Building boom for McInerney

HOUSE builder McInerney Holdings built 1,186 houses in 2002, up 63% on completions in Ireland and Spain in the previous 12 months, the company said in a trading statement yesterday.

Its building programme going forwards also looks strong with deposits held up by 134% to 726 compared to 310 at year-end 2001.

The bulk of the house completions were in Ireland with 1,011 private and contract houses compared to 808 for the year ended December 2001

McInerney said margins were maintained in the group’s Irish housing business, while delivering higher unit output at lower average prices.

As a result of the acquisition of Charlton Group Limited in January last year, house completions in Britain went from a near-static nine in 2001 to 310 in 2002.

McInerney management director Barry O’Connor said the company’s performance, particularly in the private housing sectors in Ireland and Britain, was very strong.

He said: “The group has experienced a very strong 12-month period notwithstanding market expectations of much uncertainty."

The acquisition of the Charlton Group in Britain proved to be well timed Merrion Capital analyst John Mattimoe said the statement from McInerney’s was very upbeat with good visibility as to future earnings as a result of the 134% increase in deposits held.

He rates the shares a strong buy with a potential 40% upside.

“The shares remain substantially undervalued, he said.