Pretax profits at Dublin building firm Albany Homes grew more than tenfold to €20.58 million in the year to the end of last September, newly filed accounts reveal.
With no end to the housing boom in sight, sales at the home-building company controlled by businessman David Daly rose to €86.75 million in the period, from €54.61 million a year earlier.
Albany is a large developer of new homes in the Dublin suburbs and Mr Daly is one of the best-known investors in the Dublin property market.
As pretax profits rose from €1.83 million in the year, the latest results reflect a sharp rise in profit margins in the company. Gross profits rose to €27.28 million from €6.15 million a year earlier, as the gross profit margin rose to 31 per cent from 11 per cent. The rise in operating profits to €24.48 million from €5.13 million saw the operating profit margin increase to 28 per cent from 9 per cent.
The company paid tax of €2.89 million - up from €646,682 a year earlier - and reported a retained profit for the period of €11.78 million.
Formerly associated with Manor Park Homebuilders, Mr Daly paid €22 million two years ago to acquire an office investment at 16 St Stephen's Green, Dublin, from AIB Investment Managers. Albany also developed Airside Retail Park, adjacent to the Dublin-Belfast road at Swords, north Dublin.
The Albany accounts indicate that the company made political donations of €12,555 in the year, but they did not identify the recipient of the donations.
Mr Daly and the company's two other directors took no dividend last year from Albany, which is based at Torquay Road in Foxrock, south Dublin. The other directors are Mary Daly and Rory O'Donnell.
In addition to its own home-building operations, Albany also owns Trident Home Builders Ltd, registered in Ireland, and a British-registered firm, Belmont Homes Ltd. Albany also had dealings during the year with the Daly Group, a partnership related to the company by virtue of common directors and shareholders.
The company's latest annual return indicates that Mr Daly holds the overwhelming majority of the equity in Albany.
The accounts, filed in the Companies Office on May 10th, indicate that Trident made profits of €5.9 million in the year while Belmont had profits of €1.95 million.
The accounts indicate that Albany had land stocks acquired at a cost of €147.97 million at the end of the financial year, down from €183.07 million a year earlier.
While the value of building materials in stock fell to €147,180 from €18.07 million in the year, the accounts reveal that the value of work in progress increased in the year to €62.22 million from €8.63 million.
Assuming work in progress is brought to completion in the current year, this indicates that Albany will be able to go to market with a significant number of new properties this year.
The company had a bank overdraft for €84.99 million at the end of the financial year, down from €95.04 million a year earlier. The accounts suggest that an outstanding bank loan for €23.27 million at the end of September 2003 was cleared during the following year.
The accounts state that Bank of Ireland hold a debenture incorporating a first fixed and floating charge over Albany's assets, including a specific charge over the company's interest in lands at Stepaside and Feltrim Road, Co Dublin.
Albany paid €1 million in legal fees in the year and paid €25.59 million on subcontracted labour. This was in addition to site wages of €2.38 million and commercial costs of €24.89 million.
