Homebuilder Abbey said that trading so far this year has been solid and that the group is on track to start building on its site in the Czech Republic next year.

Speaking at the group's annual general meeting (agm), chairman Charles Gallagher said that while the group was expecting to earn less money this year than last because of a slowdown in the UK housing market, the Irish market remained buoyant.

He said however that while new homes are continuing to sell steadily in both England and Ireland, the slight rise in seasonal levels of activity in July and August in England had not accelerated in September.

"The Irish market continues to be robust with the company's projects selling well throughout Leinster," he told shareholders.

Mr Gallager also said that the group's foray into Prague in the Czech Republic was going well and is on course to have started building work by this time next year. He said in the long run Abbey hopes to build 300-400 homes a year in the Czech republic. This compares with 371 in England last year and 348 in Ireland.

"The opening up of eastern Europe offers a great opportunity for us," said Mr Gallagher. "There is much potential to grow the business in that area."

If things go well in Prague, Abbey will consider expanding into other areas of eastern Europe, he said.

The group's shares, which trade on Dublin's IEX, rose 20 cent, or 2.3 per cent, to €8.92 yesterday.

Mr Gallager saw his total pay increase 8.1 per cent in the year ended April to €745,000.

Meanwhile Brian Hawkins, managing director of Abbey Developments, saw his total package rise by 7.9 per cent to €384,000.

The total remuneration package for executive directors increased 6.1 per cent to €1.66 million.