Abbey plc: New Homes, Property Developers, Construction, Builders

INTERIM REPORT

ABBEY PLC
INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 OCTOBER 2017

The Board of Abbey plc reports a profit before taxation of €23.42m which compares with a profit of €21.76m for the corresponding period last year. Profits at the operating level were €23.42m as compared to €21.56m at the half way stage last year.

Our housebuilding division completed 237 sales (UK 201; Ireland 32; Czech Republic 4) with a turnover of €79.65m resulting in an operating profit of €21.33m. Trading in the UK was steady throughout the period. Margins continue to be maintained at good levels. Forward sales are satisfactory and give reasonable cause for optimism for the remainder of the year. For the time being production seems likely to be the critical factor determining the final result. In Ireland progress is being made in ramping up production and a better outcome than for some years is in prospect. Our projects in Ratoath and Delgany are nearing completion and our recent launch in Cornelscourt was very encouraging. Our new project in Dunshauglin will come to the market in the Spring. Further projects are being strongly pursued. In Prague the first phase of Prezlitice and Tetinska are progressing towards building completion. During this period the UK housing division acquired 228 plots and in Ireland we acquired 46 plots.

M & J Engineers, our UK plant hire business, generated operating profits of €1.66m on a turnover of €10.33m. Recent good progress has continued into the Autumn.

Rental income for the period amounted to €436,000.

The Group maintained good cash flow during the period and held €88.90m in cash at the end of October.

The Board is pleased to declare a dividend of 8 cents per share which together with the 9 cents approved at the Annual General Meeting in October will make a total of 17 cents for the financial year. The dividend will be paid on 30 April 2018 to shareholders on the register at 3 April 2018.

Shareholders should carefully note the exchange rates used for this statement. The income statement uses the average rate for the period of 100 cents: STG 88.60 and 100 cents: CZK 26.14 The balance sheet uses the rate prevailing on 31 October 2017 of 100 cents: STG 87.72 and 100 cents: CZK 25.65.

Trading is continuing at good levels and a satisfactory result for the year is in prospect. The recent rise in interest rates in the UK together with moderate economic growth naturally tempers the outlook in the medium term. The uncertainty and dislocation associated with Brexit may impact both Britain and Ireland. Overall however the group supported by a strong balance sheet continues to plan for growth.

Copies of this statement are available to shareholders and members of the public at the company’s registered office, 25\28 North Wall Quay, Dublin 1.

On behalf of the Board
Charles H Gallagher – Chairman
8th December 2017

The Interim Results for the six months ended 31 October 2017 can be accessed by clicking on the following link:
Abbey plc interim 31.10.2017