Housebuilder MJ Gleeson said the UK housing market “lacks confidence” and is not expected to substantially improve in the short term.
It came as the Sheffield-based company said profits over the past year have been hit by planning delays, the absence of a market recovery and rising costs.
The company said it had also come under pressure from a combination of “increased build costs and flat selling prices” in its Gleeson Homes business.
On Friday, the company announced an overhaul of management in the homes business as part of efforts to reduce costs.
The London-listed firm said Mark Knight has stepped down from his role of chief executive of Gleeson Homes as a result and left the business.
MJ Gleeson said the group has seen some interest from customers but pointed to prolonged weakness in demand.
The company said: “The housing market lacks confidence and remains subdued and the board does not see a short-term catalyst for any substantial improvement.
“However, as reflected in our robust sales rate, there are customers for well-located homes at the right price.”
The company said it completed the sale of 1,793 homes in the year to June, up slightly from 1,772 homes a year earlier.
It added that profits for the past year are set to be within market guidance of between £21 million to £22.5 million. It said profits for next year are however set to be at the “lower end” of expectations.
Graham Prothero, chief executive of MJ Gleeson, said: “This was a challenging year for Gleeson.
“As well as external factors, it had become clear that our commercial delivery was not where we needed it to be.
“Over the last nine months we have therefore been implementing at pace management changes which will significantly benefit the business through full-year 2026 and beyond.
“These changes will also ensure the delivery of our strategic objectives.”
Shares in the business were down 6.4% on Friday morning.
