Shareholders happy as McInerney reports strong performance results

HOUSEBUILDER McInerney kept the good news coming for shareholders yesterday as it reported a strong full-year performance.

But the markets shrugged off the company’s latest trading statement and left the share price largely unchanged.

The company followed up on its impressive first half, which saw interim profits double to €17 million, with news that its level of new house completions would be 10% ahead for the full year.

McInerney finished more than 1,100 new homes in Ireland during the year, up from 970 the previous year.

Managing director Barry O’Connor said the group was well positioned going into 2005.

Demand from first-time buyers in Ireland remained strong, while Britain remained “robust” despite recent downbeat forecasts that suggested a softening of the market.

The company built 500 houses in Britain, up from 447 in 2003, and is now working on 30 sites there.

McInerney targets specific areas in the north of England that have been identified by the British government as being in need of new housing developments.

Mr O’Connor predicted “strong volume growth” from his British operations in 2005.

The company’s positive outlook on Britain was underlined by its decision to bump up its land bank from 1,200 plots to 1,800, with options to buy a further 400.

“Our land banks in Ireland, Spain and the UK are well placed to take best advantage of expected strong demand in 2005 and beyond,” said Mr O’Connor.

“Our growth plan continued in line with our strategy in 2004 and is ahead of target,” he said.

The company completed 13 units at a luxury development in Spain and will build a further 54 in the coming year.

Mr O’Connor also said the group’s commercial division, Hillview Securities, had a “solid” performance and completed nearly 90,000 square feet of industrial units. But this was down from 132,000 square feet in 2003.

Davy Stockbrokers analyst Florence O’Donoghue said McInerney’s sales fell short of expectations but the shortfall was largely due to timing differences.

The company was in an “excellent” position to deliver substantial growth in Britain this year, he said.