Abbey stoic in face of Brexit as profits increase 8%
Irish housebuilding group Abbey has said it remains upbeat about its prospects after reporting a near 8% annualised rise in profits for the first half of its financial year.
The Meath-based company said pre-tax profits for the six months to the end of October amounted to €23.42m; up from a profit of €21.76m for the corresponding period last year. Group revenue was up by 2.4%, year-on-year, at €90.4m.
The company completed 237 house sales in the period — 201 in the UK, 32 in Ireland and four in the Czech Republic. It said trading in the UK has been “steady” while progress is being made in Ireland, with two projects nearing completion, another just launched and one coming to market in the spring. The company added that further residential building projects are being “strongly pursued”.
Chairman Charles Gallagher said that management still expects a “satisfactory” result for the full year, but warned that the recent rise in interest rates in the UK and only moderate economic growth “naturally tempers” the company’s medium-term outlook.
“The uncertainty and dislocation associated with Brexit may impact both Britain and Ireland. Overall, however, the group — supported by a strong balance sheet — continues to plan for growth,” Mr Gallagher said.
Meanwhile, M&J Engineers — Abbey’s UK-based plant hire business — generated operating profits of €1.66m on a turnover of €10.33m in the first half.
