'Dull' prospects for Abbey

House-builder Abbey has reported a pre-tax profit of €3.6 million for the six months to the end of October, but warned prospects continued to be "dull".

The construction firm reversed last year's loss of €5.39 million in the same six-month period, with operating profit moving from -€5.88 million to €2.49 million.

The group's housebuilding division generated an operating profit of €2.54 million, completing 170 sales in the UK, 49 in Ireland and three in the Czech Republic, with turnover of €36.27 million.

Sales were at a steady rate in Ireland, the firm said, noting it had considerable success in clearing inventory. In England, market conditions were improving, it said, but sales were slow in Prague.

Its UK plant hire business, M&J Engineers, showed "disappointing" figures, generating operating losses of €395,000 on €5.15 million turnover. The company warned no early improvement was forecast, with further substantial loss predicted for the second half of the year.

The company was cautious about its future prospects, particularly with the uncertainty in the Irish market.

"Prospects for the Group continue to be dull. Although we expect modest profitability this year we cannot yet rule out the possibility of further stock losses in our Irish operations," the group said in a statement.

"Looking further ahead progress relies on successful restocking of our land bank and this seems likely to be a slow and difficult process."

The company said it had not made any agreements to buy land during the reporting period, but noted that since October 31st, it had purchased a site for 60 plots in Cambridgeshire with planning permission, and further purchases had been agreed subject to contract.

The group also pledged in to invest its funds in new development opportunities "as circumstances allow".

Shares in Abbey were up 9 per cent to €4.80 on the Dublin market this afternoon.