Housebuilder Glenveagh reports drop in revenue but continues to benefit from chronic demand
Stephen Cfo Fennell Ceo Photography Pic: And Garvey, Glenveagh Rice, 2022 Michael
Housebuilder Glenveagh reported a dip revenue last year following the disposal of its East Road site for approximately €63m, however the developer was boosted overall by chronic demand for housing.
In a trading update, the company posted revenue of €608m for last year, a 6% drop compared to €645m in the previous year, while operating profit was approximately €71m during the same period, up marginally from €70m.
The company said it is “very well placed” to grow this year as the long-term demand outlook for the Irish residential housing market remains strong and it continues to benefit from State initiatives created to house a fast-growing population.
“Our healthy land portfolio and forward order book means that in 2024 we will provide the keys to approximately 2,700 new homes across the business,” said Glenveagh chief executive Stephen Garvey.
Its suburban forward order book of 680 units, is 67% ahead of the same point last year. The total value of the order book stands at €641.8m, up around 86% year-on-year.
The company said it targets revenue from its partnerships segment of over €100m this year with an anticipated gross margin of approximately 15%.
The company said it expects to commence the construction of almost 1,300 homes under partnership schemes this year.
Glenveagh finished the year with 680 suburban units contracted or reserved for 2023, up from 408 in the previous year.
The company also reported suburban revenue of approximately €471m, modestly above revenue in the previous year of €455m, primarily comprised 1,328 unit sales.
These sales were completed with the suburban average selling price of approximately €336,000 compared to €330,000 in 2022, reflecting a 2% increase driven by house price inflation in the period.
Last year, Glenvegah, was granted permissions for approximately 4,600 units, almost 700 of which are currently in post-grant appeal periods. It also lodged planning applications for approximately 2,900 units during the year.