9 Dec 2010 07:00
ABBEY PLC
Interim Statement for the Six Months Ended 31 October 2010
The Board of Abbey plc reports a profit before taxation of €5.55m which compares with a profit of €3.60m for the corresponding period last year. Profits at the operating level were €4.38m as compared to €2.49m at the half way stage last year.
Our housebuilding division completed 172 sales (UK 131; Ireland 33; Czech Republic 8) with a turnover of €30.38m resulting in an operating profit of €3.98m. Trading in the UK was satisfactory over the period. As widely observed autumn sales have been muted and as a result our second half outlook is more than usually dependent on a strong performance in the last quarter. In general prices have fallen slightly in recent months. In Ireland steady progress continues to be made in the light of the difficult market conditions. The last phase of our successful site in Kilcoole, Co. Wicklow has now commenced construction. In Prague sales continue to be very slow. Our project in Andel is now close to building completion and a determined effort to promote sales is underway. Overall conditions continue to be very testing in all our markets.
M & J Engineers, our UK plant hire business, generated operating profits of €165,000 on a turnover of €6.14m. This was an encouraging turnaround from last year. Our second half is always challenging with extended public holidays impacting turnover. The general business environment continues to be difficult but we are hopeful of building on recent progress.
Rental income for the period amounted to €231,000.
The Group maintained good cash flow during the period and held €44.80m in cash and restricted cash together with €55.27m in UK government debt at the end of October. It is the Group's intention to invest a significant element of these funds in new development sites as circumstances allow. During the period 255 plots with planning permission were purchased. Negotiations for further acquisitions are in hand.
The Board is pleased to declare a dividend of 3 cents per share which together with the 5 cents approved by the Annual General Meeting in October will make a total of 8 cents for the financial year. The dividend will be paid on 28 April 2011 to shareholders on the register at 1 April 2011.
Shareholders should carefully note the exchange rates used for this statement. The profit and loss statement uses the average exchange rate for the period of 100 cents: STG84.44p and 100 cents: CZK 2,504.57h. The balance sheet uses the rate prevailing on 31 October of 100 cents: STG 86.93p and 100 cents: CZK 2,463.70h.
The outlook for the foreseeable future is quite bleak. The limited availability of mortgage finance in all our markets continues to depress house prices. In Britain mortgage lending may be further constrained in 2011 and 2012 as emergency support measures to the banking system are unwound. The Group is however trading profitably and in due course a cyclical recovery will take hold. The Group's strong financial position allows us to approach the future with confidence.
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
9th December 2010
The Interim Results for the six months ended to 31 October 2010 can be accessed by clicking on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/6359X_-2010-12-8.pdf