Final Results

McInerney Holdings PLC
17 February 2004






McInerney Holdings plc





Tuesday, 17th February 2004




                          PRELIMINARY ANNOUNCEMENT

             Financial Results for the Year ended 31 December 2003


The year to 31 December 2003 was a year of increased business momentum for
McInerney Holdings plc with the Group achieving record sales and profitability.


Financial Highlights

The Directors are pleased to report an increase in basic earnings per share of
45%, to 72.83 cent as compared to 50.32 cent in 2002. Pre-tax profits increased
by 38% to €28.46m compared to the 2002 result of €20.62m.

Profit after tax for the year was €23.81m compared with €16.40m in 2002.

Market conditions for all operations were strong. The UK division, in
particular, achieved substantial growth of over 50%, continuing to increase its
penetration and expansion in the market.  The Irish house building division
continues to be the core driver of the Group's profitability and it also
recorded a considerable increase in 2003. This resulted in an excellent
operational performance for the Group overall.

Total private house completions for the Group increased by 28% to 1,481 in 2003
up from 1,161 in 2002.  Deposits on hand at year-end for Ireland, the UK and
Spain rose by 35% to 978 compared to 726 for the previous year.  This level of
deposits on hand provides high earnings visibility for 2004.


Dividend

Based on these results, the Board is proposing to pay a final dividend of 6 cent
gross per share. Combined with the interim dividend payment of 5 cent, this
results in a total dividend for the year of 11 cent per share representing an
increase of 76% on 2002 (6.25 cent gross per share in 2002). The final dividend
will be paid to shareholders in May 2004, following the Annual General Meeting.

Dividend cover has moved from 8 times to 6.6 times, reflecting the continuation
of our more progressive dividend policy.


Operational Highlights

The Group's operations are divided into three geographic divisions namely,
Ireland -house building, contracting and commercial property development; UK -
house building and contracting and Spain - leisure developments.


Ireland

The Irish house building operation recorded an excellent performance in 2003.
The number of private house completions in 2003 was 969 compared to 879 for
2002. Deposits on hand at year-end were exceptional, following a series of sales
launches in late 2003, with some 779 deposits held compared to 462 at the same
time in 2002.

Market conditions were favourable and strong demand from the first time buyer
demographic segment continues to benefit the Group's strategy of providing
quality homes to this core target market.

An active land management policy focusing on strategic land acquisitions and
disposals underpinned this strong performance from the Irish home building
subsidiary.

Land sales of €17.2m were completed in 2003. The Group's residential land bank
at the end of December, at over 4,200 plots was similar to the level of plots at
the beginning of 2003. Of these some 60% have full planning permission and the
balance are residentially zoned. The Group is satisfied that this mix of land in
strategic locations around the country will cater for the division's ongoing and
future land requirements.

The contracting division performed well, delivering a very good result.
Contracting activities ranged from building houses on behalf of the State, to
developing hotels, leisure, commercial and retail properties. Turnover was up 7%
to €31.1m in 2003.

The Group's commercial division Hillview Securities made substantial progress in
2003 and a good result was achieved. It completed sales of 132,500 sq ft of
industrial units as compared to 19,800 sq ft in 2002. A new development
opportunity has also been secured west of London.


UK

The UK business grew strongly in 2003 and contributed significantly to the
Group's overall financial performance. The Group's growth plans to position the
UK operations as a key profit centre are ahead of expectations and provide
particular satisfaction.  In 2003, some 447 private house completions were
achieved compared to 257 in 2002, representing an increase of 74%. Deposits on
hand at year-end were 132.

The progressive performance by our UK brands Hargreaves Homes, Charlton Homes
and SPACE are now maximising the benefits of their synergies to ultimately gain
further market share in the North West region. Operations now span Greater
Manchester, Lancashire, West Yorkshire, Staffordshire, Derbyshire, Cheshire and
Liverpool/Merseyside.  The core product range of starter, middle market homes
and city centre apartment developments in well located urban centres are
experiencing strong demand.

The UK land bank will benefit in 2004 from the Group's strategy of reallocating
capital to position the division for accelerated growth.


Spain

The Group continued to increase its output of freehold units with 65 completions
in 2003, compared to 25 in 2002.  There were 67 deposits on hand at year-end for
the next two phases of the Los Flamingos development.

Our Spanish business plan is to expand by diversification in the Costa del Sol
region. To augment our freehold activities and provide future expansion
opportunities, the Group recently entered into arrangements to purchase two new
sites in Spain, one located near Mijas and one in Sotogrande, which will feed
into the Group results in future years.


Board

In keeping with the Group's policy to strengthen its Board, it is a pleasure to
welcome the recent appointments of Tommy Drumm and Mark Shakespeare as Executive
Directors. Tommy, who is Managing Director, McInerney Homes in Ireland, has held
a number of senior management positions within the Group over the past 20 years,
while Mark, Group Treasurer, has been with the Group for 14 years. They bring to
the Board a broad range of commercial and financial experience across a range of
sectors and will enhance our collective expertise. They will, as is normal,
submit to election by shareholders at the forthcoming Annual General Meeting.


Outlook

2003 has seen an excellent performance from our Irish and UK operations.

The growth progress across all subsidiaries provides a strong platform for the
Group to leverage new opportunities both organically and by acquisition.  The
expansion and cohesion of the Board and management team, combined with a range
of good quality products designed to target specific market segments is
underpinning this success.

The Group's strategic objective is to allocate increased capital to our business
in the UK to secure the growth and diversification opportunities there, and in
tandem to steadily enhance our presence in Spain. Demand for housing in all
markets continues to be strong and the high level of deposits secured going into
2004 augers well for continued progressive growth and further enhanced returns
to shareholders.

Our growth strategy, which is ahead of target, provides confidence for sustained
expansion prospects.


Roy B. Ferris
Chairman


 MC INERNEY HOLDINGS PLC
 CONSOLIDATED PROFIT AND LOSS ACCOUNT
 For the year ended 31 December 2003

                                                             2003                            2002
                                                             €'000                           €'000

 TURNOVER INCLUDING GROUP SHARE OF JOINT VENTURES

 Continuing Operations                                      352,502                         231,148
                                                            
 Acquisitions                                                     -                          30,453

                                                            352,502                         261,601

 Less: Share of Joint Ventures Turnover                     (9,173)                         (3,547)

                                                            
 GROUP TURNOVER                                             343,329                         258,054
                                                            
 COST OF SALES                                            (284,408)                       (213,876)
                                                          

 GROSS PROFIT                                                58,921                          44,178
                                                             
 Administrative Expenses                                   (26,341)                        (19,885)
                                                           

 GROUP OPERATING PROFIT

 Continuing Operations                                       32,580                          22,199
                                                             
 Acquisitions                                                     -                           2,094

                                                             32,580                          24,293

 Share of Operating Profits in Joint Ventures                

 Continuing Operations                                        2,935                             986
                                                              
 Acquisitions                                                     -                             945                     

 TOTAL OPERATING PROFITS INCLUDING JOINT VENTURES            35,515                          26,224
                                                             
 Interest Payable and Similar Charges                       (7,058)                         (5,600)
                                                            

 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION               28,457                          20,624
                                                             
 Taxation Charge arising on Ordinary Activities             (4,643)                         (4,220)
                                                            
 PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                23,814                          16,404
                                                             
 Dividends                                                  (3,610)                         (2,039)
                                                            
 PROFIT RETAINED FOR THE YEAR                                20,204                          14,365
                                                             

 BASIC EARNINGS PER SHARE                                     72.83  c                        50.32  c                  
                   

 FULLY DILUTED EARNINGS PER SHARE                             70.40  c                        48.49  c                  
                   

The Auditors have confirmed that they will be issuing an unqualified opinion on 
the accounts from which the financial information set out on pages 4 to 9 for 
the year ended 31 December 2003 has been extracted. The financial information
for the year ended 31 December 2002 has been extracted from the audited accounts 
on which the Auditors issued an unqualified opinion and which have been 
delivered to the Registrar of Companies.


 MC INERNEY HOLDINGS PLC
 CONSOLIDATED BALANCE SHEET
 As at 31 December 2003

                                                             2003                            2002
                                                             €'000                           €'000

 FIXED ASSETS
 Intangible Assets                                           13,237                          15,084
                                                             
 Tangible Assets                                             14,050                          13,786
                                                             
 Financial Assets

     Joint Ventures:       Share of Gross Assets             11,540                           9,057
                                                             
                           Share of Gross Liabilities       (8,612)                         (8,263)
                                                 
                                                              2,928                             794

 TOTAL FIXED ASSETS                                          30,215                          29,664

 CURRENT ASSETS

 Stocks                                                     211,706                         178,994
                                                            
 Debtors                                                     47,861                          33,938
                                                             
 Cash at Bank and in Hand                                    26,435                          20,994
                                                             
                                                            286,002                         233,926

 CREDITORS (Amounts falling due within one year)
 Bank Loans and Overdrafts                                   38,837                          23,642
                                                             
 Trade and Other Creditors                                  123,756                         106,992
                                                            
                                                            162,593                         130,634

 NET CURRENT ASSETS                                         123,409                         103,292

 TOTAL ASSETS LESS CURRENT LIABILITIES                      153,624                         132,956

 CREDITORS (Amounts falling due after more than one year)

 Bank Loans                                                  60,238                          55,615

 Other Creditors                                                253                           3,710

                                                             60,491                          59,325

 PROVISIONS FOR LIABILITIES AND CHARGES
 Deferred Taxation                                            1,341                           1,173
                                                              
                                                             91,792                          72,458

 FINANCED BY :
 CAPITAL AND RESERVES

 Called up Share Capital                                      4,101                           4,078
                                                              
 Capital Conversion Reserve Fund                                 62                              62
                                                                 
 Share Premium Account                                       16,648                          16,358
                                                             
 Revaluation Reserve                                          2,159                           2,159
                                                              
 Profit and Loss Account                                     68,822                          49,801
                                                             
 TOTAL SHAREHOLDERS' FUNDS - ALL EQUITY                      91,792                          72,458


 MC INERNEY HOLDINGS PLC
 CONSOLIDATED CASH FLOW STATEMENT
 For the year ended 31 December 2003

                                                              2003                           2002
                                                              €'000                          €'000

 Net Cash Inflow from operating activities                    2,709                          11,321
                                                              
 DIVIDENDS RECEIVED FROM JOINT VENTURES                         130                             576

 RETURNS ON INVESTMENTS AND
 SERVICING OF FINANCE

 Interest Received                                               53                             145
                                                                 
 Interest Paid                                              (6,284)                         (5,827)
                                                            
 Interest element of Finance Lease payments                    (34)                            (38)
                                                               
                                                            (6,265)                         (5,720)

 TAXATION                                                   (5,020)                         (4,942)

 CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT

 Purchase of Tangible assets                                (2,523)                         (3,456)
                                                            
 Sale of Tangible Assets                                        244                             208
                                                                
                                                            (2,279)                         (3,248)

 ACQUISITION OF SUBSIDIARY UNDERTAKING                            -                        (10,309)

 EQUITY DIVIDENDS PAID                                      (3,678)                         (1,465)
                                                            

 Net Cash Outflow before Financing                         (14,403)                        (13,787)

 FINANCING

 Share Capital Subscribed                                       313                              66
                                                               
 Repayment of Loans                                        (58,049)                        (59,456)
                                                           
 Proceeds from Borrowings                                    76,488                          74,550
                                                            
 Capital Element of Finance Lease Rentals                     (287)                           (242)
                                                              
                                                             18,465                          14,918

Increase in cash in year                                      4,062                           1,131



 MC INERNEY HOLDINGS PLC
 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
 For the year ended 31 December 2003

                                                               2003                            2002
                                                               €'000                           €'000

 Increase in cash in year                                       4,062                           1,131
                                                                
 Cash inflow from increase in debt and lease financing       (18,152)                        (14,852)

 Changes in net debt resulting from cashflows                (14,090)                        (13,721)

 Loans acquired with subsidiary undertaking                         -                         (5,424)
                                                                  
 New finance leases                                             (298)                            (14)
                                                                
 Movement in net debt for the year                           (14,388)                        (19,159)
                                                             
 Net debt as at 1 January 2003                               (58,669)                        (39,510)
                                                             
 Net debt as at 31 December 2003                             (73,057)                        (58,669)
                                                             



 NOTES TO THE FINANCIAL STATEMENTS
 For the year ended 31 December 2003


 SEGMENTAL INFORMATION


 Segmental Analysis of Turnover and Profit                       2003                            2002
                                                                 €'000                           €'000
 Group Turnover
 Ireland:                   Private Housing                     183,164                         138,501
                                                                
                            Developed Sites & Land               17,230                          10,624
                                                                 
                            Contracts                            31,068                          29,151
                                                                 
                            Commercial                           14,217                           2,435
                                                                 
                            Commercial Land                           -                           6,429
                                                                    
 Spain:                     Leisure                              31,684                          13,219
                                                                 
                            Land                                      -                           6,297
                                                                    
 United Kingdom:            Private Housing                      59,328                          38,446
                                                                 
                            Developed Sites & Land                    -                           2,476
                                                                    
                            Contracts                            15,811                          14,023
                                                                 
 Total Group Turnover including Group Share of Joint
 Ventures                                                       352,502                         261,601

 Profit  before Interest & Taxation

 Ireland:                   Private Housing                      22,275                          18,643
                                                                 
                            Developed Sites & Land                3,552                           2,977
                                                                  
                            Contracts                             2,154                           (747)
                                                                  
                            Commercial                            1,816                             386
                                                                  
                            Commercial Land                           -                           1,022
                                                                    
 Spain:                     Leisure                               2,342                           1,996
                                                                  
                            Land                                      -                             931
                                                                    
 United Kingdom:            Private Housing                       7,671                           3,164
                                                                  
                            Developed Sites & Land                    -                             729
                                                                    
                            Contracts                                26                           1,021
                                                                     
 Segment Profits                                                 39,836                          30,122
                                                                 

 Common Costs                                                   (3,396)                         (2,929)
                                                                
 Costs incurred in on-going Development / Acquisition

 Activities
                                                                  (145)                           (175)
 Goodwill
                                                                  (780)                           (794)
 Net Interest Payable
                                                                (7,058)                         (5,600)
 Profit  Before Taxation
                                                                 28,457                          20,624





 Segmental Analysis of Net Assets                                2003                            2002
                                                                 €'000                           €'000

 Business Sectors

 Irish Housing                                                   71,942                          62,505
                                                                 
 Leisure                                                         24,854                          21,963
                                                                
 Commercial                                                      33,250                          18,319
                                                                
 UK Construction                                                 37,373                          31,009
                                                                
 Net Operating Assets                                           167,419                         133,796
                                                                
 Unallocated Liabilities                                        (2,987)                         (3,075)
                                                                
                                                                164,432                         130,721

 Net Borrowings                                                (72,640)                        (58,263)
                                                               
 Total Net Assets                                                91,792                          72,458
                                                               


Comparative Figures

Comparative figures have been reclassified, where necessary, on a basis
consistent with the current year.



      This announcement has been issued through the Companies Announcement
                    Service of the Irish Stock Exchange.



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