Brokers expect Dublin-quoted builder, McInerney Holdings, to post a 27 per cent increase in pre-tax profits to €26 million for 2003, following a positive trading statement from the company yesterday.
McInerney yesterday issued an upbeat statement which revealed that it sold almost 1,500 houses last year, a 28 per cent increase on 2002.
At the same time, sales in its commercial property division jumped by 650 per cent to 132,500 sq ft from 19,800 in 2002.
The company's stockbroker, Davy, yesterday said that its 1,481 house sales indicated that the company was set to meet market expectations.
Analyst Mr Flor O'Donoghue said Davy had expected McInerney to sell 930 houses in Ireland, but the final figure was 969, 4 per cent ahead of the broker's forecast. The group sold 447 houses in the UK and 65 in Spain.
"We are expecting McInerney to announce pre-tax profits of €26 million and earnings per share \ of 64 cent for 2003," Mr O'Donoghue said.
"This would represent growth of 27 per cent. Assuming our 2003 forecasts are met, McInerney will have recorded average annual earnings growth of 24 per cent over the past five years," he added.
By the end of 2003, customers had placed deposits with McInerney for 978 houses, compared with 726 a year earlier. These were made up of 779 in Ireland, 132 in the UK and 67 in Spain. The deposits on hand represent 66 per cent of total sales in 2003.
The group's commercial division, Hillview Securities, completed its biggest deal of the year in Park Royal industrial estate, close to Heathrow Airport in West London, where it sold 70,000 sq ft of a 105,000 sq ft property it bought for €11 million.
Hillview also completed deals in the Millennium Industrial Estate and Ballycoolin estate in Dublin and in Little Island, Cork.
Managing director, Mr Barry O'Connor, said McInerney had recorded an improved performance over 2002.
"The Irish housing market continued to show strong demand. Our UK housing division continued to take best advantage of the buoyant market in the north west of England."
