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

Preliminary Statement for the year ended 30 April 2019

Preliminary Statement for the year ended 30 April 2019

The Group reports a profit of €53.0 million before taxation against a profit of €58.6 million in the previous year. After a tax charge of €9.8 million the Group made a profit of €43.2 million reflecting earnings per share of 201.48 cents. Group operating profits during the year were €53.0 million against €58.5 million the previous year.
Dividends of 119 cents per share absorbing €25.5 million were paid during the year.

Our housebuilding operations completed 579 sales (UK 511; Ireland 36, CZK 32) with a turnover of €209.1 million generating an operating profit of €48.0 million. Trading in the UK continued at good levels throughout the period. Sales held up well supported by the ‘Help to Buy’ programme. Margins are falling back from the elevated levels of recent years. The Forward order book is good. Production has been satisfactory however costs, including regulatory costs, sub-contract labour and materials have risen steadily. The UK landbank closed this year just short of 2,000 plots. In recent months we have experienced a disappointing succession of planning decisions that have delayed the start of a number of new projects. As a result UK turnover is expected to fall this year. Lower turnover together with lower margins will reduce the division’s contribution to Group results.

In Ireland gradual progress is being made towards our goal of boosting activity. Sales in Dunshaughlin and Cabinteely have gone well over the last 6 months. Our next project in Navan will launch in September. Together these projects will ensure a significant jump in output this year. Further projects are being actively pursued. Stable prices together with rising costs are a challenging backdrop for the business.

In Czechia our project in Přezletice has gone well. Our large apartment scheme in Horomeřice is now under construction and the first forward sales have been achieved.

At the year end the Group owned and controlled land allocated for housing development for the supply of 2

,924 plots.

M & J reported operating profits of €3.6 million on a turnover of €20.5 million. Trading was consistent throughout the period. The fleet has been maintained to a high standard and further significant investment in new equipment was made during the year. Market conditions are intensely competitive. Over recent weeks turnover is slightly behind last year.

Rental income during the year was €1.2m.

The Group held €97.1 million in cash at the end of the financial year. On the balance sheet date commitments outstanding on land were €26.4 million.

The Group is trading profitably in the current year. A lower UK housing contribution this year will likely materially impact overall Group profit. The outlook continues to be uncertain. House prices are broadly stable however costs continue to rise. The regulatory environment is constantly evolving with initially at least a negative impact on productivity. Credit conditions for customers remain tight and the ‘Help to Buy’ schemes in both the UK and Ireland are supporting many of our buyers. The abrupt withdrawal of ‘Help to Buy’ would have a material impact on our business. Overall however the Group is in a healthy financial position and will continue to seek out opportunities to build new homes in all its markets.

The Board is pleased to recommend a dividend of 11 cents per share for approval at the Annual General Meeting.

Shareholders should carefully note the exchange rates used for this statement. The income statement uses the average exchange rate for the year of 100 cents: STG 88.12p and 100 cents: CZK 25.74. The balance sheet uses the ratio prevailing on 30 April 2019 of 100 cents: STG 85.97p and 100 cents: CZK 25.64.

On behalf of the Board
11th July 2019

Davy Corporate Finance (Nominated Adviser and ESM Adviser)
Brian Garrahy Tel:+ 353 1 679 6363

The Preliminary Results financial statements for the year ended 30 April 2019 can be accessed by clicking on the link below:
Prelim 11 July 2019 Financials

The Director’s’ Report and Group Financial Statements for the year ended 30 April 20189 can be accessed by clicking on the link below:

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