(Alliance News) - Abbey PLC on Thursday reported a 9.6% decline in profit in its most recently ended financial year due to higher costs.
The residential housing developer said pretax profit for the year to the end of April fell to EUR53.0 million from EUR58.6 million a year prior, due to an increase in administrative expenses to EUR12.2 million from EUR9.4 million. Operating costs were higher at EUR166.5 million compared to EUR150.7 million last year. Meanwhile, revenue rose to EUR230.9 million from EUR218.5 million.
During the year, the company said it has completed 579 house sales, with a turnover of EUR209.1 million. In comparison, last year the company sold 586 houses for EUR196.5 million. Abbey's rental income grew to EUR1.2 million from EUR973,000 a year ago.
Looking forward, the AIM-listed company said it is trading "profitably" so far in its current financial year, but a lower UK housing contribution this year will likely "materially impact" its earnings.
"The outlook continues to be uncertain," said Executive Chair Charles Gallagher. "House prices are broadly stable; however costs continue to rise."
Gallagher added: "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."
Abbey proposed a dividend of 11.0 cents per share, up from 9.0 cents paid the year before.
The stock was untraded in London on Thursday at 1,247.00 pence.