MJ Gleeson merges regions and addresses legacy sites in high-returns plan

MJ Gleeson has merged its regional homes operations to focus on high-return opportunities while addressing newly identified legacy site issues, as it aims to boost efficiency and strengthen future growth.

As part of an ongoing restructuring to rebuild margins, Gleeson Homes’ Yorkshire East will merge into Yorkshire South and West, with some sites reallocated to the Midlands.

The move, estimated to cost £3.1 million, is expected to save £900,000 annually by improving efficiency and refocusing investment on “higher-return land opportunities”. 

It follows on from a £4.5 million exceptional cost for restructuring the Greater Manchester Merseyside region in February.

In a trading update, the housebuilder said its new management team had identified remedial work on legacy Yorkshire sites, with costs expected to total £5.2-7.1 million over the next four years.

Chief executive officer Graham Prothero said: “Whilst it is frustrating that further work is required on a number of legacy sites, I am pleased with the determination of our new management teams to identify and rectify legacy issues which now allows Gleeson Homes to look forward with confidence.”

He highlighted the business’s resilience in an “uncertain market,” with Gleeson Homes reporting net reservation rates of 0.88 per site per week for the 11 weeks to 24 April 2026, slightly up from 0.86 last year.

For the group, adjusted operating profit and pre-tax profit are expected to exclude exceptional items and additional completed site cost provisions  up to 10.2 million, on top of previously recognised costs, with pre-tax profit, including exceptional items, forecast at £18.2 million.

While build costs have seen modest inflation and selling prices remain broadly stable, Prothero said it is too early to predict how the Middle East conflict may affect customer confidence, mortgage affordability, or future build cost increases.

“We have recently seen some softening in footfall and reservations, and limited increases in the cost of some materials,” he added.

“This, together with ongoing challenges with planning and site viability, prompts even higher than usual caution in how we manage the business, including land investment decisions, into the next financial year.

“However, following the successful implementation of Project Transform, which has driven a greater focus on operational effectiveness and efficiency, the business as a whole is now in a much stronger position to manage through this period of uncertainty and capitalise on the significant opportunities we see ahead when the market returns to growth.”

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