By Anthony O. Goriainoff
M.J. Gleeson said Thursday pretax profit for fiscal 2023 fell as revenue decreased on lower home sales, and that although it remained cautious over the continuing risks in the wider economy it viewed the current year with confidence.
The U.K. house builder said economic uncertainty has continued to subdue the wider market over the summer months but it expects its net reservation rates to rise in the autumn season. It said this would stem from a steadying mortgage market as well as the implementation of a range of sales and marketing initiatives which include the introduction of a shared ownership package.
For the year ended June 30, pretax profit was 30.5 million pounds ($38.1 million) compared with GBP42.6 million the year before, the company said.
Revenue fell to GBP328.3 million from GBP373.4 million. The company said this was due to the fall in sales at both Gleeson Homes–which saw a 14% fall in the number of homes sold to 1,723–and Gleeson Land. The company said revenue at Gleeson Land fell 81% to GBP7.5 million mostly due to house builders taking a more cautious view as a response to the economic environment.
“As market conditions improve, we look forward to returning to significant growth,” the company said.
Write to Anthony O. Goriainoff at [email protected]
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