Abbey falls as profit falls and outlook remains 'difficult'

Abbey's shares took a hit after the residential housing developer revealed that its pre-tax profit fell from €3.35m to €5.55m for the six months ended 31 October.

Profits at the operating level were €2.27m as compared to €4.38m at the half way stage last year.

The firm's housebuilding division completed 146 sales, the majority of which took place in the UK, with a turnover of €26.98m resulting in an operating profit of €1.76m.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The company, which described its UK trading as "satisfactory", admitted autumn have been sluggish and selective discounts have been necessary to generate activity.

Sales in Prague were described as very slow, although good progress was made in its main project, Slivenec.

The group maintained good cash flow during the period and held €21.24m in cash and restricted cash together with €53.94m in UK government debt at the end of October.

In a statement the firm said: "The outlook for the foreseeable future continues to be difficult. House prices remain under pressure in all our markets.

"Negotiations are proceeding on a number of land purchases which should gradually allow volumes to increase in the reporting periods ahead. New land purchases however are, viewed in the current light, being made on narrow margins. Overall the group continues to trade profitably and is laying the foundation for hopefully better days ahead."

A dividend of 3 cents per share has been announced, which together with the 5 cents approved in October will make a total of 8 cents for the financial year.

The share price fell 4.81% to 430.75p by 13:58.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.