TIDMGLV
RNS Number : 6902K
Glenveagh Properties PLC
06 January 2021
6 January 2021
Glenveagh Properties plc
("Glenveagh" or the "Group")
Full-year Trading Statement 2020
Glenveagh Properties PLC, a leading Irish homebuilder, is today
issuing a trading update for the year ended 31 December 2020 ahead
of the publication of its full year results on Friday 26 February
2021.
Highlights
31 December 2020 2019
Core Non-Core Total Total
-------- --------- -------- --------
Revenue EUR208m EUR24m EUR232m EUR284m
-------- --------- -------- --------
Completions 665 35 700 844
-------- --------- -------- --------
Units Contracted or Reserved 544 143 687 240
-------- --------- -------- --------
-- Strong performance on revenue and completions notwithstanding COVID-19 restrictions.
-- Core unit sales gross margin of 14% (2019: 18%).
-- Robust operational delivery has resulted in a net-cash
position of approximately EUR37m (2019: EUR53m).
-- Visibility on 1,150 unit completions[1] in 2021 underpinned
by private reservations and institutional PRS transactions at core
and non-core sites.
GLENVEAGH'S CEO STEPHEN GARVEY COMMENTED:
"In what started out as a challenging year we are pleased to
conclude 2020 with considerable momentum and strong visibility on
our target unit deliveries of 1,150 units(1) for 2021. Our focus on
prioritising our people, customers and the communities in which we
operate, leaves the Group well placed to deliver on our ambitious
medium-term growth objectives."
PERFORMANCE SUMMARY
Total revenue for the year was approximately EUR232 million
(2019: EUR284 million) as the Group delivered another strong sales
performance in a demanding operational environment with 700 unit
sales completed (2019: 844).
The Group generated core revenue of EUR208 million, primarily
from 665 unit sales, marginally ahead of management expectations of
650 units at the time of the interim results in September. The
Average Selling Price was EUR311k (2019: EUR321k) reflecting the
Group's focus on Suburban starter-home schemes.
Glenveagh delivered the 665 core units from 15 selling sites
(2019: 13) and finished the year with 544 core units contracted or
reserved for 2021 (2019: 240) providing further evidence of the
strong demand and maturing sales profile within the business.
Underlying core gross margin of 14% is in line with management's
expectations and reflects costs associated with our COVID-19 safety
measures and operating protocols, in addition to negative mix
effects as units at the Group's new higher margin sites were
delayed due to COVID-19. A significant portion of the mix effect
and the impact of increased COVID-19 costs are expected to abate
from 2021.
NON-CORE DISPOSALS
As outlined at the time of our interim results, the Group is
accelerating sales of our remaining non-core, high-end, private
customer developments to maximise cash generation while maintaining
our focus on starter homes, delivering more than EUR100 million of
net cash flow by the end of Q3 2021.
Of the Group's target net realisation of more than EUR100
million, EUR24 million has been received to date with a further
EUR70 million contracted for 2021 and additional reservations in
place. The selling prices achieved across the Group's non-core
disposals have been in line with management expectations.
URBAN / INSTITUTIONAL PRS PROGRESS
On 22 December, the Group exchanged contracts for the sale of
132 units across two developments[2]:
-- 71 Urban apartment units in Bray, Co. Wicklow[3];
-- 61 Suburban duplex and housing units in Leixlip, Co. Kildare
The transaction is a further demonstration of Glenveagh's
ability to partner with institutions and government bodies to
deliver sustainable rental product in attractive locations.
Furthermore, as part of the Group's wider masterplan in Dublin
Docklands, a Strategic Housing Development ("SHD") fast-track
planning application was lodged on 4 December in respect of our
Castleforbes site totalling 702 units. Once the planning process is
completed, this will bring the total planned residential units at
our mixed-use Docklands campus to 1,256.
Given the planning progress at the Castleforbes site and the
attractive planning achieved at the campus to date, which includes
a pre-let hotel and 554 residential units, the Group expects to
make demonstrable progress at this location over the course of
2021.
FINANCIAL POSITION
The Group continues to make significant progress towards
optimising the use of capital within the business. As a result of
strong operational delivery, good cash management, and a continued
reduction in our net investment in land in line with our stated
targets, the Group ended the period with net cash of approximately
EUR37 million.
To further position the business for growth and ensure the Group
has an appropriate mix of funding, Glenveagh is in the process of
delivering a five-year refinancing comprising a term component and
an RCF with a syndicate of banks which will facilitate Glenveagh's
medium-term growth objective of 3,000 units per annum.
OUTLOOK
The Group's 2021 delivery target is underpinned by having all
necessary sites operational, costs largely fixed and strong forward
sales in place, as well as a robust balance sheet to further
position the Group for growth. The market backdrop remains
favourable with continued significant institutional and private
demand for housing, particularly starter homes, evident across the
Group's selling sites. Glenveagh will provide a further progress
update on the current period to investors at the time of our full
year results on Friday 26 February 2021.
For further information please contact:
Investors: Media:
Glenveagh Properties Gordon MRM
PLC
Ray Gordon 087 241 7373
Michael Rice (CFO)
David Clerkin 087 830
Conor Murtagh (Director, 1779
Strategy & IR)
glenveagh@gordonmrm.ie
investors@glenveagh.ie
-------------------------
Note to Editors
Glenveagh Properties plc, listed on Euronext Dublin and the
London Stock Exchange, is a leading Irish homebuilder with a focus
on starter-homes and affordable rental product.
Glenveagh delivers across three business segments - Suburban,
Urban and Partnerships.
www.glenveagh.ie
[1] 1,000 core units and 150 non-core units, subject to sites
being operational during the period from early February to 31
December.
[2] This transaction is included in the Group's 687 contracted and reserved units for 2021.
[3] Transaction also includes four commercial units.
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END
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