House builders McInerney Holdings has reported pre-tax profits of €11m for the six months to the end of June, down from €16.6m the same time last year. The company said this was due to a change in the pattern of site starts and certain once off factors including the disposal of the Eyre Square Centre in Galway.
Group turnover for the six months rose by 8.2% to €171.2m. Basic earnings per share were 27.68 cent, compared to 43.90 cent the same time last year.
The group said it had previously indicated that profit performance and earnings growth will be weighted towards the second half of 2005 and this has been supported by high sales levels since Spring.
It said that demand is robust across all of the group's markets - Ireland, the UK and Spain. Both the Irish and UK housing businesses are significantly forward sold for the latter part of the year. 'The Group anticipate a strong overall result for the full year and to enter 2006 well positioned,' it said.
In its Irish housing business, McInerney Holdings said that the performance of the first six months of the year was 'solid' with margins remaining strong. 483 housing units were completed in the period, compared to 574 for the same time in 2004. The reduction was mainly due to the timing of site starts. The company said it expects over 1,100 units to be completed in the full year.
The company said its commercial division reported a significantly strong performance in the first half of the year. It sold 6,723 square metres of industrial unites compared to 3,800 square metres the same time last year. Its industrial sites - Ballycollin, Hibernian and Newtownmountkennedy - have experienced high demand and Hibernian is fully sold.
The group's UK housing division continues to expand with 142 units completed in the first six months. Strong sales since March indicate a completion level of about 700 units by the end of the year. This compares with 500 units in 2004. 'While marginally below our original ambitious target of 2005, it will represent growth of about 40%,' the company said.
In the UK, the group's commercial operation is also showing significant expansion. A business development of 7,400 square metres has just been launched in Croydon, while the company's site at Chesham is currently in planning for 10,200 square metres.
The group's Spanish operations recorded a strong result for the first half of the year and an 'excellent' second half in also anticipated. The freehold division completed eight units in the first six months, with a total of 60 expected by the end of the year. This compares to 13 for the whole of 2004.
McInerney Holdings said that demand in its key markets continues to be positive. 'The Irish market remains buoyant and continued strong demand is anticipated over the medium term, supported by demographic factors,' the company said. It added that it is well positioned in the UK to capitalise on pent-up demand and expansion opportunities within its expanded geographic regions and said it expects its UK house building operations to be of similar size to the Irish operation the near term.
'The strong sales performance in the first half confirms that a large percentage of revenue earnings and profit recognition will be achieved in the second half of the year. The group anticipates another strong result for the full year of 2005,' commented McInerney Chairman Ned Sullivan.
Shares in the company closed down five cent at €8.40 in Dublin.
