Builder Abbey sees profits fall

PROFITS AT quoted house builder Abbey fell 40 per cent to €3.35 million in the first half of its financial year.

Abbey, which has house-building operations in Ireland and Britain and a plant hire business, said that operating profits halved to €2.27 million from €4.38 million during the six months ended October 31st.

Pre-tax profits fell 40 per cent to €3.35 million, from €5.55 million during last year’s first half.

House building generated a turnover of €27 million, contributing almost €1.8 million to operating profits for the period.

Chairman Charles Gallagher said the Irish market remained “pretty tough”, although he remarked that the company was selling properties from developments in the Republic.

The British market, he added, was better when compared with Ireland. “We’re based in the southeast, which is a bit sheltered from the storm.”

Mr Gallagher said the market was reasonable for most of the year but had softened in the autumn. There was no oversupply in the British market, and, as a result, it continued to trade.

“There are not many houses for sale and there are not many people buying houses so the two of us manage to meet in between. The market is what it is, and we just have to get on with it.”

The group maintained good cash flow during the year, and held €21.24 million at the end of October, together with €54 million in UK government debt.

Abbey’s statement said it expected a “stiff test” in the second half, with signs of a decline in construction across its region. It added 152 new plots to its land bank in Britain during its first half.