Glenveagh Properties, an Irish home builder, has announced a decrease in its pretax profit for the first half of the year. The decline is primarily attributed to lower urban revenues and higher financial costs. However, the company remains optimistic about its full-year performance.
Financial Overview
- Pretax profit dropped to 1.4 million euros ($1.5 million) during the half-year period, compared to EUR13.0 million in the previous year.
- Revenue also experienced a decline, falling from EUR200.0 million to EUR171.6 million. This decrease was largely driven by a 44% reduction in urban revenue, which amounted to EUR61.9 million.
- Despite the overall decline, suburban revenue saw a positive trend, increasing by 23% to EUR109.7 million. This growth was supported by a 33% rise in suburban completions, reaching a total of 333.
- Earnings per share fell to 0.21 European cents from 1.32 cents.
- Glenveagh Properties maintains its full-year outlook for earnings per share, projecting a range of 7.5-8.0 European cents.
Positive Outlook for Irish Residential Housing Market
The company expresses confidence in the long-term demand outlook for the Irish residential housing market. This belief is based on several factors, including:
- Strong private demand, which is bolstered by a robust economic environment.
- A fast-growing population that contributes to increased housing needs.
- Supportive demand-side initiatives from the government.
Net Debt Projection
By the end of the year, Glenveagh Properties anticipates its net debt to reach approximately 10%-15% of net assets.
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