McInerney builds profit to €26m

BUILDERS McInerney are on course to record pre-tax profits of €26 million when the company publishes full-year results for 2003 at the end of February, Davy Stockbrokers said yesterday.

McInerney Holdings plc issued an upbeat trading statement yesterday, reporting record house completions.

Davy analyst Florence O’Donoghue said McInerney’s trading statement contains good news for 2003 and 2004.

“The group sold a record number of units in 2003 and is on course to meet forecasts for 2003: pre-tax profits of €26m and earnings per share (EPS) of 64c, representing growth of 27%. The initial indications are that McInerney will enjoy a good 2004 as well with 35% more deposits on hand than a year previously.

“We are forecasting earnings growth of 10% in 2004, which looks overly conservative: a decent upgrade of forecasts is likely at the time of the full-year results, at the end of February,” she added.

McInerney’s trading statement indicates that total (Ireland, Britain and Spain) private house completions for the group increased by 28% to 1,481 in 2003, from 1,161 in 2002.

McInerney’s look set for yet another record year in 2004 as year-end housing deposits on hand (Ireland, Britain and Spain) rose by 35% to 978 compared to 726 at the end of 2002. Twelve months ago the deposits in hand were 779 in Ireland, 132 in Britain and 67 in Spain.

The figures show that private house completions in Ireland increased to 969 compared to 879 in 2002. In Britain house completions increased to 447 from 257.

McInerney completed 65 units at its luxury Los Flamingos freehold development in Marbella, Spain, compared to 25 in 2002.

Ms O’Donoghue said: “Aggregate deposits on hand at the beginning of the current year amounted to 978, up 35% on the 726 at the same stage last year. The breakdown is 779 in Ireland, 132 in Britain and 67 in Spain. This implies that McInerney enjoys excellent visibility.”

Managing Director Barry O’Connor said the group’s performance, particularly in the private housing sectors in Ireland and Britain, was robust.

“The group recorded a strong operational performance in 2003. The Irish housing market continued to show strong demand. Our UK housing division continued to take advantage of the buoyant market in the north west of

England and is well positioned for further expansion opportunities.”

“The group is well placed for 2004. The strong level of deposits on hand provides the group with high visibility of earnings. Our growth strategy is ahead of target, and operational figures underline this,” he added.