24th Feb 2005 07:00
McInerney Holdings PLC24 February 2005 Thursday, 24th February 2005 PRELIMINARY ANNOUNCEMENTFinancial Results for the Year ended 31 December 2004 The McInerney Group recorded a significant performance in the year to 31December 2004. Strong sales and profitability were achieved. Pre tax profits increase by 43%Earnings per share increase by 46%Dividend increase by 65% Financial Highlights The Directors are pleased to report an increase in basic earnings per share of46% to 106.43 cent, as compared to 72.83 cent in 2003. Pre-tax profits increasedby 43% to €40.74m compared to the 2003 result of €28.46m. Profit after tax for the year was €35.00m compared with €23.81m in 2003. The Directors are pleased with the result for the Group. Market and tradingconditions remained robust across the Group's three core regions of Ireland, theUK and Spain. In particular, our business benefited from continued buoyancy inthe first time buyer market, in Ireland and the UK. This was matched closely byour product portfolio. Dividend The Board is proposing to pay a final dividend of 11 cent gross per share.Combined with the interim dividend of 7 cent gross, this provides a total of 18cent per share for the year. Subject to confirmation at the Annual GeneralMeeting, this final dividend will be paid to shareholders on Monday, 16th May2005. The Board's objective to incorporate a more progressive dividend policy isbeing achieved. The dividend cover is now c. 5.9 times basic earnings per share. Operational Highlights There were a total of 1,614 private home completions across all operations in2004. This compared to 1,481 in 2003 and represents an increase of 9%. Ireland: Fundamental market conditions for the Irish house building operationwere excellent. Strong volume delivery yielded 1,101 private home completions in2004, compared to 969 in 2003. Market indicators and demographics for our targetmarket of first time buyers continued to be favourable. The division is wellpositioned through product match and geographic spread to take best advantage ofcontinuing good demand going forward. Currently, there are circa 4,800 plots under our control in the Irish land bank,of which 57% have planning permission and the remainder are residentially zoned.The Group is satisfied that the current land bank will support its growthplans. The Group's commercial division, Hillview Securities, completed 50,000 sq ft ofindustrial units in 2004. The division also sold its interest in the Eyre SquareShopping centre in Galway. These funds were reinvested in new developmentopportunities. A new project commenced in NewtownMountKennedy, Co Wicklow inlate 2004. UK: The Group's UK housing business performed strongly. There were 500 privatehome completions in 2004, compared with 447 in 2003. The year saw significantstrategic initiatives to enable future growth. The purchase of AlexanderDevelopments Ltd in the North-East of England in the first half of the year hasrealised the Group's ambition to expand its spread right across the north ofEngland. Its integration into the core UK business is now complete. In addition, progressive land bank enlargement has taken place. Over 30 sitesare now active, representing some 1,900 plots controlled. A further 400 sitesare under option. These substantial site purchases will feed through to unitcompletions in the second half of 2005. The division is well placed to seeprogressive growth going forward. The commercial division completed 39,000 sq ft of sales at its Park Royalproject. It purchased two new sites at Croydon and Chesham as well as entering ajoint venture in Watford. Spain: Some 13 private units were completed at the Los Flamingos development in2004 compared with 65 in 2003. The unit short fall for 2004 will be made up in2005. A significant land sale provided good profit recognition during the year.The business, supported by a well placed land bank, is primed to see significantuplift in 2005 and beyond. Board Renewal The Directors welcome the recent appointment of Donal Roche as Non ExecutiveDirector to the Board. Mr Roche, a former Managing Partner of Matheson OrmsbyPrentice Solicitors, will bring great business acumen to the Board'sdeliberations. He will, as is normal, submit to election by the shareholders at the AnnualGeneral Meeting on the 12th May 2005. Outlook The Group performed strongly in 2004, delivering good volumes and operatingmargins, as well as progressing its strategic objectives. All subsidiaries arewell placed to provide continued revenue growth going forward. In particular, itis expected substantial unit increases will be forthcoming from the UK and Spainin 2005. Construction timelines will see profit recognition weighted to thesecond half of 2005. Fundamental market conditions across all regions are favourable. The Group hasclosely aligned its product mix to exploit market demands. Our growth strategycontinues to show solid progress. We look forward with confidence. Ned SullivanChairman MC INERNEY HOLDINGS PLCCONSOLIDATED PROFIT AND LOSS ACCOUNTFor the year ended 31 December 2004 2004 2003 •'000 •'000 TURNOVER INCLUDING GROUP SHARE OFJOINT VENTURES Continuing Operations 381,387 352,502 Acquisitions 7,420 - 388,807 352,502 Less: Share of Joint Ventures Turnover (15,448) (9,173) GROUP TURNOVER 373,359 343,329 COST OF SALES (301,521) (284,408) GROSS PROFIT 71,838 58,921 Administrative Expenses (29,001) (26,341) GROUP OPERATING PROFIT Continuing Operations 40,985 32,580 Acquisitions 1,852 - 42,837 32,580 Share of Operating Profits in Joint Ventures Continuing Operations 6,943 2,935 TOTAL OPERATING PROFITS INCLUDING JOINT VENTURES 49,780 35,515 Interest Payable and Similar Charges (9,038) (7,058) PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 40,742 28,457 Taxation Charge arising on Ordinary Activities (5,739) (4,643) PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 35,003 23,814 Dividends (5,945) (3,610) PROFIT RETAINED FOR THE YEAR 29,058 20,204 BASIC EARNINGS PERSHARE 106.43 c 72.83 c FULLY DILUTED EARNINGS PER SHARE 101.47 c 70.40 c The Auditors have confirmed that they will be issuing an unqualified opinion onthe accounts from which the financial information set out on pages 4 to 8 forthe year ended 31 December 2004 has been extracted. The financial informationfor the year ended 31 December 2003 has been extracted from the audited accountson which the Auditors issued an unqualified opinion and which have beendelivered to the Registrar of Companies. MC INERNEY HOLDINGS PLCCONSOLIDATED BALANCE SHEETAs at 31 December 2004 2004 2003 •'000 •'000 FIXED ASSETS Intangible Assets 22,089 13,237 Tangible Assets 14,147 14,050Financial Assets Joint Ventures: Share of Gross Assets 22,341 11,540 Share of Gross Liabilities (15,487) (8,612) 6,854 2,928 TOTAL FIXED ASSETS 43,090 30,215 CURRENT ASSETS Stocks 268,131 228,431 Debtors 40,827 31,136 Cash at Bank and in Hand 26,670 26,435 335,628 286,002 CREDITORS (Amounts falling due within one year) Bank Loans and Overdrafts 58,433 38,837 Trade and Other Creditors 138,833 123,756 197,266 162,593 NET CURRENT ASSETS 138,362 123,409 TOTAL ASSETS LESS CURRENT LIABILITIES 181,452 153,624 CREDITORS (Amounts falling due after more than oneyear) Bank Loans 57,043 60,238 Other Creditors 2,222 253 59,265 60,491 PROVISIONS FOR LIABILITIES AND CHARGES Deferred Taxation 1,011 1,341 121,176 91,792 FINANCED BY :CAPITAL AND RESERVES Called up Share Capital 4,140 4,101 Capital Conversion Reserve Fund 62 62 Share Premium Account 17,113 16,648 Revaluation Reserve 2,159 2,159 Profit and Loss Account 97,702 68,822 TOTAL SHAREHOLDERS' FUNDS - ALL EQUITY 121,176 91,792 MC INERNEY HOLDINGS PLCCONSOLIDATED CASH FLOW STATEMENTFor the year ended 31 December 2004 2004 2003 •'000 •'000 Net Cash Inflow from operating activities 13,442 2,709 DIVIDENDS RECEIVED FROM JOINT VENTURES 1,900 130 RETURNS ON INVESTMENTS ANDSERVICING OF FINANCE Interest Received 325 53 Interest Paid (7,746) (6,284) Interest element of Finance Lease payments (42) (34) (7,463) (6,265) TAXATION (4,536) (5,020) CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Purchase of Tangible assets (1,773) (2,523) Sale of Tangible Assets 410 244 (1,363) (2,279) ACQUISITION OF SUBSIDIARY UNDERTAKING Consideration and Cost of Acquisition (10,745) - Net Overdraft taken over (207) - (10,952) - EQUITY DIVIDENDS PAID (4,273) (3,678) Net Cash Outflow before Financing (13,245) (14,403) FINANCING Share Capital Subscribed 504 313 Repayment of Loans (26,769) (58,049) Proceeds from Borrowings 41,162 76,488 Capital Element of Finance Lease Rentals (360) (287) 14,537 18,465 Increase in cash in year 1,292 4,062 MC INERNEY HOLDINGS PLCRECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBTFor the year ended 31 December 2004 2004 2003 •'000 •'000 Increase in cash in year 1,292 4,062 Cash inflow from increase in debt and lease financing(14,029) (18,152) Changes in net debt resulting from cashflows (12,737) (14,090) Loans acquired with subsidiary undertaking (3,066) - New finance leases (670) (298) Movement in net debt for the year (16,473) (14,388) Net debt as at 1 January 2004 (73,057) (58,669) Net debt as at 31 December 2004 (89,530) (73,057) MC INERNEY HOLDINGS PLCNOTES TO THE FINANCIAL STATEMENTSFor the year ended 31 December 2004 SEGMENTAL INFORMATION Segmental Analysis of Turnover and Profit 2004 2003 •'000 •'000 Group Turnover Ireland: Private Housing 223,975 183,164 Developed Sites & Land 4,889 17,230 Contracts 23,898 31,068 Commercial 5,694 14,217 Commercial Land 7,916 - Spain: Leisure 10,030 31,684 Land 2,840 - United Kingdom: Private Housing 85,257 59,328 Contracts 16,958 15,811 Commercial 7,350 - Total Group Turnover including Group Share of 388,807 352,502 Joint Ventures Profit before Interest & Taxation Ireland: Private Housing 30,675 22,275 Developed Sites & Land 921 3,552 Contracts 3,406 2,154 Commercial 3,253 1,816 Commercial Land 1,081 - Spain: Leisure 1,209 2,342 Land 1,218 - United Kingdom: Private Housing 12,927 7,671 Contracts 125 26 Commercial 377 - Segment Profits 55,192 39,836 Common Costs (4,401) (3,541) Goodwill (1,011) (780) Net Interest Payable (9,038) (7,058) Profit Before Taxation 40,742 28,457 Segmental Analysis of Net Assets 2004 2003 •'000 •'000 Business Sectors Irish Housing 71,045 71,942 Leisure 33,970 24,854 Commercial 26,374 33,250 UK Housing 83,423 37,373 Net Operating Assets 214,812 167,419 Unallocated Liabilities (4,830) (2,987) 209,982 164,432 Net Borrowings (88,806) (72,640) Total Net Assets 121,176 91,792 Comparative Figures Comparative figures have been reclassified on a basis consistent with the current year. 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.