McInerney Holdings told shareholders at its AGM today that it believes affordability for first time house buyers here has returned to 1996 levels.
In an interim management statement, the company said its output in Ireland fell to a historic low of 131 units last year as people put off home buying decisions. However, it said that it expects to see a modest improvement this year.
It also said that it is seeing some signs of improvement in the UK housing market since late last year and progress is expected to be slow. However, it has some 'significant progress' on the social housing front in the UK, were unit output will double this year.
Shareholders were told that while there are some signs of improvement in its main markets, the board has concluded that the best way it could capitalise on recovery was through a full strategic review. This would include raising new capital and a restructuring of the group's current financial commitments.
Goldman Sachs International is advising the company on these matters. The company said it believes that a restructuring or new equity raise is the correct strategy for it to approach and is in the best interests of its shareholders.
'However, there can be no guarantee of success,' the company warned. It added that any such process may involve significant dilution of existing shareholders.
McInerney said it would give a further update when it issues its half yearly results at the end of August, unless there are any material developments before then.
