Home builder Glenveagh Properties has reported revenue growth of 36% for 2022, driven by its suburban business segment.
Revenue for the year reached €649m, up from €477m in 2022.
In a trading update for the year to the end of December, Glenveagh said it sold 1,354 suburban units.
This was up 50% on the 902 units closed in 2021 and 90% ahead of the 712 suburban units closed in 2019.
Its operating profit was about €70m, up from €50.6m in 2021, while the company's earnings per share rose to 7.6 cent from 4.5 cents.
Glenveagh noted that inflation across materials and labour remained elevated throughout the year and consumer price inflation was 8-9% for the year.
"We continue to work in close collaboration with our supply chain partners to secure sustainable, competitive pricing, while maintaining the security of supply," the company said.
"In addition, we have further developed our own supply chain capabilities to give us greater control over input costs and mitigate the effects of the inflationary environment," it added.
Glenveagh's chief executive Stephen Garvey said the strong underlying demand in the Irish market continues to be driven by a combination of a robust economic environment, a fast-growing population and increasing levels of inward migration.
"This is putting further pressure on what is an already undersupplied housing market. Addressing this significant undersupply continues to be obstructed by dysfunctional planning policy," the CEO said.
"The Government's demand-side initiatives have been supportive most notably for first time buyers. The increased recent focus on planning system reform is also to be welcomed and is an important first step to alleviate near-term planning gridlock," Stephen Garvey said.
"However, we would now strongly encourage that planning policy reform is expedited to solve the longer term structural supply issues the sector faces," he added.
Glenveagh reported suburban revenue of €454m, mainly made up of 1,354 unit sales. The suburban average selling price (ASP) was about €330,000, up from €308,000 in 2021.
ASP increased by 7% as a result of portfolio mix and house price inflation in the year, it added.
The company said it finished the year with 408 suburban units contracted or reserved for 2023.
It noted that forward sales rates are lower than previous years.
But it said this is being "actively managed" to benefit from strong underlying market demand that is further supported by updated Housing for All initiatives and the change to the Central Bank's macroprudential rules that both became effective this month.
Glenveagh said it made significant progress in the monetisation of its urban land portfolio during the year.
The four projects signed - East Road, Barn Oaks, Castleknock and Cluain Mhuire - are expected to generate over €310m of total revenue.
Looking ahead, the group said it has a very healthy land portfolio and continues to have strong confidence in its capacity to achieve its 2,000 suburban unit target, as well as the continued delivery of urban projects and first revenue from its developing Partnerships business for 2024.
"We will also continue to focus on generating greater balance sheet efficiency which supports our confidence in achieving a Return on Equity of 15% by 2024," the company added.
Shares in the company saw big losses in Dublin trade today.
