HOUSEBUILDER and property group, Abbey, is looking for further growth following the 18.7 per cent rise in pre tax profit from £3 million to £3.56 million in the six months to October 31st, 1996.

The outlook for all its activities was "encouraging" said chairman Mr Charles Gallagher. Growth was expected to continue in Britain, where most of its business was generated, and in Ireland where it built 67 houses in the first half.

There has been a "lot of good business since Christmas", in keeping with the return of confidence in Britain, he said. However, the general election "might be disruptive" as it could delay decisions on house purchases.

Nevertheless, Abbey expects to complete 200 house sales in Britain during the second six months, the same level as in the first half. In Ireland, however, it could sell around 100 in the second hall, representing strong growth on the first half.

Mr Gallagher noted that Abbey has 750 plots in Greystones and the group could sell between 200 and 250, in the "Dublin commuter belt" next year.

Group sales grew by 28.8 per cent from £22.4 million to £28.9 million. Reflecting the strong financial position, interest receipts rose from £200,000 to £290,000. It has £15.2 million cash.

Earnings per share grew from 5.19p to 6.16p. The interim dividend is being raised by 4.76 per cent to 2.2p.

Despite the good results, group profit margins slipped from 13.4 per cent to 12.3 per cent. Mr Gallagher noted that margins had been falling last year but were now improving.

A breakdown of group turnover shows a rise in sales in building and property development from £16.8 million to £23.8 million but a contraction in plant hire turnover from £5.29 million to £4.75 million. Property rental was virtually static at £300,000.

Housebuilding generated an operating profit of £2.8 million in the first half. All the group developments in Ireland are said to have traded well. This market "continues to be good" and targets for the full year are expected to be achieved.

The group's British plant hire operated by M & J Engineers, traded profitably in what is described as a "tough market". Although turnover fell, it generated an operating profit of £170,000. Mr Gallagher said medium term prospects were now brighter. He reiterated that the group considered M & J to be an integral parts of the group's business.