Abbey, the housebuilder and property group, is looking for further strong growth following the rise in pre-tax profit from £6.2 million to £9.1 million in the year to April 30th. "The prospects for the year ahead are bright," said chairman Mr Charles Gallagher. The company is budgeting for increased sales and profits in all its areas of activity and the increase in the final dividend - from 3.4p to 4.6p - "is a signal of the board's confidence for the year ahead". Abbey sold 598 houses last year, 420 in Britain and 178 in Ireland. While no profit forecasts are being made, Mr Gallagher said 750 properties should be sold this year, representing growth of 25 per cent. The growth, he added, would be in both Ireland and Britain. Abbey has a land bank of more than 2,100 plots, including 650 in Ireland, with planning permission, or three year's supply. It is continuing to seek further sites. Demand, said Mr Gallagher, was very buoyant and he did not foresee any let up in demand.
Group sales rose from £44.95 million to £61.78 million. Margins improved from 13.8 per cent to 14.75 per cent. The better margins have been attributed to a rise in house prices of between five and 10 per cent in both Ireland and Britain. Prices had "gone up a bit" this year, said Mr Gallagher. Abbey remains in a very strong financial position with net cash and no borrowings. This is reflected in the interest receipts of £621,000, up from £515,000. Earnings per share grew from 11.17p to 15.76p. Total dividends rose from 5.50p to 6.80p. The higher dividends are covered 2.3 times by available earnings.
Its British plant hire business, operated by M & J Engineers, generated an operating profit of £284,000 on sales of £10 million. And trading since the year-end has been "very much improved thereby facilitating the acceleration of our investment programme". Sales and profits, according to Mr Gallagher, are "on course for a significant increase during the current year". Shareholders funds increased from £49 million to £57 million. The shares closed up 12p on 230p.
