Half yearly results issued today by house builder Abbey show it made a pre-tax profit of €21.18 million for the six months to the end of November - this compares with a figure of €14.56 million the same time last year.
The group's housebuilding division completed 379 sales during the six months to the end of November with a turnover of €76.69 million, generating an operating profit of €18.59 million. 275 houses were completed in the UK with a total of 104 in Ireland.
The group had declared an interim dividend of 7.5 cent per share.
Abbey said that the forward sales position is good in both Ireland and the UK. But it warned of signs that the market going forward will not be as exuberant as in recent months. 'As yet there is no sign of a correction in prices although after such a strong upward move it cannot be ruled out', the company said.
Abbey said it held substantial cash balances at the end of October. Since then the company has exchanged contracts for the purchase of another 273 plots, costing €20 million, to maintain its landbank.
'In the light of rising land prices and the more difficult regulatory environment (particularly in England), the housebuilding business is becoming ever more capital intensive and inevitably over time returns on capital employed will fall,' it added. This was a reference to a new bill before the House of Commons, which chairman Charles Gallagher said would make the planning process longer and mean less certainty.
Looking ahead, Abbey said it is in good shape and is confident of a solid second half performance.
Abbey shares had jumped 10 cent to stand at €4.98 in Dublin in early afternoon trade.
