Abbey reports business off to good start

Irish property development firm Abbey said today business has got off to a good start this year despite the foot-and-mouth outbreak…

Irish property development firm Abbey said today business has got off to a good start this year despite the foot-and-mouth outbreak and bad winter.

Results for the year to April showed a fall in profit before tax to euro 36.3 million from euro 37.9 million on turnover of euro 151.1 million, up from 142.1 million.

Trading in Britain was steady throughout the reported period, and the board said recent falls in interest rates have seen increased activity in recent weeks.

But the bad winter weather and delays in the granting of detailed planning permissions held up starts on a number of sites and, therefore, the board said it will have a lower number of house completions than usual in the first half. "We expect to make up the lost ground in the second half," it said.

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The Irish housing business continues to be busy with a good level of forward sales, it said.

At M&J Engineers, the board said current trading, whilst profitable, is only moderate and any improvements will be "hard won".

Group chairman Mr Charles Gallagher said slower economic growth in Britain and Ireland has not yet significantly affected the group's business, which continues to be supported by low nominal interest rates. "In the near term, at least, prospects remain good," he said.

Abbey shares stayed unchanged at euro 3.70 on the Irish Stock Exchange today. So far this year Abbey has gained almost 17 per cent.