House builders McInerney Holdings has reported pre-tax losses of €25m, before exceptional items, for the year ended December 2009. This compares with pre-tax losses of €47m in 2008 and the company said that it would be paying no dividend for 2009.
Revenues fell to €149m from €301m and the group said that it carried out a further review of the value of its assets in 2009. To this end an impairment charge of €156m was taken with the first-half results in August of last year.
To date, McInerney said that it has written down its Irish landbank by 50% and its UK landbank by almost 40% since the middle of 2008. It said this is a 'prudent measure' and assumes that current trading prices and sales volumes continue for the sales life of the landbank in both markets.
Last year, the group said it built 744 housing units in Ireland and the UK compared with 1,352 in 2008 as the housing industry in both markets were both severely impacted by lack of mortgage availability and poor consumer sentiment.
It built just 131 private homes in Ireland last year compared to 296 in 2008 and said that prices have fallen considerably. However, it said that these low prices are attracting interest and this is starting to translate into positive demand for good housing at keen prices in key locations.
McInerney built 582 housing units in the UK last year, down from the 750 completions in 2008. It said the selling season in the UK is showing some signs of improvement and the group is seeing demand for its social housing units increase.
The company said that credit approval has been received for revised banking arrangements for its Irish housing business.
Shares in the group closed 2.8% lower at 17 cent in Dublin this evening.
