House builder McInerney has reported pre-tax losses of €206.5m for last year, after a profit of €58m in 2007. The company has been badly hit by the slump in the Irish and UK housing markets. It has also warned of an uncertain future if conditions worsen.
The company reported a trading loss of €47m, but it also took a hit of €82.5m linked to the lower value of its land. There were also almost €10m in restructuring costs, and a writedown of almost €40m in the value of its UK acquisitions.
The company completed 1,359 homes last year, down from 2,414 in 2007. It said sales in the early months of this year continued to be slow, though it saw falling house prices and lower interest rates as having a positive impact in the medium term.
McInerney has negotiated new lending agreements with its bankers in Ireland and the UK to reflect the tougher market conditions. But it has warned of a risk that it could breach these agreement if conditions deteriorated further, saying this could cast doubt on its ability to continue in business.
Mcinerney added that talks with banks were continuing, and it was confident that changes in its lending arrangements could be agreed if necessary.
Shares in the company closed 5% lower at nine cent in Dublin this evening.
