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Home reservations continue at Glenveagh Properties despite site shutdowns

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Work is scheduled to resume on around 80pc of the group's construction sites from May 18

Work is scheduled to resume on around 80pc of the group's construction sites from May 18

Work is scheduled to resume on around 80pc of the group's construction sites from May 18

Listed house builder Glenveagh Properties has said people are continuing to reserve homes at its developments despite its sites and showhouse villages remaining closed.

In March the company closed its construction sites in line with Government guidelines aimed at limiting the spread of Covid-19.

So far this year the company - which is largely focused on the Greater Dublin Area - has sold, signed or reserved at total of 570 homes, according to a trading update.

Just under 100 of these property deals have been agreed since 26 February, as the company’s sales team continue to facilitate interactive virtual tours of its developments.

Given the current restrictions on movement and work that are in place, Glenveagh said both its revenues and gross profit will be heavily weighted towards the second half of this year.

It continues to suspend all forward financial guidance until the impact of the global pandemic on the company becomes clearer.

Work is scheduled to resume on around 80pc of the group's construction sites from 18 May, however it will be on a phased basis.

The company will initially focus on completing units that are signed or reserved and are capable of being completed within a short timeframe.

Meanwhile, in order to manage costs Glenveagh has implemented temporary lay-offs and furlough arrangements, which will continue to be utilised “where necessary and appropriate.”

It has also introduced temporary salary and pension reductions for all employees until the end of June.

Land purchases by Glenveagh remain on hold and the group has postponed non-essential capital expenditure.

Glenveagh has current cash resources and available committed facilities totalling €81m, with a further €125m of uncommitted facilities.

Stephen Garvey, CEO of Glenveagh Properties, said: “Despite the suspension of much of our activities during recent weeks we continued to add to our strong order book highlighting the attractiveness of the group's product offering.”

“Our confidence in the future of our business is driving us to take the right actions to protect our performance, deliver positive cash flows and ensure we are well placed for a recovery, underpinned by our strong balance sheet,” he added.

Online Editors