Gleeson Homes has reported a "resilient" trading period in the 11 weeks to 24 April, as its net reservation rate increased from 0.86 per site per week to 0.88 year-on-year.

The housebuilder said that while there has been modest build cost inflation since the start of the calendar year, underlying selling prices on open-market and partnership sales have been broadly stable.

The group said it was continuing to seek opportunities to improve the business and mitigate overhead costs, following the successful implementation of ‘Project Transform’.

Gleeson announced that from 1 July, its Yorkshire East region will be integrated into Yorkshire South and West. It added that the creation of one Yorkshire region, and the reallocation of certain sites into the Midlands region, will improve the efficiency of those regions and generate annualised savings of £900,000.

In its outlook, the firm said that with greater visibility across Gleeson Homes’ Spring selling season and its completion of a major land sale, it expects its adjusted group profit before tax for the year to 30 June to reach £18.2m with a range of £12.9m and £20.5m, which is in line with market guidance.

Following the announcement, shares in Gleeson jumped by over 5%.

Chief executive officer at Gleeson, Graham Prothero, said he is pleased with the firm’s resilient performance in an uncertain market environment.

He concluded: "Whilst it is frustrating that further work is required on a number of legacy sites, I am pleased with the determination of our new management teams to identify and rectify legacy issues which now allows Gleeson Homes to look forward with confidence.

"It is too early to forecast the degree to which the crisis in the Middle East will impact customer confidence, mortgage affordability and build cost inflation over the coming months. We have recently seen some softening in footfall and reservations, and limited increases in the cost of some materials. This, together with ongoing challenges with planning and site viability, prompts even higher than usual caution in how we manage the business, including land investment decisions, into the next financial year.

"However, following the successful implementation of Project Transform, which has driven a greater focus on operational effectiveness and efficiency, the business as a whole is now in a much stronger position to manage through this period of uncertainty and capitalise on the significant opportunities we see ahead when the market returns to growth."

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