MJ Gleeson has recorded a group loss of £2.7m in the year to 30 June, marking a 133.2% decrease year-on-year after operating in a "subdued market".

The housebuilder reported that its revenue increased by 12.1% annually to £410m, while its operating profit fell by 90% to £2.4m.

Its Gleeson Homes division saw sales increase by 9.8% year-on-year to 1,968 homes, while its forward order book remained relatively flat at 848 plots.

Gleeson Land reported five completed transactions in the year to 30 June, compared to seven in the previous year, as well as an operating loss of £700,000, following a profit of £7m in the previous year.

MJ Gleeson said that following actions taken in the last financial year, it now has an "operationally improved group", although it remains cautious of current market uncertainty.

CEO at MJ Gleeson, Graham Prothero, stated: "I am pleased to report that in a subdued market we delivered a robust performance underpinned by the delivery of 1,968 homes, up by nearly 10% against the prior year. Gleeson Homes entered the new financial year with a forward order book of 848 homes.

"During the year we moved at pace to implement significant structural and operating changes under Project Transform. As a result, Gleeson Homes has been overhauled and is a much-improved business, with strengthened leadership at both Executive and Regional levels, more effective processes and clearer reporting lines. It is in a much stronger position to manage through the challenging market environment we are experiencing today."

Looking ahead, the housebuilder said that its net reservation rate stood at 0.44 per site per week in the nine weeks to 6 September, compared to 0.55 in the prior year, following a "much weaker August than usual".

With subdued market conditions expected to continue, it said it is focused on managing the business as effectively as possible.

Therefore, the firm expects to deliver an overall result in line with current market expectations, with its profit before tax expected to reach £18.8m, with a range of £17m and £20m.

Prothero concluded: "Looking ahead, given the market backdrop, an absolute priority is to maintain the strength of our balance sheet. Along with our focus on managing the business prudently, the Board has also taken the view that the dividend should reflect the challenging environment, proposing a lower final dividend in line with our capital allocation policy. This will give us greater flexibility in deploying capital for the medium-term benefit of the business.

"Following a year of intense activity, implementing fundamental business change, we now have a Homes business that is operationally much stronger and a Land business well-placed to meet the continuing needs of developers for high-quality consented sites. With the focused and disciplined approach we are now taking, we are confident for the future prospects of the group."

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