Profits at Abbey fall by almost 25% following impairment charge

Profits at housebuilder Abbey fell by just under 25 per cent to €11.5 million in the year to April, the company has said.

The Dublin- and London-listed firm said the figures reflected an impairment charge of €1.9 million on land and work in progress arising mainly from its “difficult” Irish market. Group operating profits during the year were €9.4 million compared with €12.8 million the previous year.

Abbey said its housebuilding operations had resulted in the sales of 303 homes: 224 in Britain, 58 in Ireland and 21 in the Czech Republic. This resulted in a turnover of €54.4 million.

It described trading in the UK as “dull over the period with volumes in particular continuing to run at depressed levels”.

“Market conditions continue to soften and there is no indication of any early improvement,” it added.

In Ireland, the company said conditions remained “very difficult” and its focus remained on clearing inventory.