Glenveagh Properties said its home completions and revenue more than doubled in the first half and it reiterated that it is on course to finish 2,600 units for the full year.
The Dublin-listed company’s completions for the first six months of the year rose 114 per cent to 906 units, while its revenue jumped 124 per cent to €341.6 million, it said in a statement on Thursday.
Its gross margin increased to 19.5 per cent from 18.2 per cent, supported by “improved delivery mix, the benefits of standardisation across scale sites, and early returns from investment in off-site manufacturing”, the company said.
Glenveagh says it is the biggest timber-frame housing business in the country, with manufacturing plants in Dundalk, Co Louth, Arklow, Co Wicklow and Carlow.
RM Block
Home building completions rose to 566 units from 294 on the year, while homes – mainly apartments – built for the likes of State-backed Approved Housing Bodies and the taxpayer-owned Land Development Authority jumped to 339 units from 130. The partnerships division is currently working on constructing over 3,900 units across six sites.
The group said it continues to focus on capital efficiency and is on track to complete €100 million of land sales across 2025 and 2026 to optimise its land bank. It has also spent €83 million buying shares under an €85 million repurchase programme announced in May. It has extended the limit on the programme to €105 million.
“This is the first interim reporting period where our partnerships segment has made a material contribution to group profit, reflecting the scale and momentum now embedded in that part of the business,” said chief executive Stephen Garvey.
“We are an established partner of choice for the State and continue to see strong demand and a growing pipeline of opportunities. The benefits of our early investment in innovation and standardisation are also now visible in the enhanced margin profile.”
Turning to developments in the market, Mr Garvey said that the Government’s National Development Plan and the renewed focus on infrastructure and planning reform are to be welcomed.
“These are critical enablers of housing delivery. A policy environment that supports viability, accelerates delivery and attracts private capital will be essential to meeting Ireland’s housing needs,” he said. “In parallel, positive policy developments - including updates to rent regulation and apartment standards - further strengthen the prospects for increasing housing output in Ireland.”
Minister for Housing James Browne unveiled new guidelines in July on apartments, reducing minimum unit sizes and the percentage of flats needing dual aspect designs within schemes, and lifting a limit on the number of homes using one lift.
Mr Garvey told reporters that the changes were beyond what he had expected, and should reduce the current “viability gap” between what it costs to build an average apartment and what private buyers can afford from €100,000, currently, to €50,000-€60,000.
Glenveagh, which is focused on Dublin and surrounding counties, saw its average selling price rise to €377,000 in the first half from €329,000 a year earlier. This was mainly down to the site mix during the first half. It is expected to dip to €345,000 for the full year.
The median house price in Dublin in July was €490,000, according the latest figures from the Central Statistics Office (CSO).
Glenveagh said that while material and energy cost inflation have moderated relative to prior years, labour inflation remains persistent with recent sectoral employment order increases of approximately 3 per cent.
Shares in Glenveagh fell as much as 4.6 per cent to €1.84 in Dublin, which dealers largely putting this down to profit taking by some investors as the company stuck to its financial targets. It follows the stock’s recent run to an all-time high at €2.
