House builder Abbey has reported pre-tax profits of €22.58m for the six months to the end of October, up marginally from the €22.32m the same time last year. Group turnover for the six months fell slightly from €96.99 million to €96.62m.
Abbey has declared an interim dividend of 12 cents per share.
During the six months, Abbey's housebuilding division completed 339 sales with a turnover of €85.65m, which generated an operating profit of €20.23m. A total of 231 houses were completed in the UK with 108 in Ireland.
Abbey said that the Irish housing market has continued to be firm with prices considerably higher than a year ago. It added that a number of 'significant' new projects are now under construction and will form a good platform for 2007.
Market conditions in England have been steady throughout the six month period with some signs of improving confidence in the recent past, despite rises in interest rates, Abbey added.
Abbey said that its housing division is - as last year - on course for more sales in the second half of the year. It added that the final outcome will critically depend on the last quarter's performance.
The company predicts that margins in the UK will narrow noticeably, while in Ireland there are indications that trading conditions are stabilising after the 'hectic growth' of early 2006. Abbey said this is likely to temper further increases in the future.
It adds that progress at its Prague operations is consistent, if slow, towards putting in place conditions for the a building start next year.
'Overall, the group is trading in line with expectations and the board is hopeful of a satisfactory outcome for the year,' the company said in its results statement today.
Abbey shares fell initially but ended unchanged at €10.60 in Dublin.
