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Glenveagh Properties PLC on Wednesday reported a large increase in revenue and profit in its interim results.
The Dublin-based housebuilder announced a pretax profit of €13.0 million in the six months to June 30, more than tripled from the €4.3 million in the same period last year.
Revenue grew 57% to €200 million from €127.5 million last year. The company completed 257 suburban units, compared to 197 last year, and secured the ‘significant monetisation’ of urban assets, for example the €63 million sale of its high-rise apartment site at East Road in Dublin.
Glenveagh said it was also ‘on track to deliver over 2,050 units for local authorities focused on social, affordable and cost rental homes’.
Earnings per share multiplied to 1.32 cents from 0.30 cents last year.
However, the company's net debt nearly tripled, widening to €97.5 million from €33.5 million. The company said ‘strong’ anticipated cash generation will result in low levels of net debt at the end of the year.
Looking ahead, the company highlighted its forward order book, which totals €989.8 million but also drew attention to the ‘significant inflationary environment’.
The materials element of Glenveagh's cost base has seen over 10% price inflation. The company said ‘our scale advantages, our long-term commitment to local supply chain partners and our manufacturing capabilities, has allowed us to manage our overall cost price inflation to approximately 8% to 9%.’
The impact on Glenveagh's margin is expected to be neutral, given levels of house price inflation. Gross margin narrowed to 16.5% this year from 16.8% last year.
Chief Executive Officer Stephen Garvey said: ‘We're dealing effectively with the challenges of disrupted supply chains, a volatile cost environment, and a planning system that's contributing to the supply shortage rather than alleviating it.
‘Looking ahead, while the government's first home and help to buy schemes will provide much-needed support for homebuyers, they won't be enough to solve Ireland's accommodation crisis if planning policy and the planning system do not get the reform they need so urgently’, he continued.
Shares in Glenveagh were untraded in London on Wednesday but closed at €1.05.
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