ABBY Abbey Plc

TIDMABBY

RNS Number : 8579D

Abbey PLC

12 July 2016

ABBEY PLC

Preliminary Statement for the year ended 30 April 2016

The Group reports a profit of EUR61.5 million before taxation against a profit of EUR49.1 million in the previous year. After a tax charge of EUR12.0 million the Group made a profit of EUR49.5 million reflecting earnings per share of 229.81 cents. Group operating profits during the year were EUR60.8 million against EUR46.3 million the previous year.

Dividends of 13 cents per share absorbing EUR2.8 million were paid during the year.

Our housebuilding operations completed 597 sales (UK 544; Ireland 23, CZK 30) with a turnover of EUR198.6 million generating an operating profit of EUR56.5 million. Trading in the UK has been good throughout the year. Sales, supported by the government's 'Help to Buy' scheme have been consistent. Like last year price rises overall have outstripped rising costs supporting our margins. Forward sales in the new year are in line with our budgets. Our UK land bank owned or controlled finished the year at 1,498 plots. Since the year end additional land has been acquired and the company continues to seek further opportunities. In Ireland gradual progress can be reported. Our project in Lucan is moving towards completion. Our development in Delgany was successfully launched in June. More land has been bought in Ratoath, County Meath and Cornelscourt, County Dublin and both these schemes are now under construction. Our projects in Laois and Kildare remain on hold pending improvement in local demand. Effective demand for new home ownership in many parts of the wider Dublin metropolitan area remains muted. In Prague we completed 30 sales and are pleased to report a useful contribution to our results. Work is well advanced on our project in Na Vidouli and is progressing in Prezletice. Our new scheme of apartments has commenced in Tetinska.

At the year end the Group owned and controlled land with the benefit of planning permission for the supply of 2,090 plots.

M & J reported operating profits of EUR3.3 million on a turnover of EUR21.0 million. Business has continued at a fair level into the new year. Competitive pressure remains intense and good cost control is essential. Another steady year is in prospect.

Rental income during the year was EUR984,000.

The Group held EUR90.4 million in cash together with EUR12.7 million in UK government bonds at the end of the financial year.

Trading in the early part of the new year has been encouraging and the Group has set budgets for the year showing increased activity across the business, however, the outlook is now clouded by Brexit. A slowdown in the UK economy is now being forecast and in particular a correction in the housing market after its strong performance in recent years. Prospects for the short, medium and long term are now very unclear. A prolonged period of gradual relative decline for London and South East England is possible if the withdrawal of London from its role in Europe is carried through. In Ireland, still recovering from last decade's financial crisis prospects seem brighter, however, Brexit casts a considerable shadow. The Group is, with its strong balance sheet, well placed to cope with the uncertainty and hopes to continue to making steady progress. The impact of Brexit will emerge over future reporting periods but there is no doubt that the Referendum outcome is a material short term negative shock.

The Board is pleased to recommend a dividend of 8 cents per share for approval at the Annual General Meeting.

Shareholders should carefully note the exchange rates used for this statement. The income statement uses the average exchange rate for the year of 100 cents: STG 73.85p and 100 cents: CZK 27.12. The balance sheet uses the ratio prevailing on 30 April 2016 of 100 cents: STG 78.18p and 100 cents: CZK 27.04.

On behalf of the Board

CHARLES H GALLAGHER

EXECUTIVE CHAIRMAN

12(th) July 2016

Contact:

Davy Corporate Finance (Nominated Adviser and ESM Adviser)

Eugenée Mulhern/Brian Garrahy

Tel:+ 353 1 679 6363

The Preliminary Results financial statements for the year ended 30 April 2015 can be accessed by clicking on the link below:

http://www.rns-pdf.londonstockexchange.com/rns/8579D_-2016-7-11.pdf

The Directors' report and group financial statements for the year ended 30 April 2015 can be accessed by clicking on the below:

http://www.rns-pdf.londonstockexchange.com/rns/8579D_1-2016-7-11.pdf

This information is provided by RNS

The company news service from the London Stock Exchange

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