Profit plummets at Irish housebuilder
Profit slumped at Irish housebuilder Glenveagh Properties during the pandemic, although the company’s chief executive nonetheless hailed a “robust outcome” in terms of delivery.
Glenveagh completed 700 units last year, down 17% year-on-year. This year the company expects to complete 1,150 homes.
Revenue was down by a fifth at €232m (£202m), and the company posted an operating loss of €12.7m. The business took a one-off impairment charge of €20.3m as it sped up the sale of non-core units. Excluding that charge, underlying pretax profit was €4.5m, a drop of 83%.
Profit slumped at Irish housebuilder Glenveagh Properties during the pandemic, although the company’s chief executive nonetheless hailed a “robust outcome” in terms of delivery.
Glenveagh completed 700 units last year, down 17% year-on-year. This year the company expects to complete 1,150 homes.
Revenue was down by a fifth at €232m (£202m), and the company posted an operating loss of €12.7m. The business took a one-off impairment charge of €20.3m as it sped up the sale of non-core units. Excluding that charge, underlying pretax profit was €4.5m, a drop of 83%.
Customer leads soared in the second half of the year, the company said, and its forward sales are strong. Work in progress is valued at €202m, up by 17% year-on-year.
Chief executive Stephen Garvey said: “I believe that the current challenges have broadened the long-term opportunity for the group, with the fall-off in land transactions and commencement activity within the industry in 2020 a signal of the continuing gap between supply and demand.
“Our well capitalised platform, which delivers across three business segments with access and affordability at the heart of our offering, is best placed to help address this undersupply. And our ambition remains to scale the business to 3,000 units by 2024.”
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