10th Dec 2015 09:46
LONDON (Alliance News) - Building and property development company Abbey PLC said its pretax profit and revenue both surged in the first half thanks to the buoyant UK housebuilding market, prompting it to hike its dividend payout.
The company said its pretax profit for the half to the end of October rose to EUR29.7 million, up from EUR17.0 million a year earlier, as revenue increased to EUR112.0 million from EUR72.5 million, boosted in part by the weak euro but also by a robust performance from its housebuilding arm.
Abbey said its housebuilding business completed 294 sales in the half, boosted by buoyant conditions in the UK market and with margins well supported by strong prices and good cost management.
M&J Engineers, its UK plant hire unit, performed well and has started the second half in good health, Abbey said.
Abbey will pay an interim dividend of 6.00 euro cents per share, up from 5.00 cents a year earlier.
"The immediate outlook is good. Sales across our business are firm. In the medium term the strong trading conditions being experienced in Southern England will dissipate, and we should expect tougher conditions ahead. Meanwhile, the group is in good heart," the company said in a statement.
Shares in Abbey were up 5.6% to 1,161.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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