Homebuilder Glenveagh Properties has today reported a big jump in revenues and profits for the six months to the end of June as it said its pipeline remained strong.
Revenues for the six month period rose by 57% to €200m from €127.5m the same time last year while its profit before tax soared by 202% to €13m from €4.3m last year when Covid curbs were still in effect.
The company said its earnings per share jumped by 340% to €1.32 from €0.30 last year.
Glenveagh also said it continued to see a strong operational performance with suburban completions up 31% to 257 from 197 last year.
It noted that all its 1,400 suburban units capable of closing in 2022 are now closed or in contract.
The company said its medium-term pipeline of home delivery across all business segments were supported by five construction site openings in the first half of the year.
23 construction sites are now active, up from 18 sites at the end of 2021. These sites are capable of delivering over 4,500 units, with four "attractive" sites added to the landbank during the six month period for a total consideration of €15.7m.
The homebuilder also said its partnership's business is on track to deliver over 2,050 units for local authorities focused on social, affordable and cost rental homes.
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Panning lodgements for both Oscar Traynor Road and Ballymastone are expected in the second half of 2022, it added.
It said that despite the near-term challenges of rising inflation and material availability, the group is confident of delivering earnings per share of between 7.5 cent to 8.5 cent.
Glenveagh said the suburban average selling price for the six month period was €332,000, up from €298,000 the same time last year.
It noted that the increase was driven by both the change in product and site mix and house price inflation.
It added that the average selling price for the full year is expected to decrease to about €320,000 as the product mix for the full year is more reflective of its wider more affordable product.
Stephen Garvey, Glenveagh's CEO, said the company was continuing to grow and scale othe business successfully, while innovating and investing in sustainable manufacturing technology that will deliver the homes of the future that Ireland needs.
"We're dealing effectively with the challenges of disrupted supply chains, a volatile cost environment, and a planning system that’s contributing to the supply shortage rather than alleviating it," Mr Garvey said.
"Looking ahead, while the Government’s First Home and Help to Buy schemes will provide much-needed support for homebuyers, they won’t be enough to solve Ireland’s accommodation crisis if planning policy and the planning system do not get the reform they need so urgently," he added.
Shares in the company were lower in Dublin trade today.
