Revenues rise at Glenveagh as home sales increase

Revenues at Irish homebuilder Glenveagh Properties rose more than 200 per cent in 2019 as the number of properties it sold increased and the average selling price achieved climbed higher.

In a trading update issued on Tuesday morning, the company said revenues were €284 million, up 238 per cent compared with the previous year. The group sold a total of 844 units on 14 sites in 2019, up from 275 in 2018, while the average selling price was €332,000, a rise of just under 16 per cent from the €287,000 recorded the previous year. Gross margin on unit sales was around 18 per cent.

Shares in the company rose 1.85 per cent in morning trading to 88c.

Glenveagh said it has a solid performance in the starter-home private market, complemented by institutional sales at developments in Balbriggan, Donabate, and Dundrum, with non-core land sales for the year at around €4 million.

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At the end of the year, Glenveagh had 240 units signed or reserved for 2020, pointing to strong demand in the business.

"In our second full year of trading it has been another strong performance for the group both operationally and financially as we continue to meet our targets, delivering three times the number of unit completions from one year ago," said Glenveagh's chief executive Stephen Garvey.

“We have completed our net investment in land, grown our operations consistent with our business plan and remain focused on driving further return on capital improvements as the business continues to scale.”

Looking ahead to 2020, the company said forward sales were “strong”, with the market backdrop remaining favourable.

The group will report its full results at the end of February.