House builder Abbey Plc has announced a pre-tax profit of €26.12 million for the six months to the end of October last, a drop from €28.81 for the corresponding period in 2003.
The board said margins were eroded by a rising cost and a weak market in the UK in October. Operating profits fell to €25.17m as compared to €28.39m at the half way stage last year.
Abbey's housebuilding division completed 353 sales (UK 203; Ireland 150) with a turnover of €88.51 million generating an operating profit of €23.64 million.
"The Irish market has continued to be firm and we are expecting a good performance in Ireland in the next few months," Chairman Mr Charles H Gallagher said in a statement.
"Looking forward, the housing division is, as last year, on course for more sales in the second half, however, the final outcome will depend on our UK sales in the last quarter."
During the first half of the year the company added 413 plots with planning permission to its approved landbank and said signs of easier land market conditions in England are consistent with the weaker housing market.
The company has also been active in the Czech Republic, acquiring a small infill site in Prague where 16 flats and an office suite are planned and continuing with planning work for a site in Slivenec.
Other contributions to the bottom line included rental income of €116,000, generated an operating profit of €328,000 from a land sale adjacent to a development in Clonsilla, Co Dublin, and operating profits of €1.09m on a turnover of €10.44m from the UK plant hire business M & J Engineers
The Abbey Board announced that it will pay an interim dividend of 11 cents per share on 16th February next.