5th Jan 2022 14:34
(Alliance News) - Glenveagh Properties PLC on Wednesday said its revenue for 2021 more than doubled through a double digit increase in the sale of new homes, although its outlook remained cautious due to labour shortages.
For the year, the Irish housebuilder posted total revenue ofEUR476 million, up sharply from EUR232 million the year before, and also reflecting as 67% increase from 2019's figure of EUR284.6 million.
During the period, Glenveagh had 1,150 homes completed and sold, up 64% from 700 completed homes in 2020. Meanwhile, the core suburban average selling price dipped to EUR308,000 from EUR311,000, reflecting the group's focus on starter-home schemes.
The company's core gross margin rose to 19.5% from 14.1% the prior year, driven by the recovery of suburban margins as operations started to normalise in the second half of 2021.
In addition, Glenveagh had completed three sales agreements in 2021, including the forward funding of a Premier Inn hotel with Union Investments at the Dublin Docklands for EUR70 million, and the sale of the residential and second hotel sites for EUR78.5 million
The company has signed heads of terms for two forward fund transactions of 500 apartments with a net development value of EUR185 million, which are set to be completed in early 2022.
Looking ahead, Glenveagh said it continues to target growth in profit and revenue for 2022, with the market backdrop remaining favourable with continued demand for housing, especially starter homes.
"As we look to 2022 and beyond, the next key challenge for our business and the broader industry is the impact of on-site labour shortages. Our ongoing investment in supply chain integration positions us well in this regard. Having delivered over 700 units from our timber frame factory in 2021, we will continue to prioritise our off-site manufacturing capability to enable us to innovate how we build the homes of the future," said Chief Executive Officer Stephen Garvey.
Glenveagh Properties will publish its annual results on March 1.
Shares in Glenveagh Properties were down 0.4% at EUR1.24 on Wednesday in London.
By Dayo Laniyan; [email protected]
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