(Alliance News) - Glenveagh Properties PLC on Tuesday said an increase in operating expenses hurt its earnings in the first half of 2020.
The Irish homebuilder reported that revenue fell to EUR37.0 million for the six months to the end of June compared to EUR45.5 million reported a year earlier. The company also booked an impairment of inventories of EUR20.3 million versus no such charge a year earlier.
As a result, pretax loss widened to EUR27.3 million from EUR3.8 million year-on-year.
"The group reacted quickly and effectively to the challenges of the Covid-19 pandemic," said Chief Executive Stephen Garvey. "Following the implementation of enhanced health & safety protocols, all the group's 18 construction sites are now operational."
Garvey added: "The strong reservation rate is reflected in the group's order book with 906 units sold, signed, or reserved. Our targeted investment in work-in-progress to date gives us confidence in delivering approximately 650 units in 2020, assuming no further Covid-19 restrictions are introduced."
Glenveagh Properties shares were trading 2.3% higher in London on Tuesday at EUR0.71 each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Glenveagh (GLV)