Housebuilder Abbey has reported a dip in pre-tax profits for the six months to the end of October 2005. Pre-tax profits for the six month period fell to €22.32m from €26.12m the same time the previous year.
Abbey's housebuilding division completed 330 sales in the six months, 194 in the UK and 136 in Ireland. This generated a turnover of €86.53m.
The company said that its margins have continued to be eroded as higher margin projects are gradually replaced with more recent lower margin schemes. An interim dividend of 12 cent a share has been declared.
Abbey said the Irish market continues to be firm and it expects a good performance in Ireland over the next few months. However, the housing market in southern England remains 'challenging', but the company said that it has seen some slight improvement towards the end of the calendar year.
As last year, the housing division is on course for more sales in the second half of the year. However, the company said the final outcome will likely turn on the level of UK sales in the last quarter. During the first half of the year, contracts were exchanged for the purchase of over 400 plots subject to the granting of planning permission.
In Prague, a planning permit was granted for 95 plots at the company's site at Slivenec. Further lands beside to the site and zoned for development are now under contract and should allow another 32 units in due course.
M&J Engineers, the company's UK plant hire business, generated operating profits of €927,000 on turnover of 10.35m. Abbey said that cash generation from the division continues to be 'reliable'.
Abbey's Irish operating companies relocated their offices from Dublin to a purpose built site in Clonee, Co Meath. Some surplus offices and retail pace are being let to third party tenants and rents will total about €200,000 a year.
'Overall the group is trading steadily and the board is hopeful of a satisfactory outcome for the year,' commented Chairman Charles Gallagher.
Abbey shares closed down 20 cent to €10.30 in Dublin.
