Building group McInerney has reported a 77 per cent rise in pre-tax profits to €7.3 million in the first half of 2002 and is confident of a strong full-year performance.
The results for the six months to the end of June were in line with market expectations, with the company reporting a strong pipe-line of new houses to be completed before the end of the year.
Announcing the figures yesterday, McInerney managing director Mr Barry O'Connor said profits had been boosted by higher margins and a larger number of housing units being sold.
McInerney produced an 84 per cent increase in earnings per share to 17.47 cent. The group said it proposed to pay a dividend to shareholders next year that will be based on this year's performance.
McInerney shares, which have up until recently been one of the top performers on the Irish stock market, closed 14 cents higher at €2.29.
Turnover rose by 62 per cent from €68.7 million to €111.3 million on the back of continued strong demand for new housing in the Republic and sales of homes and apartments in Britain and Spain.
More than 80 per cent of the group's profits are generated in the Irish market, where 369 housing units were completed compared to 245 in the same period last year. It also has secured deposits on 599 new homes, which will be built over the coming months.
In Britain it holds deposits for 257 houses and apartments that are to be built and in Spain it has deposits on 94 apartments at its Los Flamingos development in Marbella.
The profit margins on its construction activities also improved, increasing from 11.3 per cent to 13.9 per cent.
Mr O'Connor said demand for its developments remained very strong and suggests this trend will continue. "The demographics will support continued good demand as well as low interest rates."
Despite a fall-off in the numbers of tourists visiting southern Spain, demand for its apartments, which are very expensively priced and aimed at wealthy north Europeans, have held up well.
Its interests in Britain are still relatively small and present the most potential for future growth, according to Mr O'Connor. It may look at expanding into Leeds and Manchester in the future.
