Housebuilder Abbey reports 29% jump in profit on strong UK sales

House-building firm Abbey has reported a pre-tax profit of €7.65 million for the six months to the end of October, up 29 per cent on last year, on the back of strong growth in its UK operations.

The company said its house-building division completed 163 sales in the six-month period, comprising 156 in the UK, four in Ireland and three in the Czech Republic, resulting in a turnover of €39.9 million.

Completions in Ireland were much lower than estimates - only four compared to 21 for the same period last year - and well short of the company’s full-year estimate of 38 completions.

The company, however, noted that advance sales in its new Shankill development in Dublin had gone well.

Abbey said its strong UK sales were being supported by the government’s “Help to Buy” schemes.

Its operating profit from the UK housebuilding business accounted for 90 per cent of group operating profit.

Abbey’s board declared a dividend of four cents per share which combined with the five cents approved at the company’s AGM in October make a total of nine cents for the financial year.

In its outlook, Abbey said while the UK and Irish markets remained fiercely competitive, there had been a “noticeable recovery” in the Dublin market.