Abbey reports six-month profit of €21.7m, down from €29.6m

Housebuilder Abbey has reported a pretax profit of €21.76 million for the six months to the end of October, down from €29.68 million during the same period last year. Overall operating profit was €21.6 million, 27 per cent lower than last year.

The company’s housebuilding division completed 252 sales during the six-month period, with a turnover of €77.95 million resulting in an operating profit of €19.63 million.

Sales during the six months were 14 per cent lower than the same period last year. However, operating margins were higher at 29.2 per cent.

During the period the UK housing division acquired 485 plots, while in Ireland it acquired 94 plots. M & J Engineers, Abbey’s UK plant-hire business, saw revenues fall 12.6 per cent to €9.90 million, driven by a lower sterling rate. The plant-hire business posted a profit of €1.46 million.

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Land investment

Net cash at the end of the half was €85.1 million. This was down from €104.9 million at the year-end in April, driven somewhat by currency, but mainly from additional land investment, according to Davy Stockbrokers.

The board declared a dividend of 7 cent a share, which, together with the 8 cent approved at the agm in October, will make a total of 15 cent for the financial year.

Abbey chairman Charles Gallagher said the immediate outlook continued to be good, and a strong second half should allow physical activity to surpass last year.

“In England uncertainty is affecting sentiment, and this may impact the business in 2017. In Ireland gradually easier credit conditions for first-time buyers is supporting the slow recovery. Overall the group is well placed and continues to grow.”