Preliminary Financial Results

McInerney Holdings PLC
06 March 2008


Thursday, 6th March 2008



MCINERNEY HOLDINGS PLC

                                              ('McInerney' or the 'Group')

                                     Preliminary Announcement of Financial Results

                                            For Year Ended 31 December 2007



Highlights:

   •  Pre tax profit €58 million.

   •  Strong performance in the UK with Sterling EBIT advancing by 20%.

   •  Delivering total of 2,414 private and contract residential units in more challenging market conditions (2006:
2,372)

   •  Rights Issue proceeds invested to secure further growth in UK



The Directors report pre tax profits of €58.093 million for the year ended 31 December 2007 (2006: €57.998 million).
Basic earnings per share were 23.9 cent (2006: 28.04*cent) in 2007. Profit after tax for the year was €47.910 million
(2006: €48.621 million).



Operational Highlights

The Group delivered a solid result in 2007, despite more challenging conditions in the Irish market in the second half
of the year. Significant profits were realised from the disposal of a number of non-core land holdings.



The Group's continued focus on expanding its UK division made excellent progress with increased units and economies of
scale achieved. The Group undertook the acquisition of Lancing Homes in the UK North East in early 2007. This operation
is now fully integrated and contributed immediately to earnings.



Our Irish housing division achieved a good result within a market experiencing cautious consumer sentiment and
tightening of mortgage accessibility.



Dividend

The Board recommends a final dividend for the year ended 31 December 2007 of 3 cent gross per share, payable to
shareholders on the register at the close of business on 14 March 2008.  Subject to confirmation at the AGM on 15 May
2008, this final dividend will be paid to shareholders on 16 May 2008.  This brings the total dividend for the year to 6
cent (2006: 5.6* cent).



UK:  We continue to make strong progress in the UK house building division. An EBIT of €26.4 million  (£18.5 million)
(2006: €21.1 million; £14.3 million) was achieved on a turnover of €317.3 million. Private housing profit increased 56%
on an output growth of 43%. Our output of 1,400 units in 2007 (2006: 980), positions the Group as one of the leading
regional house builders in the North and Midlands of England. Average unit prices of €190,000 (£140,000) were stable
reflecting our strategy of focussing on affordable product.



Our land bank, and thus pipeline for growth is strong. We have control over 4,300 plots as at 31 December 2007, of which
circa 3,900 have detailed or outline planning, enabling us to again target an increase in output in 2008.



On the commercial front, Hillview Developments, delivered a solid performance with the completion of 4,440 metres of
industrial units (2006: 7,476 sq. metres).



Ireland:  The Irish house building operation recorded a turnover of €281.8 million and EBIT of €53.6 million (2006: €
51.6 million). Our interim statement indicated that unit completions were anticipated to be short of our target of 850
and 594 were completed in 2007 (2006: 1,025). Market conditions in the final quarter of the year were difficult, with
consumer confidence low and personal credit restrictions being felt for the first time in recent years. Our average unit
price remained robust at €297,000.

Our Irish land bank comprised circa 4,500 plots as at 31 December 2007 of which over 2,100 had planning permission.




Our land bank strategy is focussed on return on capital employed through the purchase of land for development and the
disposal of tracts surplus to requirements. We again profitably disposed of non core land in 2007.



The Group's commercial division, Hillview Developments completed 8,758 sq. metres in Ireland in 2006 compared to 5,632
sq. metres in 2006.



The Irish contracting business had a turnover of €93 million achieved on 391 housing unit completions. The order book on
hand is €100 million (2006: €156 million).



Spain:  The Spanish market experienced deteriorating market conditions in 2007. We completed 29 units in 2007 (2006:
53). Our landbank in Spain is strong but demand is slow.


Outlook

In the UK the undersupply of new homes and the recent Government initiatives to remove constraints, underscore the
potential for substantial housing output increases. We are well positioned through our regional spread and product mix
to significantly benefit from this.



In Ireland, underlying demand is being demonstrated by high visitor levels. However, consumer confidence is currently a
restraining factor. The response by the housing industry in cutting output, combined with strong underlying demand is
likely to preserve the positive fundamentals of the Irish housing market in our view.



This year our markets will be dominated by sentiment, as well as the credit and interest rate environment. Our business
is adjusting to negative external factors. The logical approach is to be cautious in this environment. However, we
anticipate that in due course the underlying positive fundamentals of our business will take precedence. Current supply
constraints will fundamentally favour our business in the medium term and demand across all our markets is positive for
the future.  Our business model will serve us well in this process as market conditions improve.



Ned Sullivan

Chairman



* Comparative EPS and Dividend figures have been adjusted to allow for the 5 for 1 share split of May 2007.





                                                          ENDS



FOR INFORMATION:

Siobhan Molloy                                    Tel: [phone]

Weber Shandwick                              or [phone]




Preliminary Financial Results for the Year Ended 31 December 2006



MCINERNEY HOLDINGS PLC

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2007




                                                                 Year ended          Year ended
                                                                 31/12/2007          31/12/2006
                                                                    €'000               €'000

 Continuing Operations
 Revenue                                                               632,789             630,064
 Cost of Sales                                                       (501,460)           (507,484)

 Gross Profit                                                          131,329             122,580

 Administrative Expenses                                              (56,375)            (49,303)
 Share of Results from Joint Ventures                                    1,112               1,064

 Profit from Operations                                                 76,066              74,341

 Investment Income                                                       1,450                 570
 Finance Costs                                                        (19,423)            (16,913)

 Profit before Tax                                                      58,093              57,998
 Tax                                                                  (10,183)             (9,377)

 Profit attributable to Equity Holders of the Parent                    47,910              48,621


 Earnings Per Share
 From Continuing Operations:
 Basic
                                                                    23.94               28.04
 Diluted
                                                                    23.33               27.03


MCINERNEY HOLDINGS PLC

CONSOLIDATED BALANCE SHEET

As at 31 December 2007


                                                                    31/12/2007          31/12/2006
                                                                       €'000               €'000

 Non-Current Assets
 Goodwill                                                                  51,811              49,485
 Property, Fixtures & Equipment                                            12,584               7,544
 Interests in Joint Ventures                                                7,015               3,877
 Deferred Tax Assets                                                        1,015               1,696

                                                                           72,425              62,602
 Current Assets
 Inventories                                                              520,320             442,093
 Trade & Other Receivables                                                121,506              68,230
 Cash & Cash Equivalents                                                   80,459              84,382
 Assets Classified as held for Sale                                           504               1,507

                                                                          722,789             596,212

 Total Assets                                                             795,214             658,814


 Current Liabilities
 Trade & Other Payables                                                   160,266             142,178
 Retirement Benefit Obligation                                                420                 345
 Tax Liabilities                                                            9,646              19,225
 Provisions                                                                 3,665               2,500
 Obligations under Finance Leases                                             365                 398
 Bank Loans & Overdrafts                                                   59,343              42,106

                                                                          233,705             206,752

 Net Current Assets                                                       489,084             389,460

 Non-Current Liabilities
 Bank Loans                                                               241,266             238,230
 Retirement Benefit Obligation                                                614               1,039
 Deferred Tax Liabilities                                                   4,685               2,296
 Provisions                                                                 3,551               4,007
 Other Payables                                                               460               4,531
 Obligations under Finance Leases                                             607                 477

                                                                          251,183             250,580

 Total Liabilities                                                        484,888             457,332

 Net Assets                                                               310,326             201,482


 EQUITY
 Share Capital                                                              5,036               4,173
 Capital Conversion Reserve Fund                                               62                  62
 Share Premium Account                                                    101,039              17,484
 Other Reserves                                                             (880)               2,328
 Hedging & Translation Reserves                                           (6,437)               2,504
 Retained Earnings                                                        211,506             174,931

                                                                          310,326             201,482


 Total Equity and Liabilities                                             795,214             658,814




MCINERNEY HOLDINGS PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2007




                                                                    Year ended          Year ended
                                                                    31/12/2007          31/12/2006
                                                                       €'000               €'000

 Profit from Operations                                                    76,066              74,341

 Adjustments for:
   Depreciation                                                             2,556               2,340
   Share of Results from Joint Ventures                                   (1,112)             (1,064)
   Provision for Fair Value of Share Based Payments                           525                 591
   (Profit) / Loss on disposal of Tangible Assets                           (580)                  10
   Pension Service Costs                                                      502                 420
   Increase in Provisions                                                     709               1,006

 Operating Cash Flows before movements in Working Capital                  78,666              77,644

   Increase in Inventories                                               (57,504)            (66,948)
   Increase in Receivables                                               (57,534)             (7,595)
   (Decrease) / Increase in Payables                                      (9,677)               5,423

 Cash Generated by Operations                                            (46,049)               8,524

 Taxation Paid                                                            (8,451)            (12,148)
 Interest Paid                                                           (19,019)            (16,056)

 Net Cash from Operating Activities                                      (73,519)            (19,680)


 INVESTING ACTIVITIES
 Interest Received                                                            982                 187
 Dividends Received from Joint Ventures                                         -               1,976
 Loans advanced to Joint Ventures                                           (798)             (5,030)
 Loans repaid from Joint Ventures                                           4,865                 351
 Proceeds on disposal of Property, Fixtures & Equipment                     1,371                 250
 Purchases of Property, Fixtures & Equipment                              (8,404)             (3,157)
 Employer Contributions to Pension Scheme                                   (420)               (346)
 Acquisition of Subsidiary                                               (28,188)            (38,133)

 Net Cash used in Investing Activities                                   (30,592)            (43,902)


 FINANCING ACTIVITIES
 Dividends Paid                                                          (12,064)             (8,343)
 Share Capital Subscribed                                                  84,418                 332
 Repayments of Borrowings                                               (107,717)           (106,929)
 Repayments of Obligations under Finance Leases                             (484)               (630)
 New Bank Loans Raised                                                    139,113             198,789
 (Decrease) / Increase in Bank Overdrafts                                 (2,125)               1,047

 Net Cash from Financing Activities                                       101,141              84,266


 NET INCREASE IN CASH AND CASH EQUIVALENTS                                (2,970)              20,684

 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                            84,382              62,056
 Effect of Foreign Exchange Rate Changes                                    (953)               1,642

 CASH AND CASH EQUIVALENTS AT END OF YEAR
 Bank Balances and Cash                                                    80,459              84,382





 MCINERNEY HOLDINGS PLC

NOTES TO THE ACCOUNTS

For the year ended 31 December 2007




 Business and geographical segments



The Group operates in three markets, Ireland, the UK and Spain. The principal activities of the Group are Private
Housing, Contracting Commercial Development and Leisure. The Leisure activities are divided into Club Management and
Freehold Sales. Land sales are also part of each business segment. These divisions are the basis on which the Group
reports its primary segment information.




 REVENUE                        31/12/2007                              31/12/2006
                     External   Inter-Segment   Total        External  Inter-Segment   Total
                       Sales        Sales      Revenue        Sales        Sales      Revenue
                       €'000        €'000       €'000         €'000        €'000       €'000
 Ireland:
 Private Housing       154,350              -   154,350       257,621              -   257,621
 Developed Sites &      34,643              -    34,643         3,189              -     3,189
Land
 Construction           92,778          4,116    96,894        93,288         22,046   115,334
Contracts
 Commercial             13,952              -    13,952        11,365              -    11,365
 Commercial Land         3,160              -     3,160         2,860              -     2,860

                       298,883          4,116   302,999       368,323         22,046   390,369

 UK:
 Private Housing       285,351              -   285,351       198,244              -   198,244
 Developed Sites &      13,990              -    13,990         8,788              -     8,788
Land
 Construction           17,949              -    17,949        17,128              -    17,128
Contracts
 Commercial              9,769              -     9,769        15,457              -    15,457

                       327,059              -   327,059       239,617              -   239,617

 Spain:
 Club Management         2,796              -     2,796         3,309              -     3,309
 Leisure Freehold       14,055              -    14,055        26,762              -    26,762
 Developed Sites &           -              -         -             -              -         -
Land

                        16,851              -    16,851        30,071              -    30,071


 Eliminations         (10,004)        (4,116)  (14,120)       (7,947)       (22,046)  (29,993)

 Total Revenue         632,789              -   632,789       630,064              -   630,064




Inter-segment sales are tendered for on an arm's length basis to ensure cost efficiencies. The contract sum is agreed at
cost plus a commercial margin.




MCINERNEY HOLDINGS PLC

NOTES TO THE ACCOUNTS (CONT'D)

For the year ended 31 December 2007




 SEGMENT RESULTS                             31/12/2007                                  31/12/2006
                                    Group         Joint       Total             Group         Joint       Total
                                 Subsidiaries    Ventures    Segment         Subsidiaries    Ventures    Segment
                                    €'000         €'000       €'000             €'000         €'000       €'000
 Ireland:
 Private Housing                        34,040       (787)      33,253              49,347          82     49,429
 Developed Sites & Land                 20,282           -      20,282               1,338           -      1,338
 Construction Contracts                     65           -          65                 816           -        816
 Commercial                              1,510         595       2,105               2,531         674      3,205
 Commercial Land                           498         832       1,330                 812           -        812

                                        56,395         640      57,035              54,844         756     55,600

 UK:
 Private Housing                        23,680           -      23,680              15,237         (4)     15,233
 Developed Sites & Land                  1,550           -       1,550               5,290           -      5,290
 Construction Contracts                  1,134           -       1,134                 577           -        577
 Commercial                                172         472         644               1,152         312      1,464

                                        26,536         472      27,008              22,256         308     22,564

 Spain:
 Club Management                           486           -         486                 936           -        936
 Leisure Freehold                          125           -         125               3,248           -      3,248
 Developed Sites & Land                      -           -           -                   -           -          -

                                           611           -         611               4,184           -      4,184


 Total Segment Results                  83,542       1,112      84,654              81,284       1,064     82,348





 A summary of the above results by activity is as follows:
 Private Housing                         57,720    (787)      56,933            64,584           78        64,662
 Developed Sites & Land                  22,330      832      23,162             7,440            -         7,440
 Construction Contracts                   1,199        -       1,199             1,393            -         1,393
 Commercial                               1,682    1,067       2,749             3,683          986         4,669
 Club Management                            486        -         486               936            -           936
 Leisure Freehold                           125        -         125             3,248            -         3,248

 Total Segment Results                   83,542    1,112      84,654            81,284        1,064        82,348

 Common Costs                                                (8,588)                                      (8,007)

 Profit from Operations                                       76,066                                       74,341
 Investment Income                                             1,450                                          570
 Finance Costs                                              (19,423)                                     (16,913)

 Profit Before Tax                                            58,093                                       57,998
 Tax                                                        (10,183)                                      (9,377)

 Profit After Tax                                             47,910                                       48,621






BALANCE SHEET                       31 December 2006                          31 December 2005
                                Assets Liabilities   Net Assets           Assets Liabilities   Net Assets

                                 €'000 €'000              €'000            €'000 €'000              €'000
Ireland :
Private Housing                212,607 (100,094)        112,513          173,004 (89,689)          83,315
Commercial                      10,748 (1,560)            9,188            9,397 (857)              8,540
                               223,355 (101,654)        121,701          182,401 (90,546)          91,855
UK :
Private Housing                257,711 (47,353)         210,358          161,287 (32,071)         129,216
Commercial                      24,818 (1,045)           23,773           24,899 (523)             24,376
                               282,529 (48,398)         234,131          186,186 (32,594)         153,592
Spain :
Club Management                  9,695 (4,391)            5,304            8,741 (4,022)            4,719
Leisure Freehold                56,373 (15,861)          40,512           43,045 (19,112)          23,933
                                66,068 (20,252)          45,816           51,786 (23,134)          28,652
Total Operating Assets/        571,952 (170,304)        401,648          420,373 (146,274)        274,099
(Liabilities)

Total Cash/(Bank                84,382 (280,336)      (195,954)           62,056 (173,048)      (110,992)
Borrowings)
Unallocated Assets/              2,480 (6,692)          (4,212)            1,401 (9,693)          (8,292)
(Liabilities)
                               658,814 (457,332)        201,482          483,830 (329,015)        154,815






NOTES TO THE FINANCIAL INFORMATION

The financial information contained in this preliminary announcement is not the statutory accounts of the company, a
copy of which is required to be annexed to the company's annual return to the Companies Registration Office in Ireland.
A copy of the statutory accounts required to be annexed to the company's annual return in respect of the year ended 31
December 2006 has in fact been so annexed. A copy of the statutory accounts in respect of the year ended 31 December
2007 will be annexed to the company's annual return for that year. The Auditors of the company have made a report,
without any qualification on their audit of the statutory accounts of the company in respect of the year ended 31
December 2006. The Auditors have read the financial information set out on pages 3 to 7 for the year ended 31 December
2007. The Directors are in the course of preparing the annual report in respect of the year ended 31 December 2007.



Approval of Preliminary Announcement

The Directors have approved the preliminary announcement on 5 March 2008.

This preliminary announcement has been agreed with the Auditors.











This announcement has been issued through the Companies Announcement Service of



The Irish Stock Exchange










                      This information is provided by RNS
            The company news service from the London Stock Exchange