Interim Results

McInerney Holdings PLC
19 September 2002



Thursday, 19th September 2002


                             McInerney Holdings plc

             Interim Statement for the six months to 30th June 2002

Highlights:

  • Pre-tax profits increased by 77% to €7.30m (2001: €4.13m)

  • Earnings per share up 84% to 17.47 cent (2001: 9.51cent)

  • 369 completed sales on Irish houses (2001: 245)

  • 599 sale deposits on hand in Irish housing in September (2001: 328)

  • 257 house and apartment sale deposits on hand at UK division

  • 94 apartments sale deposits on hand at Los Flamingos, Marbella.

Chairman's Statement

McInerney Holdings plc announces a profit before taxation of €7.30m for the
period ending 30th June 2002, which compares to €4.13m for the corresponding
six-month period in 2001. Group turnover increased from €68.7m to €111.3m
representing growth of 62%. Basic earnings per share were 17.47 cent compared to
9.51 cent for the same period in 2001. As in previous years, the Directors
expect to propose a dividend in 2003 based on the full year results to 31
December 2002.

The Directors are very pleased with this performance, which arose from increases
across the Group's main operating divisions. This result, combined with an
anticipated strong second half performance, should yield an excellent overall
result for the full year.

Irish Housing Division

The Irish housebuilding division demonstrated an excellent sales performance for
the six months, closing 369 sales compared with 245 for the same period in 2001.
The demand for housing in the Group's core first time buyer markets continues to
be strong. This is borne out by recent successful launches. Deposits held in
early September were 599 compared to 328 at the same time in 2001. It is
projected that closings at year-end will be ahead of expectations given the
better than anticipated first half closings. Looking forward, an improving level
of sales can be expected with a strong order book already in place for the first
half of 2003.


                                     /....


                                      -2-

Commercial Division

Hillview Securities, the Group's commercial developer has performed well given
the general slowdown in the Irish commercial market since 2001. The current year
has heralded somewhat improved market conditions. While developing and selling
business units at Blanchardstown and Cork, Hillview also disposed of land in the
first half of the year. The recent acquisition, in a joint venture with Bank of
Scotland, of a premier building for €7m at Eyre Square, Galway for retail
development is a strategic move. Hillview, with Bank of Scotland, already owns
and manages the Eyre Square shopping centre. This building, with its existing
access link to the shopping centre, will be integrated into the centre and
offers excellent opportunities for earnings potential.

UK Division

The Group has enjoyed considerable success with its UK house and apartment
building operations. The integration of the recently acquired Charlton Group has
greatly increased the Group's capability in the North-West of England, a region
with a market of 8 million people. A buoyant housing market combined with
strategic site development has resulted in a strong sales performance. In all 53
units were completed in the first half with deposits on hand at mid year of 257
units, the bulk of which will feed into the second half of the financial year
and generate a strong full year outturn in this division. The Group intends to
consider other opportunities for regional expansion in the UK marketplace.

Spanish Division

Construction at the Four Seasons Country Club was completed in the first six
months, with the final phase of 30 apartments now available for rental. This
augments the rental stock and provides a further recurring income stream for the
Group. The full impact of the new rental units will be felt in the second half
of the year.

The Group has continued to grow its freehold operations in the Spanish leisure
arena. A full order book through to the end of 2003 is already recorded for
freehold property sales at the Group's Los Flamingos apartment development in
Marbella. In the first phase of 96 units, 94 are sold, at an average unit price
of €432,000, and due for completion by May 2003. Sales reservations are already
secured for all 54 units in the second phase, due for completion by mid 2004. A
strategic land sale in the first half generated a profit of €900,000 for the
Group. Funds released enabled the company to purchase alternative land at Los
Flamingos. The Group is actively considering other new opportunities, which
should lead to further profit growth in this division.


Board and Management

In August 2002, Joe McNamara stepped down from the Board following his
retirement as Managing Director of McInerney Construction after more than 40
years service with the Group. On behalf of the Board, I thank him for his
contribution and wish him well for the future. Tommy Drumm was appointed as
Managing Director of McInerney Construction in August. Mr Drumm has been with
McInerney in four countries in a range of senior construction management
positions over the past 20 years. He most recently held the position of Regional
Director of McInerney Construction for Leinster.

Outlook

The Group's balanced spread of successful operations, which delivered an
excellent performance in the first half, positions the Group well for the second
half of the year.

The Directors are particularly pleased with the encouraging performances of our
UK and Spanish divisions together with the continued strength of our home
market. The Group's objective of a high return on capital continues to be met.
The Directors look forward to continued growth for the foreseeable future.

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 2002
                                                                     30 June            30 June        31 December
                                                                        2002               2001               2001
                                                                       €'000              €'000              €'000
                                                                  (unaudited)        (unaudited)          (audited)
TURNOVER INCLUDING GROUP SHARE OF JOINT VENTURES
Continuing Operations                                                101,794             71,083            186,485
Acquisitions                                                          10,641           -                  -
                                                                     112,435             71,083            186,485
Less: Share of Joint Ventures Turnover                               (1,179)            (2,359)            (1,331)

GROUP TURNOVER                                                       111,256             68,724            185,154
COST OF SALES                                                       (91,921)           (57,055)          (150,533)

GROSS PROFIT                                                          19,335             11,669             34,621
Administrative Expenses                                              (9,927)            (6,400)           (13,755)

GROUP OPERATING PROFIT
Continuing Operations                                                  8,736              5,269             20,866
Acquisitions                                                             672                  -                  -
                                                                       9,408              5,269             20,866
Share of Operating Profits in Joint Ventures                             729                396                578

TOTAL OPERATING PROFITS INCLUDING JOINT VENTURES                      10,137              5,665             21,444
Profit on disposal of Office Buildings                                     -                 51              1,178
Interest Payable and Similar Charges                                 (2,836)            (1,586)            (4,480)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                          7,301              4,130             18,142
Taxation Charge arising on Ordinary Activities                       (1,609)            (1,114)            (4,199)
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                           5,692              3,016             13,943

Proposed Dividend                                                         -                   -             (1,465)

PROFIT RETAINED FOR THE YEAR                                           5,692              3,016             12,478

BASIC EARNINGS PER SHARE                                      17.47 c            9.51 c             43.74 c
FULLY DILUTED EARNINGS PER SHARE                              16.83 c            9.04 c             41.69 c




MC INERNEY HOLDINGS PLC
CONSOLIDATED BALANCE SHEET
As at 30 June 2002
                                                                     30 June            30 June        31 December
                                                                        2002               2001               2001
                                                                       €'000              €'000              €'000
                                                                  (unaudited)        (unaudited)         (audited)
FIXED ASSETS
Intangible Assets                                                     16,959              5,724              5,566
Tangible Assets                                                       11,446              9,448              9,411
Financial Assets
Joint Ventures:                Share of Gross Assets                   8,423             11,158              7,342
                               Share of Gross Liabilities            (7,866)           (10,789)            (7,246)
                               Loans to Joint Ventures                 1,063              1,859              1,451
                                                                       1,620              2,228              1,547

TOTAL FIXED ASSETS                                                    30,025             17,400             16,524

CURRENT ASSETS
Stocks                                                               154,367            138,311            124,433
Debtors                                                               33,352             19,487             21,691
Cash at Bank and in Hand                                              21,015              5,363             33,713
                                                                     208,734            163,161            179,837
CREDITORS (Amounts falling due within one year)
Bank Loans and Overdrafts                                             32,283             28,270             23,839
Trade and Other Creditors                                             82,324             55,646             64,861
                                                                     114,607             83,916             88,700

NET CURRENT ASSETS                                                    94,127             79,245             91,137

TOTAL ASSETS LESS CURRENT LIABILITIES                                124,152             96,645            107,661
CREDITORS (Amounts falling due after more than one year)
Bank Loans                                                            56,394             45,834             48,750
Other Creditors                                                        4,465              2,580              1,505
                                                                      60,859             48,414             50,255
PROVISIONS FOR LIABILITIES AND CHARGES
Deferred Taxation                                                        353                651                504
                                                                      62,940             47,580             56,902
FINANCED BY :
CAPITAL AND RESERVES
Called up Share Capital                                                4,076              3,964              4,072
Capital Conversion Reserve                                                62                 62                 62
Fund
Share Premium Account                                                 16,329             16,295             16,298
Revaluation Reserve                                                      138                138                138
Profit and Loss Account                                               42,335             27,121             36,332

TOTAL SHAREHOLDERS' FUNDS - ALL EQUITY                                62,940             47,580             56,902




MC INERNEY HOLDINGS PLC
CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30 June 2002
                                                                     30 June            30 June        31 December
                                                                        2002               2001               2001
                                                                       €'000              €'000              €'000
                                                                  (unaudited)        (unaudited)         (audited)

Net Cash (Outflow) / Inflow from operating activities                (4,069)           (27,527)              4,924
DIVIDENDS RECEIVED FROM JOINT VENTURES                                   100                103                112
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest Received                                                         76                 49                 46
Interest Paid                                                        (3,010)            (1,626)            (4,912)
Interest element of Finance Lease payments                              (19)                (4)               (32)
                                                                     (2,953)            (1,581)            (4,898)
TAXATION                                                             (3,405)            (4,044)            (4,476)
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Expenditure on Tangible assets                                       (2,553)            (2,786)            (4,208)
Sale of Tangible Assets                                                   39                185              2,474
Investment in Financial Assets                                           389                268                532
                                                                     (2,125)            (2,333)            (1,202)
ACQUISITION OF SUBSIDIARY UNDERTAKING                                (9,770)                 -                  -
EQUITY DIVIDEND PAID                                                 (1,465)            (1,110)            (1,110)
Net Cash Outflow before                                             (23,687)           (36,492)            (6,650)
Financing
FINANCING
Share Capital Subscribed                                                  35                  1                112
Repayment of Loans                                                   (3,447)            (4,552)           (18,743)
Proceeds from Borrowings                                              13,587             33,887             47,750
Capital Element of Finance Lease Rentals                               (123)               (91)              (178)
                                                                      10,052             29,245             28,941

(Decrease) / Increase in cash in year                               (13,635)            (7,247)             22,291




MC INERNEY HOLDINGS PLC
NOTES TO THE INTERIM REPORT
For the period ended 30 June 2002

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 2001.

2.   Segmental Analysis of Turnover and Profit
                                                                       30 June            30 June        31 December
                                                                          2002               2001               2001
                                                                         €'000              €'000              €'000
                                                                    (unaudited)        (unaudited)         (audited)
     Group Turnover
     Ireland:                         Private Housing                   57,152             39,664            107,696
                                      Land & Sites                       8,500              5,118             16,740
                                      Contracts                         10,635             10,447             22,203
                                      Commercial                         1,300              1,531              8,096
                                      Commercial Land                    5,587           -                  -
     Spain:                           Leisure                            3,753              5,236             12,999
                                      Land                               6,297           -                  -
     United Kingdom:                  Private Housing                    9,966           -                  -
                                      Contracts                          8,066              6,728             17,420
     Total Group Turnover                                              111,256             68,724            185,154
     Profit before Interest & Taxation
     Ireland:                         Private Housing                    7,944              4,465             14,054
                                      Land & Sites                       1,983                909              5,774
                                      Contracts                          (626)                969              1,414
                                      Commercial                            64                176                919
                                      Commercial Land                    1,068           -                  -
     Spain:                           Leisure                              439              1,073              2,201
                                      Land                                 931           -                  -
     United Kingdom:                  Private Housing                      584           -                  -
                                      Contracts                          (205)              (505)                 78
     Segment Profits                                                    12,182              7,087             24,440
     Profit on disposal of Office Buildings                     -                              51              1,178
     Common Costs                                                      (1,540)            (1,077)            (2,820)
     Costs incurred in on-going Development / Acquisition
     Activities                                                          (505)              (345)              (176)
     Net Interest Payable                                              (2,836)            (1,586)            (4,480)
     Profit Before Taxation                                              7,301              4,130             18,142


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 2002               56,902
    Retained Profit for the period                                  5,692
    Proceeds of new Share Subscription                                 35
    Currency Translation Adjustment                                   311
    Closing Shareholders' Funds as at 30 June 2002                 62,940


    During the period 22,000 options were exercised at a price of €0.44 per 
    share and a further 15,500 options were exercised at a price of €1.75 per 
    share.


5.  Acquisition

    In January 2002 the Group purchased 100% of the share capital of the
    Charlton Group (UK) Limited, a UK based construction company, for a total
    consideration of Stg£8.05m (€12.98m) funded by cash and loan notes. The   
    outlay of €9,770k is made up of the initial consideration of cash and loan notes
    plus the bank overdraft acquired.

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