9th May 2007 12:00
McInerney Holdings PLC09 May 2007 Wednesday, 9th May 2007 CHAIRMAN'S STATEMENT ANNUAL GENERAL MEETING The Group again recorded a strong operating and financial performance in 2006. At the operating level total unit completions, both public and private, were2,372, an increase of 18% on the 2005 result. Private house completions in ourUK business almost equalled the Irish completions figure. Pre-tax profits were almost €58m, an increase of 16% on the 2005 full yearresult. Basic Earnings per share rose to 145.85 cent, an increase of 18%. Subject to confirmation at this meeting the total dividend will have increasedby 17% to 28 cent per share. A key ingredient to our success, and in our ability to deliver continued growthinto the future, is the Group's deliberate focus on an appropriate product mixfor individual market circumstances. Ireland In 2006 our average house price in Ireland, including VAT was €285,000. Indeed70% of our product in Ireland was at a price less than €300,000 with 80% pricedless than €350,000. Our strategy has always been to provide affordable homes ofgood quality at affordable locations. Our product is aimed primarily at firsttime buyers and owner occupiers. Combined with the demographic factors in Ireland, this will support good demandinto the future for our product at our various locations throughout the country. While there is cautiousness on the part of purchasers at present, demand for ourproduct is steady. England In the UK our average house price in 2006 was STG£140,000. Some 70% of our homeswere priced below STG €150,000 with over 80% below STG£200,000. To date this year, net reservations from our housing sites in England have beenrunning at a level roughly 35% higher than the same period last year. Our target will be to achieve a significant increase in volume output in the UKin 2007. The planned strong augmentation of our land bank should position usfor further growth in 2008. The acquisition of Bowey Homes in August 2006, and the recent acquisition ofLancing Homes in February 2007 significantly increased our operationalcapability in the UK. The Directors intend to continue to pursue a strategy ofexpansion in England both organically and by further acquisitions. The operational footprint we now occupy in England contains a population of over20 million people. The Directors believe that the strategy of focussing ourprimary growth energies on the English market will continue to yield substantialresults in the coming years. Other Businesses In relation to our two smaller operations, Hillview and Alanda, I would like tocomment as follows. Hillview Developments continues to experience good demandand is trading steadily at its sites in the Dublin and London regions. While themarket in Spain is generally slow this year, the Directors expect a positiveresult from our Spanish business this year. Capital Raising The Group achieved significant growth in the period from 1999 to 2006 withoutrecourse to shareholders. Shareholders will be aware that the Directorsconsidered it appropriate to raise additional capital earlier this year. TheRights Issue was well received with a 95% take up, including the McInerneymanagement team. The proceeds of the Rights Issue are intended for further accelerateddevelopment of our UK business. Part of the proceeds has already been used topurchase Lancing Homes, and invested in land bank expansion in the UK. The Rights Issue leaves us in a strong position to continue to pursue anaggressive growth strategy in England in coming years in line with our statedobjectives. Dividend Our strategy of achieving a dividend cover of roughly 5 times was achieved lastyear. Accordingly, the Directors propose a final dividend of 18 cent gross pershare to result in a total dividend of 28 cent per share. This equates to adividend cover of 5 times. Subject to approval at this Annual General Meetingthe dividend will be paid to shareholders this coming Friday 11th May. Shareholders should note that the dividend will be paid on the share capital inexistence prior to the Rights Issue. Conclusion Demand for our product in Ireland is steady. Strong sales are being achieved inthe UK and significant growth is anticipated. We anticipate the Groupperforming solidly in 2007 delivering further growth in unit output, revenuesand earnings. As is routine practice, the text of this script you have just heard is alsobeing released to the Stock Exchange today. Ned SullivanChairman ENDS FOR INFORMATION: Avril Collins Tel: (01) 676 01 68 Weber Shandwick 086 3964368 This announcement has been issued through the Companies Announcement Service of the Irish Stock Exchange. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Medcaw Investm.