The following replaces the announcement "Interim Results 2024" released on 5 September 2024 at 07:00 under RNS No: 9707C

 

The announcement previously omitted a responsibility statement which is required by the Transparency (Directive 2004/109/EC) Regulations 2007.  All other details remain unchanged, and the full amended text is shown below.

 

5 September 2024

This announcement contains inside information within the meaning of the EU Market Abuse Regulation 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

Glenveagh Properties plc

Interim Results 2024

Full year expectations reiterated for a milestone year of growth

Announcing intention to commence €50 million share buyback programme

Glenveagh Properties plc ("Glenveagh" or the "Group") a leading Irish homebuilder announces its Interim Results for the period ended 30 June 2024.

 

Financial Highlights

	Six Months to 30 June 2024 €m	Six Months to 30 June 2023 €m	Change
Revenue	152.2	171.6	-11%
-       Suburban	102.2	109.7
-       Partnerships	32.3	-
-       Urban	17.7	61.9
Gross profit	27.7	27.9	-1%
-     Suburban	20.1	20.5
-       Partnerships	4.9	-
-     Urban	2.7	7.5
Gross margin (%)	18.2%	16.3%	+190bps
-     Suburban (%)	19.7%	18.7%
-       Partnerships (%)	15.1%	-
-     Urban (%)	15.5%	12.1%
Profit before tax	1.0	1.4	-29%
Earnings Per Share (EPS) (cent)	0.12	0.21	-43%
Land1	411.1	443.8
Work in Progress	441.5	317.6
Operating cash flow	(193.7)	(93.2)
Net Debt	244.1	182.2
1 Excluding development rights

Operational Highlights

 

·     Closed and forward order book totalling approximately €1.4 billion across our three business segments, underpinning our 2,700 completions for FY 2024 and giving strong visibility on deliveries and revenue into FY 2025

·     Over 800 units of the 2,700 full year target completed in H1 2024 (H1 2023: 333)

·     Suburban completions of 294 units in the first half (H1 2023: 333) have accelerated strongly in the third quarter. The closed and forward order book in the Suburban business is €770 million, comprising 2,215 units for delivery in FY 2024 and early FY 2025. Driven by our enlarged scale, increased standardisation of product and processes, and continued integration of manufacturing, Suburban gross margin is expected to be in excess of 20% in FY 2024, compared to an underlying margin of 19.3% in FY 2023

·     Partnerships performance reflected increased construction activity in our Balmoston (Ballymastone) and Oscar Traynor Road sites. A third Partnerships contract for a site adjacent to Balmoston is now completed, with site development works now commenced. We are also advancing a fourth agreement and combined, these agreements will add approximately 1,000 units to our Partnerships pipeline for delivery from FY 2025 onwards

·     Urban performance reflected the completion of 510 units from existing forward fund transactions, where approximately 90% of revenue has already been recognised in prior periods. Following the request to join the Land Development Agency ("LDA") framework panel to accelerate the delivery of mixed tenure homes, a partnership with the agency to commence the activation of our Urban portfolio in Cork Docklands, via a forward fund transaction, is subject to final legal agreement

·     Strong planning momentum with permissions now granted for approximately 1,500 units so far this year with over 95% of units targeted for FY 2025 now with planning permissions granted

·     Good progress with our sustainability ambitions, focussing on implementing actions in line with our strategies on Net Zero transition, biodiversity and circular economy

 

Disciplined Capital Allocation Supporting Growth and Returns

 

·     As noted in our H1 Trading Statement on 4 July, we see potential to accelerate our future land investment plans and significantly expand our landbank in the near term in highly attractive locations. These investments, should they all materialise, would provide more than 6,000 units across multiple tenures, with an attractive return profile. These acquisitions would also provide potential to secure partnership agreements on adjacent sites for approximately 2,000 units, further enhancing the growth and return potential for that business segment and the Group overall

·     Assuming these acquisitions are completed, our landbank value at year end would be approximately €500 million, with our medium-term target remaining at less than €400 million

·     We remain committed to returning excess cash identified to shareholders, in accordance with our capital allocation framework. Given our operational and financial position and our confidence in the future cash generation and balance sheet strength of the business, we are pleased to announce the intention to commence on 6 September 2024 a €50 million share buyback programme, having returned over €300 million of capital to shareholders since the beginning of FY 2021

·     Net Debt is expected to fall to below €200m by the end of FY 2024. This includes the commencement of our share buyback programme and all anticipated land acquisitions, should they materialise, and is within our guidance range of 15-25% of gross assets, a measure that now aligns with current covenant metrics

Outlook

 

·     FY 2024 is a milestone year of growth for Glenveagh. We operate in a thriving market with strong demand, driven by an outperforming economy, strong population growth, and supportive State initiatives

·     Our ability to deliver great value, high-quality, sustainable homes at scale via our proven vertically integrated operation positions the business at the forefront of meeting Ireland's housing needs into the future

·     We reiterate our full year EPS guidance which anticipates a more than doubling of EPS to approximately 17 cent in FY 2024 and a Return on Equity target of approximately 15%

CFO Transition

 

·     Glenveagh today announces that Michael Rice has informed the Board that he is stepping down from his role as Executive Director and Chief Financial Officer ("CFO") of Glenveagh to pursue other interests. Michael will step down from the Board on 31 December 2024 but will remain with Glenveagh into 2025 to ensure a smooth transition. Michael will be succeeded in the role of CFO by Conor Murtagh, who is currently Chief Strategy Officer and a member of the Group's Executive Committee.

 

CEO Stephen Garvey commented:

"Our report today strongly signals that our business remains on a solid trajectory in 2024, achieving significant milestones across all three business segments.

Our ability to consistently deliver high-quality, sustainable homes at scale reflects the strength of our vertically integrated operation and the skill and dedication of our team at Glenveagh. We are on track to deliver on our target of 2,700 homes this year, a critical objective in our role in the sector responding to Ireland's housing needs.

Glenveagh's pioneering of modern methods of construction and our focus on standardisation and innovation are central to our strategy. As we continue to expand, our commitment to sustainability, efficiency, and affordability remains at the core of our operations.

We welcome the Government's ongoing commitment to driving housing completions forward through targeted initiatives that enhance viability, and improvements in the planning system. The momentum we've seen in new home commencements and the growing output across the industry are promising indicators that Ireland can achieve the necessary increase in housing supply. Yet, as we aim to scale our activities further, collaboration between the public and private sectors remains key.  It is crucial that we build upon the foundations laid by current initiatives to reach the next phase of output growth-delivering over 50,000 units per annum.

We are confident that with continued targeted policy measures and strategic partnerships involving both capital and land between the public and private sectors, we will not only meet but exceed the housing targets necessary to respond to the housing needs of Ireland's growing population and to bolster and sustain ongoing economic successes."

Results Presentation

 

A webcast presentation of the results for analysts and institutional investors will take place at 8.30am on 5 September 2024. The presentation slides will be available on the Investor Relations section on www.glenveagh.ie from 7.00am on 5 September 2024.

This presentation can also be accessed live from the Investor Relations section on www.glenveagh.ie or alternatively via conference call.

Conference call: Click here to register for conference call

Audio webcast: Click here for webcast

Registration and access details are also available at Glenveagh Corporate | Investors news and events

 

The person responsible for arranging the release of this announcement on behalf of Glenveagh is Chloe McCarthy, Group Company Secretary.

 

For further information please contact:

Investors:	Media:
Glenveagh Properties plc Michael Rice (CFO) Jack Gorman (Head of IR and Corporate Affairs) investors@glenveagh.ie	Gordon MRM Ray Gordon 087 241 7373 David Clerkin 087 830 1779 glenveagh@gordonmrm.ie

 

Note to Editors

Glenveagh Properties plc, listed on Euronext Dublin and the London Stock Exchange, is a leading Irish homebuilder.

Supported by innovation and supply chain integration, Glenveagh are committed to opening access to sustainable high-quality homes to as many people as possible in flourishing communities across Ireland. We are focused on three core markets - suburban housing, urban apartments and partnerships with local authorities and state agencies.

 

www.glenveagh.ie

 

Forward-looking statements

 

This announcement does not constitute or form any part of an invitation to underwrite, subscribe for or otherwise acquire or dispose of any shares of Glenveagh Properties plc ("Glenveagh" or "the Group").

 

This announcement contains statements that are, or may be deemed to be, forward-looking statements. Forward-looking statements include, but are not limited to, information concerning the Group's possible or assumed future results of operations, plans and expectations regarding demand outlook, business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, expectations regarding inflation, macroeconomic uncertainty, geopolitical tensions, weather patterns, the effects of competition and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "ensure", "arrive", "achieve", "develop" or "believe" (or the negatives thereof) or other variations thereon or comparable terminology. Forward-looking statements are prospective in nature and are based on current expectations of the Group about future events, and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Although Glenveagh believes that current expectations and assumptions with respect to these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Due to various risks and uncertainties, actual events or results or actual performance of the Group may differ materially from those reflected or contemplated in such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements.

 

These forward-looking statements are made as of the date of this document. Glenveagh expressly disclaims any obligation to update these forward-looking statements other than as required by law.

 

The forward-looking statements in this announcement do not constitute reports or statements published in compliance with any of Regulations 6 to 8 of the Transparency (Directive 2004/109/EC) Regulations 2007 (as amended).

 

 

 

GLENVEAGH PROPERTIES PLC: BUSINESS AND FINANCIAL REVIEW

 

1.   BUSINESS REVIEW

i.    Group Sales

 

a.   Overview

The Group had total revenue of €152.2 million (H1 2023: €171.6 million), primarily driven by the completion of 294 suburban units (H1 2023: 333) in the period and the inclusion of a first-time contribution in H1 Results from our Partnerships business segment.

b.   Suburban

The Group reported suburban revenue of €102.2 million, a reduction of 6.8% from the H1 2023 revenue outturn of €109.7 million.

In H1 2024, 294 suburban units were closed (H1 2023: 333). Completions were impacted by the scheduling of closings which have now accelerated in the third quarter. The Average Selling Price ("ASP") in H1 2024 was approximately €329k (H1 2023: €324k), reflecting underlying House Price Inflation ("HPI") and changes in our product and site mix.

Underlying market demand for new homes remains very strong, driven by a robust economic environment, population growth and a range of supportive demand-side initiatives from the Government.

The Group delivered approximately half of our suburban units as part of these Government support initiatives to provide social, cost rental and affordable housing.

The First Home Scheme, a €480 million fund set up as part of the Government's Housing for All strategy, continues to progress well since its launch in July 2022. The scheme helps first-time buyers, a key target market for Glenveagh, to bridge the gap between their mortgage, deposit and the price of a new home, providing up to 30% of the price of the home. Over 10,600 potential buyers have registered their interest in the Scheme to date, with a significant increase in usage during the first six months of 2024.

Alongside the Government's Help To Buy Scheme and the Central Bank of Ireland's changes to macroprudential rules in early 2023, first-time buyers have enhanced access to new housing developments and improved affordability.

c.   Partnerships

FY 2023 was a milestone year for our Partnerships business segment. Full planning permission was received and construction works commenced on both the Balmoston and Oscar Traynor Road sites in H2 2023 and we reported our first interim revenue and profits contribution in H1 2024.

We are on track to have commenced the construction of almost 1,300 homes under our partnership schemes by the end of FY 2024.  We have also lodged a planning application for the next phase of the Balmoston development, comprising approximately 400 mixed tenure units.

A third Partnerships contract for a site adjacent to Balmoston is now signed, with construction anticipated to begin by year end. We are also advancing a fourth agreement and combined, these agreements will add approximately 1,000 units to our Partnerships pipeline for delivery from FY 2025 onwards.

A strong pipeline of partnership opportunities has also been identified for the medium term, partnering with local authorities and the LDA on other State land developments. These have the potential to generate significant and sustainable incremental revenue, profits and returns for the Group over the longer term.

d.   Urban

Urban revenue was €17.7 million in H1 2024 (H1 2023: €61.9 million). This primarily reflects the completion of two of our contracted forward fund projects, Citywest and Castleknock, where approximately 90% of revenue had already been recognised in prior periods. These two projects delivered 510 units in the period.

Several other projects are underway or are in the final stages of negotiations and are detailed in the table below.

 

Urban asset	Transaction Type	Transaction Status
Citywest	Forward fund	Completed H1 2024
Castleknock	Forward fund	Completed H1 2024
Cluain Mhuire	Forward sale	Completion expected H2 2024
Brownsbarn	Forward fund	Subject to final legal agreement: expected H2 2024
Tyrellstown	Forward sale	In negotiation: expected H2 2024
Cork Docklands	Forward fund	Subject to final legal agreement: expected H2 2024
Blackrock, Cork	Private/Croí Cónaithe	First revenue anticipated FY 2026

 

Urban revenue in the second half of FY 2024 is expected to comprise the contribution from projects already contracted as well as the new revenue opportunities indicated above. Our commercial office development, the residual non-core asset in the Docklands portfolio, has completed construction with a first tenant now contracted for a portion of the building and we continue to explore opportunities for this asset.

 

ii.   Forward Order Book

The continued strength of the Irish market is demonstrated through our strong forward order book which now totals approximately €1.4 billion. This provides us with strong visibility on revenue and deliveries for the remainder of FY 2024 and into early FY 2025.

The closed and forward order book in the suburban business is €770 million, comprising 2,215 units. Strong reservation rates in our Suburban business segment reflects strong underlying private market demand that is supported by the resilience of the domestic economy, the range of Housing for All initiatives, and further underpinned by the structural undersupply across the market of high-quality, affordable housing in Ireland.

The forward order book also includes revenue to be recognised from the transactions within the Urban business segment, as well as the contracted element of the Partnerships business segment.

We are currently active on 21 sites across our business segments, with a focus on delivering higher output from larger sites to further enhance operational efficiencies.

 

iii.  Planning Progress and Policy

Strong planning momentum has continued with permissions granted for approximately 1,500 units to date in FY 2024. The Group has planning permission for all of its expected deliveries in FY 2024 and for over 95% of units targeted for FY 2025 delivery.

We also remain on track to lodge planning applications for over 2,000 units over the course of this year, further underpinning unit delivery in FY 2025 and beyond.

It is evident that the Government's range of demand and supply side incentives, coupled with enhanced compact growth guidelines and encouraging improvements in planning policy and system, are having the desired effect on industry performance and output.

Building on this momentum is critical so that the industry can meet the next phase of output growth, to deliver well over 50,000 homes per annum.

Effective delivery requires comprehensive resourcing of all aspects of the design, planning and development lifecycle and streamlined design standards at a national level. This, alongside effective partnering with local authorities and the LDA, will enable the industry and private sector capital to work together with the State to accelerate supply in a sustainable manner.

 

iv.  Development Land Portfolio Management

Our approach to land acquisitions and portfolio management is both disciplined and strategic, with a focus on maintaining a land portfolio at scale for a period of 4-5 years.

The Group's land investment, excluding development rights, was €411.1 million at 30 June 2024 (31 December 2023: €403.8 million). Development rights decreased from €29.3 million at 31 December 2023 to €27.9 million at 30 June 2024 reflecting the utilisation of certain development rights associated with our partnership agreements for Balmoston and Oscar Traynor Road.

The Group's land portfolio currently comprises over 13,100 units with an average plot cost of approximately €33k. The Suburban segment accounts for 68% of the portfolio by units, with the remainder comprising the Partnerships segment (17%) and the Urban segment (15%). Almost 70% of the overall portfolio is in the Greater Dublin Area.

The Group spent or contracted to spend a total of approximately €21.5 million on three land sites in H1 2024. These sites have the capacity to deliver approximately 550 new own-door housing in sustainable communities.

In addition, we have continued to progress negotiations on several acquisition opportunities. These opportunities, should they all materialise, would provide in excess of 6,000 new units across multiple tenures, some of which can be delivered from FY 2025. These acquisitions would also provide potential to secure partnership agreements on adjacent sites for approximately 2,000 units, further enhancing the growth and return potential for that business segment and the Group overall.

 

v.   Input Cost Inflation

The construction sector continued to face some inflationary pressures across its raw material and labour costs base in H1 2024, though at a lesser level than experienced in FY 2022 and FY 2023.

To manage the effects of inflation, we have implemented several strategies. We work closely with our supply chain partners to ensure competitive and sustainable pricing while maintaining a secure supply. Additionally, our size and purchasing power allow us to negotiate favourable terms and pricing with suppliers. Our supply chain integration strategy also gives us greater control over input costs.

Development levies were removed by the Government in April 2023 for a limited time subject to certain criteria being met, a measure that has partly mitigated against cost pressures across the industry.

These mitigation strategies enabled us to manage build cost inflation to a low single digit percentage level in H1 2024.

 

vi.  Supply Chain Integration - NUA

NUA has exhibited a strong performance in H1 2024, underpinned by its commitment to safety, innovation, and efficiency. The business leverages advanced technology in three factories located in close proximity to our main geographical areas of focus, setting a benchmark in modern construction methods. This innovation underpins our ambition to provide high-quality and accessible homes, showcasing excellence and customer satisfaction. NUA has the capacity to deliver frames for over 2,000 homes per year working on a single shift, focusing on the off-site panellised manufacture using timber frame and light gauge steel.

The Group's focus on standardising house types and investing in offsite manufacturing has been instrumental in ensuring effective delivery and high build quality. At Glenveagh, standardisation is a core principle that drives operational excellence and efficiency across design and house type layouts, mechanical and electrical layouts, and other processes. This attention to detail ensures consistency and quality across all projects, helping us to manage costs and reduce our environmental impact.

The combination of NUA and the increasing standardisation of our product and process means that we can plan, design, and build houses more effectively, with greater efficiency and speed, and in greater numbers than ever before whilst managing our resources more efficiently. This in turn supports an improved margin and return profile for the Group overall.

 

vii. Sustainability Agenda Progress

We have continued to progress our sustainability ambitions, focussing on implementing actions in line with our strategies on Net Zero transition, biodiversity and circular economy. We continue to work towards our science-based targets which were verified by the Science Based Targets initiative (SBTi) earlier this year. Actions focus on transitioning our sites to renewable fuel, driving innovation in our design and engaging with our supply chain to drive action.

Our biodiversity strategy, 'Building a Better Habitat' and our circular economy strategy, 'Building Better Circularity' were both published in H1 2024. These set out the actions we will take to manage our impacts, risks, and opportunities with respect to these areas across our value chain.   

Underpinning our three strategies is our work with our supply chain which has been ongoing throughout the first half. This involves collaborating and supporting our suppliers to come with us on our sustainability journey. Becoming a founding partner and supporting the Supply Chain Sustainability School in Ireland is a key element of this work.

In July 2024 we were named as the first company in the construction sector in Ireland to be awarded gold accreditation by the Irish Centre for Diversity. This is an important milestone for the business and the industry as we continue implementing our ED&I strategy, 'Building a Better Workplace'.

We are continuing our preparation to report in line with European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) at year end.

Our ESG ratings remain positive with our Sustainalytics rating at 16.4 ('Low-risk'), our CDP rating at B and our MSCI rating at AA.

 

2.   FINANCIAL REVIEW

 

i.    Group Performance

Total Group revenue for the first half of the year was €152 million (H1 2023: €172 million). The Group's gross profit for the period was broadly unchanged at €27.7 million (H1 2023: €27.9 million) with an overall expansion in gross margin to 18.2% (H1 2023: 16.3%).

In the Suburban business segment, revenue of €102 million represents a modest decline of 7% versus the H1 2023 outturn. The Group delivered 294 core units in the first half (H1 2023: 333) at an Average Selling Price of approximately €329k (H1 2023: €324k). ASP increased by less than 2% as a result of portfolio mix and house price inflation in the period.

Group gross margin increased by 190bps to 18.2%. The most significant driver was in the Suburban business with a gross margin of 19.7% (H1 2023: 18.7%). The business benefitted from several operational improvements including increased product standardisation, our pricing power in the market and enhanced cost efficiencies from our manufacturing capabilities. We anticipate further progression in the underlying suburban margin to over 20% for FY 2024 as we deliver at increased scale and with a higher percentage of our product from our standardised house types and our manufacturing facilities.

We generated €32 million of revenue from our Partnerships business segment, reflecting significant progress made on both Partnership sites during the period. Given the structure of the Partnership transactions, we recognise revenue and profits on a percentage of completion basis and therefore the revenue and profits recognised in H1 2024 reflect the early stages of construction rather than any units being completed. The Partnership gross margin was 15.1%, consistent with our margin guidance for that business segment.

Our Urban business segment generated revenue of €18 million. This includes the completion of our forward funds in our apartment schemes in Citywest and Castleknock, the revenue from which was primarily recognised in prior reporting periods. Urban gross margin was 15.5% in H1 2024, ahead of the H1 2023 margin of 12.1%.

Group operating profit was €8.6 million (H1 2023: €8.9 million). The Group's administrative costs for the first half were €17.7 million (H1 2023: €17.9 million), which along with €1.4 million (H1 2023: €1.2 million) of depreciation and amortisation gives total administrative expenses of €19.1 million (H1 2023: €19.1 million).

Net finance costs for the period increased modestly to €7.7 million (H1 2023: €7.5 million), primarily impacted by a higher level of average debt during the period to support the growth trajectory of the business.

Overall, the Group delivered Earnings Per Share of 0.12 cent (H1 2023: 0.21 cent).

 

ii.   Balance Sheet and Cash Flow

In H1 2024 the business continued to manage balance sheet efficiency alongside delivery of its growth agenda.

The Property, Plant & Equipment balance of €63.2 million (FY 2023: €64.2 million) decreased modestly, reflecting the completion of our phase of significant investment in our off-site facilities and equipment.

The Group's land investment, excluding development rights, was €411.1 million at 30 June 2024 (31 December 2023: €403.8 million). Development rights decreased from €29.3 million in FY 2023 to €27.9 million in H1 2024 reflecting the utilisation of certain development rights associated with our partnership agreements for Balmoston and Oscar Traynor Road.

To facilitate the significant growth trajectory during FY 2024, the business has invested in work-in progress totalling €441.5 million at 30 June 2024 (FY 2023: €274.6 million). This incremental investment of over €160 million reflects the significant growth across the business in the first half, which will unwind as unit deliveries accelerate in H2. The work-in-progress balance also includes a combined investment of approximately €90 million representing our apartment scheme in Cluain Mhuire (scheduled to complete in FY 2024) and the non-core office development in the Dublin Docklands.

Net assets increased modestly to €681.6 million at 30 June 2024 (FY 2023: €678.2 million). The Group has returned over €300 million to shareholders since the beginning of our first share buyback programme in May 2021 and remains committed to returning surplus cash to shareholders, in line with our capital allocation framework. In this context we are pleased to announce the intention to commence on 6 September 2024 a €50 million share buyback programme.

Reflecting the phasing of investment in work in progress, which has peaked in H1 2024 and will deliver in FY 2024, the Group had an increased net debt position at 30 June 2024 of €244.1 million (FY 2023: €48.8 million). This remains a prudently managed debt level in the context of the overall scale of the business and is expected to fall to below €200m by the end of FY 2024, including the commencement of our share buyback programme and even if all anticipated land acquisitions materialise.

The Group recently finalised a €100 million expansion of its credit facilities with its existing syndicate of lenders. The overall facility now totals €450 million, comprising a €150 million term loan and a €300 million revolving credit facility. The tenure, interest rates and covenants associated with these enlarged facilities are unchanged.

 

Ends

 

Statement of Directors' responsibilities in respect of the condensed consolidated interim financial statements for the half year ended 30 June 2024

 

The Directors are responsible for preparing the half-yearly financial report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 ("Transparency Directive"), and the Transparency Rules of the Central Bank of Ireland.

 

In preparing the condensed set of consolidated financial statements included within the half-yearly financial report, the directors are required to:

-   prepare and present the condensed set of consolidated financial statements in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, and the Transparency Directive and the Transparency Rules of the Central Bank of Ireland;

-   ensure the condensed set of consolidated financial statements has adequate disclosures;

-   select and apply appropriate accounting policies; and

-   make accounting estimates that are reasonable in the circumstances.

-   assess the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Entity or to cease operations, or have no realistic alternative but to do so.

 

The directors are responsible for designing, implementing and maintaining such internal controls as they determine is necessary to enable the preparation of the condensed set of consolidated financial statements that is free from material misstatement whether due to fraud or error.

 

We confirm that to the best of our knowledge:

 

(1)  the condensed set of consolidated financial statements included within the half-yearly financial report of Glenveagh Properties plc for the six months ended 30 June 2024 ("the interim financial information") which comprises the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated balance sheet, the condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows and the related explanatory notes, have been presented and prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, the Transparency Directive and Transparency Rules of the Central Bank of Ireland.

(2)  The interim financial information presented, as required by the Transparency Directive, includes:

a.   an indication of important events that have occurred during the first 6 months of the financial year, and their impact on the condensed set of consolidated financial statements;

b.   a description of the principal risks and uncertainties for the remaining 6 months of the financial year

c.   related parties' transactions that have taken place in the first 6 months of the current financial year and that have materially affected the financial position or the performance of the enterprise during that period; and

d.   any changes in the related parties' transactions described in the last annual report that could have a material effect on the financial position or performance of the enterprise in the first 6 months of the current financial year.

 

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Entity's website. Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

 

On behalf of the Board

 

 

 

 

Stephen Garvey                                                            Michael Rice                 4 September 2024

Director                                                                         Director

 

 

 

 

Independent Review Report to Glenveagh Properties plc ("the Entity")

 

Conclusion

 

We have been engaged by the Entity to review the Entity's condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2024 which comprises Condensed Consolidated Interim Statement of Financial Position, Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income, Condensed Consolidated Interim Statement of Changes in Equity, Condensed Consolidated Interim Statement of Cash Flows, a summary of significant accounting policies and other  explanatory notes.

 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2024 is not prepared, in all material respects in accordance with International Accounting Standard 34 Interim Financial Reporting ("IAS 34") as adopted by the EU and the Transparency (Directive 2004/109/EC) Regulations 2007 ("Transparency Directive"), and the Central Bank (Investment Market Conduct) Rules 2019 ("Transparency Rules of the Central Bank of Ireland).

 

Basis for conclusion

 

We conducted our review in accordance with International Standard on Review Engagements (Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity ("ISRE (Ireland) 2410") issued for use in Ireland. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

 

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Conclusions relating to going concern

 

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention that causes us to believe that the directors have inappropriately adopted the going concern basis of accounting, or that the directors have identified material uncertainties relating to going concern that have not been appropriately disclosed.

 

This conclusion is based on the review procedures performed in accordance with ISRE (Ireland) 2410. However, future events or conditions may cause the Entity to cease to continue as a going concern, and the above conclusions are not a guarantee that the Entity will continue in operation.

 

Directors' responsibilities

 

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Transparency Directive and the Transparency Rules of the Central Bank of Ireland.

 

The directors are responsible for preparing the condensed set of consolidated financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by the EU. 

 

As disclosed in note 2, the annual financial statements of the Entity for the year ended 31 December 2023 are prepared in accordance with International Financial Reporting Standards as adopted by the EU. 

 

In preparing the condensed set of consolidated financial statements, the directors are responsible for assessing the Entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Entity or to cease operations, or have no realistic alternative but to do so.

 

Our responsibility

 

Our responsibility is to express to the Entity a conclusion on the condensed set of consolidated financial statements in the half-yearly financial report based on our review.

 

Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion section of this report.

 

The purpose of our review work and to whom we owe our responsibilities

 

This report is made solely to the Entity in accordance with the terms of our engagement to assist the Entity in meeting the requirements of the Transparency Directive and the Transparency Rules of the Central Bank of Ireland. Our review has been undertaken so that we might state to the Entity those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Entity for our review work, for this report, or for the conclusions we have reached.

 

 

KPMG                                                                                                              4 September 2024

Chartered Accountants

1 Stokes Place

St. Stephen's Green

Dublin, Ireland

 

Glenveagh Properties PLC

Condensed consolidated statement of profit or loss and other comprehensive income

for the six months ended 30 June 2024

 

			Unaudited	Unaudited
		Note	30 June	30 June
			2024	2023
			€'000	€'000
Revenue		8	152,186	171,581
Cost of sales			(124,480)	(143,647)
Gross profit			27,706	27,934
Administrative expenses			(19,063)	(19,088)
Operating profit			8,643	8,846
Finance expense			(7,654)	(7,462)
Profit before tax			989	1,384
Income tax		10	(319)	(129)
Profit after tax			670	1,255
Items that are or may be reclassified subsequently to profit or loss:
Fair value movement on cashflow hedges			1,671	870
Cashflow hedges reclassified to profit or loss			(437)	5
Total other comprehensive income			1,234	875
Total comprehensive profit for the period
attributable of the owners of the Company			1,904	2,130
Basic earnings per share (cents)			0.12	0.21
Diluted earnings per share (cents)			0.12	0.21

 

Glenveagh Properties PLC

Condensed consolidated balance sheet

as at 30 June 2024

		Unaudited	Unaudited
		30 June	31 December
	Note	2024	2023
Assets		€'000	€'000
Non-current assets
Goodwill		5,697	5,697
Property, plant and equipment	12	63,154	64,184
Intangible assets		2,875	2,781
Deferred tax asset	10	957	884
		72,683	73,546
Current assets
Inventory	11	880,480	707,600
Trade and other receivables		97,868	77,974
Income tax receivable		4,355	3,901
Restricted cash		458	458
Cash and cash equivalents		40,690	71,863
		1,023,851	861,796
Total assets		1,096,534	935,342
Equity
Share capital	13	661	659
Share premium	13	179,757	179,719
Undenominated capital		399	399
Retained earnings		450,773	450,103
Cashflow hedge reserve		(389)	(1,623)
Share-based payment reserve		50,422	48,899
Total equity		681,623	678,156
Liabilities
Non-current liabilities
Loans and borrowings	14	279,302	112,083
Lease liabilities		3,732	4,230
Derivative contracts		389	1,623
Trade and other payables		1,750	1,750
		285,173	119,686
Current liabilities
Trade and other payables		127,559	132,719
Loans and borrowings	14	903	3,562
Lease liabilities		1,276	1,219
		129,738	137,500
Total liabilities		414,911	257,186
Total liabilities and equity		1,096,534	935,342