Glenveagh Properties PLC Trading Statement

Glenveagh Properties PLC Trading Statement

Glenveagh Properties PLC (“Glenveagh” or the “Group”) a leading Irish homebuilder is today issuing a trading update for the year ended 31 December 2019 ahead of the publication of its full year results on Friday 28 February 2020.

Group Highlights

• 844 unit sales up 207%.
• Revenue of approximately €284m up 238%.
• Unit sales gross margin of approximately 18% (2018: 17%).
• 240 units signed or reserved (2018: 202).

Commentary

Revenues for the year were approximately €284m up 238% (2018: €84m) as the Group delivered another strong sales performance with 844 unit sales, up 207% (2018: 275). The Average Selling Price of €332k (2018: €287k) reflects significant deliveries from the Group’s starter-home schemes and the sale of 90 units at Herbert Hill, Dundrum.

A solid performance in the starter-home private market was complemented by institutional sales totalling 208 units at Taylor Hill, Balbriggan; Semple Woods, Donabate, and Herbert Hill, Dundrum. Non-core land sales for the year totalled approximately €4m (2018: €5m).

The Group delivered the 844 units from 14 selling sites (2018: eight) and finished the year with 240 units signed or reserved for 2020 (2018: 202) further evidence of the strong demand and maturing sales profile within the business.  

Scale and cost control delivered an improved units sales gross margin for the year of approximately 18%. CPI remains in line with expectations with Glenveagh continuing to see competitive pricing across current tenders.

Outlook

The Group has substantially de-risked its 2020 construction targets with costs largely fixed and strong forward sales in place. The market backdrop remains favourable with significant institutional and private demand for housing, particularly starter homes, evident across the Group’s selling sites. Glenveagh will provide a further progress update on the current period to investors at the time of our full year results on Friday 28 February 2020.

Glenveagh’s CEO Stephen Garvey commented:

“In our second full year of trading it has been another strong performance for the Group both operationally and financially as we continue to meet our targets, delivering three times the number of unit completions from one year ago. We have completed our net investment in land, grown our operations consistent with our business plan and remain focused on driving further return on capital improvements as the business continues to scale.”

Glenveagh Investor Day 2020

Glenveagh has delivered on its IPO objectives to date and the Group is making good progress towards its medium-term volume targets. With the focus now on execution, management will present an updated business plan to shareholders as part of an Investor Day to be held on 29 January at the London Stock Exchange from 12pm. Institutional investors and analysts can register their attendance at events@glenveagh.ie