Builders Abbey buck trend with increased profits

Builders Abbey buck trend with increased profits

The building trade might be going through a difficult time at present but one homebuilder is bucking the trend after Abbey reported pretax profits of €12.1 million for the year to end of April 2012 – an increase of €600,000 on the previous year.

The company, which operates in Ireland, the UK and the Czech Republic, said the results would include an impairment charge of €1.3 million against property, land and work in progress from the continuing difficult Irish market.

Abbey said they completed 310 sales last year – 255 in the UK, 37 in Ireland and 18 in the Czech Republic, which generated turnover of €57.8 million.

Abbey said that significant progress has been made in clearing inventory in Ireland with its project in Kilcoole in Co Wicklow selling ”steadily”. But the lack of mortgages at its site in Laois has meant that it has chosen to rent a significant number of properties pending their sale.

Rising legal and planning costs have pushed the company’s operations in Prague into a loss and the company has resorted to renting some properties pending their sale.

Abbey chairman Charles Gallagher said that the outlook for the year ahead is for significant growth in turnover as the UK business responds to increased investment.

”Increased turnover, however, is unlikely to be matched by a similar increase in profits as margins are traded to secure some sales growth,” he added.

”Competition for profitable land opportunities is intense. The external environment remains very uncertain and further setbacks can not be discounted, however, all things being equal, the group’s plans are on track,” he said.

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