Abbey PLC Preliminary Results (6490K)
July 11 2017 - 2:00AM
UK Regulatory
TIDMABBY
RNS Number : 6490K
Abbey PLC
11 July 2017
ABBEY PLC
Preliminary Statement for the year ended 30 April 2017
The Group reports a profit of EUR63.5 million before taxation
against a profit of EUR61.5 million in the previous year. After a
tax charge of EUR11.6 million the Group made a profit of EUR51.8
million reflecting earnings per share of 241.04 cents. Group
operating profits during the year were EUR60.8 million against
EUR60.8 million the previous year.
Dividends of 15 cents per share absorbing EUR3.2 million were
paid during the year.
Our housebuilding operations completed 586 sales (UK 495;
Ireland 39, CZK 52) with a turnover of EUR196.5 million generating
an operating profit of EUR57.1 million. Our UK housebuilding
business experienced, overall, another good year. Sales,
underpinned by the UK 'Help to Buy' scheme, were steady throughout
the period. Strong margins were maintained as improving sales
prices at least matched steadily rising costs. Forward sales
entering the new financial year were at good levels although recent
weeks have been quieter as political events together with normal
seasonal trends have modestly dampened activity. Production is
under pressure to keep up with our build targets. Tight markets for
labour and some materials are now a significant constraint on
driving output. During the year our UK landbank grew to in excess
of 2,000 plots. The expansion of our land stocks should help us
achieve our goal of increasing activity in the years ahead. In
Ireland our projects in Delgany and Ratoath have both performed
well. Next year should see another jump in activity as projects in
Cabinteely, County Dublin and Dunshaughlin, County Meath contribute
to our sales. 'Help to Buy' has significantly boosted confidence
and is speeding the recovery in activity in the wider Dublin
metropolitan area. This should in due course help ease the widely
reported housing shortage in Dublin. Since the year end land for 46
houses has been purchased in Navan. In Prague we completed 52
sales. Our project Na Vidouli proved very popular. Work is
continuing in Tetinska and Prezletice.
At the year end the Group owned and controlled land allocated
for housing development for the supply of 3,047 plots.
M & J reported operating profits of EUR2.7 million on a
turnover of EUR19.0 million. Overall trading has been steady
however rising costs have squeezed margins. Trading in the early
part of the new year has been consistent and another fair year is
in prospect.
Rental income during the year was EUR973,000.
The Group held EUR95.1 million in cash at the end of the
financial year. On the balance sheet date current liabilities stood
at EUR76.7 million a substantial increase on a year ago. The
increase is mainly accounted for by outstanding payments due on
land purchases.
The Group has started the new year trading well from a platform
that should allow more new homes to be delivered in both the UK and
Ireland. UK margins continue to be good, however, subject to market
conditions we are anticipating some erosion towards more normal
levels. The economic and political background against which we
operate is complex. There are increasing signs of a potential
slowdown in the UK economy with an inevitably damaging impact on
our business. This may be especially marked after the benign
conditions experienced in recent years. In Ireland a strongly
positive outlook may be impaired by further unwise intervention in
the housing market. Looming ahead is the conclusion of the Brexit
negotiations to which a good outcome is not assured. In spite of
this uncertainty, and underpinned by a strong balance sheet, the
Group is planning a year of growth with both the support of, and
hopefully benefit to, all our stakeholders.
The Board is pleased to recommend a dividend of 9 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 84.64p and 100 cents: CZK 27.02. The
balance sheet uses the ratio prevailing on 30 April 2017 of 100
cents: STG 84.17p and 100 cents: CZK 26.84.
On behalf of the Board
CHARLES H GALLAGHER
EXECUTIVE CHAIRMAN
11(th) July 2017
Contact:
Davy Corporate Finance (Nominated Adviser and ESM Adviser)
Brian Garrahy
Tel:+ 353 1 679 6363
The Preliminary Results financial statements for the year ended
30 April 2017 can be accessed by clicking on the link below:
http://www.rns-pdf.londonstockexchange.com/rns/6490K_-2017-7-10.pdf
The Directors' report and group financial statements for the
year ended 30 April 2017 can be accessed by clicking on the
below:
http://www.rns-pdf.londonstockexchange.com/rns/6490K_1-2017-7-10.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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