McINERNEY Holdings, the restructured housebuilder, has in creased pre tax profits from £353,000 in 1995 to £1.2 million in 1996. The results are better than expected and the group is poised to generate further substantial growth this year.

The latest profits give us a strong indication of what we are capable of", said Mr Barry O'Connor, managing director. The group completed 454 homes last year, up from 409 in 1995. This should rise to more than 500 this year, which indicates profits of almost £2 million.

The group said it intended to identify new opportunities. This would broaden the trading base and "enhance shareholder value".

Mr O'Connor said: "We can now put the restructuring behind us." The latest results justify the faith we have had in the group".

McInerney has sufficient supply of land to cater for the next three years in all its areas of operation with the exception of Dublin where the group is taking a more cautious approach. Mr O'Connor cited the high price of land as the reason for the cautious view.

The latest results show a rise in sales from £33.74 million to £39.09 million. Interest costs went up from £722,000 to £1,039,000. Reflecting real growth, earnings per share grew from 1.16p to 3.47p.

Despite the restructuring, the gearing amounted to more than 80 per cent at the end of last year. However, this should be considerably reduced this year. No dividends are being paid on the latest results. The focus now was to reduce borrowings, said Mr O'Connor and dividends were not expected to be considered until 1998.

Reviewing the latest results, the group noted that its activities are broadly spread over 20 private housing sites throughout the State and five contract sites.

In Dublin, the Lucan site was finalised ahead of schedule in December. The next phase of the Rathfarnham Gate development will begin shortly. It secured a site in Foxrock for 10 luxury houses toward the end of 1996, most of which have already been sold and work has started on an apartment and commercial site in Townsend Street.

In Cork, the group put two new developments at Westgrove, Donnybrook and Alderbrook, Frankfield on the market. It plans to increase its market share in Cork this year.

In Waterford, the William Street apartment development, constructed in early in 1996, was sold out by the year end. A new site was opened in Dungarvan.

The trading results from the leisure division are described as satisfactory. The rationalisation programme in Spain is almost complete. Sales at Fairways in Portugal are expected to conclude this year.