £50.0m (2024: £49.2m) • Reflects inflationary increases, plot maintenance and new show homes, offset by 4% reduction in headcount • Operating profit £22.3m (2024: £30.3m) • Operating margin 6.4% (2024: 9.2%) • ROCE 8.7% (2024: 12.2%) * All stated before £1.3m exceptional re
Slide 13: Gleeson Homes
Gleeson Homes * 2025 operating margin is stated before £1.3m exceptional restructuring costs MJ Gleeson PLC 13
Slide 14: Gleeson Homes
Gleeson Homes • Forward orders up 51% • Improved OMS net reservation rate • Four new partnership agreements • Five agreements in total to 30 June 2025 • One new agreement since year end • Continued multi-unit orders *Includes s106 multi-unit Affordable Homes for-rent sold to Registered Providers MJ
Slide 15: Gleeson Land
Gleeson Land • 7 land transactions completed (2024: 4 promotion land sales) • 5 promotion land sales • 1 land swap on joint venture agreement • 1 option sale • Gross profit £11.1m (2024: £5.3m) • Net of £0.5m additional provisions (2024: £3.3m) • Overheads £4.1m (2024: £3.1m) • Investment in team, r
Slide 16: Group balance sheet
Group balance sheet 30 June 30 June £ million 2025 2024 Notes Gleeson Homes Land 120.7 100.0 £15,300 per plot (2024: £12,800) WIP 214.7 214.2 £3.2m per site (2024: £2.7m) Gleeson Land Land 25.1 13.8 77 sites (2024: 71 sites), includes one site purchase for £6.9m WIP 20.3 17.2 Total inventories 380.8
Slide 17: Group cash flow
Group cash flow Year ended Year ended 30 June 2025 30 June 2024 Notes £ million Profit before tax* 20.5 24.8 Depreciation and other 8.9 8.4 Depreciation, provisions, finance costs and SBP charges Working capital movements (25.0) (5.6) Increased land spend in both divisions Cash generated from operat
Slide 18: Dividends
Dividends • Recommended final dividend of 7.0 pence per share • Paid on 21 November 2025 • Total dividend for the year maintained at 11.0 pence per share • Dividend cover of 2.6 times • Dividend cover policy of full year earnings to cover dividends between 3 and 5 times is unchanged • Board comforta
Slide 19: Operations & Strategy
Operations & Strategy MJ Gleeson PLC 19
Slide 20: Gleeson Homes
Gleeson Homes MJ Gleeson PLC 20
Slide 21: Market environment
Inflation Market environment House prices, build costs & earnings (indexed from 2018) • Interest rate cuts on 8 May and 7 August • Improved mortgage availability and affordability • Consumer confidence still fragile; inflation and potential tax rises cast a cloud • Selling prices steady – expect gro
Slide 22: A blueprint for growth
A blueprint for growth • Delivery of Project Transform • Optimising land pipeline and site openings • Enhancing the house-type portfolio • Building out Partnerships strategy • Maintaining affordability and ensuring quality MJ Gleeson PLC 22
Slide 23: Optimising land pipeline
Optimising land pipeline • Pipeline up 2.6% to 19,638 plots on 164 sites • 68 active build sites • 13 owned, not yet active • 83 conditionally purchased sites • High quality pipeline to support growth • Average cost £15,900 per plot (30 June 2024: £15,100) • Land continues to be available at sensibl
Slide 24: Build and sales sites
Build and sales sites • Build sites Build sites • 13 sites opened (2024: 10 sites opened) Build sites not • 68 sites (2024: 79) yet actively selling • 76 average sites (2024: 79) • Sales outlets • 19 outlets opened for sales (2024: 4 outlets opened) • 57 outlets (2024: 62) • 63 average outlets (2024
Slide 25: Building our Partnerships strategy
Building our Partnerships strategy • Four agreements exchanged in the year, covering 233 units • Two new agreements since year end • Seven agreements in total • Actively progressing discussions on 14 sites as at 30 June 2025 • Currently working with six key partners • Core group of reliable, repeat
Slide 26: Enhancing the house-type portfolio
Enhancing the house-type portfolio • Expanding the house-type range to include 1-bedroom and 5-bedroom homes, addressing two distinct objectives • Improving our flexibility and density to enhance competitiveness in selected suburban areas • Further widening marketing to all demographics Brenda, 91 B
Slide 27: Maintaining affordability and ensuring quality
Maintaining affordability and ensuring quality • Cheaper to buy than rent • Typical Gleeson 2-bed home costs £720 per month to buy • Equivalent home costs £925 per month to rent • Affordable for low-income buyers • Lowest income earners experiencing “real” earnings growth • National Living Wage up 1
Slide 28: The route to 3,000 homes p.a.
The route to 3,000 homes p.a. • Under-supplied market segment, with strong underlying demand for high quality affordable homes Medium-term, FY2025 stable market scenario • Business well positioned to achieve growth: • Pipeline of 96 future sites • Controlled expansion, opening 20 to 30 new sales Sal
Slide 29: Gleeson Land
Gleeson Land MJ Gleeson PLC 29
Slide 30: Primed for growth
Primed for growth • Regional structure now fully operational • Enhanced brand and reputation among agents and landowners • Invested significantly in sector leading data analytics • Able to review sites faster and in greater depth • More comprehensive evaluation enhances competitiveness and landowner
Slide 31: Benefits beginning to be realised
Benefits beginning to be realised • Bid rate more than doubled to 6-7 sites per month • Win rate doubled, now winning c1/3 of bids • Site quality criteria maintained • Portfolio additions growing – currently adding 2 per month • Planning applications stepping up significantly • 100% customer satisfa
Slide 32: Planning activity accelerating
Planning activity accelerating • NPPF changes already benefiting both current and future years • 6 planning applications submitted (2024: 4) • Expect significantly higher level of applications in the current year • At least 18 applications in H1 • 7 sites granted permission (2024: 5) • 10 sites were
Slide 33: Summary & Outlook
Summary & Outlook MJ Gleeson PLC 33
Slide 34: A stronger business ready for significant growth
A stronger business ready for significant growth • Project Transform already delivering a more disciplined Gleeson Homes business • Clear blueprint for growth • Confident that reorganisation will ensure effective delivery and rebuild margin • Gleeson Land primed for growth and outperformance • Portf
Slide 35: Q&A
Q8&A MJ Gleeson PLC 35
Slide 36: Appendices
Appendices MJ Gleeson PLC 36
Slide 37: About MJ Gleeson plc
About MJ Gleeson plc Gleeson Homes Changing lives by building affordable, quality homes. Where they are needed, for the people who need them most. Gleeson Land We promote land through the complex planning system. Unlocking value to deliver sustainable and attractive sites for other developers to bui
Slide 38: Building safety
Building safety • Wholly committed to remediating life-critical fire-safety issues Stage of work No. of buildings • Identified 18 buildings over 11 metres Complete awaiting • 16 buildings below 18 metres, 1 building at 18.3 metres 2 sign off • 1 new building (below 18 metres) identified and under in
Slide 39: 6 key partners we are currently working with
• 6 key partners we are currently working with: Open market site Partnership site • Home Group • Livin Site size 50-200 plots 100-900 plots • Gatehouse/Carlyle • Castle & Coast Sales rate 30-50 homes p.a. 50-80 homes p.a. • Lloyds Living • East Riding of Yorkshire Council Proportion None 30-50% forw
Slide 40: Customer demographics & case studies
Customer demographics & case studies MJ Gleeson PLC 40
Slide 41: Customer demographics
Customer demographics • Gleeson Homes’ customers: • First time buyers: down slightly at 52% (54% two years ago) • Median age: at 35 years old (33 years old two years ago) • Over 55 year-olds: slightly higher at 15% (11% two years ago) • Youngest buyer 18 years old, oldest buyer 90 years old • Cash b
Slide 42: Ellie, 24 and Lauren, 25
Ellie, 24 and Lauren, 25 Occupation: Paramedic and Youth Violence Worker Date of purchase: June 2025 Development: Safari, Knowsley House type: 3-bedroom, semi-detached Tyrone Purchase price: £207,995 As first-time buyers, Ellie and Lauren were extremely excited to start to buy their first home toget
Slide 43: Oliver, 25 and Abbie, 26
Oliver, 25 and Abbie, 26 Occupation: Accountant at Gleeson Homes and NHS Worker Date of purchase: April 2024 Development: Springfield Meadows, Chesterfield House type: 3-bedroom, semi-detached Lisburn Purchase price: £156,108 Oliver and Abbie reserved their 3-bedroom home because they really liked t
Slide 44: Shaun, 54 and Debbie, 49
Shaun, 54 and Debbie, 49 Occupation: Factory Team Leader and Full-time carer for their daughter Date of purchase: January 2025 Development: Monarch Green, Willington House type: 3-bedroom, semi-detached Glin Purchase price: £169,995 (Smooth Move scheme) Shaun and Debbie recently moved into their Gle
Slide 45: James, 28 and Kara, 30
James, 28 and Kara, 30 Occupation: Both work for Lincolnshire City Council Date of purchase: April 2025 Development: Bracken Park, Louth House type: 4-bedroom, detached Broadale Purchase price: £289,995 (Smooth Move scheme) After outgrowing their 2-bedroom end-terrace home, James and Kara were ready
Slide 46: David, 54 and Emily, 54
David, 54 and Emily, 54 Occupation: Installation Manager and Nurse Date of purchase: July 2024 Development: Hillcrest Gardens, Gainsborough House type: 4-bedroom, detached Waterford Purchase price: £264,995 After leaving their 3-bedroom home in Cheltenham, David and Emily were eager to avoid constan
Slide 47: Ronit, 31 and Pooja, 29
Ronit, 31 and Pooja, 29 Occupation: Engineering Planner and Litigation Claims Handler Date of purchase: December 2024 Development: Northbeck Grange, Bradford House type: 2-bedroom, semi-detached Kerry Purchase price: £169,995 Before buying their Gleeson home, Ronit and Pooja were renting a small, 2-
Slide 48: Sustainability
Sustainability MJ Gleeson PLC 48
Slide 49: Sustainability
Sustainability • Our commitment to sustainability is central to our mission of transforming lives by building affordable, quality homes for those who need them most • Scope 3 carbon emissions reduced by 11.7% in the year (intensity measure) • SBTi validated for medium and long-term net-zero targets
Slide 50: Sustainability
Sustainability • A couple working full time on the National Living Wage can afford a Gleeson Home on any of our developments • Transitioning to the new HBF scoring criteria • Crime data shows Gleeson developments benefit high risk areas • 84% employee engagement score, with 83% saying they are proud
Slide 51: Science Based Targets initiative
Science Based Targets initiative MJ Gleeson PLC 51
Slide 52: Affordability
Affordability MJ Gleeson PLC 52
Slide 53: Significantly cheaper to buy than rent
Significantly cheaper to buy than rent 85% LTV 90% LTV Rented house Number of Average mortgage mortgage – new lettings bedrooms Gleeson price (cost per week) (cost per week) (cost per week) 2 bed £166,100 £152 £167 £213 3 bed £198,900 £182 £200 £265 4 bed £256,200 £234 £257 £353 All mortgage payment
Slide 54: Significantly cheaper to buy than rent
Significantly cheaper to buy than rent All mortgage payments based on 85%/90% LTV, 5yr fixed, 35yr term at 4.39%/4.67% (average available mortgage from Rightmove) on Gleeson average OMS ASP in 12-months to Jun-25 Rented house new lettings is based on new lettings in Jun-25 from OnTheMarket MJ Gleeso
Slide 55: House prices vs Rent
House prices vs Rent • Selling prices affordance to lower income households • £369,000 average new build house price in England* • £295,000 average new build house prices in North & East Midlands* • 52% higher than Gleeson’s average selling price of £193,600 • Affordable alternative to renting • Ren
Slide 56: Mortgage payments as a % of take home pay
Mortgage payments as a % of take home pay • Affordable for low-income buyers • Mortgage payments 22%* of take home pay v UK average 34%** • Lowest income earners experiencing “real” earnings growth • Mortgage costs as a percentage of take home pay for first time buyers: • Affordability strong . . .
Slide 57: Highly affordable and energy savings
Highly affordable and energy savings • Lowest income earners experiencing “real” earnings growth • National Living Wage (NLW) increased by 6.7% from April 2025 • A couple on the NLW can afford a home costing £225,749 • 38% higher than Gleeson’s average 2-bed home • Higher than Gleeson average 3-bed
Slide 58: House prices
House prices • Price increases since December 2007 vary by region • London up 76% • North of England & East Midlands up 44% • Below rise in RPI of 92% • Since 2014: • National living wage up 95% • Gleeson prices up 59% • RPI up 58% • Since August 2022: • London house prices down 3% • North of Englan
Slide 59: Income growth strongest for lowest earners
Income growth strongest for lowest earners • Wage growth in the last 7 years has favoured lower earners • National Living Wage up 15% in real terms • This in conjunction with reductions in interest rates and increased mortgage availability will drive confidence in the housing market • In the North o
Slide 60: Market Backdrop
Market Backdrop MJ Gleeson PLC 60
Slide 61: Planning environment
Planning environment Average number of days to Major planning finalise s106 agreements applications granted (England) Source: Department for Levelling Up, Housing and Communities, England. HBF MJ Gleeson PLC 61
Slide 62: Planning environment (continued)
Planning environment (continued) Length of planning Residential planning approval period (years) approvals (England and Wales) (England) Source: Department for Levelling Up, Housing and Communities, England and Wales. Lichfields, Insights, Start to Finish New Housing Pipeline, Q3 2024 Report, Glenig
Slide 63: Healthy supply chain
Healthy supply chain • Materials: • Availability high • Call-off periods & delivery times good • Material costs up +3.1% in last 12 months (bricks, plaster and groundwork material) • Labour: • Availability good • Labour rates up +2.3% in last 12 months (groundworkers, plumbers, brickies and scaffold
Slide 64: Structural under-supply of quality, affordable homes
Structural under-supply of quality, affordable homes Household tenure • Shortage of affordable homes in North of England and (millions of households) Midlands: • 4.2 million households renting • 0.7 million households on Local Authority waiting lists • 1.7 million adults living with parents • Little
Slide 65: Mortgage availability, rates and costs
Mortgage availability, rates and costs • Alternative products available following end of HtB in March 2023 Average mortgage rates: • First Homes, Shared Ownership, Deposit Unlock, HtB 5-yr fixed 2-yr fixed Variable Mortgage guarantee, Own New 85% LTV 4.46% 4.43% 6.15% • Mortgage market health, arrea
Slide 66: Gleeson Land portfolio
Gleeson Land portfolio MJ Gleeson PLC 66
Slide 67: Portfolio
Portfolio • Continued focus on enhancing the depth and quality of the portfolio • 77 sites (June 24: 71) • 18,401 plots (June 24: 16,911) • 1,343 plots on 8 sites with consent / resolution to grant (June 2024: 1,473 plots on 7 sites) As at 30 June As at 30 June 2025 2024 No. Sites Plots No. Sites Pl
Slide 68: Thank you
Thank you MJ Gleeson PLC 5 Europa Court, Sheffield Business Park, Sheffield, S9 1XE Tel: +44 (0) 114 261 2900 Registered in England no. 09268016