Abbey profits slip, warns lower UK housing contribution will 'materially impact' profits
Source - SMW
Abbey reported a fall in profits as margins declined from elevated levels seen in recent years amid increased costs, with the homebuilder warning that a lower UK housing contribution this year would likely 'materially' impact overall profit.
For the year ended 30 April 2019, pre-tax profit fell to €53.0m from €58.6m last year.
Its housebuilding operations completed 579 sales (UK 511; Ireland 36, CZK 32) with a turnover of €209.1m generating an operating profit of €48.0m. Rental income during the year was €1.2m.
Costs, including regulatory costs, were one of the main headwinds for the company as sub-contract labour and materials rose steadily.
'In recent months we have experienced a disappointing succession of planning decisions that have delayed the start of a number of new projects,' the company said, and warned that the UK turnover was expected to fall this year.
Lower turnover together with lower margins would reduce the division's contribution to group results.
The company said it would recommend a dividend of 11 cents per share
At 9:25am: (LON:ABBY) Abbey PLC share price was 0p at 1210p