White

Strong performance in 2021, demonstrating operational capability and well positioned for 2022

Get the latest on our developments. We will update you once a month.

Subscribe to our newsletter.

Glenveagh Properties plc ("Glenveagh" or the "Group") a leading Irish homebuilder announces its Final Results for the year ended 31 December 2021.

GROWING A DIVERSIFIED & SUSTAINABLE BUSINESS ACROSS THREE SEGMENTS

1,150 units delivered in 2021 despite 13-week lockdown, with core units of 977 (+47% versus 2020)

Significant growth in 2022 as the Group is forecasted to deliver 1,400 suburban units, along with construction activity on a further 500 apartments and the Premier Inn hotel in our urban business

Substantial progress made on Dublin Docklands through the forward fund of the Premier Inn Hotel with Union Investments of €70 million (€23.5 million of which recognised in 2021) and the sale of the residential and second hotel sites for €78.5 million

The Group secured two landmark Partnership agreements for the proposed development of over 2,050 homes with Fingal County Council and Dublin City Council

The Group acquired 12 new suburban sites for total consideration of approximately €72 million (excl. fees and taxes) and can deliver over 2,700 units

Heads of terms signed for two forward fund transactions totalling over 500 urban apartments for an aggregate Net Development Value of approximately €185 million, with a forward purchase transaction signed for our remaining 33 apartments in Marina Village for in excess of €16 million

OFFSETTING THE IMPACT OF GLOBAL INFLATION

CPI was approximately 6% in H2 2021, largely driven by continued global supply chain constraints

Shifting cost dynamic with the continuation of global supply chain pressures from H2 2021, particularly in light of recent geopolitical uncertainty, and the emergence of a competitive labour market and subsequent rate increases in 2022

Controlling elements of the supply chain, with the increased fixed cost efficiencies from Glenveagh’s scale, provides a competitive advantage over the wider market

Impact of CPI at 6% is being mitigated by HPI of similar levels, thereby protecting gross margin

Further supply chain integration with additional timber frame and soil recovery facilities in Carlow and Kildare respectively acquired in 2021

Our existing timber frame facility delivered over 700 units in 2021 and with the addition of the second facility, which will become operational in 2023, the business will have capacity to self-deliver over 2,000 housing frames in 2024

Optionality and capacity, in both management teams and facilities, to explore further off-site construction methodologies

GOVERNMENT’S HOUSING FOR ALL PLAN ANNOUNCED IN 2021

The Government’s strategy is to deliver 300,000 units to 2030 across sustainable mixed tenure communities through a range of schemes including Shared Equity, Help-to-Buy, Cost Rental, Affordable Purchase and Social Housing

Investment of €20 billion over the first 5-year period, the largest housing budget in the history of the state

The Land Development Agency (LDA) will be a new and important source of social, affordable and cost rental housing on both public and private lands

Glenveagh will look to participate in all Government supported initiatives

Capital allocation policy announced in May detailing investment priorities, shareholder returns strategy and return on equity target

Investment prioritised to land, work-in-progress and supply chain, including additional vertical integration, with all excess cash returned to shareholders

Continued reduction of net investment in land evident with land value of €562.7 million at year end, and expected to be approximately €500 million by 31 December 2022

Two separate share buyback programmes announced totalling €175 million, with €156.4 million completed as at 28 February 2022

Extend the current share buyback programme, in line with our capital allocation policy, by utilising the remaining share repurchase authorisation received at our EGM in December 2021

Strong commitment to climate change demonstrated through highly efficient homes with up to 50% of homes forecasted to be A1 rated in 2022 (82% A2 BER 2021)

Net Zero commitment with pathway to be published in H2 2022

Significant emphasis on people agenda recognised by Investors in Diversity Silver Mark and Great Place to Work certification

Significant overall progress on sustainability agenda including upgrades across CDP (now A-), MSCI (now AA) and Sustainalytics (now ‘Low-risk’)

CHANGES TO THE BOARD COMMITTEE COMPOSITION

Further to the announcement that Richard Cherry does not intend to seek re-election to the board at the Annual General Meeting to be held on 28 April 2022, Glenveagh confirms that the following changes will take effect from the conclusion of that meeting:

Pat McCann will as assume the Chair of the Remuneration Committee

John Mulcahy will as assume the Chair of the Nomination Committee. Pat McCann will remain a member of the Nomination Committee

Pat McCann will join the Audit & Risk Committee

The market backdrop in Ireland remains favourable for the business due to the significant demand for affordable housing, as is evident across our selling sites, the continued undersupply of any form of accommodation in the market and the significant housing delivery commitments announced by the Government as part of Housing for All.

The Group is targeting continued revenue and profit growth in 2022 which is underpinned by having all necessary sites operational to deliver 1,400 suburban units, at least two new forward fund transactions commencing in 2022, a forward purchase agreement for the remaining units in Marina Village, visibility and control over our supply chain and a strong forward order book. This continued growth in profitability will be alongside further balance sheet efficiency initiatives ensuring the business maximises returns for shareholders.

GLENVEAGH’S CHIEF EXECUTIVE STEPHEN GARVEY COMMENTED:

“The horrific events unfolding in Ukraine and the appalling loss of life change the perspective for results such as this and demonstrate again that we live in challenging and uncertain times.

Our results outline the performance of the business last year and the resilience of our business model and the continued strong demand for our high-quality, sustainable homes resulted in an excellent performance in 2021 growing output by 36% versus pre- pandemic levels. We dealt effectively with the challenges of the pandemic and remain well-placed to deliver on our ambition of scaling the business to 3,000 units per annum.

During 2021 we took major steps to insulate the business from longer-term structural shifts in the industry by investing further in our supply chain. We are combining greater scale with a more integrated supply chain, giving us enhanced certainty over more of our key inputs and driving more efficiencies throughout our business.

We have also demonstrated our over-riding commitment to the safety and well-being of our people, our customers and our communities.

For our customers, we have the capital, the people, the skills, the innovation and the processes to deliver the homes they want while building the attractive communities that they will call home.

We have the ambition, the vision and the execution capability to meet the immense demand that exists for our homes and to continue building a strong, smart business that will thrive as the industry seeks to deliver the aspirations contained in Housing For All.

And we will do this while driving ever-greater sustainability in everything we do: reducing our emissions to net zero, recycling or re-using materials, and rigorously and relentlessly managing every aspect of our carbon footprint.”

Love Where You Live 2.0

News

News categories

Two Bedroom Homes

Affordability

New Build Vs Doer Upper

Love Where You Live Campaign

Greencare by Glenveagh

Cookies

Affordable Purchase Scheme

Glenveagh Gaelic4Girls Competition 2024

Benefits of buying with Glenveagh

Buying with Glenveagh

First-Time Buyers

Employment Candidate Privacy Notice

Mortgage Calculator

Home

Our Communities

Charity

Local Economy

Sports & Fitness

Sustainability

Health & Wellbeing

Education

Terms of Use

The Croí Cónaithe Scheme