Glenveagh Properties said on Friday its operating profit rose 86 per cent last year to €132 million, as its house sales and revenues powered ahead.
Revenue increased 43 per cent to €869 million as group home sales jumped 77 per cent to 2,415 units. The company’s gross profit margin widened to 21.5 per cent from 18.5 per cent, mainly reflecting a “strategic focus on innovation and efficient unit delivery” of houses, it said in a trading statement.
Earnings per share (EPS) more than doubled to 17 cents.
Looking ahead, the group said it has secured planning permission for 2,487 units ensuring that all targeted output for 2025 is fully approved. It has a forward order book for home sales worth €950 million, up 48 per cent on the year.
Goodbody Stockbrokers analyst Shane Carberry said that while EPS was in line with company guidance and his own estimate, this was largely down to margins coming better than expected as revenues were below the €956 million he had anticipated.
The shortfall was down to a lower-than-expected level of house completions in its suburban division, even as sales of units, mainly apartments, to State bodies through its partnerships division beat Mr Carberry’s forecast.
“Through our carefully planned and structured partnerships platform we have started to demonstrate how the public-private model can maximise collective experience and resources to deliver the homes the country needs at scale, while providing value for taxpayers,” said chief executive Stephen Garvey. “We remain excited about the growth potential for our partnerships business.”
A partnership typically involves the Government, local authority or state agency contributing their land on a reduced cost or phased basis into a development agreement with Glenveagh. The company also has a so-called urban unit, aimed at developing apartments for institutional investors, though this segment of the market the market has slowed significantly in recent years following a spike in interest rates and concern among international investors about policy changes affecting the sector.
Glenveagh said on Friday it will simplify its segmental reporting structure into a house building unit (formerly suburban) and partnerships (formerly urban and partnerships).
“There remains a serious challenge to housing delivery without substantial additional capital (public and private), adequate zoned land, public sector resources and critical infrastructure to support new homes,” said Mr Garvey.
“The evidence from 2024 indicates that delivering the targeted 300,000 homes by 2030 requires a renewed impetus at all levels of the public and private sectors, and we look forward to continuing our collaboration to achieve this critical goal.”
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