House building group McInerney has reported pre-tax profits of €58m for last year, an increase of 16% on the previous year.
It has also announced the acquisition of Lancing Homes, a company which specialises in building affordable homes in the Newcastle and Gateshead areas of north-east England. McInerney will pay just over £16m for the company and will also take on £3m of debt.
It will also raise around €86.8m through a rights issue, under which existing shareholders will be offered one share for every five they hold at a price of €13, a discount to the closing price of €16.75 on Friday. The funds raised will be used for the Lancing deal and to expand McInerney's land bank in the UK.
McInerney's earnings per share for last year rose by 18% to 145.85 cent, while a 20% higher final dividend of 18 cent has been declared.
The company said it completed 2,372 homes, an increase of 18%, with 49% growth in the UK following two acquisitions.
In Ireland, house completions fell slightly to 1,025 but higher prices lifted profits to €51m. 980 homes were built in the UK, where the company made profits of €22m. In Spain, McInerney completed 53 units, making profits of €4m. McInerney said it was optimistic about the coming year, with its Irish and UK divisions well positioned.
McInerney shares closed up 15 cent to €16.90 in Dublin this evening.
