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Home builder Glenveagh sees sales and profits jump in first half of 2022

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Glenveagh CEO Stephen Garvey. Photograph: Chris Bellew/ Fennell Photography

Glenveagh CEO Stephen Garvey. Photograph: Chris Bellew/ Fennell Photography

Glenveagh CEO Stephen Garvey. Photograph: Chris Bellew/ Fennell Photography

Irish listed home builder Glenveagh Properties saw its revenue and profits jump in the first half of the year as demand for housing soars.

Core revenue rose to €200m in the six months to June this year. This marked a rise of 57pc from the same period last year.

Profit before tax increased to €13m, up 202pc from the first half of 2021.

The company reported that all 1,400 suburban units capable of closing in 2022 are now closed or are currently in contract.

Glenveagh now has a forward order book of €588.1m for 1,831 suburban units.

The urban business has also generated over €310m of total revenue to date this year across four projects.

Overall, the company’s total forward order book totals €989.8m.

Glenveagh also reported that it is on track to deliver over 2,050 units for local authorities, with planning lodgements for two sites expected before the end of the year.

The home builder also commenced construction on five further sites in the first half, bringing the total number of active sites to 23.

These sites are capable of delivering over 4,500 units.

The company also added four sites to its land bank in the first half for a total consideration of €15.7m.

Input cost inflation rose to 8pc to 9pc in the first half, with the company describing inflation as having a “broadly neutral” impact on its margin. Glenveagh said it made the decision to support its existing long term supply chain partners at this time.

Gross margin was 16.5pc for the period, down from 16.8c at the same time last year.

“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,” said chief executive Stephen Garvey.

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Mr Garvey also called on the Government to take action as demand shows no sign of slowing.

“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.


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