UK's MJ Gleeson flags profit dip for low-cost housebuilding unit
June 3 (Reuters) - Britain's MJ Gleeson (GLEG.L), opens new tab 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.
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