Glenveagh revenue falls by 13% in H1
Irish housebuilder Glenveagh saw a 13% fall in revenue for the six months ended 30 June, the company said in a trading update.
Revenue fell to €150m (£127m) from €172m in the same period last year. Glenveagh said its suburban completions – of 294 homes, down from 333 last year – were impacted by the scheduling of closings, which are now occurring early in the third quarter.
The company is expecting its suburban gross margin to be in excess of 20% in its 2024 financial year, compared with an underlying margin of 19.3% in 2023. The margin will be “driven by our enlarged scale, increased standardisation of product and processes, and continued integration of manufacturing”, Glenveagh stated.
Irish housebuilder Glenveagh saw a 13% fall in revenue for the six months ended 30 June, the company said in a trading update.
Revenue fell to €150m (£127m) from €172m in the same period last year. Glenveagh said its suburban completions – of 294 homes, down from 333 last year – were impacted by the scheduling of closings, which are now occurring early in the third quarter.
The company is expecting its suburban gross margin to be in excess of 20% in its 2024 financial year, compared with an underlying margin of 19.3% in 2023. The margin will be “driven by our enlarged scale, increased standardisation of product and processes, and continued integration of manufacturing”, Glenveagh stated.
However, its partnerships segment revenue was in line with expectations. The housebuilder’s partnership sites comprise more than 2,000 homes, with revenue and profit set to accelerate in H2 owing to strong construction progress.
It has a third partnerships contract subject to final legal agreement and is in “advanced negotiations” on a fourth agreement, which combined will add approximately 1,000 homes to its partnerships pipeline.
Glenveagh also received planning permission for around 1,300 homes in H1 with more than 95% of the homes targeted for completion in its 2025 financial year.
Glenveagh chief executive Stephen Garvey said: “The targeted industry initiatives implemented by the [Irish] government via Housing for All have provided much momentum to new home output across the market, delivering approximately 35,000 homes per annum and strong commencement growth in 2024.
“Yet, as we continue to scale up our activities and deliver more homes at pace, it is more important than ever that we build on the initiatives already in place and implement the structures required for the market to deliver more than 50,000 homes per annum. We know the enormous potential there is for advancing quality housing delivery through collaborative state and private sector projects, working in tandem with shared objectives, and the collective deployment of resources and capital.”
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