Shares in MJ Gleeson have increased by over 6% after the housebuilder announced that its full-year profit before tax is expected to fall in line with current market expectations.

The firm said that following a “robust performance” from Gleeson Homes and the previously announced delays to site sales in Gleeson Land, it expects to record an adjusted profit before tax of between £8.9m and £11m in the year to 30 June.

Its Gleeson Homes division completed the sale of 1,968 homes, increasing by 9.7% year-on-year, including its first partnership completions, which totalled 320 units and 301 private multi-unit sales.

The division has also secured five further partnership deals, covering 254 homes during the second half.

Gleeson said that while the impact of build cost inflation from the conflict in the Middle East has been “less severe than anticipated”, it does expect inflationary pressure to continue. Alongside the effects of regulatory and tax burdens imposed on residential development, the firm is likely to see a restriction in near-term margin recovery.

In its land division, Gleeson has completed the sale of five sites during the year, and following the expected completion of three transactions being delayed into the current financial year, it will report a small operating loss.

In its outlook, the housebuilder said there is some uncertainty following the economic impacts of geopolitical events and potential policy changes with a new UK Government.

However, it said it is "ready to benefit from a recovery in market conditions", following the extensive remedial actions undertaken at Gleeson Home and the further additions to Gleeson Land’s portfolio.

CEO at MJ Gleeson, Graham Prothero, stated: "Against the backdrop of a continuing subdued housing market and widely signalled caution in the land market, we delivered a robust operating result.

"More importantly, this performance was achieved whilst also implementing an extensive operational restructuring in Gleeson Homes. Following the delivery of Project Transform, we enter the new financial year with Gleeson Homes in far better shape.

"We cannot predict when the housing market will recover, but we can be confident that, with a much stronger Homes business, delivering highly affordable, high-quality homes, and a Land division promoting an enviable portfolio, we are in good shape to leverage the market recovery when it materialises."

The firm will publish its full-year results on 15 September.

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