8 Dec 2011 07:00
ABBEY PLC
INTERIM STATEMENT FOR THE SIX MONTHS ENDED 31 OCTOBER 2011
The Board of Abbey plc reports a profit before taxation of €3.35m which compares with a profit of €5.55m for the corresponding period last year. Profits at the operating level were €2.27m as compared to €4.38m at the half way stage last year.
Our housebuilding division completed 146 sales (UK 118; Ireland 19; Czech Republic 9) with a turnover of €26.98m resulting in an operating profit of €1.76m. Trading in the UK was satisfactory over the period. Our sales in the autumn have been sluggish and selective discounts have been necessary to generate activity. In Ireland the bulk of our sales were achieved in Kilcoole, Co. Wicklow which is continuing to prove popular.
In Prague sales continue to be very slow. Good progress was made in the construction of our main project in Slivenec. Overall a strong out-turn in the UK in the second half should give the division a boost. During the period 152 plots were added to the land bank.
M & J Engineers, our UK plant hire business, generated operating profits of €261,000 on a turnover of €6.02m. This was a modest improvement on last year. Our second half is likely to be a stiff test as there are clear signs of general construction activity beginning to decline across our operating region.
Rental income for the period amounted to €250,000.
The Group maintained good cash flow during the period and held €21.24m in cash and restricted cash together with €53.94m in UK government debt at the end of October.
Further to the authority granted at the Extraordinary General Meeting on 17 November 2010, the Company has purchased, under the resolution granted, a further 966,598 ordinary shares at a total cost of €5,076,000 since the financial year end.
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 27 April 2012 to shareholders on the register at 30 March 2012.
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: STG87.69p and 100 cents: CZK 24.46. The balance sheet uses the rate prevailing on 31 October of 100 cents: STG 86.42p and 100 cents: CZK 24.84.
The outlook for the foreseeable future continues to be difficult. House prices remain under pressure in all our markets. Negotiations are proceeding on a number of land purchases which should gradually allow volumes to increase in the reporting periods ahead. New land purchases however are, viewed in the current light, being made on narrow margins. Overall the Group continues to trade profitably and is laying the foundation for hopefully better days ahead.
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
8th December 2011
The Interim Results for the six months ended to 31 October 2011 can be accessed by clicking on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/5659T_-2011-12-7.pdf