Saturday, December 05, 2009
IRISH housebuilding group Abbey has said that its prospects remain dull, even after a good first half which saw a year-on-year swing from loss to profit.
The Co Meath-headquartered group yesterday reported pre-tax profits of €3.6 million for the six months to the end of October.
This compares favourably to a pre-tax loss of €5.4m for the same period last year. First half operating profits came in at just under €2.5m, up from an operating loss of €5.88m for the corresponding period last year.
Abbey’s last full financial year – covering the 12 months to the end of April – showed a drop from a pre-tax profit of €16.8m to a loss of €54.4m.
Despite a good showing in the last six months and the likelihood of a return to profitability for the full-year, Abbey’s chairman, Charles Gallagher, said that the group’s prospects "continue to be dull".
"Although we expect modest profitability this year, we cannot yet rule out the possibility of further stock losses in our Irish operations," he said.
"Looking further ahead, progress relies on successful re-stocking of our land bank and this seems likely to be a slow and difficult process. Many observers expect another significant reversal in the English housing market as British authorities get to grips with their budget deficit after the general election.
"Whilst we are confident that low inventory will continue to provide some support to the British market, it seems common ground that profits and growth will be hard won for the foreseeable future," he added.
The six months saw Abbey complete 222 house sales – 170 in Britain, 49 in Ireland and three in the Czech Republic. The housebuilding division of the group generated operating profits of €2.54m for the period and a turnover of €36.27m; while its plant hire business – M&J Engineers had operating losses of €395,000.
Abbey said that market conditions have improved in England.
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