Homebuilder Abbey yesterday reported a slight increase in pretax profit in the first half of the year and said it was on course for more home sales in the second half.
Chairman Charles Gallagher said things are generally busier in the second half of the year and that this financial year was no exception. In the six months to the end of October, Abbey completed 339 sales, marginally ahead of the 331 recorded a year earlier, but behind analysts' expectations.
Of the 339, 231 were in the UK - an increase on the year-earlier period, while in Ireland sales fell to 108. Mr Gallagher said he expects sales in Ireland to increase in the second half, while margins in the UK will come under increasing pressure.
The average selling price during the period was €278,000 in Ireland, substantially ahead of the year-earlier period and analysts' expectations, while in England it stood at £164,000 (€242,717). Mr Gallagher said he expects price growth to slow in Ireland as conditions stabilise following the hectic growth seen at the start of the year.
In the long run, the Irish market will become a more significant player for the group than the UK, he said.
Pretax profit in the period was €22.6 million, compared with €22.3 million. Total turnover, including revenue from the group's plant hire business and rental income, was largely flat at €96.6 million. It will pay an interim dividend of 12 cent. "Overall, the group is trading in line with expectations and the board is hopeful of a satisfactory outcome for the year," said Mr Gallagher.
NCB analyst Cillian McNally described the figures as a solid set of results with few surprises, but the market was not inspired. The shares closed unchanged at €10.60 after falling almost 1 per cent earlier in the day. Only 56,500 units traded.
M&J Engineers, Abbey's UK plant hire business, recorded operating profits of €1.22 million and turnover of €10.75 million. Rental income was €231,000.
Mr Gallagher said he welcomed the increase in mortgage interest relief announced in this week's Budget, saying it should help to offset the effects of higher interest rates.
The results come just a day after the European Central Bank raised interest rates for the sixth time in just over a year.
