Monday 23 October 2017

Abbey's pre-tax profit of €12.1m

Peter Flanagan

Peter Flanagan

Housebuilder Abbey yesterday reported profits before tax for the full year of €12.1m against €11.5m in the previous year. After a tax charge of €3.2m the group made a profit of €8.9m, which was reflected in earnings per share of 39.94 cents.

The company has operations in Ireland, the UK and the Czech Republic.

It said the results include an impairment charge of €1.3m against property land and work in progress in the difficult Irish market.

The housebuilding business (turnover €57.8m) is doing reasonably well in the UK, completing 255 sales out of a group total of 310. The problems for the firm are here and in the Czech Republic.

In Ireland, Abbey says it has managed to clear a lot of its inventory. Land and work in progress now represent less than €5.4m.

The Czech Republic saw just 18 sales in the course of the year and is described as "struggling", with rising planning and legal costs pushing the operation there into a loss.

In both Ireland and Prague, Abbey is being forced to rent some of its properties to generate cash flow.

Irish Independent

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