Abbey more than doubles pre-tax profits to €49.1 million

House builder Abbey has reported pre-tax profits of €49.1 million for the year to April, more than double last year's figure of €24.1 million.

After a tax charge of €9.5 million the group made a profit of €39.6 million reflecting earnings per share of 184.02 cent.

The company said revenues were €152.7 million, while operating profit for the year came to €46.3 million. Operating profit for the Irish division was €5 million.

In a preliminary statement, Abbey said “slow but steady progress has been achieved” in Ireland.

It said new projects in Delgany, Co Wicklow and Cornelscourt, Co Dublin will enter production imminently, adding that further projects are being actively sought to drive faster recovery.

“Our projects in Laois and Kildare remain on hold pending some improvement in local demand. For the time being the strong improvement in the housing market remains most apparent in Dublin,” the statement said.

Abbey said it completed 557 homes during the period, including 514 in the UK, 27 in Ireland and 16 in the Czech Republic.

The company’s executive chairman Charles Gallagher said the short term outlook for the company was good, but that the longer term outlook is more uncertain.

Davy Research said the company is more cautious on the longer-term outlook for the UK, with building costs and a more modest house price inflation environment a worry.

“The medium-term outlook for Ireland is brighter, but speculative money chasing few opportunities is likely to dampen returns,” Davy analyst Colin Sheridan said.

He noted the company generated significant cash, despite significant investment in land, which has resulted in the land-bank increasing to 2,252 plots from last year’s level of 1,858.

The group held €67.4 million in cash together with €13.5 million in UK government bonds at the end of the financial year. The board said it was recommending a dividend of 7.00 cent per share.