Listed property developer Glenveagh Properties saw revenues increase by 36% to €649m in 2022 driven by a 50% increase in sales of suburban homes.

In a trading update, the group said it had made an operating profit of €70m, up 38% on 2021. Earnings per share remained consistent with guidance at 7.6 cent, compared to 4.5 cent the previous year.

Glenveagh said its gross margin fell from 17.4% to just under 17%.

The company closed sales for 1,354 suburban units at an average price of €330,000 in 2022, up from 902 units at €308,000 a year earlier.

While the group now has net debt of less than €15m, the value of its landbank fell by €98m or 17.4% from €563m to €465m, and it saw inflation in materials and labour of 8-9%, in line with the level experience in the first half of the year.

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Looking ahead, the company said it has a forward order book of 408 units contracted or reserved for 2023.

Glenveagh acquired nine new suburban sites for a total of €34m in 2022, and expects to deliver 1,150 units on those sites in the coming years, but suburban completions are expected to be unchanged in 2023 due to planning delays.

"The strong underlying demand in the Irish market continues to be driven by a combination of a robust economic environment, a fast-growing population and increasing levels of inward migration," said Stephen Garvey, CEO of Glenveagh.

"This is putting further pressure on what is an already undersupplied housing market. Addressing this significant undersupply continues to be obstructed by dysfunctional planning policy.

"The government’s demand-side initiatives have been supportive most notably for first time buyers. The increased recent focus on planning system reform is also to be welcomed and is an important first step to alleviate near-term planning gridlock.

"However, we would now strongly encourage that planning policy reform is expedited to solve the longer term structural supply issues the sector faces."

Glenveagh said it will initiate a further share buyback programme to purchase 10% of outstanding shares, having spent €145m on share buybacks last year.

"We made very good progress across the business in 2022 and we continue to focus on scaling our operations to deliver high quality, sustainable homes. We have delivered strong suburban unit growth and have actively de-risked our urban land portfolio," Garvey said.

"We have also advanced our off-site manufacturing capabilities and look forward to using our sustainable and innovative manufacturing technologies to deliver for Irish homebuyers in the years to come.

Full results will be published on 1 March.

Photo: Stephen Garvey.