Glenveagh Properties PLC on Thursday reported an 89% drop in half-year profit amid planning challenges but nonetheless reiterated its full-year guidance as it predicted the continuation of ‘strong private demand’.

The Maynooth, Ireland-based housebuilder reported a pretax profit of €1.4 million in the first half of 2023, down sharply from €13.0 million the year prior.

The steep drop in profit came as the company’s revenue fell 14% year-on-year to €171.6 million from €200.0 million.

Further hurting profitability, Glenveagh reported that its finance expenses more than doubled to €7.5 million from €3.0 million, and its administrative expenses climbed 13% to €19.0 million from €16.9 million.

‘While planning delays proved challenging at the start to the year, we have seen a strong upturn in permissions granted through 2023 and are on track to have over 70% of our current landbank fully planned and available by the end of 2024,’ said Chief Executive Stephen Garvey.

‘The outlook across Glenveagh’s businesses is favourable and the opportunities are compelling. We are ideally placed to serve what continues to be strong private demand, in addition to working constructively with State agencies on supply-side initiatives.’

As a result of the positive outlook, Glenveagh reiterated its full-year guidance of earnings per share between 7.5 euro cents and 8.0 cents. In 2022, the company reported EPS of 7.6 cents.

Shares in Glenveagh were down 1.0% at €0.97 in London on Thursday morning.

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