Business World

Friday 18 October 2019

Profit falls at Abbey amid 'uncertain' outlook

Stock Image: Bloomberg
Stock Image: Bloomberg
Ellie Donnelly

Ellie Donnelly

Pre-tax profits at stock market-listed homebuilder Abbey fell to €53m in the 12 months to 30 April, from €58.6m the previous year.

Looking forwards the group, which is largely focused on the UK, said it is currently trading profitably.

However, a lower UK housing contribution this year will likely “materially impact” overall group profit, Abbey said in its preliminary results.

It added that the outlook continues to be “uncertain”.

Overall, the group said it is in a healthy financial position and will continue to seek out opportunities to build new homes in all its markets.

During the year Abbey’s housebuilding operations completed 579 sales, 511 of which were in the UK, while 36 were in Ireland.

Trading in the UK continued at good levels throughout the period, with sales holding up well supported by the 'Help-to-Buy' programme. 

However, it said margins are falling back from the elevated levels of recent years. 

In Ireland, where stable prices together with rising costs are “a challenging backdrop for the business,” the company said gradual progress is being made towards its goal of boosting activity.

Its next Irish project will launch in Navan in September.

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