LONDON (Alliance News) - Irish homebuilder Glenveagh Properties PLC on Friday said it experienced very significant revenue growth in the second half of the year.
Glenveagh expects to post revenue of EUR84 million for the whole of 2018, having recorded only EUR1.3 million in revenue in the first half. The resulting total revenue of EUR85.3 million in 2018, compares to just EUR1.4 million in 2017.
Gross margin for 2018 is expected to have been around 18%.
The company completed 275 sales in 2018 as a whole at an average unit selling price of EUR287,000. This price was attributed to "strong performance" from Glenveagh's starter-home schemes.
Glenveagh's guidance is for an average selling price of between EUR340,000 and EUR370,000 per unit in 2019.
The housebuilder also announced Friday it has acquired a 43 acre site in Ireland's Douglas County, capable of delivering approximately 500 units, for EUR25 million. Glenveagh said that a portion of this has been deferred until the units are delivered, but did not disclose the deferred amount.
Including this latest acquisition, Glenveagh now has a landbank of 11,850 units. It is selling from eight sites and has 202 units signed or reserved for 2019.
Looking ahead, the firm said it has substantially de-risked its 2019 construction targets, with costs largely fixed in 2019.
"The past 12 months have been very productive as we set out to create a volume homebuilder for the Irish market. We have carefully assembled a multi-year land bank for building, got off to a strong start in opening our sites and constructing houses and apartments, and grown our operations consistent with our business plan and longer-term financial targets," said Glenveagh Chief Executive Justin Bickle.
"The fundamentals of our sector remain strong with continued chronic under-supply of housing in Ireland (both private and public) and a dearth of scale homebuilders. We have cash on hand, a strong balance sheet, and market leading construction capability," Bickle added.
Shares in Glenveaugh were up 7.8% at EUR0.78 on Friday morning.
Glenveagh (GLV)