Irish construction company McInerney Holdings today reported a 35 per cent increase in pre tax profits to euro 19.1 million in the year 2000. The group said that while demand in Ireland remained strong, the rate of property inflation will slow down this year.
Irish house building was again the major contributor to the groups profits, completing 652 housing units in 2000 as against 600 in 1999.
However, house price escalation in 2001 is expected to be lower than in 2000, the group said and as result cost control would be tightened. "Cost increases in the economy must be contained, as the level of construction cost inflation remains in excess of general inflation." group chairman Mr Roy Ferris said in a statement today.
"The Government's social housing programme offers growing opportunities in the contracting area over the period of the National Development Plan" Mr Ferris said.
The group reported a substantial number of planning permissions were finalised in the last quarter of the year. Planning permissions on hand at year-end were 3,294 compared with 1,970 a year earlier.
The first quarter of this year has been shown good demand with 236 sales recorded, as compared to 139 for the same period last year, the group said. "Deposits on hand are also favourable with 325 deposits recorded at the end of March 2001, compared with 288 at the end of March 2000." Mr Ferris added.