M.J. Gleeson has announced that it expects its fiscal 2023 results to meet expectations. Although the number of homes sold decreased from the previous year due to economic challenges and buyer confidence being impacted by higher interest rates, higher average selling prices have helped offset this decline.
During the year ending June 30, M.J. Gleeson completed the sale of 1,723 homes, compared to 2,000 homes in the previous year. However, the company reported a resilient average selling price, which increased by 11% to £186,200 ($237,256) compared to the previous year. This increase in price can be attributed to a shortage in supply, which has counteracted rising material and labor costs.
In addition, reservation rates have shown improvement over the last six months, with a net average of 0.64 reservations per site per week. This is slightly higher than the 0.62 reservations seen during the same period last year.
Looking ahead, M.J. Gleeson anticipates continued demand from first-time buyers and expects an increase in interest from value-driven buyers. The company aims to take advantage of its more affordable price points to attract home buyers.
The company did not provide specific financial figures for fiscal 2023. However, according to a FactSet consensus of five analysts, revenue is projected to be GBP335.8 million, a decrease from GBP373.4 million in the previous year.