MJ Gleeson boss optimistic on Labour’s planning promises

The chief executive of MJ Gleeson has welcomed the new Labour government’s focus on planning reform and its reintroduction of mandatory housebuilding targets for councils – although he acknowledged that the timing of the election had delayed a big deal for the company. In a trading update, Graham Prothero said: “There is much to do if aspiration is to become reality, but the determination that we have seen since the election to get things done marks a positive change in approach.” MJ Gleeson is set to report stronger-than-expected profits of £30m from its housebuilding division Gleeson Homes, but weaker than expected from its land promoting division, Gleeson Land, at £2m. The group blamed the timing of the general election for the deferral of a significant disposal, which is now expected to complete in the next financial year. Gleeson Homes’ sales rate was steady but not as vigorous as expected. Prothero blamed delays in interest and mortgage rate reductions but remained bullish about increased demand next year “as interest rates come down and consumer confidence returns”. The business set out a refreshed strategy at its Company’s Capital Markets Day on 7 July, which included aims to delivery 3,000 new homes a year and explore opportunities to deliver homes in collaboration with blue-chip companies. The chief executive predicted steady medium-term growth going into the next two financial years after Gleeson Homes opened 10 new build sites this year to reach a total of 79, 62 of which are actively selling. This was a slight decrease from the same point last year, where the figures were 82 and 71 respectively. The group nonetheless focused on the positives, announcing that it had achieved five-star customer recommendations in all six of its operating regions and ended the year with a net cash position of £12.9m compared to last year’s £5.2m.