House builder Abbey has reported pre-tax profits of €5.55m for the six months to the end of October. This compares to profits of €3.6m the same time last year.
Revenues for the six month period fell to €36.76m from €41.67m last year and the company warned that the outlook is quite 'bleak'. It said the limited availability of mortgage finance in all of its markets in Ireland, the UK and the Czech Republic, continues to depress house prices.
The company said its housebuilding division completed just 33 houses in Ireland in the six-month period, while it built 131 in the UK and eight in Prague.
Abbey said that trading in the UK was 'satisfactory' and Abbey said its second half outlook is more than usually dependent on a strong performance in the last year. Prices have fallen slightly in recent months.
The company said that steady progress continues to be made despite the difficult market conditions in Ireland. The last phase of its successful site in Kilcoole, Co Wicklow has now started. Sales in Prague continue to be very slow, Abbey added.
'Overall conditions continue to be very testing in all our markets,' the company stated.
Its UK plant hire business, M&J Engineers, saw an 'encouraging turnaround' from last year. Abbey said its general business environment continues to be difficult but it hopes to build on recent progress.
The group holds €44.8m in cash along with €55.27m in UK government debt by the end of October. It said it wants to invest a significant amount of these funds in new development sites 'as circumstances allow'. During the six months, 255 plots with planning permission were bought.
'The outlook for the foreseeable future is quite bleak,' commented Abbey Chairman Charles Gallagher. 'The group is, however, trading profitably and in due course a cyclical recovery will take hold. The group's strong financial position allows us to approach the future with confidence,' he added.
