Re: Interim Results

McInerney Holdings PLC
11 September 2003

 
Thursday 11th September 2003 
 

                              McInerney Holdings plc 
 
               Interim Statement for the six months to 30th June 2003 
 

Highlights: 
 
Pre-tax profits increased by 17% to €8.53m (2002: €7.30m) 
 
Earnings per share up 20% to 21.00 cent (2002: 17.47 cent) 
 
355 completed unit sales in Irish Housing  
 
181 completed unit sales in UK Housing  
 
34 completed sales at Los Flamingos, Marbella 


McInerney Holdings plc reports a profit before taxation of €8.53m for the period
ending 30th June 2003. This compares to €7.30m for the corresponding period last
year and is an increase of 17%. Group turnover increased from €111.3m to
€138.5m. Basic earnings per share were 21.00 cent compared to 17.47 cent for the
same period in 2002, representing an increase of 20%.

The Directors are very pleased with this performance and note with particular
satisfaction the increasing contribution of our UK business to the Group's
result.

This accomplishment reflects favourable market conditions and good product
positioning which supported a strong level of sales being achieved across all
key areas.  This has resulted in both our Irish and UK housing divisions being
strongly forward sold into the latter half of the year. Consequently, the
Directors are confident of a strong second half result and overall result for
the year.

Dividend

The Directors are pleased to report further progress in our dividend policy,
with the commencement of the payment of an interim dividend with the half-year
results.  This interim dividend of 5 cent gross will be paid on Friday, 3rd of
October 2003 to shareholders on the register on Friday, 19th September 2003.

Corporate

Share activities in June saw some substantial blocks of our shares trading on
the market.  As a result, the Group now has a more diversified shareholding base
incorporating a broad range of investors, which provides for improved liquidity
in our shares going forward.

It is pleasing to note the purchase of a significant block of the shares by the
Group's senior management team, doubling their stake to around 17%. This
highlights their commitment and confidence in the Group's operations and growth
strategies.

Ireland

The Irish private house building division demonstrated a solid performance for
the first six months. It constructed and handed over some 355 units compared to
369 for the same period last year. There will be a very strong level of
completions in the second half of the year. As a result, an increase in the full
year completions from 879 in 2002 to over 900 in 2003 is expected.

The demand for housing in the Group's core first time buyer markets continues to
be strong and we continue to position our product in this sector.

A positive result was recorded by our housing contracting division. This
division will contribute favourably to the Group's full year result.

Hillview Securities, the Group's commercial division has commenced the process
of upgrading tenancies and disposing of individual units at the recently
acquired Hibernian Industrial in West Dublin. This is progressing very
satisfactorily and will reflect positively on Hillview's results in 2003 and
2004.

Plans are in progress to maximise the opportunity presented by our recent
acquisition of the extension premises of the Eyre Square Shopping Centre,
Galway.  Whilst, the market for industrial units remains quiet in many areas,
Hillview is broadening its market spread with the recent purchase of a new
industrial site in Newtownmountkennedy, Co Wicklow.  As indicated at the AGM, a
good result is expected from this division in 2003.

UK

The performance this year of our UK division has also been solid. It has
achieved critical mass in the North West England market. It is ideally placed to
take advantage of emerging growth opportunities. It is also well on course to
achieve the Group's five year strategy to enlarge the UK business to a situation
where it corresponds in size to our successful Irish house building operation. A
buoyant sales record has been achieved for the first six months with 181 sales
completed compared to 53 for the same period in 2002.  Another good performance
in the second half of the year is anticipated.

The Group is actively seeking opportunities for regional expansion in the UK
marketplace.

Spain

In the first half of 2003, sales of 34 apartments at the Los Flamingos
development were closed.  It is expected that a total of 79 units will be closed
by year-end, completing the first phase of the development.

The favourable positioning of our rental product at Alanda Club, Marbella has
enabled us to achieve growth in this year's slower market.

The Group is actively considering new opportunities, which should lead to
further profit growth in this division in future years.

Outlook

We are on course to achieve our five-year strategic growth plan.  The full year
result will continue this growth pattern and a strong performance is
anticipated.


Roy Ferris
Chairman
ENDS



FOR INFORMATION:

Siobhan Molloy
Weber Shandwick FCC                 Tel: [phone] or (086) 817 50 66
 

 

                                                                                             
      MC INERNEY HOLDINGS PLC                                            
      CONSOLIDATED PROFIT AND LOSS ACCOUNT                               
      For the period ended 30 June 2003                                  
 

                                                                                                                 
                                                                                                                 
                                                                        30 June         30 June     31 December  
                                                                           2003            2002            2002  
                                                                          €'000           €'000           €'000  
                                                                    (unaudited)     (unaudited)       (audited)  
                                                                                                                 
      TURNOVER INCLUDING GROUP SHARE OF JOINT VENTURES                                                           
                                                                                                                 
      Continuing Operations                                             139,973         101,794         231,148  
      Acquisitions                                                            -          10,641          30,453  
                                                                        139,973         112,435         261,601  
                                                                                                                 
      Less: Share of Joint Ventures Turnover                             (1,504)         (1,179)         (3,547) 
                                                                                                                 
      GROUP TURNOVER                                                    138,469         111,256         258,054  
                                                                                                                 
      COST OF SALES                                                    (115,738)        (91,921)       (213,876) 
                                                                                                                 
      GROSS PROFIT                                                       22,731          19,335          44,178  
                                                                                                                 
      Administrative Expenses                                           (11,948)         (9,927)        (19,885) 
                                                                                                                 
      GROUP OPERATING PROFIT                                                                                     
                                                                                                                 
      Continuing Operations                                              10,783           8,736          22,199  
      Acquisitions                                                            -             672           2,094  
                                                                         10,783           9,408          24,293  
                                                                                                                 
      Share of Operating Profits in Joint Ventures                                                               
                                                                                                                 
      Continuing Operations                                                 744             740             986  
      Acquisitions                                                            -             (11)            945  
                                                                                                                 
      TOTAL OPERATING PROFITS INCLUDING JOINT VENTURES                   11,527          10,137          26,224  
                                                                                                                 
      Interest Payable and Similar Charges                               (2,999)         (2,836)         (5,600) 
                                                                                                                 
      PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                       8,528           7,301          20,624  
                                                                                                                 
      Taxation Charge arising on Ordinary Activities                     (1,663)         (1,609)         (4,220) 

      PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                        6,865           5,692          16,404  
 
      Proposed Dividend                                                  (1,634)              -          (2,039) 
      
      PROFIT RETAINED FOR THE PERIOD                                      5,231   c       5,692 c        14,365 c 
                                                                                                   
      BASIC EARNINGS PER SHARE                                            21.00   c       17.47 c         50.32 c 
                                                                                                   
      FULLY DILUTED EARNINGS PER SHARE                                    20.33   c       16.83 c         48.49 c 
                                                                                                   
                                                                                                   
                                                                                                   
 

                                                                                         
  MC INERNEY HOLDINGS PLC                                  
  CONSOLIDATED BALANCE SHEET                               
  As at 30 June 2003                                       
 

                                                                                                                      
                                                                                                                      
                                                                             30 June         30 June     31 December  
                                                                                2003            2002            2002  
                                                                               €'000           €'000           €'000  
                                                                         (unaudited)     (unaudited)       (audited)  
                                                                                                                      
  FIXED ASSETS                                                                                                        
  Intangible Assets                                                           13,819          16,959          15,084  
  Tangible Assets                                                             14,544          11,446          13,786  
  Financial Assets                                                                                                    
                            Joint Ventures:     Share of Gross Assets         12,141           8,423           9,057  
                                                Share of Gross               (10,763)         (7,866)         (8,263) 
                                                Liabilities                                                           
                                                Loans to Joint                 2,800           1,063           3,238  
                                                Ventures                                                              
                                                                               4,178           1,620           4,032  
                                                                                                                      
  TOTAL FIXED ASSETS                                                          32,541          30,025          32,902  
                                                                                                                      
  CURRENT ASSETS                                                                                                      
  Stocks                                                                     197,502         154,367         178,994  
  Debtors                                                                     43,699          33,352          30,700  
  Cash at Bank and in Hand                                                    23,422          21,015          20,994  
                                                                             264,623         208,734         230,688  
                                                                                                                      
  CREDITORS (Amounts falling due within one year)                                                                     
  Bank Loans and Overdrafts                                                   39,924          32,283          23,642  
  Trade and Other Creditors                                                  113,397          82,324         106,992  
                                                                             153,321         114,607         130,634  
                                                                                                                      
  NET CURRENT ASSETS                                                         111,302          94,127         100,054  
                                                                                                                      
  TOTAL ASSETS LESS CURRENT LIABILITIES                                      143,843         124,152         132,956  
                                                                                                                      
  CREDITORS (Amounts falling due after more than one year)                                                            
  Bank Loans                                                                  60,862          56,394          55,615  
  Other Creditors                                                              3,550           4,465           3,710  
                                                                              64,412          60,859          59,325  
                                                                                                                      
  PROVISIONS FOR LIABILITIES AND CHARGES                                                                              
  Deferred Taxation                                                            1,158             353           1,173  
                                                                                                                      
                                                                              78,273          62,940          72,458  
                                                                                                                      
  FINANCED BY :                                                                                                       
  CAPITAL AND RESERVES                                                                                                
  Called up Share Capital                                                      4,086           4,076           4,078  
  Capital Conversion Reserve Fund                                                 62              62              62  
  Share Premium Account                                                       16,443          16,329          16,358  
  Revaluation Reserve                                                          2,159             138           2,159  
  Profit and Loss Account                                                     55,523          42,335          49,801  
  TOTAL SHAREHOLDERS' FUNDS - ALL EQUITY                                      78,273          62,940          72,458  
                                                                                                                      
 

                                                                                            
    MC INERNEY HOLDINGS PLC                                         
    CONSOLIDATED CASH FLOW STATEMENT                                
    For the period ended 30 June 2003                               
 

                                                                                                                    
                                                                                                                    
                                                                           30 June         30 June     31 December  
                                                                              2003            2002            2002  
                                                                             €'000           €'000           €'000  
                                                                       (unaudited)     (unaudited)       (audited)  
                                                                                                                    
    Net Cash (Outflow) / Inflow from operating activities                  (10,726)         (4,069)         12,984  
                                                                                                                    
    DIVIDENDS RECEIVED FROM JOINT VENTURES                                       -             100             576  
                                                                                                                    
    RETURNS ON INVESTMENTS AND                                                                                      
    SERVICING OF FINANCE                                                                                            
    Interest Received                                                           71              76             145  
    Interest Paid                                                           (2,938)         (3,010)         (5,827) 
    Interest element of Finance Lease payments                                 (14)            (19)            (38) 
                                                                            (2,881)         (2,953)         (5,720) 
                                                                                                                    
                                                                                                                    
    TAXATION                                                                (2,395)         (3,405)         (4,942) 
                                                                                                                    
    CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT                                                                    
    Expenditure on Tangible assets                                          (1,563)         (2,553)         (3,456) 
    Sale of Tangible Assets                                                    133              39             208  
    Investment in Financial Assets                                             438             389          (1,663) 
                                                                              (992)         (2,125)         (4,911) 
                                                                                                                    
    ACQUISITION OF SUBSIDIARY UNDERTAKING                                        -          (9,770)        (10,309) 
                                                                                                                    
    EQUITY DIVIDEND PAID                                                    (2,039)         (1,465)         (1,465) 
                                                                                                                    
                                                                                                                    
    Net Cash Outflow before Financing                                      (19,033)        (23,687)        (13,787) 
                                                                                                                    
                                                                                                                    
    FINANCING                                                                                                       
                                                                                                                    
    Share Capital Subscribed                                                    93              35              66  
    Repayment of Loans                                                     (17,427)         (3,447)        (59,456) 
    Proceeds from Borrowings                                                35,744          13,587          74,550  
    Capital Element of Finance Lease Rentals                                  (161)           (123)           (242) 
                                                                            18,249          10,052          14,918  
                                                                                                                    
    (Decrease) / Increase in cash in period                                   (784)        (13,635)          1,131  
                                                                                                                    
                                                                                                                    
 

                                                                                                                      
  MC INERNEY HOLDINGS PLC                                                                                             
  NOTES TO THE INTERIM REPORT                                                                                         
  For the period ended 30 June 2003                                                                                   
                                                                                                                      
  1.    Basis of preparation of Interim Financial Information                         
                                                                                                                      
        The Interim Financial Information has been prepared on the going concern      
        basis, and on the basis of the other accounting policies set out in the                                     
        Group's published accounts for the year ended 31 December 2002.            
                                                                                    
        
                                                                                                                      
  2.     Segmental Analysis of Turnover and Profit                                                                    
                                                                             30 June         30 June     31 December  
                                                                                2003            2002            2002  
                                                                               €'000           €'000           €'000  
                                                                         (unaudited)     (unaudited)       (audited)  
         Group Turnover                                                                                               
         Ireland:                            Private Housing                  60,165          57,152         137,189  
                                             Developed Sites & Land            9,973           8,500          10,624  
                                             Contracts                        17,913          10,635          29,151  
                                             Commercial                        6,205           1,300           1,970  
                                             Commercial Land                       -           5,587           6,429  
         Spain:                              Leisure                          15,577           3,753          13,219  
                                             Land                                  -           6,297           6,297  
         United Kingdom:                     Private Housing                  24,920           9,966          36,676  
                                             Developed Sites & Land                -               -           2,476  
                                             Contracts                         3,716           8,066          14,023  
         Total Group Turnover                                                138,469         111,256         258,054  
                                                                                                                      
         Profit before Interest & Taxation                                                                            
         Ireland:                            Private Housing                   7,190           7,944          18,643  
                                             Developed Sites & Land            1,980           1,983           2,977  
                                             Contracts                           529            (626)           (747) 
                                             Commercial                          547              64             386  
                                             Commercial Land                       -           1,068           1,022  
         Spain:                              Leisure                           1,285             439           1,996  
                                             Land                                  -             931             931  
         United Kingdom:                     Private Housing                   2,145             584           3,164  
                                             Developed Sites & Land                -               -             729  
                                             Contracts                          (121)           (205)          1,021  
         Segment Profits                                                      13,555          12,182          30,122  
         Common Costs                                                         (1,528)         (1,540)         (2,929) 
         Costs incurred in on-going Development / Acquisition                                                         
         Activities                                                             (104)           (103)           (175) 
         Goodwill                                                               (396)           (402)           (794) 
         Net Interest Payable                                                 (2,999)         (2,836)         (5,600) 
         Profit Before Taxation                                                8,528           7,301          20,624  
                                                                                                                      
 

                                                                                                                      
  3.     Taxation                                                                                                     

         The taxation charge for the period is estimated based on the results 
         for the period.                         

                                                                                                                      
  4.     Reconciliation of movement in Group Shareholders' Funds                                                      
                                                                                                           €'000      
                                                                                                     (unaudited)      
                                                                                                                      
         Opening Shareholders' Funds as at 1 January 2003                                                 72,458      
         Retained Profit for the period                                                                    5,231      
         Proceeds of new Share Subscription                                                                   93      
         Currency Translation Adjustment                                                                     491      
         Closing Shareholders' Funds as at 30 June 2003                                                   78,273      
                                                                                                                      
         During the period 10,000 options were exercised at a price of €0.44 per 
         share and a further 50,000 options were  exercised at a price of €1.75 
         per share.     
                                                                                                          
                                                                          
                                                                                                                     
                                                                                                                      
                                                                                                                      
This announcement has been issued through the Companies Announcement Service of 
                         the Irish Stock Exchange. 
                          
 
END  



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