McInerney Profit Slips, Shares Drop Most in 5 Months

[verbatim]

**McInerney Profit Slips, Shares Drop Most in 5 Months **

By Fergal O’Brien
March 6 (Bloomberg) – McInerney Holdings Plc, Ireland’s
biggest publicly traded housing developer, said profit slipped
1.4 percent last year as the country’s decade-long property boom
came to an end. Shares fell the most in five months after the
company said it’s cautious'' about the outlook for 2008. Net income was 47.9 million euros ($73.2 million), or 23.3 cents a share, from 48.6 million, or 27 cents, a year earlier, the Dublin-based company said today in a statement distributed by the Regulatory News Service. Sales were little changed at 632.8 million euros, restrained by a drop in Irish revenue. Ireland's housing market was Europe's worst performer last year as rising borrowing costs ended a decade-long boom that saw average home prices quadruple. Builders including McInerney have cut back on building projects and may continue to do so this year. It is clear that McInerney is facing into a very
challenging operating environment in 2008, notwithstanding the
more promising longer-term outlook,‘’ said Flor O’Donoghue, an
analyst at Dublin-based securities firm Davy. We are likely to continue to take a cautious view on earnings.'' McInerney fell 25 cents, or 17 percent, to 1.19 euros as of 8:23 a.m. in Dublin, the biggest decline since Sept. 25. The stock has lost more than 60 percent of its value in the last 12 months as Ireland's property market cooled. This year our markets will be dominated by sentiment, as
well as the credit and interest rate environment,‘’ the company
said in today’s statement. Our business is adjusting to negative external factors.'' Earnings at the Irish housing division fell 33 percent to 33.3 million euros last year, the company said. Overall profit in Ireland was bolstered by land sales. Revenue and housing output fell as much as 42 percent as the market became difficult’’ in
the final quarter of the year.
In the U.K., where McInerney has operations in the north and
midlands of England, profit rose 20 percent to 27 million euros
as the company increased housing output by 43 percent to 1,400.

When the price goes up it’s fundamentals, when the price goes down it’s sentiment.

[Proximo]

Something is going on here:

mcinerneyholdings.eu/news/Pr … t_2007.doc

Monday, 28th January 2008

MC INERNEY HOLDINGS PLC
TRADING UPDATE FOR YEAR ENDED 31ST DECEMBER 2007

Ireland, Dublin: McInerney Holdings plc today released a trading update for the year ending 31st December 2007. Preliminary financial results for the Group will be announced on Thursday, 6th March 2008.

Overview
 Total private and contracting residential completions for the Group comprising outputs in Ireland, UK and Spain were 2,414 units [2006: 2,372].

 Total private housing deposits (Ireland, UK and Spain) on hand as at 31st December 2007 were 655 [2006: 836].

 The commercial division completed 13,202sq metres [2006:13,108] and at year end there were 303sq metres of reservations on hand.

 2007 profit guidance is reaffirmed.

UK
 Private house completions were 1,400 in 2007 [2006: 980]. At year end, there were 372 deposits on hand [2006: 438]. The reduction in deposits on hand relates to timing of forward sale releases in our inner city apartment business.

Ireland
 Private house completions in Ireland were 594 in 2007 [2006: 1,025]. Entering 2008 the Irish division had 282 private housing deposits on hand [2006: 380].

 The Irish contracting business completed 391 housing units in 2007 [2006: 309].

 A number of strategic land disposals in Ireland were profitably achieved in the second half of 2007 releasing capital.

Barry O’Connor, Managing Director, McInerney Holdings plc, stated: “We performed well in the more challenging market conditions in the second half of 2007. Our balance sheet is strong going into 2008. We remain comfortable with the current range of market expectations for 2007 profit.

Our UK business again achieved a significant increase in output. Our broadened footprint has enabled us to continue on a growth path. We aim to again achieve a significant volume increase in our homes business in 2008. The fundamentals driving UK housing demand remain strong and with the softening interest rate climate, should be favourable to our growth plans in the UK in 2008.

In Ireland, negative sentiment and the **tightening of credit **caused us to achieve fewer unit completions than indicated in our September guidance. The market is going through a period of correction, some of it necessary. This adjustment should provide a more stable housing market and should be advantageous to our business model. The fundamentals behind the Irish housing market remain positive.
Our UK and Irish businesses remain focussed on efficient management of working capital with an emphasis on the provision of affordable product in key locations. As with other home builders our view is that the next three months will provide a clearer picture of the year ahead.”

ENDS

FOR INFORMATION:
Siobhan Molloy Tel: +353 1 676 01 68
Weber Shandwick or +353 86 817 50 66

About McInerney Holdings plc
McInerney Holdings plc is a leading development company, with divisions specialising in various aspects of the construction market. It comprises four divisions operating in Ireland, Spain and the United Kingdom. The company is Ireland’s largest national homebuilder and a significant house builder in the UK. It also undertakes extensive commercial and leisure projects both in Ireland and abroad. The company is listed on the Dublin and London Stock Exchanges (ISE: MCI.I/LSE: MCI). See www.mcinerney.ie for further information

Two notices of change in shareholding structure. Dated 12.02.08 and 16.01.08.

In favour of Bank Of Ireland Asset Management/Nominees.

mcinerneyholdings.eu/news/Sc … gement.DOC

mcinerneyholdings.eu/news/Sc … gement.DOC

Have BOI just taken a big chunk of this outfit ?

[yoganmahew]

BIAM is the pensions arm of Bank of Ireland. It’s no wonder my pensions performed so badly if they were based on this shower!

[Proximo]

@yoganmahew

BIAM is the pensions arm of Bank of Ireland. It’s no wonder my pensions performed so badly if they were based on this shower!

Did they buy, or swap for debt/accrued interest … ??

Maybe it’s my suspicious mind, but it seems unusual to me.

Do they need cash ? Reference was made to ‘efficient use of working capital’ in the 2008 guidance.

One to keep an eye on.