Irish building group McInerneys will struggle to meet profit forecasts in the first half of the year as the Irish property market cools, shareholders were told at today’s agm.
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Group chairman Mr Roy Ferris said the profit shortfall in first half profits is mainly due to the number of start-up projects in the first half that will only start contributing to profits in the full year.
The Irish housing market continues to cool but demand among first-time buyers remains strong, according to Mr Ferris. "Well-located first-time buyer houses continue to sell strongly but house sales dependent on the trade up market have experienced a slowdown," he said.
Demand for housing in Ireland remained strong in 2000 although since the third quarter it has not been uniform, he said. "Our experience is that prices are either holding steady or increasing slightly."
McInerneys also announced a new apartment development in the prosperous Marbella area in Spain. The company will build 250 apartments and a golf course on the site.
Last year McInerneys reported profits of euro 19.1 million. The house building division was again a major contributor to the company's growth. During the year the company completed 652 houses.