Abbey reports ‘improving confidence’ in Irish market

House builder Abbey has reported pre-tax profits of €24.1 million for the year to April, up from €11.3 million in 2013.

After a tax charge of €5.3 million the group made a profit of €18.7 million reflecting earnings per share of 87.04 cent.

In a preliminary statement, Abbey said revenues were €114.3 million for the 12 months to April, an increase of 16 per cent compared to last year.

The firm completed 390 homes during the period, including 353 in the UK, 22 in Ireland and 15 in the Czech Republic.

Abbey said the re-launch of its Irish business had gone well, with the project in Shankill selling out. It said further projects are planned, in particular a very attractive site in Delgany, Co Wicklow for upwards of 30 houses was acquired at the turn of the year.

“Improving confidence is evident across the market,” the company added.

The group held €30.5 million in cash together with €22.4 million in UK government bonds at the end of the financial year. The board is recommending a dividend of six cents for the year.

Abbey said the outlook for the current year is “encouraging”, adding that it is budgeting for a significant increase in activity.

However, executive chairman Charles Gallagher noted with concern that supply chain bottle necks both in labour and materials have emerged so quickly.

“Recent reports of declining mortgage approvals are a warning that sufficient credit may not be available to support a more normal level of output,” he added.