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Tue October 27 2020

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House builder McInerney posts another heavy loss

30 Mar 10 House builder McInerney has reported a pre-exceptional loss before tax of £25m for the year to 31 December 2009, down from £47m in 2008.

House builder McInerney has reported a pre-exceptional loss before tax of £25m for the year to 31 December 2009, down from £47m in 2008.

However, the group said it remains in breach of some of its banking covenants, and may need a restructuring or equity fund-raising resulting.

Its revenue for 2009 totalled £149.4m, a 50% fall on the previous year's £300.9m.

During the year, it completed 744 private and contracting residential units in Ireland and the UK, compared with 1,352 in 2008.

The house builder took an impairment charge of £156m in its the first-half results after a review of the carrying value of its assets.

It has written down its Irish landbank by over 50% and UK landbank by almost 40% since mid-2008.

McInerney said its housing markets in the UK and Ireland were both severely impacted by lack of mortgage availability and poor consumer sentiment.

It added that it remained focused on continuing to reduce costs and generate cash while reviewing strategies that can benefit its operational capacity and performance.

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