McInerney profits rise by 14%

BUILDERS McInerney Holdings reported a 14% rise in full-year profits, with housebuilding activity in Ireland exceptionally strong.

The company built 1,011 homes last year up from 838 in 2001 and said the outlook for housebuilding in Ireland this year was also looking positive following a good start to the spring selling season.

McInerney Holdings managing director Barry O’Connor said deposits on hand for homes this year were up to 462 compared with 233 in early 2002.

Pre-tax profits rose to 20.6m from 18.1m a year earlier while earnings per share climbed 15% to 50.32 cent. Turnover for the year, including that from acquisitions rose from 186m to 261m.

The dividend was increased to 6.25 cent per share. The company said the significant increase in dividend payment marks the continuation of the more progressive dividend policy being followed by the group.

“Overall our performance this year will be as good as last year. On the housing side, we are seeing constant demand. The frenzied demand has gone, but we are selling well,” Mr O’Connor said yesterday.

The group’s acquisition of Charlton in Britain proved a success with Charlton providing 192 of the 310 house completions during the year. The company’s other arm, Hargreaves, also saw improved output

“The highlight of the results last year was Britain. We made 4.9m. The previous year we made 77,000 in profits. Charlton made 2.9m and Hargreaves made 2m. The previous year we only did eight units. In 2002 we did 257.”

The performance of the group’s Irish commercial division was satisfactory given quieter market conditions.

Commenting on the commercial side of the business, Mr O’Connor says its subsidiary, Hillview Securities, continues to develop the Millennium Business Park in Dublin and the smaller Euro Business Park in Cork.

In a strategic move, Hillview, in joint venture with Bank of Scotland, acquired a building in Galway that will be used to extend the adjoining Eyre Square shopping centre in the city centre.

The Los Flamingos development in the Marbella region of Spain has been a resounding success, the company said, with sales deposits achieved for all apartment units in the first two phases of 150 units. During the year 17 sales completions were achieved with a further 79 sales completions planned for 2003 and the balance in 2004. At year-end 133 deposits were on hand.

Mr O’Connor forecast that the number of homes built this year would match the 2002 figure of 55,000 and house prices would not fall as had been predicted by some. The average price of McInerney homes, which are primarily aimed at first time buyers, was 167,000 across the country.