Glenveagh shares rise on strong trading outlook

Shares in Irish house-building firm Glenveagh Properties jumped by more than 2% on the back of a strong trading update showing a surge in the company’s revenues and house sales during 2019.

Ahead of the publication of its 2019 annual results at the end of next month, Glenveagh said it generated revenues of approximately €284m last year, up by nearly 240% on the previous 12 months.

It said it sold 844 houses last year, representing an annual increase of over 200%.

Glenveagh said it has “substantially de-risked” its 2020 construction targets, with costs largely fixed and strong forward sales in place.

It said the market backdrop remains “favourable” with significant institutional and private demand for housing, particularly for starter homes, evident across its selling sites.

“We have completed our net investment in land, grown our operations consistent with our business plan, and remain focused on driving further return on capital improvements as the business continues to scale,” said Glenveagh chief executive Stephen Garvey.

“Glenveagh has entered 2020 in a strong position, with 240 units either signed or reserved, approximately 19% ahead of the same point last year,” said Davy analyst Colin Sheridan.

This leaves the business well-placed to continue its ramp-up to its 2020 target of 1,000 units. Operationally, the performance of the company has been exceptional since its IPO.

“Revenue for the group is 3% ahead of our expectations and margins appear to be in line,” said Mr Sheridan.

Glenveagh’s share price is up nearly 13% in the past 12 months.