Glenveagh says building continues but reservations are slowing
House builder suspends financial guidance for 2020
Glenveagh has agreed the sale of 475 new homes for this year so far and hoped to sell a total of 1,000 by December 31st, but said that it was suspending all guidance for investors on its 2020 financial performance for now. Photograph: Fennell
House builder Glenveagh Properties confirmed on Thursday that construction was continuing but said Covid-19 restrictions had slowed the rate at which people were reserving new homes that they intended to buy.
Glenveagh has agreed the sale of 475 new homes for this year so far and hoped to sell a total of 1,000 by December 31st, but said that it was suspending all guidance for investors on its 2020 financial performance until the coronavirus pandemic’s impact became clear.
“Aligned with Government recommendations the group has implemented wide ranging measures across our sites to limit the spread of Covid-19,” Glenveagh said on Thursday.
“These measures allow all sites to remain operational currently.” Glenveagh is building on 17 sites, mainly in the greater Dublin area.
The builder noted that it has continued to reserve new properties for customers, as well as signing and closing sales. However, it added that the pace of new reservations has slowed as it stepped up Covid-19 restrictions.
Glenveagh has made “virtual viewing” of its show homes available to customers while the restrictions remain in place.
The company conceded that its ability to meet 2020 targets depended on how long the Covid-19 limits remained and the extent to which future restrictions might hit construction.
Stephen Garvey, Glenveagh’s chief executive, stressed that the group fully supported Government steps to protect the public from the spread of coronavirus.
“From a business perspective, while we are likely to experience a challenging near-term environment, our strong balance sheet and customer profile, balanced across private, state and institutional buyers, leaves Glenveagh in the strongest possible position to deal with whatever eventualities are to come,” he said.
Glenveagh has €53 million in cash and net assets of €867 million. The company added that cash and available credit came to €121 million.