23rd Feb 2006 07:01
McInerney Holdings PLC23 February 2006 Thursday, 23rd February 2006 McINERNEY HOLDINGS PLC PRELIMINARY ANNOUNCEMENT Financial Results for the Year ended 31 December 2005 The McInerney Group achieved solid growth in the year to end December 2005. Key highlights include: • Pre tax profits increased by 26% • Earnings per share increased by 16% • Dividend increased by 33% • UK unit output increased by 32% Financial Highlights The year under review has shown further solid progress. The Directors arepleased to report an increase in basic earnings per share of 16% to 124.01 cent,as compared to 106.50 cent in 2004. Pre-tax profits increased by 26% to €50.06mcompared to the 2004 result of €39.59m. Profit after tax for the year was€41.10m compared with €35.03m for the full year in 2004, an increase of 17%. Dividend The Board proposes to pay a final dividend of 15 cent gross per share. Subjectto confirmation at the Annual General Meeting on 10th May 2006, this finaldividend will be paid to shareholders on 12th May 2006. Combined with theinterim dividend of 9 cent gross, this provides a total of 24 cent per share forthe year. The dividend cover is now circa 5 times relative to basic earningsper share. Operational Highlights Favourable performances were reported across the Group's three core regions ofIreland, the UK and Spain. The Group completed a total of 1,831 private homes in2005. This compares to 1,614 in 2004 and is an increase of 13%. In particular,the UK's operations recorded a 32% volume increase in a market that wasgenerally slow in 2005. This leaves us operationally well positioned for 2006. In Ireland, the owner-occupier market continued to demonstrate strong productdemand. Volume in our commercial business was 15,339 sq m an increase of 85% onthe 8,289 sq m achieved in 2004. The Directors are particularly pleased with the significant momentum that hasbeen achieved in the scale of the Group's operations in terms of geographicspread and output since our ambitious expansion plans began a number of yearsago. From a start up in 1999, the Group has established a strong regionalpresence across the North of England. Ireland: The Irish house building operation delivered strong volumes. Therewere 1,138 private home completions in 2005, compared to 1,101 in 2004. Marketindications, demographics and predicted inward migration all suggest that thecurrent buoyancy of the housing market is set to continue. The Group iscomfortable that the level of output from this business will be sustained goingforward. To support this level of output, the Group currently has 4,700 plots inits Irish land bank, of which 50% have planning permission and the balance areresidentially zoned. In addition, the Group holds land with potential for circa1,600 longer term plots. The Group's commercial division, Hillview Securities, recorded an excellent yearin 2005 completing 14,217 sq m of industrial units in Ireland as compared to4,666 sq m in 2004. In addition, the Irish contracting business demonstrated strong uplift in 2005.The order book on hand is €129 million compared to €23 million a year agoproviding an order book extending into 2007. Some 66% of this is housingrelated. UK: Significant progress was accomplished in the Group's UK growth plan in 2005.Housing output increased by 32% with 658 private home completions in 2005,compared with 500 in 2004. In addition, strategic regional expansions were undertaken. The Yorkshire base,established in 2005, will contribute to 2006 earnings with output planned ofsome 90 units. A West Midlands Director was appointed at the start of 2006, aspart of the Group's strategy for further growth in 2007. In tandem, progressive land bank enlargement has taken place with 2,350 plotsnow controlled and a further 450 plots close to finalisation. The Group now has a strong presence across the North of England and a growthstrategy is being put in place to develop a presence in the Midlands. Theacquisition of Augusta Developments, a niche player based in Milton Keynes,opens up the opportunity for further expansion and product diversification. Thedivision is well placed to achieve further growth going forward. The commercial operations also delivered a solid performance with the completionof 1,122 sq m of industrial/business units in its UK operations compared to3,623 sq m in 2004. Based on reservations on hand, output levels should risesignificantly in 2006. Spain: The Spanish business delivered 35 units in 2005 compared to 13 units in2004. A new site with planning consent at El Cortesin golf urbanisation nearEstepona, was recently secured. It has planning consent for up to 45 privateunits. The Spanish business has a significant and valuable land bank to providestrong growth potential in the medium term. Outlook The fundamentals and dynamics affecting both the Irish and UK housing marketsoffer good potential for the Group. Each subsidiary is strategically positionedgeographically, with an appropriate product portfolio to provide continuedrevenue growth going forward. We expect our focused strategy to continue to deliver growth in 2006. Ned SullivanChairman ENDS FOR PRESS INFORMATION: Siobhan Molloy Tel: (01) 676 01 68 or (086) 817 50 66Weber Shandwick FCC MC INERNEY HOLDINGS PLC CONSOLIDATED INCOME STATEMENT For the year ended 31 December 2005 Year ended Year ended 31/12/2005 31/12/2004 •'000 •'000 (Restated) Continuing Operations Revenue 489,098 373,359 Cost of Sales (394,478) (302,272) Gross Profit 94,620 71,087 Administrative Expenses (33,458) (28,437) Share of Results from Joint Ventures (21) 5,754 Profit from Operations 61,141 48,404 Investment Income 421 437 Finance Costs (11,502) (9,253) Profit before Tax 50,060 39,588 Tax (8,963) (4,560) Profit for the Year from Continuing Operations 41,097 35,028 Dividends (6,629) (4,273) Retained Profit for the Year 34,468 30,755 Profit attributable to Equity Holders of the 41,097 35,028 Parent Earnings Per Share From Continuing Operations: Basic 124.01 106.50 Diluted 118.66 101.55 MC INERNEY HOLDINGS PLC CONSOLIDATED BALANCE SHEET As at 31 December 2005 31/12/2005 31/12/2004 •'000 •'000 (Restated) Non-Current Assets Goodwill 22,390 21,744 Property, Plant & Equipment 6,188 6,241 Investment Property 183 5,509 Interests in Joint Ventures 4,660 6,854 Deferred Tax Assets 318 1,170 Assets Classified as held for Sale 2,750 - 36,489 41,518 Current Assets Inventories 333,241 266,058 Trade & Other Receivables 52,044 44,118 Cash & Cash Equivalents 62,056 26,670 447,341 336,846 Total Assets 483,830 378,364 Current Liabilities Trade & Other Payables 131,633 127,872 Retirement Benefit Obligation 422 421 Tax Liabilities 15,795 9,116 Obligations under Finance Leases 395 316 Bank Loans & Overdrafts 106,058 58,433 254,303 196,158 Net Current Assets 193,038 140,688 Non-Current Liabilities Bank Loans 66,990 57,043 Retirement Benefit Obligation 1,358 1,676 Deferred Tax Liabilities 2,303 2,284 Other Payables 3,649 1,814 Obligations under Finance Leases 412 408 74,712 63,225 Total Liabilities 329,015 259,383 Net Assets 154,815 118,981 EQUITY Share Capital 4,145 4,140 Capital Conversion Reserve Fund 62 62 Share Premium Account 17,180 17,113 Equity Reserve 674 298 Hedging & Translation Reserves (1,524) (2,269) Retained Earnings 134,278 99,637 154,815 118,981 Total Equity and Liabilities 483,830 378,364 MC INERNEY HOLDINGS PLC CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2005 Year ended Year ended 31/12/2005 31/12/2004 •'000 •'000 (Restated) Profit from Operations 61,141 48,404 Adjustments for: Depreciation of Property, Plant & Equipment 1,952 2,411 Share of Results from Joint Ventures 21 (5,754) Provision for Fair Value of Share Based 376 298 Payments Profit on disposal of Tangible Assets (48) (205) Pension Service Costs 281 468 Operating Cash Flows before movements in 63,723 45,622 Working Capital Increase in Inventories (63,267) (30,320) Increase in Receivables (3,233) (9,843) Increase in Payables 9,752 16,400 Cash Generated by Operations 6,975 21,859 Taxation Paid (7,625) (4,536) Interest Paid (10,747) (7,643) NET CASH FROM OPERATING ACTIVITIES (11,397) 9,680 INVESTING ACTIVITIES Interest Received 134 325 Dividends Received from Joint Ventures 2,000 1,900 Loans advanced to Joint Ventures (9,270) (9,202) Loans repaid from Joint Ventures 5,267 1,078 Proceeds on disposal of Property, Plant & 195 410 Equipment Purchases of Property, Plant & Equipment (1,735) (1,773) Employer Contributions to Pension Scheme (421) (438) Acquisition of Subsidiary - (10,952) NET CASH USED IN INVESTING ACTIVITIES (3,830) (18,652) FINANCING ACTIVITIES Dividends Paid (6,629) (4,273) Share Capital Subscribed 72 504 Repayments of Borrowings (80,183) (26,884) Repayments of Obligations under Finance Leases (460) (360) New Bank Loans Raised 135,894 41,047 Increase / (Decrease) in Bank Overdrafts 258 (1,057) NET CASH FROM FINANCING ACTIVITIES 48,952 8,977 NET INCREASE IN CASH AND CASH EQUIVALENTS 33,725 5 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 26,670 26,435 Effect of Foreign Exchange Rate Changes 1,661 230 CASH AND CASH EQUIVALENTS AT END OF YEAR Bank Balances and Cash 62,056 26,670 MC INERNEY HOLDINGS PLC NOTES TO THE FINANCIAL STATEMENTS (CONT'D) For the year ended 31 December 2005 Business and geographical segments The Group operates in three countries, Ireland, the UK and Spain. The principalactivities of the Group are Private Housing, Contracting, Commercial andLeisure. The Leisure activities are divided into Club Management and Freeholdsales. Land sales are also a part of each business segment. These divisionsare the basis on which the Group reports its primary segment information. REVENUE 31/12/2005 31/12/2004 External Total External Inter-Segment Total Inter-Segment Sales Sales Revenue Sales Sales Revenue •'000 •'000 •'000 •'000 •'000 •'000 Ireland: Private Housing 244,575 - 244,575 223,975 - 223,975 Developed Sites & Land 1,951 - 1,951 4,889 - 4,889 Construction Contracts 47,293 16,615 63,908 23,898 - 23,898 Commercial 21,134 - 21,134 5,694 - 5,694 Commercial Land 2,667 - 2,667 7,916 - 7,916 317,620 16,615 334,235 266,372 - 266,372 UK: Private Housing 123,087 - 123,087 85,257 - 85,257 Developed Sites & Land 13,543 - 13,543 - - - Construction Contracts 17,596 952 18,548 16,958 - 16,958 Commercial 2,026 - 2,026 7,350 - 7,350 156,252 952 157,204 109,565 - 109,565 Spain: Club Management 3,461 - 3,461 3,618 - 3,618 Leisure Freehold 12,446 - 12,446 6,412 - 6,412 Developed Sites & Land 751 - 751 2,840 - 2,840 16,658 - 16,658 12,870 - 12,870 Eliminations (1,432) (17,567) (18,999) (15,448) - (15,448) Total Revenue 489,098 - 489,098 373,359 - 373,359 Inter-segment sales are tendered for on an arm's length basis to ensure cost efficiencies. The contract sum is agreed at cost plus a commercial margin. SEGMENT RESULTS 31/12/2005 31/12/2004 Group Joint Total Group Joint Total Subsidiaries Ventures Segment Subsidiaries Ventures Segment •'000 •'000 •'000 •'000 •'000 •'000 Ireland: Private Housing 37,686 (21) 37,665 25,785 3,701 29,486 Developed Sites & Land 749 - 749 921 - 921 Construction Contracts 1,564 - 1,564 3,406 - 3,406 Commercial 4,572 - 4,572 1,200 2,053 3,253 Commercial Land 275 - 275 1,081 - 1,081 44,846 (21) 44,825 32,393 5,754 38,147 UK: Private Housing 12,447 - 12,447 12,176 - 12,176 Developed Sites & Land 4,135 - 4,135 - - - Construction Contracts 361 - 361 125 - 125 Commercial 153 - 153 377 - 377 17,096 - 17,096 12,678 - 12,678 Spain: Club Management 1,295 - 1,295 823 - 823 Leisure Freehold 3,500 - 3,500 267 - 267 Developed Sites & Land 260 - 260 1,218 - 1,218 5,055 - 5,055 2,308 - 2,308 Total Segment Results 66,997 (21) 66,976 47,379 5,754 53,133 A summary of the above results by activity is as follows: Private Housing 50,133 (21) 50,112 37,961 3,701 41,662 Developed Sites & Land 5,419 - 5,419 3,220 - 3,220 Construction Contracts 1,925 - 1,925 3,531 - 3,531 Commercial 4,725 - 4,725 1,577 2,053 3,630 Club Management 1,295 - 1,295 823 - 823 Leisure Freehold 3,500 - 3,500 267 - 267 Total Segment Results 66,997 (21) 66,976 47,379 5,754 53,133 Common Costs (5,835) (4,729) Profit from Operations 61,141 48,404 Investment Income 421 437 Finance Costs (11,502) (9,253) Profit Before Tax 50,060 39,588 Tax (8,963) (4,560) Profit After Tax 41,097 35,028 BALANCE SHEET 31/12/2005 31/12/2004 Assets Liabilities Nett Assets Liabilities Nett Assets Assets •'000 •'000 •'000 •'000 •'000 •'000 Ireland: Private Housing 173,004 (89,689) 83,315 148,153 (79,222) 68,931 Commercial 9,397 (857) 8,540 18,038 (1,165) 16,873 182,401 (90,546) 91,855 166,191 (80,387) 85,804 UK: Private Housing 161,287 (32,071) 129,216 110,279 (26,348) 83,931 Commercial 24,899 (523) 24,376 10,245 (744) 9,501 186,186 (32,594) 153,592 120,524 (27,092) 93,432 Spain: Club Management 8,741 (4,022) 4,719 19,581 (4,453) 15,128 Leisure Freehold 43,045 (19,112) 23,933 43,675 (27,230) 16,445 51,786 (23,134) 28,652 63,256 (31,683) 31,573 Total Operating Assets / 420,373 (146,274) 274,099 349,971 (139,162) 210,809 (Liabilities) Total Cash / (Bank Borrowings) 62,056 (173,048) (110,992) 26,670 (115,476) (88,806) Unallocated Assets / 1,401 (9,693) (8,292) 1,723 (4,745) (3,022) (Liabilities) 483,830 (329,015) 154,815 378,364 (259,383) 118,981 These preliminary results do not constitute statutory accounts. The Auditorshave reviewed the financial information set out on pages 3 to 8 for the yearended 31 December 2005 as part of their year end audit process and have agreedthe information as presented. The 2005 financial results have been prepared inaccordance with the Group's accounting policies under International FinancialReporting Standards (IFRS). The comparative figures for 2004 have been restatedto reflect the Group's adoption of IFRS. 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.