McInerney tells heated AGM of Middle East opportunities

IRISH housebuilding group, McInerney Holdings is eyeing up business opportunities in the Middle East in order to lessen its dependency on its core recession-hit markets of Ireland and Britain.

Chief executive Barry O’Connor said – following McInerney’s annual general meeting (AGM) in Dublin’s Westbury Hotel, – that the company is looking at a number of project management contracts for housing projects in Saudi Arabia and Abu Dhabi in the United Arab Emirates.

Mr O’Connor also reiterated that the McInerney board was comfortable with ongoing negotiations with lenders and expects to agree covenant revisions without any problems.

At the time of McInerney’s 2008 results announcement in March – which showed a pre-tax loss of €206.5m and revenues of €300.9m – doubts were raised over the company continuing as a going concern if bank lending agreements were breached.

The company is expecting to generate revenues of €250 million this year, to complete 250 houses in Ireland and further reduce its €219m debt – although not by as much as the €47m that was wiped off last year.

One of a series of AGMs taking place this week, McInerney’s was never going to rival those of Irish Nationwide or AIB for controversy and colour, but that didn’t stop shareholders giving it a good stab.

One shareholder suggested the board was “lucky” not to receive the same treatment as befell AIB chairman, Dermot Gleeson yesterday, adding he was disappointed that the non-executive members of McInerney’s board – chairman Ned Sullivan included – hadn’t “reined in” management.