Business Irish

Thursday 17 August 2017

Abbey reports rise in profits as it expects 'jump in activity' in Ireland next year

Abbey's UK housebuilding business saw an operating profit of €53.9m in the year
Abbey's UK housebuilding business saw an operating profit of €53.9m in the year

Ellie Donnelly

Housebuilder Abbey has reported pre-tax profit for the year of €63.5m, driven by steady home sales and a strong margin in the UK.

Operating profits for the year ended 30 April 2017 were €60.8m, unchanged from the previous year, according to the groups preliminary statement for the year.

The UK housebuilding business saw an operating profit of €53.9m in the year, helped by a very strong margin of 31pc.

In Ireland the construction group, which is listed on both the Dublin and London stock exchanges, saw an operating profit of €2.1m for the year, however, included in this was a €1.5m currency charge.

The company said that it expected to see a "jump in activity" in Ireland next year as projects in Dublin and Meath contribute to its sales.

Read more: Strong performance from Grafton Group in the first six months of 2017

The company also said that the 'Help to Buy' scheme in Ireland had significantly boosted confidence and was speeding up the recovery in activity in the wider Dublin area.

"This should in due course help ease the widely reported housing shortage in Dublin," a spokesperson for the company said.

In Czechia operating profit was €1.2m.

The company has reported another strong year-end balance sheet, with net cash of €95.1m at 30 April, however this is down from the €104.9m seen at April 2016.

The year-end net asset value was €14.33 per share, up from €13.07 per share last year.

The Board said that it would recommend a dividend of 9 cents per share for approval at the AGM.

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