Housebuilder McInerney has issued a bullish end-year trading statement. The company also expressed optimism about 2005 despite industry concerns both here and in the UK, its two key markets.

The builder, which concentrates on the first-time and first-move market, saw the number of house completions rise 10 per cent in 2004 to 1,619. Though slightly down on the number forecast by analysts, McInerney is still expected to deliver earnings growth of about 33 per cent when it announces results at the end of next month.

Margins are understood to have improved in the Irish market after slipping in 2003. McInerney has also succeeded in raising margins in its UK business, bringing them into line with profit margins in Ireland.

Company managing director Mr Barry O'Connor said the integration of the Alexander business acquired in northern England during the year was going well.

He said McInerney was confident it would not be adversely affected by the slowdown reported in the British housing market. "We are not operating in the south of England, which is the most affected, and we are not operating in the relevant price brackets. Our houses sell around the £110,000 [ €156,960] level while it is property around the £160-£170,000 level and above that is feeling the pinch."

McInerney built 500 properties in England, up from 447 in 2003. It expects to increase that number to 800 in 2005.

In the Irish market, McInerney saw completions rise to 1,101 from 969 in 2003. Mr O'Connor predicts continued growth despite projections of lower demand for property going forward. "You need to look at what is being built. We are building largely for the owner-occupier first-time buyer. We are also well spread across the State and not particularly strong in the Dublin market, so we see no reason for demand for our output to drop."

On the commercial front, the company said demand for its industrial buildings had picked up in the middle of the year and that recovery was continuing into 2005. Spanish operations failed to live up to expectations with the company blaming timing factors.

Davy, which is the company's broker, says it is on course to increase pre-tax profits by about a third, following 38 per cent earnings growth last year - a performance it says would make McInerney the fastest-growing quoted housebuilder in Britain and Ireland.

Mr O'Connor is optimistic about the group's ability to maintain this performance.