Abbey’s profits increase to €12m

Irish housebuilding group, Abbey has reported a 5.2% increase in full-year pre-tax profits, to nearly €12.1m.

Abbey said it is budgeting for a further “significant” turnover rise in the current year, on the back of an expected improvement in trading conditions in its British operations.

However, it warned this might not be met with a similar rise in profit levels.

The latest annual figures — for the 12 months to the end of April — show a 5.7% rise in group revenue to €70.4m.

Operating profit came to just over €9.1m — down slightly from the €9.36m recorded in the previous year, due mainly to a €1.3m impairment charge against property land and work in progress arising from the difficult conditions in the Irish market.

Profits after tax amounted to around €8.9m; up from a figure of €8.25m in the previous year. Basic earnings per share, for the year, were up from 34.11c to 39.94c, while a dividend per share of 5c has been declared.

The broadly positive figures came on the back of Abbey completing 310 house sales during the year — 255 in Britain, 37 in Ireland and 18 in the Czech Republic.

Abbey’s business interests are spread across the three countries, with the Czech Republic holding the bulk of the group’s slow-moving housing stock.

The sales figures were marginally up on the previous year, when 303 completions were recorded.

Abbey’s chairman, Charles Gallagher, yesterday said: “The outlook for the year ahead is for significant growth in turnover, as the UK business responds to increased investment.

“Increased turnover, however, is unlikely to be matched by a similar increase in profits, as margins are traded to secure some sales growth. Competition for profitable land opportunities is intense.

“The external environment remains very uncertain and further setbacks cannot be discounted. However, all things being equal the group’s plans are on track.”

He also said, however, all relevant marketplaces remain subdued and a lasting solution to the eurozone financial crisis would be welcome. He also said Abbey was working on a number of projects aimed at injecting some life into the Irish property market.

M&J Hire, Abbey’s UK- based builders merchants division, &generated an operating profit of €302,000 on a turnover of €12m.

Abbey, as a whole, held just over €20m in cash at year’s end, and €50m in UK government bonds.