Housebuilder Abbey has reported better-than-expected full-year results on foot of a strong second- half performance. It also said trading this year was off to a good start and it was targeting a significant increase in housing completions in the year to next April.

"In spite of the widespread uncertainty, housebuilding continues to prosper," Abbey chairman Mr Charles Gallagher said. "In the near term, at least, prospects remain good."

Despite reporting a drop in first-half profits as delayed housing starts hit turnover, the company bounced back in the second half to record pre-tax profits of €36.2 million, largely unchanged from the previous year.

Its housebuilding division completed 571 sales - 359 in Britain and 212 in the Republic - generating an operating profit of €33 million on turnover of €125.3 million.

"UK trading was much better in the second half," Mr Gallagher said.

"In particular, trade in our last quarter was unusually strong with the result that sales for the first six months of the current year are well advanced," he added.

He also said trade in the Republic in the early months of 2002 was "very brisk", with all sites enjoying good levels of demand.

The company hopes to build 700 houses in the year to the end of April 2003, 450 of them in England and 250 in the Republic.

Abbey's British plant-hire business, M & J Engineers, reported operating profits of €1.9 million on turnover of €21.2 million.