Abbey falls as profit falls and outlook remains 'difficult'

8th Dec 2011 13:36

Abbey's shares took a hit after the residential housing developer revealed that its pre-tax profit fell from €3.35m to €5.55m for the six months ended 31 October. Profits at the operating level were €2.27m as compared to €4.38m at the half way stage last year. The firm's housebuilding division completed 146 sales, the majority of which took place in the UK, with a turnover of €26.98m resulting in an operating profit of €1.76m. The company, which described its UK trading as "satisfactory", admitted autumn have been sluggish and selective discounts have been necessary to generate activity. Sales in Prague were described as very slow, although good progress was made in its main project, Slivenec. The group maintained good cash flow during the period and held €21.24m in cash and restricted cash together with €53.94m in UK government debt at the end of October. In a statement the firm said: "The outlook for the foreseeable future continues to be difficult. House prices remain under pressure in all our markets. "Negotiations are proceeding on a number of land purchases which should gradually allow volumes to increase in the reporting periods ahead. New land purchases however are, viewed in the current light, being made on narrow margins. Overall the group continues to trade profitably and is laying the foundation for hopefully better days ahead."A dividend of 3 cents per share has been announced, which together with the 5 cents approved in October will make a total of 8 cents for the financial year. The share price fell 4.81% to 430.75p by 13:58.NR