Homebuilder Glenveagh Properties said it has completed over 800 units of the 2,700 full year target in the first half of 2024, up from 333 the same time last year.
Announcing its results for the six months to the end of June, Glenveagh said its revenue fell by 11% to €152.2m from €171.6 the same time last year.
Glenveagh said its profit before tax dropped by 29% to €1m from €1.4m, while earnings per share for the six month period fell by 43% to 12 cent from 21 cent in the first half of 2023.
The group reported suburban revenue of €102.2m, down 6.8% from the same time last year. A total of 294 suburban units were closed in the period, down from 333 last year with completions impacted by the scheduling of closings which have now accelerated in the third quarter.
Glenveagh said its Average Selling Price was about €329,000, up from €324,000 in the first half of last year, which it said reflected underlying house price inflation and changes in its product and site mix.
It also said that the construction sector continued to face some inflationary pressures across its raw material and labour costs base, though at a lesser level than experienced in 2022 and 2023.
The company noted that underlying market demand for new homes remains very strong, driven by a robust economic environment, population growth and a range of supportive demand-side initiatives from the Government.
The group said it delivered about half of its suburban units as part of these Government support initiatives to provide social, cost rental and affordable housing.
It said the First Home Scheme, a €480m fund set up as part of the Government's Housing for All strategy, continues to progress well since its launch in July 2022. The scheme helps first-time buyers, a key target market for Glenveagh, to bridge the gap between their mortgage, deposit and the price of a new home, providing up to 30% of the price of the home.
Alongside the Government's Help To Buy Scheme and the Central Bank's changes to macroprudential rules in early 2023, first-time buyers have enhanced access to new housing developments and improved affordability, it added.
Meanwhile, Glenveagh reported urban revenue was €17.7m, down from €61.9m last year, with the fall mainly due to the completion of two of its contracted forward fund projects, Citywest and Castleknock, where approximately 90% of revenue had already been recognised in prior periods.
These two projects delivered 510 units in the six month period and Glenveagh said that several other projects are underway or are in the final stages of talks, including its Cluain Mhuire project, its
Brownsbarn development, its Tyrellstown site, its Cork Docklands site and its Blackrock in Cork site.
Glenveagh Properties also said today that Michael Rice is stepping down from his role as Executive Director and Chief Financial Officer of Glenveagh to pursue other interests.
Mr Rice will step down from the Board at the end of December, but will remain with Glenveagh into 2025 to ensure a smooth transition.
Michael will be succeeded in the role of CFO by Conor Murtagh, who is currently Chief Strategy Officer and a member of the Group’s Executive Committee.
CEO Stephen Garvey said the business remains on a solid trajectory in 2024, achieving significant milestones across all three business segments.
"We are on track to deliver on our target of 2,700 homes this year, a critical objective in our role in the sector responding to Ireland's housing needs," the CEO said.
"We welcome the Government's ongoing commitment to driving housing completions forward through targeted initiatives that enhance viability, and improvements in the planning system. The momentum we've seen in new home commencements and the growing output across the industry are promising indicators that Ireland can achieve the necessary increase in housing supply," he said.
"Yet, as we aim to scale our activities further, collaboration between the public and private sectors remains key. It is crucial that we build upon the foundations laid by current initiatives to reach the next phase of output growth - delivering over 50,000 units per annum," he said.
"We are confident that with continued targeted policy measures and strategic partnerships involving both capital and land between the public and private sectors, we will not only meet but exceed the
housing targets necessary to respond to the housing needs of Ireland’s growing population and to bolster and sustain ongoing economic successes," he added.
Shares in the company moved higher in Dublin trade today.
