Revenues and profit falls at Glenveagh following completion of major projects

Stephen Garvey - CEO of Glenveagh Properties

Homebuilder Glenveagh Properties said it has completed 800 units of its 2,700 full-year target in the first six months of 2024, up from just 333 units completed in the same time last year. 

Posting its half-year results on Thursday, the Irish home builder reported an 11% drop in total revenue to €152.2m, down from €171.6m in the same six month period in 2023.

Glenveagh said also its profit before tax dropped by 29% from €1.4m to €1m, while earnings per share for the six months fell by 43% in the first half of 2023.

The group reported suburban revenue of €102.2m, down 6.8% from the same time last year. A total of 294 suburban units were closed in the period, down from 333 last year with completions impacted by the scheduling of closings which have now accelerated in the third quarter.

Glenveagh added that the construction sector continued to face some inflationary pressures across its raw material and labour costs base, though at a lesser level than experienced in 2022 and 2023.

Underlying market demand for new homes remains very strong, the company added, which it said was driven by a robust economic environment, population growth and a range of supportive demand-side initiatives from the Government.

The group said its Average Selling Price was about €329,000, up from €324,000 in the first half of last year, reflecting underlying House Price Inflation and changes in our product and site mix.

Glenveagh also announced its intention to commence on a €50 m share buyback programme on September 6.

Meanwhile, Glenveagh reported a significant drop in urban revenue, falling to €17.7m from €61.9m last year, with the slump mainly due to the completion of two of its contracted forward fund projects, Citywest and Castleknock, where approximately 90% of revenue had already been recognised in prior periods.

These two projects delivered 510 units in the six months, with Glenveagh saying that several other projects are underway or are in the final stages of talks, including its Cork Docklands site, its Blackrock Cork site, its Cluain Mhuire project, its Brownsbarn development and its Tyrellstown site.

Glenveagh said the First Home Scheme which helps first-time buyers bridge the gap between their mortgage, deposit and the cost of a new home, provided up to 30% of the price of the home.

The company also announced that Michael Rice is stepping down from his role as Executive Director and Chief Financial Officer of Glenveagh to pursue other interests. Mr Rice will step down from the Board at the end of December, but will remain with Glenveagh into 2025 to ensure a smooth transition.

Michael will be succeeded in the role of CFO by Conor Murtagh, who is currently Chief Strategy Officer and a member of the Group’s Executive Committee.

"Our report today strongly signals our business remains on a solid trajectory in 2024, achieving significant milestones across all three business segments," said CEO, Stephen Garvey.

"Our ability to consistently deliver high-quality, sustainable homes at scale reflects the strength of our vertically integrated operation and the skill and dedication of our team at Glenveagh. We are on track to deliver on our target of 2,700 homes this year, a critical objective in our role in the sector responding to Ireland's housing needs."

"We are confident that with continued targeted policy measures and strategic partnerships involving both capital and land between the public and private sectors, we will not only meet but exceed the housing targets necessary to respond to the housing needs of Ireland's growing population."