Source: Sharecast
Updating investors ahead of the annual general meeting, the firm - a specialist in affordable housing focused on the Midlands and north of England - said sales rates, while still "subdued", had improved following a weak summer. Open market net reservations for the eight weeks to 1 November were 0.53 per site per week, up modestly on the 0.52 recorded in the same period a year.
Gleeson also welcomed the government’s flagship Your First home scheme, noting it had "significant potential" to help the company’s target demographic. Under the plans - which prime minister Andy Burnham unveiled in September - first-time buyers who put down a 2.5% deposit will receive a 20% equity loan to buy a new-build property.
However, Gleeson warned: "The announcement of the scheme some five months before its launch is likely to postpone demand in the intervening period, and to increase cancellations.
"We anticipate a weaker first half with the pace of recovery on the second half increasingly dependent on the efficient and timely introduction of the scheme."
It also flagged poor visibility around the timing of disposals in its Gleeson Land division, with ongoing adverse planning decisions following changes in political control at the local elections earlier this year.
As a result, Gleeson now expects profits to be "significantly weighted" towards the second half, with delivery of market consensus for the 2027 full year reliant on further improvement in buyer demand.
"We remain focused on managing the business as efficiently as possible and are taking a cautious stance on working capital and site acquisitions," the firm noted.
As at 0930 GMT, shares in Gleeson were off 2% at 270p.
Gleeson is expected to next update on trading in January 2027 ahead of posting results for the six months to 31 December in February.
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