REG - Glenveagh Properties - Final Results 2024
13/03/2025 07:15
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250313:nRSM4607Aa&default-theme=true
RNS Number : 4607A Glenveagh Properties plc 13 March 2025
13 March 2025
Glenveagh Properties plc
Final Results 2024
Landmark year of delivery with 2,415 homes completed and 112% EPS growth
achieved
Positioned for further growth and operational efficiency in a favourable
market
Glenveagh Properties plc ("Glenveagh" or the "Group"), a leading Irish
homebuilder announces its final results for the year ended 31 December 2024.
Financial Highlights
FY 2024 FY 2023 Change
Group Completions (units) 2,415 1,363 +77%
Revenue (€'m) 869.2 607.9 +43%
- Suburban 631.3 470.8 +34%
- Urban 117.9 120.1 -2%
- Partnerships 120.0 17.0 +606%
Gross Profit (€'m) 183.9 112.7 +63%
Gross Margin (%) 21.2% 18.5% +270bps
- Suburban 22.2% 20.2% +200bps
- Urban 19.7% 12.8% +690bps
- Partnerships 16.9% 12.9% +400bps
Operating profit (€'m) 132.1 70.9 +86%
Profit before tax (€'m) 113.8 55.1 +107%
Earnings Per Share (EPS) (cent) 17.0 8.0 +112%
Net Debt (€'m) 179.0 48.8 +267%
Total Equity (€'m) 751.2 678.2 +11%
ROE (%) 14.2% 7.3% 690bps
Group: Closed & forward order book (€'m)(3) 1,085 805 +35 %
FY 2024 Performance
· Delivered strong financial and operational performance in 2024,
generating record revenue of €869m (2023: €608m), driven by efficient
Suburban unit delivery and the acceleration of the Partnerships business
segment.
· Improved group gross margin to 21.2% (FY 2023: 18.5%), reflecting
the benefits of our long-term commitment to innovation, standardisation, and
strategic focus on large-scale sites with strong execution.
· Generated EPS of 17 cent, a 112% increase and in line with
full-year guidance.
· Completed 2,415 units (2023: 1,363) and secured planning
permission for 2,487 units ensuring that all targeted output for 2025 is fully
approved.
· Achieved a 94% customer satisfaction rating and secured recurring
business with state institutions, demonstrating the high quality of homes
delivered.
· Demonstrated significant growth in the Partnerships segment,
recording revenue of €120 million (2023: €17 million).
· Commenced construction at Cork Docklands following the completion
of a forward-fund transaction for 337 units with the LDA in February 2025. The
transaction represents the sixth active project for Glenveagh's expanded
Partnerships division, following the successful completion of three additional
partnerships in 2025, including the sale of 139 apartments at Barn Oaks,
Dublin announced in January.
· Strategically expanded our land portfolio, gaining control over
approximately 9,000 additional units across 14 sites, which will support the
delivery of over 2,600-3,600 equivalent units per annum through to 2029, with
€215m of €285m spent to date(1).
· Produced 2,030 timber-frame and light-gauge steel units in our
off-site manufacturing business, NUA, with capacity to support more than 2,500
homes per annum. Pre-manufactured value to increase materially in future
periods following the signing of an exclusive perpetual licence to produce a
low-rise integrated external wall system at the Group's existing facilities
from 2027.
· Sustainability progress in emissions reduction, biodiversity, and
inclusion reflects a strategy that lowers costs, meets customer demand, and
secures long-term success.
· Reduced net debt to approximately €179m (H1 2024: €244m)
reflective of strong cash generation in H2 notwithstanding significant
investment in land in the fourth quarter.
· Achieved Return on Equity (ROE) of 14.2% in 2024, (FY:2023 7.3%),
driven by robust growth, supported by operational efficiencies and a
disciplined but agile approach to capital allocation.
Outlook
· The outlook for Glenveagh remains exceptionally strong,
underpinned by a resilient demand environment, clear policy visibility for the
next five years, and our ability to deliver the right product-principally
high-quality, own-door housing-in the best locations.
· Continued confidence for FY 2025, with EPS guidance of
approximately 19.5 cent underpinned by a leading land portfolio, strong
forward order book, planning permissions in place, continued standardisation,
and demand for smaller non-core land parcels.
· Positive long-term outlook for the Irish residential housing
market demonstrated by the Group's forward order book, totalling €1.1
billion, an increase of 35%, compared to March 2024.
· Expect to exceed 1,500 Homebuilding unit deliveries in 2025,
setting the business on a trajectory for incremental year-on-year increases,
with approximately 1,900 Homebuilding units anticipated in 2027.
· Further projects with the public sector anticipated for the
Partnerships business segment, given Glenveagh's proven experience and ability
to deliver at scale. Enlarged Partnerships segment to represent a materially
higher proportion of Group sales in 2025 with recurring annual revenue of
approximately €400m anticipated with the potential for further revenue
growth as the state pipeline evolves.
· Reductions in our landbank investment through unit delivery are
expected to be complemented by non-core site sales exceeding €100 million
over 2025 and 2026 as the Group further optimises its portfolio.
· Disciplined and balanced capital allocation approach, with focus
on value creation and shareholder returns via the ongoing €65 million share
buyback programme. A further update on capital allocation will be provided in
the Group's AGM trading statement on 22 May.
CEO Stephen Garvey commented:
"2024 was a landmark year for Glenveagh, defined by the successful execution
of our Building Better Strategy and our agility in securing long-term growth
opportunities. We scaled the delivery of high-quality sustainable homes,
embedded innovations and efficiencies across our operations, and established
Glenveagh as a preferred public sector partner.
The impact of our strategy is evident in our performance and our proactive
approach to fuelling future ambitions. This year, we moved decisively to
expand our land portfolio in strategic locations and set up the business for
sustained further success. Our enhanced landbank not only gives greater
visibility on future homes deliveries but, alongside our integrated supply
chain, grants a higher level of certainty and control over our own
performance.
The accelerated growth of our Partnerships segment, with new contracts signed
and strong repeated business, has enhanced our reputation as a public sector
partner of choice. The success of this segment shows how collaboration and
resource pooling between public and private sectors can drive Ireland's
response to the housing crisis. Glenveagh has built strong relationships with
state agencies and stands ready to deliver more high-quality Partnership
homes.
The Programme for Government's target is to deliver 300,000 homes by the end
of 2030. Critical to meeting this target will be the availability of
adequately zoned land and sustained public sector supports and investment in
necessary infrastructure. A policy and planning environment that advances
these factors will be important in attracting the necessary private capital
and creating efficiencies that stabilise costs, all of which support the
greater supply of housing across all tenures.
From our perspective, we look forward to our leading role in increasing
housing supply in Ireland. With an enhanced landbank, high performing and
efficient teams, and a strong track record of delivery, we are confident in
our ability to sustain the excellent momentum we have built, delivering for
all of our stakeholders."
Results Presentation
A webcast presentation of the results for analysts and institutional investors
will take place at 8.30am on 13 March 2025. The presentation slides will be
available on the Investor Relations section on www.glenveagh.ie from 7.00am on
13 March 2025.
This presentation can also be accessed live from the Investor Relations
section on www.glenveagh.ie or alternatively via conference call.
Conference call: Click here to register for conference call
(https://event.loopup.com/SelfRegistration/registration.aspx?booking=9ha4RdE2OtKYOEQvnXcFIRBras86H64kA5EWK1jNgeM=&b=528f7d33-d6cf-439e-b143-56d7da6b8e57)
Audio webcast: Click here for webcast
(https://channel.royalcast.com/glenveagh/#!/glenveagh/20250313_1)
Registration and access details are also available at Glenveagh Corporate |
Investors news and events
(https://glenveagh.ie/corporate/investor-centre/investors-events)
For further information please contact:
Investors: Media:
Glenveagh Properties plc Gordon MRM
Conor Murtagh (CFO) Ray Gordon 087 241 7373
David Clerkin 087 830 1779
investors@glenveagh.ie glenveagh@gordonmrm.ie
Notes to Editors
Glenveagh Properties plc, listed on Euronext Dublin and the London Stock
Exchange, is a leading Irish homebuilder.
Supported by innovation and our internal manufacturing capability, Glenveagh
is committed to opening access to sustainable, high-quality homes to as many
people as possible in flourishing communities across Ireland.
We are focused on two core areas to achieve this: Homebuilding and
Partnerships. Our Homebuilding division is the leading provider of own-door
single-family homes, primarily in Dublin and the Greater Dublin Area. Our
Partnerships division focuses on creating vibrant communities nationwide
through a mix of suburban single-family and urban multi-family developments.
Often funded or acquired by the state or state entities, these projects enable
us to deliver affordable and high-quality housing options for everyone.
www.glenveagh.ie (http://www.glenveagh.ie)
Forward-looking statements
This announcement does not constitute or form any part of an invitation to
underwrite, subscribe for or otherwise acquire or dispose of any shares of
Glenveagh Properties plc (the "Company" or "Glenveagh").
This announcement contains statements that are, or may be deemed to be,
forward-looking statements. Forward-looking statements include, but are not
limited to, information concerning the Company's possible or assumed future
results of operations, plans and expectations regarding demand outlook,
business strategies, financing plans, competitive position, potential growth
opportunities, potential operating performance improvements, expectations
regarding inflation, macroeconomic uncertainty, geopolitical tensions, weather
patterns, the effects of competition and the effects of future legislation or
regulations. Forward-looking statements include all statements that are not
historical facts and can be identified by the use of forward-looking
terminology such as "may", "will", "should", "expect", "anticipate",
"project", "estimate", "intend", "continue", "target", "ensure", "arrive",
"achieve", "develop" or "believe" (or the negatives thereof) or other
variations thereon or comparable terminology. Forward-looking statements are
prospective in nature and are based on current expectations of the Company
about future events, and involve risks and uncertainties because they relate
to events and depend on circumstances that will occur in the future. Although
the Company believes that current expectations and assumptions with respect to
these forward-looking statements are reasonable, it can give no assurance that
these expectations will prove to be correct. Due to various risks and
uncertainties, actual events or results or actual performance of the Company
may differ materially from those reflected or contemplated in such
forward-looking statements. You are cautioned not to place undue reliance on
any forward-looking statements.
These forward-looking statements are made as of the date of this document. The
Company expressly disclaims any obligation to update these forward-looking
statements other than as required by law.
The forward-looking statements in this announcement do not constitute reports
or statements published in compliance with any of Regulations 6 to 8 of the
Transparency (Directive 2004/109/EC) Regulations 2007 (as amended).
GLENVEAGH PROPERTIES PLC: BUSINESS AND FINANCIAL REVIEW
CEO REVIEW
1. Group Sales
Overview
The Group achieved total revenue of €869 million (FY 2023: €608 million),
a 43% increase, primarily driven by the completion of 2,415 homes (FY 2023:
1,363).
The improvement of Group gross margin to 21.2% (FY 2023: 18.5%) reflects the
success of our patient investment in innovation, our strategic focus on sites
of scale, high-quality product and continued operational excellence.
Our performance is a testament to the strength of our business model, and
progress against our strategic ambitions. Glenveagh is confident of further
growth given our market position, innovation capability, experience and status
as a preferred partner for public sector projects, and a disciplined capital
allocation track record that balances investment and capital returns.
Suburban
The Suburban segment reported revenue of €631 million, a 34.2% increase from
FY 2023 (€470 million), with a gross margin of 22.2% (FY 2023: 20.2%. In FY
2024, 1,650 Suburban units were completed, a 24% increase. (2023: 1,328
units). The average selling price (ASP) increased by 8% to approximately
€365k (FY 2023: €336k), driven by changes in the site and product mix,
combined with strong market conditions. Site and product mix for 2025 will
result in a lower ASP in the year.
At least 1,500 units are anticipated for 2025, putting the business on a
trajectory to deliver 1,900 units annually by 2027.
Demand for housing continues to be very strong in Ireland, with a supportive
macroeconomic background with high levels of employment, a growing population
and a range of demand-side initiatives from the Government.
Within the new Programme for Government, there is a target to build 300,000
homes in the next six years, a material acceleration compared to recent years.
As part of its delivery, the First Home Scheme is expected to be expanded in
size and extended to 2030. This would continue to provide up to 30% of the
price of the home in Government funding. It is anticipated that the Help to
Buy scheme will also be extended to 2030, giving more first-time buyers
enhanced access to new housing developments.
Partnerships
The acceleration of the Partnerships segment has been boosted by experience
gained from the Homebuilding/Suburban business segment, especially in relation
to planning, design, manufacturing, build quality and speed of delivery. The
enlarged Partnerships segment has the potential to deliver sustained growth
and will account for a materially higher weighting of revenues from 2025, with
an anticipated recurring annual revenue of approximately €400m and scope for
further growth.
As announced in January, due to the change in customer profile and state
schemes embedded in the remaining Urban assets, the Group intends to simplify
its segmental reporting under Homebuilding and Partnerships (formerly
Suburban, Urban, and Partnerships) commencing with H1 2025 results.
Urban
Urban revenue was approximately €118 million (FY 2023: €120 million), with
a gross margin improvement to 19.7% (FY 2023: 12.8%). The Group completed
projects at Cluain Mhuire, Citywest, and Castleknock, delivering 655 units.
In quarter four the segment also completed a forward fund transaction for 139
units (€52 million) at the Barn Oaks site with an Approved Housing Body
("AHB"). In February 2025, the Group completed the sale of 337 apartments to
the LDA via a forward fund transaction for a total consideration of
approximately €150 million (inclusive of VAT). This transaction follows the
successful grant of planning permission at the site for an additional 176
units bringing the total available homes to 1,178.
Group
The Group's closed and forward order book stands at €1.1 billion (FY 2023:
€805 million), reflecting strong market demand and robust reservation rates.
The Homebuilding segment's closed and forward order book for FY 2025 is 886
units with completions in 2025 expected to exceed 1,500, demonstrating strong
underlying market demand buoyed by a robust economy and targeted government
initiatives.
In addition, the Group's overall forward order book includes revenue to be
recognised for delivery in the expanded Partnerships business segment of
approximately €775 million.
Planning Progress and Policy
The Group secured planning permissions for 2,487 units in FY 2024 (FY 2023:
4,600), ensuring all targeted output for FY 2025 is fully approved. This
reflects an increasingly efficient planning environment and the exceptional
quality of submissions from our team.
At policy level, there were several notable developments in 2024 aimed at
addressing the housing crisis and streamlining the planning process, which
stand to support Glenveagh's housing delivery. The Planning and Development
Act 2024, signed into law in October, represents a comprehensive overhaul
designed to create a more robust, predictable, and efficient planning system.
With the introduction of statutory timelines for consenting processes and the
reorganisation of the planning authority to enhance efficiency, the Act is
expected to significantly reduce delays in planning decisions and support the
delivery of housing and infrastructure projects.
As noted above, the Programme for Government sets a target of 300,000 homes by
2030. However, new dwelling completions across Ireland totalled 30,330 in
2024, a decrease of 6.7% from 2023, and highlighted the renewed impetus that
is required at all levels of the public and private sectors if Ireland is to
meet its acute housing need. There remains a serious challenge to housing
delivery without substantial additional capital (both public and private),
adequate zoned land, public sector resources, and critical infrastructure to
support new homes. The success of our Partnerships platform demonstrates how
public and private resources can be pooled to help meet this challenge. We
have forged strong relationships with multiple state agencies, AHBs, and local
authorities and are working in collaboration to increase the delivery of new
housing projects.
The changes in the planning policy landscape in Ireland in 2024 present both
challenges and opportunities for homebuilders. With a strong track record of
delivering high-quality, affordable, and accessible homes, Glenveagh is
uniquely positioned to navigate these changes and deliver homes efficiently
and at scale within the new framework.
Glenveagh is a leader in modern methods of construction (MMC) and timber frame
construction, aligning firmly with the government's target for 25% use of MMC
in state-backed housing and the desire for timber in new housing to be
increasingly promoted.
By proactively securing planning permissions, leveraging policy reforms,
managing its landbank strategically, and focusing on innovation and quality,
Glenveagh is well-equipped to be a trusted partner that contributes
significantly to Ireland's housing targets.
Development Land Portfolio Management
With significant strategic investment in land during 2024, the Group's
controlled landbank is now approximately 20,000(2) units. This will support
the delivery of over 2,600-3,600 equivalent units per annum across our
business segments through to 2029, without the requirement for further land
investment or additional Partnerships awards.
In 2024, the Group moved opportunistically to acquire approximately 9,000(2)
units across 14 sites principally for use in the Homebuilding segment. These
sites were purchased at an attractive cost of €31k(1) per unit. The site
cost as a percentage of net development value was <10%, with strong
embedded spot margins of approximately 21%, and an attractive ROCE profile.
Approximately 70% of the potential units are attributable to sites in Dublin.
Four sites have suitable existing planning permissions, and construction has
already commenced on two of these. Additionally, the Group has identified
the potential for at least 2,000 Partnership units on sites adjacent to these
recent acquisitions, 275 of which have been signed to date.
Excluding development rights, the year-end balance for land investment was
€556.2 million (FY 2023: €403.8 million). In 2025 and 2026, the Group will
further optimise and reduce its landbank through unit delivery, and additional
non-core site sales that are projected to exceed €100 million over the
two-year period.
Input Cost Inflation
The rate of increase in construction costs moderated in 2024 with stabilising
material prices and energy costs. By leveraging our scale, strategic supply
chain partnerships, vertical integration strategy, and MMC, we were able to
manage build cost inflation to mid-single digits in FY 2024. The Group's
strategic investment in its own manufacturing capabilities continues to give
it greater control over input costs and capacity to mitigate the effects of
the inflationary environment.
Supply Chain Integration - NUA
Innovation, standardisation and manufacturing integration are iterative
processes that will continue to future proof the business. Launched in 2023,
our innovative manufacturing and new technology arm, NUA, focuses on off-site
panellised construction using timber frames and light gauge steel. In FY 2024,
it produced timber-frame and light-gauge steel frames for 2,030 new units as
it scales towards a peak capacity output that will support more than 2,500
homes per year.
Greater value generation is expected from pre-manufactured frames over the
medium term. With standardised house types now a larger component of our
output, the ability to pre-manufacture our own frames is an increasingly
important factor.
In 2024, we continued to future proof our business model via the signing of an
exclusive perpetual licence to extend the capabilities of our manufacturing
business by enabling the production of a low-rise integrated external wall
system alongside timber-frame and Light Gauge Steel (LGS) at existing Group
facilities by 2027.
Sustainability Agenda Progress
Sustainability at Glenveagh has always been a driver of value-integrated into
our Building Better Strategy rather than sitting alongside it. For us,
sustainability is about identifying opportunities, managing risks, and
ensuring long-term resilience.
Cost and carbon are inherently linked in homebuilding, and by reducing
emissions, we not only protect the environment but also drive operational
efficiency and safeguard the business for the future. In a sector where
workforce participation is declining, we must remain an employer of
choice-both for our direct employees and those working across our sites.
These factors reinforce why sustainability is not an obligation, but a
strategic enabler of performance, differentiation, and long-term success.
In FY 2024, the Group launched our Biodiversity Strategy and Circular Economy
Strategy, which operate alongside our Net Zero Transition Plan and Equity,
Diversity, and Inclusion Strategy. With greenhouse gas emission reduction
targets verified by the Science Based Targets initiative, Glenveagh made
strong progress towards its goals for Scopes 1, 2, and 3.
FY 2024 marked the first full year in which the Group used HVO (hydrotreated
vegetable oil) rather than diesel across all sites, supporting the Group to
record a reduction of 47% in absolute Scope 1 and 2 emissions compared to the
FY 2021 baseline. Meanwhile, Scope 3 emissions reduced by 7% against our FY
2021 baseline, measured on an intensity basis (tCO2e/100sqm). This was
supported by Glenveagh's focus on delivering energy-efficient homes that
provide long-term value to customers.
This year, Glenveagh also became the first Irish homebuilder to report against
the Corporate Sustainability Reporting Directive (CSRD), enhancing the rigour
and accountability of its business activities and further strengthening its
position as a market leader.
Finally, Glenveagh is continuing to make strides in promoting equality,
diversity, and inclusion and ensuring we are the employer of choice in the
industry. The Group's efforts earned recognition from the Irish Centre for
Diversity, awarding it Gold Accreditation and making Glenveagh the first
construction company in Ireland to achieve this accolade. In February,
Glenveagh was officially recognised as one of Ireland's Best Workplaces by
Great Place To Work for the fifth year running.
2. Financial Review
Group Performance
The Group's total revenue for the year reached €869 million (FY 2023: €608
million), a 43% increase. The Group's gross profit increased to €184
million (FY 2023: €113 million), resulting in an overall gross margin of
21.2% (FY 2023: 18.5%).
In Glenveagh's Suburban business segment, revenue amounted to €631 million,
marking a 34.2% increase from 2023. The Group completed 1,650 suburban units,
with an ASP of approximately €365k (FY 2023: €336k). The ASP rose by 8.6%
due to changes in the site and product mix.
The Suburban segment experienced a notable margin improvement, with a gross
margin of 22.2% (FY 2023: 20.2%). This improvement was driven by operational
efficiencies, increased product standardisation, strong market conditions, and
benefits derived from our manufacturing capabilities. It was further enhanced
by land sales (approximately 40bps). Through 2025, stable but persistent cost
price inflation is expected to be offset by sustained market demand.
The Urban business segment generated revenue of €118 million, including the
completion of key projects such as Cluain Mhuire, Citywest, and Castleknock.
The Urban gross margin improved to 19.7% in FY 2024, up from 12.8% in FY 2023,
reflecting efficient project execution, favourable site mix and the benefit of
a net impairment reversal of €2 million.
The Partnerships business segment recorded revenue of €120 million,
reflecting significant progress on multiple sites, and gross margin was 16.9%.
This segment's growth underscores our ability to leverage public-private
collaborations effectively and deliver at scale. With construction underway on
more than 2,000 units across the Ballymastone and Oscar Traynor Road sites,
the Partnerships segment is progressing strongly.
Two new transactions in 2024 have added 451 units to our pipeline,
highlighting our capability to deliver large-scale projects efficiently.
Group operating profit was €132 million (FY 2023: €71 million). The
Group's central costs for the year were €49.0 million (FY 2023: €39.4
million), which, along with €2.8 million (FY 2023: €2.4 million) of
depreciation and amortisation, gives total administrative expenses of €51.8
million (FY 2023: €41.8 million). The increase in central costs reflects
investment in innovation, systems, and people, in addition to an increase in
the share-based payment expense partly as a result of a significant increase
in share price during the period.
Net finance costs for the year increased to €18.3 million (FY 2023: €15.8
million), primarily due to increased investment in land and WIP to support
business growth.
Overall, the Group delivered an improved EPS of 17 cent (FY 2023: 8 cent), in
line with market guidance.
Balance Sheet
The Group's net assets stood at €751.2 million as of 31 December 2024 (FY
2023: €678.2 million).
In line with our strategic focus on growth, we made significant investments in
our land portfolio to support future development. The year-end balance for
land investment was €556.2 million (FY 2023: €403.8 million), excluding
development rights which represents a peak year-end investment level.
Reductions in our landbank investment through unit delivery are expected to be
complemented by site sales exceeding €100 million over 2025 and 2026 as the
Group further optimises its landbank. The strategic land acquisitions are
expected to drive long-term growth and enhance our development pipeline over
the next five years.
To support our growth trajectory into FY 2025, we maintained investment in
WIP, with a year-end balance standing at €283.8 million (FY 2023: €274.6
million).
Focus remains on enhancing the capital efficiency of the business and
increasing cash generation. Once capital allocation priorities are satisfied,
Glenveagh is committed to returning any excess cash identified to
shareholders. As of 31 December, €30.4m of the on-going €65m share buyback
programme had been deployed, with a total of 19 million shares repurchased (12
March €46m / 29m shares). The Group expects to conclude the current
programme on or around the date of the 2025 Annual General Meeting in May, at
which point the Group will have returned more than €380 million to
shareholders since the beginning of FY 2021 reducing issued share count by
approximately 37%.
Cash Flow
Operating cash outflow amounting to €93.4 million (FY 2023: inflow €50.9
million) reflects the conscious decision to invest in line with our capital
allocation priorities, focusing on our landbank (€215 million(1)) in order
to underpin the growth of the business into the future.
The Group had an increased net debt position of €179 million at year-end (FY
2023: €48.8 million), reflecting this strategic land investment and increase
in construction WIP investment. This remains a prudently managed debt level,
considering the overall scale of the business, the investments made in FY
2024, and visibility on more unit deliveries in H1 2025 versus H1 2024. The
expansion of net debt in H1 2025 is expected to be less pronounced than in H1
2024 given the improvement in the H1 2025 revenue profile versus 2024.
Note 1: Net of fees and stamp duty
Note 2: Includes sites conditionally contracted and expected to complete in
2025.
Note 3: At 10 March
Ends
Glenveagh Properties plc
Consolidated statement of profit or loss and other comprehensive income
For the financial year ended 31 December 2024
2024 2023
Note €'000 €'000
Revenue 10 869,197 607,938
Cost of sales (685,278) (495,207)
Gross profit 183,919 112,731
Administrative expenses (51,780) (41,782)
Operating profit 132,139 70,949
Finance expense 11 (18,323) (15,839)
Profit before tax 12 113,816 55,110
Income tax 16 (16,061) (8,002)
Profit after tax attributable to the owners of the Company
97,755 47,108
Items that are or may be reclassified subsequently to profit or loss:
Fair value movement on cash flow hedges 741 (1,240)
Cash flow hedges reclassified to profit or loss (694) (383)
Cash flow hedges - deferred tax 394 -
Total other comprehensive income/(loss) 441 (1,623)
Total comprehensive profit for the year attributable of the owners of the
Company
98,196 45,485
Basic earnings per share (cents) 15 17.0 8.0
Diluted earnings per share (cents) 15 16.9 8.0
Glenveagh Properties plc
Consolidated balance sheet
as at 31 December 2024
Note
2024 2023
€'000 €'000
Assets
Non-current assets
Goodwill 18 5,697 5,697
Property, plant and equipment 17 62,404 64,184
Intangible assets 18 7,277 2,781
Deferred tax asset 16 1,339 884
76,717 73,546
Current assets
Inventory 19 864,353 707,600
Trade and other receivables 20 173,221 77,974
Income tax receivable - 3,901
Restricted cash 23 458 458
Cash and cash equivalents 27 63,165 71,863
1,101,197 861,796
Total assets 1,177,914 935,342
Equity
Share capital 26 642 659
Share premium 26 179,788 179,719
Undenominated capital 26 418 399
Retained earnings 517,425 450,103
Cashflow hedge reserve 24 (1,182) (1,623)
Share-based payment reserve 54,079 48,899
Total equity 751,170 678,156
Liabilities
Non-current liabilities
Loans and borrowings 22 235,039 112,083
Lease liabilities 22 3,136 4,230
Derivative contracts 24 1,576 1,623
Trade and other payables 21 - 1,750
239,751 119,686
Current liabilities
Trade and other payables 21 181,235 132,719
Income tax payable 1,350 -
Loans and borrowings 22 3,129 3,562
Lease liabilities 22 1,279 1,219
186,993 137,500
Total liabilities 426,744 257,186
Total liabilities and equity 1,177,914 935,342
Conor
Murtagh
Stephen
Garvey
12 March 2025
Director
Director
Glenveagh Properties plc
Consolidated statement of changes in equity
for the financial year ended 31 December 2024
Share Capital
Share-based payment
Ordinary Deferred Undenominated Share Cashflow Retained Total
shares Shares capital premium reserve hedge reserve earnings equity
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Balance as at 1 January 2024 578 81 399 179,719 48,899 (1,623) 450,103 678,156
Total comprehensive profit for the year
Income for the year - - - - - - 97,755 97,755
Fair value movement on cash flow hedges - - - - - 741 - 741
Cashflow hedges reclassified to profit and loss
- - - - - (694) - (694)
Cash flow hedges - deferred tax - - - - - 394 - 394
578 81 399 179,719 48,899 (1,182) 547,858 776,352
Transactions with owners of the Company
Equity-settled share-based payments - - - - 5,180 - - 5,180
Exercise of options 2 - - 69 - - - 71
Purchase of own shares (Note 26) (19) - 19 - - - (30,433) (30,433)
(17) - 19 69 5,180 - (30,433) (25,182)
Balance as at 31 December 2024 561 81 418 179,788 54,079 (1,182) 517,425 751,170
Glenveagh Properties plc
Consolidated statement of changes in equity
for the financial year ended 31 December 2023
Share Capital
Share-based payment
Ordinary Deferred Undenominated Share Cashflow Retained Total
shares Shares capital premium reserve hedge reserve earnings equity
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Balance as at 1 January 2023 638 81 335 179,416 46,968 - 465,680 693,118
Total comprehensive profit for the year
Income for the year - - - - - - 47,108 47,108
Fair value movement on cashflow hedges - - - - - (1,240) - (1,240)
Cashflow hedges reclassified to profit and loss
- - - - - (383) - (383)
638 81 335 179,416 46,968 (1,623) 512,788 738,603
Transactions with owners of the Company
Equity-settled share-based payments - - - - 2,137 - - 2,137
Lapsed share options (Note 14) - - - - (206) - 206 -
Cancellation of deferred shares (Note 26) - - - 303 - - - 303
Exercise of options 4 - - - - - - 4
Purchase of own shares (Note 26) (64) - 64 - - - (62,891) (62,891)
(60) - 64 303 1,931 - (62,685) (60,447)
Balance as at 31 December 2023 578 81 399 179,719 48,899 (1,623) 450,103 678,156
Glenveagh Properties plc
Consolidated statement of cash flows
For the financial year ended 31 December 2024
2024 2023
Note €'000 €'000
Cash flows from operating activities
Profit for the financial year 97,755 47,108
Adjustments for:
Depreciation and amortisation 2,774 2,373
Finance costs 11 18,323 15,839
Equity-settled share-based payment expense 14 5,180 2,137
Tax expense 16 16,061 8,002
Impairment reversal 19 (1,991) -
Loss/(profit) on disposal of property, plant and equipment 12 8 (214)
138,110 75,245
Changes in:
Inventories (150,387) (18,529)
Trade and other receivables (95,248) (19,217)
Trade and other payables 44,817 38,100
Cash (used in)/from operating activities (62,708) 75,599
Interest paid (19,864) (12,009)
Tax paid (10,871) (12,732)
Net cash (used in)/from operating activities (93,443) 50,858
Cash flows from investing activities
Acquisition of property, plant and equipment (1,835) (16,361)
Acquisition of intangible assets 18 (4,982) (1,477)
Proceeds from the sale of property, plant and equipment 237 959
Net cash used in investing activities (6,580) (16,879)
Cash flows from financing activities
Proceeds from loans and borrowings 22 268,333 381,667
Repayment of loans and borrowings 22 (145,000) (347,500)
Transaction costs related to loans and borrowings 22 (1,087) (4,318)
Purchase of own shares 26 (30,433) (62,891)
Proceeds from exercise of share options 26 71 307
Proceeds from derivative settlements 24 783 295
Payment of lease liabilities 28 (1,342) (761)
Net cash from/(used in) financing activities 91,325 (33,201)
Net (decrease)/increase in cash and cash equivalents (8,698) 778
Cash and cash equivalents at the beginning of the year 71,863 71,085
Cash and cash equivalents at the end of the year 63,165 71,863
Glenveagh Properties plc
Notes to the consolidated financial statements
For the financial year ended 31 December 2024
1 Reporting entity
Glenveagh Properties plc ("the Company) is domiciled in the Republic of
Ireland. The Company's registered office is Block C, Maynooth Business Campus,
Maynooth Co. Kildare. These consolidated financial statements comprise the
Company and its subsidiaries (together referred to as "the Group") and cover
the financial year ended 31 December 2024. The Group's principal activities
are the construction and sale of houses and apartments for the private buyer,
local authorities and the private rental sector.
2 Statement of compliance
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS's) as adopted by the
European Union which comprise standards and interpretations approved by the
International Accounting Standards Board (IASB), and those parts of the
Companies Act 2014, including the Commission Delegated Regulation 2018/815
regarding the single electronic reporting format (ESEF), applicable to
companies reporting under IFRS and Article 4 of the IAS regulation.
3 Functional and presentation currency
These consolidated financial statements are presented in Euro which is the
Company's functional currency. All amounts have been rounded to the nearest
thousand unless otherwise indicated.
4 Use of judgements and estimates
The preparation of the Group's financial statements under International
Financial Reporting Standards ("IFRS"), as adopted by the European Union,
requires the Directors to make judgments and estimates that affect the
application of policies and the reported amounts of assets, liabilities,
income, expenses and related disclosures. Actual results may differ from these
estimates.
Critical accounting judgements
Management applies the Group's accounting policies as described in Note 8 when
making critical accounting judgements. Material accounting judgements
impacting these financial statements is detailed below:
(a) Classification between IAS 2 Inventories and IAS 40 Investment
Property
The Group has practically completed an office development in Dublin, costs
associated with developing the asset are held as inventory which is in line
with the Group's business model of developing and selling units rather than
developing and holding units for capital appreciation or rental income. The
office is currently held for sale and the intention of the Group is to sell
the office. Currently a small portion of the office space is being leased out
with the intention to support the sales process which is in the normal
operating cycle. Revenue generated from the leases are not material to the
Group.
Under IAS 40, the office would be classified as an investment property carried
at fair value with any subsequent revaluation being recognised through the
statement of profit and loss and other comprehensive income.
Management has reviewed and considered the relevant scenarios under IAS 2 and
IAS 40 and concluded that the development is appropriately classified as
inventory under IAS 2.
No other individual judgement is deemed to have a significant impact upon the
financial statements.
Key sources of estimation uncertainty
The key source of significant estimation uncertainty impacting these financial
statements involves assessing the carrying value of inventories as detailed
below.
(a) Carrying value of work-in-progress, estimation of costs to complete
and impact on profit recognition
The Group holds inventories stated at the lower of cost and net realisable
value. Such inventories include land and development rights, work-in-progress
and completed units. As residential development is largely speculative by
nature, not all inventories are covered by forward sales contracts.
Furthermore, due to the nature of the Group's activity and, in particular the
scale of its developments and the length of the development cycle, the Group
has to allocate site-wide development costs between units being built and/or
completed in the current year and those for future years. It also has to
forecast the costs to complete on such developments.
These estimates impact management's assessment of the net realisable value of
the Group's inventory balance and also determine the extent of profit or loss
that should be recognised in respect of each development in each reporting
period.
In making such assessments and allocations, there is a degree of inherent
estimation uncertainty. The Group has established internal controls designed
to effectively assess and centrally review inventory carrying values and
ensure the appropriateness of the estimates made. These assessments and
allocations evolve over the life of the development in line with the risk
profile, and
accordingly, the margin recognised reflects these evolving assessments,
particularly in relation to the Group's long-term developments. The impact of
sustainability and other macroeconomic factors have been considered in the
Group's assessment of the carrying value of its inventories at 31 December
2024, particularly with regard to the potential implications for future
selling prices, development expenditure and construction programming.
Management has considered a number of scenarios on each of its active
developments and the consequential impact on future profitability based on
current facts and circumstances together with any implications for future
projects in undertaking its net realisable value calculations.
As part of the assessment, the Group has re-evaluated its most likely exit
strategies on all developments in the context of the current market
environment and reflected these in revenue assumptions within the forecast
models. The results of this exercise determined that the net impairment
reversal required for the period was €2.0 million (2023: Nil) in respect of
its previously impaired non-core sites. Further detail in respect of the
reversal of impairment for the year is included in note 19.
5 Measurement of fair values
A number of the Group's accounting policies and disclosures require the
measurement of fair values, both for financial and non-financial assets and
liabilities.
The Group has an established control framework with respect to the measurement
of fair values. This includes a valuation team that has overall responsibility
for overseeing all significant fair value measurements, including Level 3 fair
values and reports directly to the chief financial officer.
The valuation team regularly reviews significant unobservable inputs and
valuation adjustments. If third party information, such as broker quotes or
pricing services, is used to measure fair values, then the valuation team
assess the evidence obtained from the third parties to support the conclusion
that these valuations meet the requirements of the Standards, including the
level in the fair value hierarchy in which the valuations should be
classified.
Significant valuation issues are reported to the Group's Audit and Risk
committee.
Fair value is defined in IFRS 13, Fair Value Measurement, as the price that
would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. When
measuring the fair value of an asset or liability, the Group uses market
observable data as far as possible. Fair values are categorised into different
levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
Further information about the assumptions made in measuring fair values is
included in the following notes:
· Note 14 Share-based payments arrangements;
· Note 21 Trade and other payables;
· Note 24 Derivatives and cashflow hedge reserve; and
· Note 27 Financial instruments and financial risk management.
6 Changes in material accounting policies
Amendments to standard IFRS 16 Leases: amendments to Lease Liability in a Sale
and Leaseback, IAS 7 Statement of cash flows and IFRS 7 Financial Instruments:
Disclosures: amendments to Supplier Finance Arrangements are effective from 1
January 2024 but they do not have a material effect on the Group's financial
statements.
(i) New material accounting policies
New and amended standards adopted by the Group
a) IAS 1 - Classification of Liabilities as Current and Non-Current
Liabilities with Covenants
The Group has adopted Classification of Liabilities as Current and Non-Current
Liabilities with Covenants - Amendments to IAS1, from 1 January 2024. The
amendments apply retrospectively for annual reporting periods beginning on or
after 1 January 2024. They clarify certain requirements for determining
whether a liability should be classified as current or non-current and require
new disclosures for non-current liabilities that are subject to covenants
within 12 months after the reporting period. The Group's liabilities were not
impacted by the amendments in the current and comparative financial years.
b) IFRS 18 - Presentation and Disclosure in Financial Statements
IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies
for annual reporting periods beginning on or after 1 January 2027. The new
standard introduces the following key new requirements:
· Entities re required to classify all income and expenses into
five categories in the statement of profit or loss and other comprehensive
income, namely the operating, investing, financing, discontinued operations
and income tax categories. Entities are also required to present a newly
defined operating profit subtotal. Entities' net profit will not change.
· Management defined performance measures (MPMs) are disclosed in a
single note in the financial statements.
· Enhanced guidance is provided on how to group information in the
financial statements.
In addition, all entities are required to use the operating profit subtotal as
the starting point for the statement of cash flows when presenting operating
cash flows under the indirect method.
The Group is still in the process of assessing the impact of the new standard,
particularly with respect to the structure of the Group's statement of profit
or loss and other comprehensive income, the statement of cash flows and the
additional disclosures required for MPM's. The Group is also assessing the
impact on how information is grouped in the financial statements including for
items currently labelled as 'other'.
There have been no other changes to material accounting policies during the
financial year ended to 31 December 2024.
(ii) Other standards
The Group has not adopted the following new and amended standards early, and
instead intends to apply them from their effective date as determined by the
date of EU endorsement. The potential impact of these amendments to standards
on the Group is under review:
- IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of
exchangeability (amendment)
- IFRS 10 Consolidated Financial Statements and IAS 28 Investments in
Associates and Joint Ventures: Sale or contribution of assets between an
investor and its associate or joint venture (amendment)
- IFRS 19 Subsidiaries without Public Accountability (disclosures)
- IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial
Instruments: Contracts Referencing Nature-dependent Electricity (amendment)
- IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial
Instruments: Amendments to the Classification and Measurement of Financial
Instruments (amendment)
7 Going concern
The Group has recorded a profit before tax of €113.8 million (2023: €55.1
million). The Group has an unrestricted cash balance of €38.2 million (31
December 2023: €46.9 million) exclusive of the minimum cash balance of
€25.0 million which the Group is required to maintain under the terms of its
debt facilities. The Group has committed undrawn funds available of €190.0
million (31 December 2023: €233.3 million).
Management has prepared a detailed cash flow forecast to assess the Group's
ability to continue as a going concern for at least a period of twelve months
from the signing of these financial statements. The preparation of this
forecast considered the principal risks facing the Group, including those
risks that could threaten the Group's business model, future performance,
solvency or liquidity over the forecast period. These principal risks and
uncertainties and the steps taken by the Group to mitigate them are detailed
in the Risk Management Report of the Annual Report. The Group's business
activities, together with the factors likely to affect its future development
are outlined in the Strategic Report of the Annual Report. Further disclosures
regarding the Group's loans and borrowings are provided in note 22.
The Group is forecasting compliance with all covenant requirements under the
current facilities including the interest cover covenant which is based on
earnings before interest, tax, depreciation and amortisation (EBITDA)
excluding any non-cash impairment charges or reversals. Total debt must not
exceed adjusted EBITDA by a minimum of 4 times, this is calculated on both a
forward and trailing twelve-month basis. Other assumptions within the forecast
include the Group's expected selling prices and sales strategies as well as
its investment in work in progress which reflect updated development
programmes.
Based on the forecasts modelled, the Directors have assessed the Group's going
concern status for the foreseeable future. Having considered the Group's cash
flow forecasts, the Directors are satisfied that the Group has the appropriate
working capital management strategy, operational flexibility, and resources in
place to continue in operational existence for the foreseeable future.
Accordingly, these consolidated financial statements have been prepared on a
going concern basis.
8 Material accounting policies
The Group has consistently applied the following accounting policies to all
periods presented in these consolidated financial statements, except if
mentioned otherwise.
8.1 Basis of consolidation
(i) Business combinations
The Group accounts for business combinations using the acquisition method when
control is transferred to the Group. The consideration transferred in the
acquisition is generally measured at fair value, as are the identifiable net
assets acquired. Any goodwill that arises is tested annually for impairment.
Any gain on a bargain purchase is recognised in profit or loss immediately.
Transaction costs are expensed as incurred, except if related to the issue of
debt or equity securities.
The consideration transferred does not include amounts related to the
settlement of pre-existing relationships. Such amounts are generally
recognised in profit or loss. Any contingent consideration is measured at fair
value at the date of acquisition. If an obligation to pay contingent
consideration that meets the definition of a financial instrument is
classified as equity, then it is not remeasured, and settlement is accounted
for within equity. Otherwise, other contingent consideration is remeasured at
fair value each reporting date and subsequent changes in the fair value of the
contingent consideration are recognised in profit or loss.
(ii) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity. The financial statements of subsidiaries
are included in the consolidated financial statements from the date on which
control commences until the date on which control ceases.
(iii) Joint operations
Joint operations arise where the Group has joint control of an operation with
other parties, in which the parties have direct rights to the assets and
obligations of the operation. The Group accounts for its share of the jointly
controlled assets and liabilities and income and expenditure on a line by line
basis in the consolidated financial statements.
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses
arising from intra-group transactions, are eliminated.
8.2 Revenue
The Group develops and sells residential properties and non-core land in
addition to developing land under development agreements with third parties.
(i) Housing and land sales
Revenue is recognised at the point in time when control over the property has
been transferred to the customer, which occurs at legal completion.
(ii) Development revenue
Revenue arising on contracts under a development agreement which give the
customer control over properties as they are constructed, and for which the
Group has a right to payments for work performed, is recognised over time.
Revenue and costs are recognised over time with reference to the stage of
completion of the contract activity at the balance sheet date where the
outcome of a contract can be estimated reliably. This is measured by surveys
of work performed to date.
Variations in contract work, claims and incentive payments are included to the
extent that it is probable that they will result in revenue, and they are
capable of being reliably measured.
An assessment is required to determine whether a land sale is a separate
performance obligation. When land is transferred at the start of a forward
fund contract, revenue is not recognised until control has been transferred to
the customer which includes legal title being passed to them. When the
separate performance obligation is not satisfied, revenue is recognised under
the input method.
Where the outcome of a forward fund contract cannot be estimated reliably,
contract revenue where recoverability is probable is recognised to the extent
of contract costs incurred. The costs associated with fulfilling a contract
are recognised as expenses in the period in which they are incurred. When it
is probable that total contract costs will exceed total contract revenue, the
expected loss is recognised as an expense immediately.
8.3 Expenditure
Expenditure recorded in inventory is expensed through cost of sales at the
time of the related property sale. The amount of cost related to each property
includes its share of the overall site costs. Expenditure related to revenue
recognised over time is expensed through cost of sales on an inputs basis.
Administration expense is recognised in respect of goods and services received
when supplied in accordance with contractual terms.
Expenditure on research activities is recognised in profit or loss as
incurred.
8.4 Taxation
Income tax expense comprises current and deferred tax. It is recognised in
profit or loss except to the extent that it relates to a business combination,
or items recognised directly in equity or in OCI.
To address concerns about uneven profit distribution and tax contributions of
large multinational corporations, various agreements have been reached at a
global level, including an agreement by over 135 jurisdictions to introduce a
global minimum tax rate of 15%. In December 2022, the Organisation for
Economic Co-operation and Development ("OCED") released a draft legislative
framework that is expected to be used by individual jurisdictions that signed
the agreement to amend their local tax laws. The Republic of Ireland has
enacted the new legislation, however, based on the current criteria there is
no current tax impact in the financial year as the Group is not in scope of
the legislation (2023: €Nil).
(i) Current tax
Current tax comprises the expected tax payable or receivable on the taxable
income or loss for the year and any adjustment to the tax payable or
receivable in respect of previous years. The amount of current tax payable or
receivable is the best estimate of the tax amount expected to be paid or
received that reflects uncertainty related to income taxes, if any. It is
measured using tax rates enacted or substantively enacted at the reporting
date. Current tax also includes any tax arising from dividends. Current tax
assets and liabilities are offset only if certain criteria are met.
(ii) Deferred tax
Deferred tax is recognised in respect of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes.
Deferred tax is not recognised for:
- temporary differences on the initial recognition of assets or
liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable profit or loss and does not give rise
to equal taxable and deductible temporary differences;
- temporary differences related to investments in subsidiaries,
associates and joint arrangements to the extent that the Group is able to
control the timing of the reversal of the
- temporary differences and it is probable that they will not
reverse in the foreseeable future; and
- taxable temporary differences arising on the initial recognition
of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits
and deductible temporary differences to the extent that it is probable that
future taxable profits will be available against which they can be used.
Future taxable profits are determined based on the reversal of relevant
taxable temporary differences.
If the amount of taxable temporary differences is insufficient to recognise a
deferred tax asset in full, then future taxable profits, adjusted for
reversals of existing temporary differences, are considered, based on the
business plans for individual subsidiaries in the Group. Deferred tax assets
are reviewed at each reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be realised; such
reductions are reversed when the probability of future taxable profits
improves. Once changes to the tax laws in any jurisdiction in which the Group
operates are enacted or substantively enacted, the Group may be subject to the
top-up tax. Currently, the Group operates solely in the Republic of Ireland,
based on current criteria there is no current tax impact
Unrecognised deferred tax assets are reassessed at each reporting date and
recognised to the extent that it has become probable that future taxable
profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to
temporary difference when they reverse, using tax rates enacted or
substantively enacted at the reporting date, and reflects uncertainty related
to income taxes, if any.
The measurement of deferred tax reflects the tax consequences that would
follow from the manner in which the Group expects, at the reporting date, to
recover or settle the carrying amount of its assets and liabilities.
8.5 Share-based payment arrangements
The grant date fair value of equity-settled share-based payment arrangements
granted to employees is generally recognised as an expense, with a
corresponding increase in equity, over the vesting period of the awards. The
amount recognised as an expense is adjusted to reflect the number of awards
for which the related service and non-market performance conditions are
expected to be met, such that the amount ultimately recognised is based on the
number of awards that meet the related service and non-market performance
conditions at the vesting date. For share-based payment awards with
non-vesting conditions or market conditions, the grant date fair value of the
share-based
payment is measured to reflect such conditions and there is no true-up for
differences between expected and actual outcomes.
Certain performance conditions in respect of share-based payment awards can be
subject to adjustment by the Remuneration Committee at its discretion, for
items deemed not reflective of the Group's underlying performance for the
financial year. For these share-based payment arrangements which are based on
non-market conditions, the Group remeasures the fair value and related expense
of the award at the reporting date.
8.6 Exceptional items
Exceptional items are those that are separately disclosed by virtue of their
nature or amount in order to highlight such items within the consolidated
statement of profit or loss for the financial year. Group management exercises
judgement in assessing each particular item which, by virtue of its scale or
nature, should be highlighted as an exceptional item. Exceptional items are
included within the profit or loss caption to which they relate. During the
financial year, there were no income or costs considered exceptional items.
8.7 Property, plant and equipment
Property, plant and equipment is carried at historic purchase cost less
accumulated depreciation. Cost includes the original purchase price of the
asset and the costs attributable to bringing the asset to its working
condition for its intended use. Depreciation is provided to write off the cost
of the assets on a straight-line basis to their residual value over their
estimated useful lives at the following annual rates:
·
Buildings
2.5%
· Plant and
machinery 14-20%
· Fixtures and
fittings 20%
· Computer
Equipment 33%
The assets' residual values, carrying values and useful lives are reviewed on
an annual basis and adjusted if appropriate at each reporting date.
Where an impairment is identified, the recoverable amount of the asset is
identified and an impairment loss, where appropriate, is recognised in the
statement of profit or loss and other comprehensive income.
Gains and losses on disposals are determined by comparing the proceeds with
the carrying amount and are recognised within administration expenses in the
statement of profit or loss and other comprehensive income.
Subsequent expenditure is capitalised only if it is probable that the future
economic benefits associated with the expenditure will flow to the Group.
8.8 Intangible assets
Goodwill arising on the acquisition of subsidiaries is measured at cost less
accumulated impairment losses. Goodwill impairments are not reversed. Goodwill
is not amortised but is subject to impairment testing on an annual basis and
at any time during the year if an indicator of impairment is considered
to exist. The annual goodwill impairment tests are undertaken at a consistent
time in each annual period.
Development expenditure is capitalised only if the expenditure can be measured
reliably, the product or process is technically and commercially feasible,
future economic benefits are probable and the Group intends to and has
sufficient resources to complete development and to use or sell the asset.
Otherwise, it is recognised in profit or loss as incurred. Subsequent to
initial recognition, development expenditure is measured at cost less
accumulated amortisation and any accumulated impairment losses. Capitalised
development expenditure has an indefinite useful life.
Indefinite life intangible assets are those for which there is no foreseeable
limit to their expected useful life. The classification of intangible assets
as indefinite is assessed annually.
Subsequent expenditure is capitalised only if it is probable that the future
economic benefits associated with the expenditure will flow to the Group.
Computer software is capitalised as intangible assets as acquired and
amortised on a straight-line basis over its estimated useful life of 3 years,
in line with the period over which economic benefit from the software is
expected to be derived.
Licence costs are capitalised as intangible assets as acquired and amortised
on a straight-line basis over their estimated useful life in line with the
period over which economic benefit from the software is expected to be
derived.
The assets' useful lives and residual values are reviewed and adjusted, if
appropriate, at each reporting date.
8.9 Inventory
Inventory comprises property in the course of development, completed units,
land and land development rights. Inventories are valued at the lower of cost
and net realisable value. Direct cost comprises the cost of land, raw
materials and development costs but excludes indirect overheads. Land
purchased for development, including land in the course of development, is
initially recorded at cost. Where such land is purchased on deferred
settlement terms, and the cost differs from the amount that will subsequently
be paid in settling the liability, this difference is charged as a finance
cost in the statement of profit or loss and other comprehensive income over
the period to settlement. A provision is made, where appropriate, to reduce
the value of inventories and work-in-progress to their net realisable value.
Raw material and finished good stock are valued at the lower of cost and net
realisable value. Stocks are determined on a first-in first-out basis. Cost
comprises expenditure incurred in the normal course of business in bringing
stocks to their present location and condition. Full provision is made for
obsolete and slow-moving items. Net realisable value comprises actual or
estimated selling price (net of trade discounts) less all further costs to
completion or to be incurred in marketing and selling.
8.10 Financial instruments
Financial assets and financial liabilities
Under IFRS 9, financial assets and financial liabilities are initially
recognised at fair value and are subsequently measured based on their
classification as described below. Their classification depends on the purpose
for which the financial instruments were acquired or issued, their
characteristics and the Group's designation of such instruments. The standards
require that all financial assets and financial liabilities be classified as
fair value through profit or loss ("FVTPL"), amortised cost, or fair value
through other comprehensive income ("FVOCI").
Classification of financial instruments
The following summarises the classification and measurement the Group has
elected to apply to each of its significant categories of financial
instruments:
IFRS 9
Type Classification
Financial assets
Cash and cash equivalents Amortised cost
Trade receivables Amortised cost
Contract assets Amortised cost
Other receivables Amortised cost
Amounts recoverable on construction contracts Amortised cost
Restricted cash Amortised cost
Deposits for sites Amortised cost
Construction bonds Amortised cost
Financial liabilities
Lease liabilities Amortised cost
Trade payables Amortised cost
Inventory accruals Amortised cost
Other accruals Amortised cost
Loans and borrowings Amortised cost
Derivative contracts Fair value (cash flow
hedge accounting)
Contingent consideration Fair value
through profit or loss
Cash and cash equivalents
Cash and cash equivalents include cash, short-term investments with an
original maturity of three months or less and minimum cash balances required
under the terms of the debt facilities. Interest earned or accrued on these
financial assets is included in finance income.
Trade and other receivables
Such receivables are included in current assets, except for those with
maturities more than 12 months after the reporting date, which are classified
as non-current assets. Loans and other receivables are included in trade and
other receivables on the statement of financial position and are
accounted for at amortised cost. These assets are subsequently measured at
amortised cost. The amortised cost is reduced by impairment losses. The Group
recognises impairment losses on an 'expected credit loss' model (ECL model)
basis in line with the requirements of IFRS 9. Interest income and impairment
are recognised in profit or loss. Any gain or loss on derecognition is
recognised in profit or loss.
Amounts recoverable on construction contracts
Amounts recoverable on construction contracts includes recoverable revenue
recognised over time with reference to the stage of completion arising on
contracts under a development agreement which are receivable within 12 months
of the reporting date.
Contract assets
Contract assets are amounts recoverable on long-term contracts where revenue
is recognised over time.
Deposits for sites
Deposits for sites includes a percentage amount paid of the total purchase
price for the acquisition of land intended for development.
Restricted cash
Restricted cash includes cash amounts which are classified as current assets
and held in escrow until the completion of certain criteria.
Construction bonds
Construction bonds includes amounts receivable in relation to the completion
of construction activities on sites. These assets are included in trade and
other receivables on the consolidated balance sheets and are accounted for at
amortised cost.
Derivative contracts
Derivative contracts are contracts for interest rate swaps to manage the
interest rate risk arising from floating rate borrowings. Derivatives are
initially recognised at fair value on the date a derivative contract is
entered into, and they are subsequently remeasured to their fair value at the
end of each reporting period.
Financial liabilities
Financial liabilities such as inventory accruals and other accruals are
recorded at amortised cost and include all liabilities.
Loans and borrowings
Loans and borrowings include debt facilities, interest accrued and borrowing
costs classified as current and non-current liabilities.
Contingent consideration
Contingent consideration includes amounts payable if conditions pertaining to
the business combination are satisfied.
8.11 Provisions
Provisions are recognised when the Group has a present legal or constructive
obligation as a result of past events and it is probable that an outflow of
resources will be required to settle that obligation, and the amount has been
reliably estimated.
Provisions are determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability, where the effect of discounting
is considered significant. The unwinding of the discount is recognised as a
finance cost.
8.12 Pensions
The Group operates a defined contribution scheme. The assets of the scheme are
held separately from those of the Group in a separate fund. Obligations for
contributions to defined contribution plans are expensed as the related
service is provided.
8.13 Leases
At the inception of a contract, the Group assess whether a contract is, or
contains, a lease. A contract is, or contains, a lease if the contract conveys
the right to control the use of an identified asset for a period of time in
exchange for consideration.
i. As a lessee
At commencement or on modification of a contract that contains a lease
component, the Group allocates the consideration in the contract to each lease
component and non-lease component on the basis of its relative stand-alone
prices. However, for the leases of property the Group has elected not to
separate non-lease components and account for the lease and non-lease
components as a single lease component.
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located,
less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the end of the lease term, unless the
lease transfers ownership of the
underlying asset to the Group by the end of the lease term or the cost of the
right-of-use asset reflects that the Group will exercise a purchase option.
In that case the right-of-use asset will be depreciated over the useful life
of the underlying asset, which is determined on the same basis as those of
property and motor vehicles. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted using the
interest rate implicit in the lease, or, if that rate cannot be readily
determined, the Group's incremental borrowing rate. Generally, the Group uses
its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate with reference to its
current financing sources and makes certain adjustments to reflect the terms
of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise
fixed payments, including in-substance fixed payments.
The lease liability is measured at amortised cost using the effective interest
method. It is remeasured when there is a change in the future lease payments
arising from a change in an index or rate, if there is a change in the Group's
estimate of the amount expected to be payable under a residual value
guarantee, if the Group changes its assessment of whether it will exercise a
purchase, extension or termination option or if there is a revised
in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment
is made to the carrying amount of the right-of-use asset or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been
reduced to zero.
The Group presents right-of-use assets that do not meet the definition of
investment property in property, plant and equipment' and lease liabilities in
'lease liability' in the statement of financial position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease
liabilities for leases of low-value assets and short-term lease. The Group
recognises the lease payments associated with these leases as an expense on a
straight-line basis over the lease term in the income statement.
8.14 Share capital
(i) Ordinary shares
Incremental costs directly attributable to the issue of ordinary shares are
recognised as a deduction from equity (retained earnings).
8.15 Finance income and costs
The Group's finance income and finance costs include:
· Interest income
· Interest expense
· Lease interest
Interest income, interest expense and lease interest is recognised using the
effective interest method.
8.16 Derivative contracts and hedge accounting
Derivatives are initially recognised at fair value on the date a derivative
contract is entered into, and they are subsequently remeasured to their fair
value at the end of each reporting period. The accounting for subsequent
changes in fair value depends on whether the derivative is designated as a
hedging instrument and, if so, the nature of the item being hedged.
The group designates certain derivatives as hedges of a particular risk
associated with the cash flows of recognised assets and liabilities and highly
probable forecast transactions (cash flow hedges).
Changes in the fair value of derivative hedging instruments designated as cash
flow hedges are recognised in other comprehensive income to the extent that
the hedge is effective. The gain or loss relating to the ineffective portion
is recognised immediately in profit or loss.
Amounts accumulated in other comprehensive income are reclassified to profit
or loss in the same periods that the hedged items affect profit or loss. The
reclassified gain or loss relating to the effective portion of interest rate
swaps hedging variable rate borrowings is recognised in profit or loss within
finance income or costs respectively.
If the hedging instrument no longer meets the criteria for hedge accounting,
expires or is sold, terminated or exercised, then hedge accounting is
discontinued prospectively. The cumulative gain or loss previously recognised
in other comprehensive income remains there until the forecast transaction
occurs, unless the hedged transaction is no longer expected to occur, in which
case the cumulative gain or loss that was previously recognised in other
comprehensive income is transferred to profit and loss.
At inception of the hedge relationship, the group documents the economic
relationship between hedging instruments and hedged items, including whether
changes in the cash flows of the hedging instruments are expected to offset
changes in the cash flows of hedged items. The group documents its risk
management objective and strategy for undertaking its hedge transactions.
The full fair value of a hedging derivative is classified as a non-current
asset or liability when the remaining maturity of the hedged item is more than
12 months; it is classified as a current asset or liability when the remaining
maturity of the hedged item is less than 12 months.
9 Segmental information
The Group has considered the requirements of IFRS 8 Operating Segments in the
context of how the business is managed and resources are allocated.
The Group is organised into three key reportable segments, being Suburban,
Urban and Partnerships. Internal reporting to the Chief Operating Decision
Maker ("CODM") is provided on this basis. The CODM has been identified as the
Executive Committee.
The Group currently operates solely in the Republic of Ireland and therefore
no geographically segmented financial information is provided.
Suburban
The Suburban segment is focussed primarily on high quality housing (with some
low rise apartments) with demand coming from private buyers and institutions.
Our core Suburban product is affordable and located in well serviced
communities predominantly in the Greater Dublin Area and Cork.
Urban
Urban's strategic focus is developing apartments to deliver to institutional
investors and state agencies. The apartments are located primarily in Dublin
and Cork, but also on sites adjacent to significant rail transportation hubs.
Urban's strategy is to deliver the product to institutional investors through
a forward sale, or forward fund transaction providing longer term earnings
visibility.
Partnerships
A Partnership will typically involve the Government, local authorities, or
state agencies contributing their land on a reduced cost, or phased basis into
a development agreement with Glenveagh. A significant portion of the product
is delivered back to the government or local authority via social and
affordable homes. This provides longer term access to both land and unit
deliveries for the business and provides financial incentive by reducing risk
from a sales perspective.
As outlined in the Group Trading Statement on 10 January 2025, the Group's
activities have been restructured from 2025 onwards into new operating
segments being Homebuilding and Partnerships with internal reporting to the
CODM being modified to reflect this new structure. As such, segmental
information will be presented in line with this new structure and the
requirements of IFRS 8 Operating Segments in future reporting periods.
Segmental financial results
2024 2023
€'000 €'000
Revenue
Suburban 631,280 470,820
Urban 117,906 120,122
Partnerships 120,011 16,996
Revenue for reportable segments 869,197 607,938
2024 2023
€'000 €'000
Operating profit/(loss)
Suburban 123,929 79,872
Urban 19,780 12,367
Partnerships 17,878 513
Operating profit for reportable segments 161,587 92,752
Reconciliation to results for the financial year
Segment results 161,587 92,752
Finance expense (18,323) (15,839)
Directors' remuneration (3,492) (3,488)
Corporate function payroll costs (8,358) (5,871)
Depreciation and amortisation (2,774) (2,449)
Professional fees (4,499) (3,075)
IT costs (2,748) (2,060)
Share-based payment expense (5,180) (2,137)
(Loss)/profit on sale of property, plant and equipment
(8) 214
Other corporate costs (2,389) (2,937)
Profit before tax 113,816 55,110
Excluding profit on the sale of property, plant and equipment, there are no
individual costs included within other corporate costs that is greater than
the amounts listed in the above table.
Segment assets and liabilities
31 December 2024 31 December 2023
Suburban Urban Partnerships Total Suburban Urban Partnerships Total
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Segment assets 672,292 240,012 130,245 1,042,549 555,329 185,525 49,865 790,719
Reconciliation to Consolidated Balance Sheet
Deferred tax asset - - - 1,339 - - - 884
Trade and other receivables - - - 1,180 - - - 1,010
Cash and cash equivalents - - - 63,165 - - - 71,863
Property, plant and equipment - - - 62,404 - - - 64,184
Income tax receivable - - - - - - - 3,901
Intangible - - - 7,277 - - - 2,781
assets
1,177,914 935,342
Segment liabilities 135,287 9,764 24,778 169,829 92,520 15,191 19,395 127,106
Reconciliation to Consolidated Balance Sheet
Trade and other payables - - - 11,406 - - - 7,363
Loans and Borrowings - - - 238,168 - - - 115,645
Derivative contracts - - - 1,576 - - - 1,623
Lease liabilities - - - 4,415 - - - 5,449
Income tax payable - - - 1,350 - - - -
426,744 257,186
10 Revenue
2024 2023
€'000 €'000
Suburban
Core 631,280 470,820
Non-core - -
631,280 470,820
Urban
Core 117,247 95,561
Non-core 659 24,561
117,906 120,122
Partnerships
Core 120,011 16,996
120,011 16,996
Total Revenue 869,197 607,938
The Group has presented revenue as a split between core and non-core by
business segment. This split is consistent with internal reporting to the
Chief Operating Decision Maker ("CODM").
Core suburban product relates to starter homes for first time buyers. Core
urban product relates primarily to apartments suitable for institutional
investors. Non-core suburban and urban product relates to high-end, private
developments and sites. These revenues are recognised at a point in time.
Suburban core revenue includes development revenue recognised in the financial
year related to the development of the site at Mount Woods and amounted to
€7.5 million (2023: €Nil) with €6.3 million (2023: €Nil) outstanding
in contract receivables (note 20) at the year end.
Urban core revenue includes income from the sale of land and development
revenue from construction contracts that are recognised over time by reference
to the stage of completion of the contract with the customer. Development
revenue recognised in the financial year related to the development of the
sites at Barn Oaks Apartments, Castleforbes, Carpenterstown, and Foxwood Barn
Apartments and amounted to €42.6 million (2023: €95.6 million) with
€32.3 million (2023: €25.5 million) outstanding in contract receivables
(note 20) at the year end. Land revenue associated with forward fund
construction contracts amounted to €3.7 million (2023: €Nil) in the
financial year, revenue from land sales generated an immaterial profit in the
financial year. The payment terms for these contracts are between 30 and 90
days.
Partnerships core revenue includes income from the sale of units recognised at
a point in time and development revenue from construction contracts that are
recognised over time by reference to the stage of completion of the contract
with the customer. Development revenue recognised in the financial year
related to the development of the sites at Ballymastone and Oscar Traynor Road
and amounted to €92.9 million (2023: €17.0 million) with €79.2 million
(2023: €17.0 million) outstanding in contract assets (note 20) at the year
end. Land revenue associated with construction contracts amounted to €0.9
million (2023: €Nil) in the financial year, revenue from land sales
generated an immaterial profit in the financial year.
All revenue is earned in the Republic of Ireland.
11 Finance Expense
2024 2023
€'000 €'000
Interest on secured bank loans 18,859 16,084
Cash flow hedges-reclassified from other comprehensive income (694) (383)
Finance cost on lease liabilities 158 138
18,323 15,839
12 Statutory and other information
2024 2023
€'000 €'000
Amortisation of intangible assets (Note 18) 522 534
Depreciation of property, plant and equipment (Note 17)* 6,587 5,159
Employment costs (Note 13) 60,314 46,264
Loss/(profit) on disposal of property, plant and equipment 8 (214)
Audit of Group, Company and subsidiary financial statements 330 280
Other assurance services 218 20
Tax advisory services 103 67
Tax compliance services 39 36
Other non-audit services 13 25
703 428
Directors' remuneration
Salaries, fees and other emoluments 3,440 3,438
Pension contributions 52 50
3,492 3,488
*Includes €4.4 million (2023: €3.3 million) capitalised in inventory
during the year ended 31 December 2024
**Included in the auditor's remuneration for the Group is an amount of €0.02
million (2023: €0.025 million) that relates to the Company's financial
statements.
13 Employment costs
The average number of persons employed by the Group (including executive
directors) during the financial year was 635 (Executive Committee:6;
Non-executive Directors: 7; Construction: 425; and Other: 197). (2023: 513
(Executive Committee: 6; Non-executive Directors: 5; Construction: 301; and
Other: 201))
The aggregate payroll costs of these employees for the financial year were:
2024 2023
Total Total
€'000 €'000
Wages and salaries 48,533 38,550
Social welfare costs 4,964 4,126
Pension costs - defined contribution 1,637 1,451
Share-based payment expense (Note 14) 5,180 2,137
60,314 46,264
€26.4 million (2023: €18.9million) of employment costs were capitalised in
inventory during the financial year.
14 Share-based payment arrangements
The Group operates two equity-settled share-based payment arrangements being
the Long-Term Incentive Plan ("LTIP") and the Savings Related Share Option
Scheme (known as the Save As You Earn or "SAYE" scheme). As described below,
options were granted under the terms of the LTIP and SAYE schemes during the
financial year.
(a) LTIP
In March 2024, the Remuneration Committee approved the grant of 6,037,390
options to certain members of the management team in accordance with the terms
of the Company's LTIP. These options will vest on completion of a three-year
service period from grant date subject to the achievement of certain
performance condition hurdles based on the Company's Return on Equity (ROE)
and Earnings per Share (EPS) across the vesting period. 50% of the awards will
vest based on the Group's ROE for the financial year ended 31 December 2026.
The EPS based options will vest based on the Group's EPS* for the financial
year ended 31 December 2026. 25% of ROE based options vest should the Group
achieve ROE of 11.0% with the remaining options vesting on a pro rata basis up
to 100% if ROE of 16.2% is achieved. 25% of EPS based options will vest should
the Group achieve Group EPS* of 14.0 cents per share with the remaining
options vesting on a pro rata basis up to 100% if Group EPS* of 23.0 cents per
share is achieved.
In line with the Group's remuneration policy, LTIP awards granted to Executive
Directors from 2020
onwards include a holding period of at least two years post exercise.
Number of Number of
Options Options
2024 2023
LTIP options in issue at 1 January 13,960,427 13,022,830
Granted during the financial year 6,037,390 5,515,311
Forfeited during the financial year (137,797) (284,403)
Lapsed during the financial year (1,897,319) (1,067,076)
Exercised during the financial year (1,990,129) (3,226,235)
LTIP options in issue at 31 December 15,972,572 13,960,427
Exercisable at 31 December 286,856 388,859
LTIP options were exercised during the financial year with the average share
price being €1.39 (2023: €1.00). The options outstanding at 31 December
2024 had an exercise price €0.001 (2023: €0.001) and a weighted-average
contractual life of 7 years (2023: 7 years).
The EPS and ROE related performance conditions are non-market conditions and
do not impact the fair value of the EPS or ROE based awards at grant date
which is equivalent to the share price at grant date. The fair value of LTIP
options granted in the prior periods which were based on market conditions
were measured using a Monte Carlo simulation. There is no Total Shareholder
Return (TSR) linked performance condition for options granted in the period
and therefore no fair value exercise was performed related to this performance
condition. Service and non-market conditions attached to the arrangements were
not taken into account when measuring fair value. The inputs used in measuring
fair value at the reporting date were as follows:
31 December 2024 31 December 2023
Fair value at reporting date €1.60 €1.21
The exercise price of all options granted under the LTIP to date is €0.001
and all options have a 7- year contractual life.
The Group recognised an expense of €5.1 million (2023: €2.1 million) in
the consolidated statement of profit or loss in respect of options granted
under the LTIP.
(*Group EPS is defined as Basic Earnings Per Share as
calculated in accordance with IAS 33 Earnings Per Share subject to adjustment
by the Remuneration Committee at its discretion, for items deemed not
reflective of the Group's underlying performance for the financial year.)
(*Group ROE is defined as Return on Equity that Group
management apply to measure of the Group's efficiency of returns generated
from shareholder equity after taxation and is calculated as profit after tax
attributable to shareholders divided by the 12-month average of closing
shareholders' funds. This is subject to adjustment by the Remuneration
Committee at its discretion, for items deemed not reflective of the Group's
underlying performance for the financial year.)
(b) SAYE Scheme
Under the terms of the scheme, employees may save up to €500 per month from
their net salaries for a fixed term of three or five years and at the end of
the savings period they have the option to buy shares in the Company at a
fixed exercise price. On 11 November 2024, the Remuneration and Nomination
Committee approved the grant of 1,478,590 options to employees of the Group
and a fair value exercise of the scheme was performed.
Details of options outstanding and grant date fair value assumptions
2024 2023
Number of Number of Number of Number of
Options Options Options Options
3 Year 5 Year 3 Year 5 Year
SAYE options in issue at 1 January 66,000 165,000 590,220 165,000
Granted during the financial year 1,098,019 380,571 - -
Forfeited during the financial year - (24,793) (19,167) -
Lapsed during the financial year - - (720) -
Exercised during the financial year (66,000) (50,000) (504,333) -
SAYE options in issue at 31 December 1,098,019 470,778 66,000 165,000
Exercisable at 31 December - - - -
The weighted average exercise price of all options granted under the SAYE to
date is €1.17 (2023: €0.99).
The expected share price and TSR volatility was based on the historical
volatility of a comparator group of peer companies over the expected life of
the equity instruments granted together with consideration of the Group's
actual trading volatility to date.
The Group recognised an expense of €0.03million (2023: €0.03 million) in
the consolidated statement of profit or loss in respect of options granted
under the SAYE scheme.
15 Earnings per share
a) Basic earnings per share
The calculation of basic earnings per share has been based on the profit
attributable to ordinary shareholders and the weighted average numbers of
shares outstanding for the financial year. There were 560,878,503 ordinary
shares in issue at 31 December 2024 (2023: 578,049,118).
2024 2023
Profit for the financial year attributable to ordinary
shareholders (€'000) 97,755 47,108
Weighted average number of shares for
the financial year 576,527,130 588,951,593
Basic earnings per share (cents) 17.0 8.0
2024 2023*
No. of shares No. of shares
Reconciliation of weighted average number of shares
Number of ordinary shares at beginning of financial year 578,049,118 638,131,722
Effect of share buyback (2,903,732) (52,032,676)
Effect of SAYE maturity 59,863 255,980
Effect of LTIP maturity 1,321,881 2,596,567
576,527,130 588,951,593
b) Dilutive earnings per share
Diluted earnings per share
2024 2023
Profit for the financial year attributable to ordinary shareholders (€'000)
97,755 47,108
Weighted average number of shares for the financial year 579,822,418 590,114,076
Diluted earnings per share (cents) 16.9 8.0
2024 2023
No. of shares No. of shares
Reconciliation of weighted average number of shares (diluted)
Weighted average number of ordinary shares (basic) 576,527,130 588,951,593
Effect of potentially dilutive shares 3,295,288 1,162,483
579,822,418 590,114,076
*The number of potentially issuable shares in the Group held under option
arrangements at 31 December 2024 is 15,972,572 (2023: 13,960,427).
**Under IAS 33, LTIP arrangements have an assumed test period ending on 31
December 2024. Based on the assumed test period only the TSR performance
condition was met related to LTIP options and therefore only ordinary shares
related to this condition would be issued through the conversion of LTIP
options. SAYE options matured in the year with ordinary shares related to this
being issued through the conversation of the SAYE options.
At 31 December 2024 Nil options (2023: Nil options) were excluded from the
diluted weighted average number of ordinary shares because their effect would
have been anti-dilutive.
16 Income tax
2024 2023
€'000 €'000
Current tax charge for the financial year 16,122 8,148
Deferred tax credit for the financial year (61) (146)
Total income tax charge 16,061 8,002
The tax assessed for the financial year differs from the standard rate of tax
in Ireland for the financial year. The differences are explained below.
2024 2023
€'000 €'000
Profit before tax for the financial year 113,816 55,110
Tax charge at standard Irish income tax rate of 12.5% 14,227 6,889
Tax effect of:
Income taxed at the higher rate of corporation tax 637 949
Non-deductible expenses - other 1,081 30
Adjustment in respect of prior year under accrual 116 134
Total income tax charge 16,061 8,002
Movement in deferred tax balances
Recognised in
Balance at other comprehensive Balance at
1 January Recognised in 31 December
2024 income profit or loss 2024
€'000 €'000 €'000 €'000
Expenses deductible in future periods 884 394 61 1,339
884 394 61 1,339
The expenses deductible in future periods arise in Ireland and have no expiry
date. Based on profitability achieved in the period, the continued forecast
profitability in the Group's strategic plan and the sensitivities that have
been applied therein, management has considered it probable that future
profits will be available against which the above tax expenses can be
recovered and, therefore, the related deferred tax asset can be realised.
17 Property, plant and equipment Land & Fixtures Plant & Computer
buildings & fittings machinery equipment Total
€'000 €'000 €'000 €'000 €'000
Cost
At 1 January 2024 46,555 2,096 25,660 1,500 75,811
Additions 1,342 153 3,508 345 5,348
Disposals (20) (9) (1,434) - (1,463)
At 31 December 2024 47,877 2,240 27,734 1,845 79,696
Accumulated depreciation
At 1 January 2024 (2,205) (896) (7,701) (825) (11,627)
Charge for the financial year (1,904) (258) (4,073) (352) (6,587)
Disposals - 9 913 - 922
At 31 December 2024 (4,109) (1,145) (10,861) (1,177) (17,292)
Net book value
At 31 December 2024 43,768 1,095 16,873 668 62,404
Land & Fixtures Plant & Computer
buildings & fittings machinery equipment Total
€'000 €'000 €'000 €'000 €'000
Cost
At 1 January 2023 36,322 2,096 22,495 950 61,863
Additions 12,584 - 5,015 550 18,149
Disposals (2,351) - (1,850) - (4,201)
At 31 December 2023 46,555 2,096 25,660 1,500 75,811
Accumulated depreciation
At 1 January 2023 (2,964) (654) (5,868) (627) (10,113)
Charge for the financial year (1,592) (242) (3,127) (198) (5,159)
Disposals 2,351 - 1,294 - 3,645
At 31 December 2023 (2,205) (896) (7,701) (825) (11,627)
Net book value
At 31 December 2023 44,350 1,200 17,959 675 64,184
The depreciation charge for the year includes €4.4 million (2023: €3.3
million) which was capitalised in inventory at 31 December 2024.
Property plant and equipment includes right of use assets of €3.9 million
(2023: €4.9 million) related to leased properties and motor vehicles.
18 Intangible assets
Capitalised
Development Computer
Goodwill Expenditure Licence Software Total
€'000 €'000 €'000 €'000 €'000
Cost
At 1 January 2024 5,697 719 800 3,459 10,675
Additions - 640 3,082 1,296 5,018
At 31 December 2024 5,697 1,359 3,882 4,755 15,693
Accumulated amortisation
At 1 January 2024 - - (40) (2,157) (2,197)
Charge for the year - - 40 (562) (522)
At 31 December 2024 - - - (2,719) (2,719)
Net book value
At 31 December 2024 5,697 1,359 3,882 2,036 12,974
Capitalised
Development Computer
Goodwill Expenditure Licence Software Total
€'000 €'000 €'000 €'000 €'000
Cost
At 1 January 2023 5,697 - 300 3,133 9,130
Additions - 719 500 326 1,545
At 31 December 2023 5,697 719 800 3,459 10,675
Accumulated amortisation
At 1 January 2023 - - - (1,663) (1,663)
Charge for the year - - (40) (494) (534)
At 31 December 2023 - - (40) (2,157) (2,197)
Net book value
At 31 December 2023 5,697 719 760 1,302 8,478
(i) Impairment of goodwill
Goodwill acquired in business combinations are allocated to the Group's cash
generating units ("CGUs") that are expected to benefit from the business
acquisition, rather than where the assets are owned. The CGUs represent the
lowest level within the Group at which the associated goodwill is monitored
for internal management purposes and are not larger than the operating
segments determined in accordance with IFRS 8 'Operating Segments'. CGUs are
kept under review to ensure that they reflect changing interdependencies of
cash inflows within the Group and how management monitors operations. The
goodwill carrying amount is allocated to the suburban segment with the
recoverable amount of this CGU being based on value in use. The value in use
was determined by the cash flows to be generated from the continuing use of
the CGU over a three-year period.
a) Key assumptions
The Group has established internal controls designed to effectively assess and
centrally review future cash flows generated from CGUs. The key assumptions on
which management has based its cash flows are revenue and construction costs.
Revenue assumptions relate to unit sales prices for sites delivering over the
period based on prices achieved to date, current market prices, historic
prices, and sales agent reports. Construction cost assumptions are based on
contracted/procured package pricing or where packages are not procured,
historic pricing achieved, or pricing achieved on similar packages in
reference to other sites.
The impact of sustainability and other macroeconomic factors have been
considered in the Group's assessment of these cash flows, particularly with
regard to the potential implications for future selling prices, development
expenditure and construction programming. Management has considered scenarios
on each of its active developments and the consequential impact on future
profitability based on current facts and circumstances together with any
implications for future projects in undertaking its impairment analysis.
As part of the assessment, the Group has re-evaluated its most likely exit
strategies on all developments in the context of the current market
environment and reflected these in revenue assumptions within the forecast
models. The results of this exercise determined that the no impairment was
required at the reporting date.
The cash flow projections used to determine the value in use of the Suburban
CGU are based on three years of cash flows from the Group's Strategic Plan.
A discount rate based on the Group's incremental borrowing rate and a growth
rate into perpetuity was applied to these cash flows.
A sensitivity analysis on the discount rate has been conducted in respect of
the value in use of the CGU. There were no CGU impairments as a result of the
applied sensitivity analysis in the financial year.
19 Inventory
2024 2023
€'000 €'000
Land 556,163 403,756
Development expenditure work in progress 283,746 274,592
Development rights 24,444 29,252
864,353 707,600
€676.7 million (2023: €488.4 million) of inventory was recognised in 'cost
of sales' during the year ended 31 December 2024. Sustainable materials such
as heat pumps, PV panels, timber frames, light gauge steel frames and building
expenditure necessary to deliver A1/A2 Building Energy Rating ("BER") homes
are included within development expenditure work in progress.
(i) Impairment of inventories
The Group carried out a net realisable value assessment of its inventories at
the reporting date. This assessment has resulted in a net impairment reversal
of €2.0 million for the year (2023: €Nil). €3.5 million of this
adjustment relates to the reclassification of a previously impaired non-core
site, now classified as a commercially viable core site. An impairment charge
of €1.5m was recognised in cost of sales in the financial year (2023:
€Nil) on remaining non-core assets.
(ii) Employment cost capitalised
€26.4 million of employment costs incurred in the financial year have been
capitalised in inventory (2023: €18.9 million).
(iii) Development right
Oscar Traynor Road, Coolock, Dublin 5
In December 2022, the Group entered into a Development Agreement ("DA") with
Dublin City Council ("DCC"). Under the terms of the DA and following planning
permission being granted in February 2023, the Group acquired certain
development rights in respect of the site at Oscar Traynor Road, Coolock,
Dublin 5 for consideration of approximately €14.0 million exclusive of stamp
duty and acquisition costs. Under the granted planning permission for the
site, the development rights will entitle the Group to develop approximately
850 residential units alongside commercial elements in accordance with the
terms of the DA.
Ballymastone, Donabate, Dublin
In December 2021, the Group entered into a Development Agreement ("DA") with
Fingal County Council ("FCC"). Under the terms of the DA and following
planning permission being granted in March 2023, the Group acquired certain
development rights in respect of the site at Ballymastone, Donabate, Dublin
for consideration of approximately €11.0 million exclusive of stamp duty and
acquisition costs. The development rights will (subject to planning
permission) entitle the Group to develop approximately 1,200 residential units
in accordance with the terms of the DA.
Gateway Retail Park, Co. Galway
In March 2018, the Group entered into an Acquisition and Profit Share
Agreement ("APSA") with Targeted Investment Opportunities ICAV ("TIO"), a
wholly owned subsidiary of OCM Luxembourg EPF III S.a.r.l. Under the terms of
the APSA, the Group acquired certain development rights in respect of the site
at Gateway Retail Park, Knocknacarra, Co. Galway for consideration of
approximately €3.2 million (including stamp duty and acquisition costs). The
development rights will (subject to planning) entitle the Group to develop at
least 250 residential units under a joint business plan to be undertaken with
Sigma Retail Partners (on behalf of TIO) which will also entitle TIO to
control and benefit from any retail development at the site. The Directors
have determined that joint control of the site exists and the arrangement has
been accounted for as a joint operation in accordance with IFRS 11 Joint
Arrangements. For further information regarding the APSA, see Note 29 of these
financial statements.
20 Trade and other receivables
2024 2023
€'000 €'000
Trade receivables 20,617 9,765
Contract receivables 38,522 25,540
Contract assets 79,252 16,996
Other receivables 5,915 3,475
Prepayments 1,287 1,106
Construction bonds 21,086 15,924
Deposits for sites 6,542 5,168
173,221 77,974
The carrying value of all financial assets and trade and other receivables is
approximate to their fair value and are short term in nature with the
exception of construction bonds.
21 Trade and other payables
2024 2023
€'000 €'000
Current
Trade payables 11,339 7,875
Payroll and other taxes 7,830 5,741
Inventory accruals 66,135 64,921
Contingent consideration - 1,750
Other accruals 61,061 26,651
VAT payable 34,870 25,781
181,235 132,719
The carrying value of all financial liabilities and trade and other payables
is approximate to their fair value and are repayable under the normal credit
cycle.
In December 2024, the Group acquired various lands for development, costs
associated with the land acquisitions in the financial year including deferred
payments of €17.5 million and stamp duty of €15.7 million are included in
the other accruals balance.
2024 2023
Non-current €'000 €'000
Contingent consideration - 1,750
Non-current - 1,750
Current 181,235 132,719
181,235 134,469
22 Loans and borrowings
(a) Loans and borrowings
In August 2024, the Group finalised an expansion of the existing five-year
sustainability linked finance facility to €450.0m (Term Loan: €150.0m,
Revolving Credit Facility €300.0m) with the existing syndicate of domestic
and international financial institutions, at an interest rate of one-month
EURIBOR (subject to a floor of 0 per cent) plus a margin of 2.65-2.75% (31
December 2023: 2.7-2.8%). All other terms and conditions agreed at the
commencement of the facility remain the same as at the commencement in
February 2023. The debt facility interest rates are linked to the Group
meeting certain sustainability performance targets aligned to its
sustainability strategy. The sustainability performance targets are in respect
of decarbonisation and the Group's Equity, Diversity and Inclusion strategy.
The term loan is repayable in full at the end of the five years. At 31
December 2024, €150.0 million has been drawn on the term loan element of the
new debt facility (31 December 2023: €116.7 million). Pursuant to the debt
facility agreement, there is fixed and floating charges and assignments in
place over all the assets of the Group as continuing security for the
discharge of any amounts drawn down. The assets carrying value at 31 December
2024 is €1,177.9 million (31 December 2023: €935.3 million).
31 December 31 December
2024 2023
€'000 €'000
Debt facilities 240,000 116,667
Unamortised borrowing costs (3,771) (3,697)
Interest accrued 1,939 2,675
Total loans and borrowings 238,168 115,645
Loans and borrowings are payable as follows: 31 December 31 December
2024 2023
€'000 €'000
Less than one year 3,129 3,562
Between one and two years 1,191 888
More than two years 233,848 111,195
Total loans and borrowings 238,168 115,645
The Group's debt facilities were entered into with AIB, Bank of Ireland,
Barclays and Home Building Finance Ireland and are subject to primary
financial covenants calculated on a bi-annual basis:
- A maximum total debt to gross asset value ratio of 40%;
- Loans to eligible assets value does not equal or exceed 65%;
- The Group is required to maintain a minimum cash balance of
€25.0 million throughout the term of the debt facility;
- EBITDA must exceed net interest costs by a minimum of 3 times
and is calculated on a trailing twelve-month basis.
- Total debt must not exceed adjusted EBITDA by a minimum of 4
times, this is calculated on a trailing twelve-month basis, and;
- Total debt must not exceed projected adjusted EBITDA by a
minimum of 4 times, this is calculated on a forward twelve-month basis.
All covenants have been complied with in 2024 and 2023.
Debt facilities are secured by a debenture incorporating fixed and floating
charges and assignments over all the assets of the Group. The carrying value
of the total assets of the Group as at 31 December 2024 is €1,177.9 million
(31 December 2023: €935.3 million)
(b) Reconciliation of movements of liabilities to cash flows arising from
financing activities
2024 Cash flows Non-cash changes
Opening 2024 Credit facility drawdown Credit facility repayment Transaction costs related to loans and borrowings Payment of lease liability Interest received / (paid) Amortisation of transaction costs Interest Mark to market adjustment New leases Closing 2024
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Liabilities:
Loans and
borrowings 116,667 268,333 (145,000) - - - - - - - 240,000
Unamortised transaction costs
(3,697) - - (1,087) - - 1,013 - - - (3,771)
Derivative contracts
1,623 - - - - 694 - - (741) - 1,576
Lease
liability 5,449 - - - (1,342) - - 158 - 150 4,415
Interest accrual
2,675 - - - - (19,595) - 18,859 - - 1,939
122,717 268,333 (145,000) (1,087) (1,342) (18,901) 1,013 19,017 (741) 150 244,159
2023 Cash flows Non-cash changes
Opening 2023 Credit facility drawdown Credit facility repayment Transaction costs related to loans and borrowings Payment of lease liability Interest received / (paid) Amortisation of transaction costs Interest New hedging instrument New leases Closing 2023
€'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000 €'000
Liabilities:
Loans and
borrowings 82,500 381,667 (347,500) - - - - - - - 116,667
Unamortised transaction costs
(1,877) - - (4,318) - - 2,498 - - - (3,697)
Derivative contracts
- - - - - - - - 1,623 - 1,623
Lease
liability 4,744 - - - (761) - - 138 - 1,328 5,449
Interest accrual
17 - - - - (12,009) - 14,667 - - 2,675
85,384 381,667 (347,500) (4,318) (761) (12,009) 2,498 14,805 1,623 1,328 122,717
(c) Net debt reconciliation
2024 2023
€'000 €'000
Restricted Cash 458 458
Cash and cash equivalents 63,165 71,863
Loans and borrowings (238,168) (115,645)
Lease liabilities (4,415) (5,449)
Total net debt (178,960) (48,773)
(d) Lease Liabilities
Lease liabilities are payable as follows:
31 December 2024
Present value Future value
of minimum of minimum
lease lease
payments Interest payments
€'000 €'000 €'000
Less than one year 1,278 96 1,374
Between one and two years 1,115 105 1,220
More than two years 2,022 270 2,292
4,415 471 4,886
23 Restricted cash
2024 2023
€'000 €'000
Current 458 458
458 458
The restricted cash balance relates to €0.5 million held in escrow for the
completion of certain infrastructural works relating to the Group's
residential development at Balbriggan, Co. Dublin.
24 Derivatives and cashflow hedge reserve
a) Interest rate swap
In February 2023, the Group entered into an interest rate swap to hedge the
interest rate risk associated with €100.0 million of the term loan element
of our debt facilities. The interest rate swap is in place for the 5-year
period of the facility agreement. The nominal amount hedged for years one and
two is €100.0 million with this stepping down to €50.0 million for the
remaining three years of the facility agreement. The interest rate swap has a
fixed interest rate of 3.035%.
Derivative Financial Instruments 2024 2023
€'000 €'000
Interest rate swaps - cash flow hedges (1,576) (1,623)
Included in other comprehensive income 2024 2023
€'000 €'000
Fair value movement on cash flow hedges 741 (1,240)
Cash flow hedges reclassified to profit or loss (694) (383)
Cash flow hedges - deferred tax 394 -
441 (1,623)
b) Cash flow hedge reserve
The cashflow hedge reserve reflects the effective portion of the cumulative
net change in the fair value of derivatives that are designated and qualify as
cash flow hedges. Amounts accumulated in the hedging reserve are recycled to
the income statement in the periods when the hedged item affects income or
expense, or are included in the initial cost of a hedged non-financial item,
depending on the hedged item.
25 Subsidiaries
The principal subsidiary companies and the percentage shareholdings held by
Glenveagh Properties PLC, either directly or indirectly, pursuant to Section
314 of the Companies Act 2014 at 31 December 2024 are as follows:
Company Principal activity % Reg. office
Glenveagh Properties (Holdings) Limited Holding company 100% 1
Glenveagh Treasury DAC Financing activities 100% 1
Glenveagh Contracting Limited Property development 100% 1
Glenveagh Homes Limited Property development 100% 1
Greystones Devco Limited Property development 100% 1
Marina Quarter Limited Property development 100% 1
GLV Bay Lane Limited Property development 100% 1
Glenveagh Living Limited Property development 100% 1
GL Partnership Opportunities DAC Property development 100% 1
Castleforbes Development Company DAC Property development 100% 1
The Freight Building Limited Property development 100% 1
Nua Manufacturing MMC Limited Manufacturing operations 100% 1
GMP Developments Limited Holding company 100% 1
1 Block C, Maynooth Business Campus, Straffan Road, Maynooth, Co.
Kildare
Pursuant to section 316 of the Companies Act 2014, a full list of subsidiaries
will be annexed to the Company's Annual Return to be filed in the Companies
Registration Office in Ireland.
26 Capital and reserves
(a) Authorised share capital
2024 2023
Number of Number of
shares €'000 shares €'000
Ordinary Shares of €0.001 each 1,000,000,000 1,000 1,000,000,000 1,000
Deferred Shares of €0.001 each 200,000,000 200 200,000,000 200
1,200,000,000 1,200 1,200,000,000 1,200
(b) Issued and fully paid share capital and share premium
At 31 December 2024 Share Share
Number of capital premium
shares €'000 €'000
Ordinary Shares of €0.001 each 560,878,504 561 179,788
Deferred Shares of €0.001 each 81,453,077 81 -
642,331,581 642 179,788
At 31 December 2023 Share Share
Number of Capital premium
shares €'000 €'000
Ordinary Shares of €0.001 each 578,049,119 578 179,719
Deferred Shares of €0.001 each 81,453,077 81 -
659,502,196 659 179,719
(c) Reconciliation of shares in issue
In respect of current year Ordinary Founder Deferred Undenominated Share Share
shares shares shares capital premium capital
'000 '000 '000 €000 €'000
In issue at 1 January 2024 578,049 - 81,453 399 179,719 659,502,196
Purchase and cancellation of own shares
(19,138) - - 19 - (19,137,925)
Exercise of options 1,967 - - - 69 1,967,310
560,878 - 81,453 418 179,788 642,331,581
In respect of prior year Ordinary Founder Deferred Undenominated Share Share
shares shares shares capital premium capital
'000 '000 '000 €000 €'000
In issue at 1 January 2023 638,132 - 81,453 335 179,416 719,584,799
Purchase and cancellation of own shares
(63,813) - - 64 - (63,813,172)
Exercise of options 3,730 - - - 303 3,730,569
578,049 - 81,453 399 179,719 659,502,196
(d) Rights of shares in issue
Ordinary Shares
The holders of Ordinary Shares are entitled to one vote per Ordinary Share at
general meetings of the Company and are entitled to receive dividends as
declared by the Company.
(e) Nature and purpose of reserves
Share based payment reserve
The share-based payment reserve comprises amounts equivalent to the cumulative
cost of awards by the Group under equity settled share-based payment
arrangements being the Group's Long Term Incentive Plan and the SAYE scheme.
Details of the share awards, in addition to awards which lapsed in the year,
are disclosed in Note 14.
(f) Share buyback programme
On 6 September 2024, a fifth share buyback programme commenced to repurchase a
further €50.0 million. As at 31 December 2024, the total number of shares
purchased under the fifth buyback programme was 19,137,925 at a total cost of
€30.4 million. All repurchased shares were cancelled in the year ended 31
December 2024. The Group announced in January 2025 its intention to amend the
terms of this programme so that the maximum aggregate consideration of the
current programme is €65.0m. The programme may continue until 31 December
2025.
27 Financial instruments and financial risk management
(a) Accounting classification and fair value
The Group classifies and discloses the fair value for each class of financial
instrument based on the fair value hierarchy in accordance with IFRS 13. The
fair value hierarchy distinguishes between market value data obtained from
independent sources and the Group's own assumptions about market value. The
hierarchy levels are defined below:
- Level 1 - Inputs based on quoted prices in active markets
for identical assets or liabilities;
- Level 2 - Inputs based on factors other than quoted prices
included in Level 1 and may include quoted prices for similar assets and
liabilities in active markets, as well as inputs that are observable for the
asset or liability (other than quoted prices), such as interest rates and
yield curves that are observable at commonly quoted intervals; and
- Level 3 - Inputs which are unobservable for the asset or
liability and are typically based on the Group's own assumptions as there is
little, if any, related market activity. The Group's assessment of the
significance of a particular input to the fair value measurement in its
entirety requires judgement and considers factors specific to the asset or
liability.
The Group's assessment of the significance of a particular input to the fair
value measurement in its entirety requires judgement and considers factors
specific to the asset or liability.
The following table presents the Group's estimates of fair value on a
recurring basis based on information available at 31 December 2024, aggregated
by the level in the fair value hierarchy within which those measurements fall.
31 December 2024 Level 1 Level 2 Level 3
Quoted prices in
active markets for Significant
identical assets & Significant other unobservable
liabilities observable inputs inputs Total
€'000 €'000 €'000 €'000
Recurring Measurement
Liabilities
Derivative contracts - 1,576 - 1,576
Total - 1,576 - 1,576
31 December 2023 Level 1 Level 2 Level 3
Quoted prices in
active markets for Significant
identical assets & Significant other unobservable
liabilities observable inputs inputs Total
€'000 €'000 €'000 €'000
Recurring Measurement
Liabilities
Contingent consideration - - 3,500 3,500
Derivative contracts - 1,623 - 1,623
Total - 1,623 3,500 5,123
The consolidated financial assets and financial liabilities are set out below.
While all financial assets and liabilities are measured at amortised cost, the
carrying amounts of the consolidated financial assets and financial
liabilities approximate to fair value. Trade and other receivables and trade
and other payables approximate to their fair value as the transactions which
give rise to these balances arise in the normal course of trade and, where
relevant, with industry standard payment terms and have a short period to
maturity (less than one year) The tables do not include fair value information
for financial assets and financial liabilities not measured at fair value such
as loans and borrowings.
Financial instruments: financial assets
2024 2023
The consolidated financial assets can be summarised as follows: €'000 €'000
Trade receivables 20,617 9,765
Amounts recoverable on construction contracts 38,522 25,540
Contract assets 79,252 16,996
Other receivables 5,915 3,475
Construction bonds 21,086 15,924
Deposits for sites 6,542 5,168
Cash and cash equivalents 63,165 71,863
Restricted cash (current) 458 458
Total financial assets 235,557 149,189
Cash and cash equivalents are short-term deposits held at variable rates.
Financial instruments: financial liabilities
2024 2023
€'000 €'000
Trade payables 11,339 7,875
Lease liabilities 4,415 5,449
Inventory accruals 66,135 64,921
Other accruals 61,061 26,651
Contingent consideration - 3,500
Loans & borrowings 238,168 119,617
Total financial liabilities 381,118 228,013
Trade payables and other current liabilities are non-interest bearing.
In December 2024, the Group acquired various lands for development, costs
associated with the land acquisitions in the financial year including deferred
payments of €17.5 million and stamp duty of €15.7 million are included in
the other accruals balance.
*The fair value of the group's loans and borrowings is €235.5m at 31
December 2024 (31 December 2023: €119.6m)
(b) Financial risk management objectives and policies
As all of the operations carried out by the Group are in Euro there is no
direct currency risk, and therefore the Group's main financial risks are
primarily:
- liquidity risk - the risk that suitable funding for the Group's
activities may not be available;
- credit risk - the risk that a counter-party will default on their
contractual obligations resulting in a financial loss to the Group; and
- market risk - the risk that changes in market prices, such as
interest rates and equity prices will affect the Group's income or the value
of its holdings of financial instruments.
- interest rate risk - the risk that changes in interest rates will
affect the Group's income or the value of its holdings of financial
instruments.
This note presents information and quantitative disclosures about the Group's
exposure to each of the above risks, its objectives, policies and processes
for measuring and managing risk, and the Group's management of capital.
Liquidity risk
Liquidity risk is the risk that the Group may not be able to generate
sufficient cash reserves to settle its obligations in full as they fall due or
can only do so on terms that are materially disadvantageous. The Group's
approach to managing liquidity is to ensure, as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due, under both
normal and stressed conditions, without incurring, unacceptable losses or
risking damage to the Group's reputation. The Group's liquidity forecasts
consider all planned development expenditure.
In August 2024, the Group finalised an expansion of the existing five-year
sustainability linked finance facility to €450.0m (Term Loan: €150.0m,
Revolving Credit Facility €300.0m) with the existing syndicate of domestic
and international financial institutions, at an interest rate of one-month
EURIBOR (subject to a floor of 0 per cent) plus a margin of 2.7-2.8%. All
other terms and conditions agreed at the commencement of the facility remain
the same as at the commencement in February 2023. The debt facility interest
rates are linked to the Group meeting certain sustainability performance
targets aligned to its sustainability strategy. The sustainability performance
targets are in respect of decarbonisation and the Group's Equity, Diversity
and Inclusion strategy. The term loan is repayable in full at the end of the
five years. €240.0 million has been drawn on the new debt facility (2023:
€116.7 million). The Group has an exposure to cash flow interest rate risk
where there are changes in the EURIBOR rates.
Management monitors the adequacy of the Group's liquidity reserves against
rolling cash flow forecasts. In addition, the Group's liquidity risk
management policy involves monitoring short-term and long-term cash flow
forecasts. Set out below are details of the Group's contractual cash flows
arising from its financial liabilities and funds available to meet these
liabilities.
31 December 2024
Carrying Contractual Less than 1 year More than
amount cash flows 1 year to 2 years 2 years
€'000 €'000 €'000 €'000 €'000
Lease liabilities 4,415 4,885 1,375 1,219 2,291
Trade payables 11,339 11,339 11,339 - -
Inventory accruals 66,135 66,135 66,135 - -
Other accruals 61,061 61,061 61,061 - -
Contingent consideration - - - - -
Derivative contracts 1,576 1,653 185 211 1,257
Loans and borrowings 238,168 264,444 18,504 16,565 229,374
382,694 409,517 158,599 17,995 232,922
31 December 2023
Carrying Contractual Less than 1 year More than
amount cash flows 1 year to 2 years 2 years
€'000 €'000 €'000 €'000 €'000
Lease liabilities 5,499 6,005 1,314 1,303 3,388
Trade payables 7,875 7,875 7,875 - -
Inventory accruals 64,921 64,921 64,921 - -
Other accruals 26,651 26,651 26,651 - -
Contingent consideration 3,500 3,500 1,750 1,750 -
Derivative contracts 1,623 1,623 (362) 569 1,416
Loans and borrowings 115,645 134,725 13,018 10,343 111,364
225,714 245,300 115,167 13,965 116,168
Funds available
2024 2023
€'000 €'000
Debt facilities (undrawn committed) 210,000 233,333
Cash and cash equivalents* 63,165 71,863
Restricted cash 458 458
273,623 305,654
*Includes €25.0 million (2023: €25.0 million) of minimum cash balance
required under the terms of the debt facility agreement.
The Group's debt facilities are subject to primary financial covenants
calculated on a bi-annual basis:
- A maximum total debt to gross asset value ratio of 40%;
- Loans to eligible assets value does not equal or exceed 65%;
- The Group is required to maintain a minimum cash balance of
€25.0 million throughout the term of the debt facility;
- EBITDA must exceed net interest costs by a minimum of 3 times
and is calculated on a trailing twelve-month basis.
- Total debt must not exceed adjusted EBITDA by a minimum of 4
times, this is calculated on a trailing twelve-month basis, and;
- Total debt must not exceed projected adjusted EBITDA by a
minimum of 4 times, this is calculated on a forward twelve-month basis.
Credit risk
The Group's exposure to credit risk encompasses the financial assets being:
trade and receivables, contract assets and cash and cash equivalents. Credit
risk is managed by regularly monitoring the Group's credit exposure to each
counter-party to ensure credit quality of customers and financial institutions
in line with internal limits approved by the Board.
There has been no impairment of trade receivables in the year presented. The
impairment loss allowance allocated against trade receivables, contract
assets, cash and cash equivalents and restricted cash is not material. The
credit risk on cash and cash equivalents is limited because counter-parties
are leading international banks and the HBFI, a private lending company
established by the Irish state. The international banks have minimum long-term
BBB+ credit-ratings assigned by international credit agencies The maximum
amount of credit exposure is the financial assets in this note.
Market risk
The Group's exposure to market risk relates to changes to interest rates and
stems predominately from its debt obligations. Interest rate risk reflects the
Group's exposure to fluctuations in interest rates in the market. This risk
arises from bank loans that are drawn under the Group's debt facilities with
variable interest rates based upon EURIBOR. At the year ended 31 December 2024
it is estimated that an increase of 100 basis points to EURIBOR would have
decreased the Group's profit before tax by €3.9 million (2023: €2.9
million) assuming all other variables remain constant, and the rate change is
only applied to the loans that are exposed to movements in EURIBOR.
As part of the Group's strategy to manage our interest rate risk, the Group
entered into an interest rate swap in February 2023 to hedge the interest rate
risk associated with €100.0 million of the term loan element of our new debt
facilities. The interest rate swap is in place for the 5-year period of the
facility agreement. The nominal amount hedged for years one and two is
€100.0 million with this stepping down to €50.0 million for the remaining
three years of the facility agreement.
The Group is also exposed to interest rate risk on its cash and cash
equivalents. These balances attract low interest rates and therefore a
relative increase or decrease in their interest rates would not have a
material effect on the Group's profit.
The amounts relating to items designated as hedging instruments and hedge
ineffectiveness were as follows:
As at 31 December 2024 For the year ended 31 December 2024
Carrying amount Amount reclassed from hedging reserve to profit or loss
Changes in the value of hedging instruments recognised in OCI
Line items in profit or loss that includes hedge ineffectiveness
Hedge ineffectiveness recognised in profit or loss
Nominal amount
Assets Liability
(€'000) (€'000) (€'000) (€'000) (€'000) (€'000) (€'000) (€'000)
Interest rate swap 100,000 - (1,576) 714 - - (668) Financing costs
As at 31 December 2023 For the year ended 31 December 2023
Carrying amount Amount reclassed from hedging reserve to profit or loss
Changes in the value of hedging instruments recognised in OCI
Line items in profit or loss that includes hedge ineffectiveness
Hedge ineffectiveness recognised in profit or loss
Nominal amount
Assets Liability
(€'000) (€'000) (€'000) (€'000) (€'000) (€'000) (€'000) (€'000)
Interest rate swap 100,000 - (1,623) (1,240) - Loss on derivative financial instruments (383) Financing costs
The Group held the following instruments to hedge exposures to changes in
interest rates:
Interest rate swaps 2024 2023
Net exposure (€'000) 1,576 1,535
Average fixed interest rate 3.035% 3.035%
The amounts at the reporting date relating to items designated as hedged items
were as follows:
As at 31 December 2024
Change in
value used for
calculating Cashflow
hedge hedge
ineffectiveness Reserve
€'000 €'000
Interest rate swap - (1,576)
- (1,576)
As at 31 December 2023
Change in
value used for
calculating Cashflow
hedge hedge
ineffectiveness Reserve
€'000 €'000
Interest rate swap - (1,623)
- (1,623)
Capital management
The Group finances its operations through a combination of shareholders'
funds, long term borrowings and working capital. The Group's objective when
managing capital is to maintain an appropriate capital structure in the
business to allow management to focus on creating sustainable long-term value
for its shareholders, with flexibility to take advantage of opportunities as
they arise in the short and medium term. The Group's capital allocation policy
is to invest in supply chain, land, and work-in-progress. Once the business
has invested sufficiently in each of these priorities, excess capital is
returned to shareholders.
28 Leases
A. Leases as lessee (IFRS 16)
The Group leases a property and motor vehicles. Motor vehicle leases typically
run for a period of 1-3 years, with an option to renew the lease after that
date. Lease payments are renegotiated every 1-3 years to reflect market
rentals. The property lease is for 15 years with a break clause after 7 years.
The Group leases certain motor vehicles with contract terms of one year. These
leases are short term and leases of low-value items. The Group has elected not
to recognise right-of-use assets and lease liabilities for these leases.
Information about leases for which the Group is a lessee is presented below.
i. Right-of-use assets
Right-of-use assets related to leased properties (that do not meet the
definition of investment property) and motor vehicles are presented as
property, plant and equipment (see Note 17).
Motor
Property Vehicles Total
€'000 €'000 €'000
2024
Balance at 1 January 3,727 1,190 4,917
Additions to right-of-use assets - 150 150
Depreciation charge for the year (658) (482) (1,140)
Balance at 31 December 3,069 858 3,927
Motor
Property Vehicles Total
€'000 €'000 €'000
2023
Balance at 1 January 4,385 86 4,471
Additions to right-of-use assets - 1,328 1,328
Depreciation charge for the year (658) (224) (882)
Balance at 31 December 3,727 1,190 4,917
ii. Amounts recognised in profit or loss
2024 2023
€'000 €'000
2024 - Leases under IFRS 16
Interest on lease liabilities 158 138
Expenses relating to short-term leases 83 151
iii. Amounts recognised in statement of cash flows
2024 2023
€'000 €'000
Total cash outflow on leases 1,342 761
B. Leases as lessor
In certain instances, the Group acts as a lessor in relation to certain
property assets. These arrangements are not material to the Group's
consolidated financial statements.
29 Related party transactions
(i) Key Management Personnel remuneration
Key management personnel comprise the Non-Executive Directors and the
Executive Committee. The aggregate compensation paid or payable to key
management personnel in respect of the financial year was the following:
2024 2023
€'000 €'000
Short-term employee benefits 5,736 4,746
Post-employment benefits 240 214
LTIP and SAYE share-based payment expense 2,442 996
8,418 5,956
Compensation of the Group's key management personnel includes salaries,
non-cash benefits and contributions to a post-employment defined contribution
plan.
(ii) Other related party transactions
Acquisition of development rights
The Group entered into the Acquisition and Profit Share Agreement (APSA) with
Targeted Investment Opportunities ICAV (TIO), a wholly owned subsidiary of OCM
Luxembourg EPF III S.a.r.l. (OCM) (and an entity in which John Mulcahy is a
director) on 12 March 2018.
Under the terms of the APSA, the Group acquired certain development rights in
respect the site at Gateway Retail Park, Knocknacarra, Co. Galway for
consideration of approximately €3.2 million (including stamp duty and
transaction costs). The development rights will (subject to planning) entitle
the Group to develop at least 250 residential units under the joint business
plan to be undertaken with Sigma Retail Partners (on behalf of TIO) which will
also entitle TIO to control and benefit from any retail development at the
site.
The Directors have determined that joint control over the site exists, and the
arrangements have been accounted for as joint operations in accordance with
IFRS 11 Joint Arrangements. This accounting treatment was re-assessed at the
end of the reporting period and the Directors concluded that it remains
appropriate.
The APSA also stipulates that TIO would be entitled to share, on a 50/50
basis, any residual profit remaining after the Group's purchase consideration
plus interest and residential development cost plus 20% has been deducted from
sales revenue in relation to the residential development opportunity at
Gateway Retail Park, Knocknacarra, Co. Galway and Bray Retail Park, Bray, Co.
Wicklow.
The agreement defines certain default events including TIO not possessing good
and marketable title over the development sites and TIO not transferring good
and marketable title over the development sites. On the occurrence of a
default event, the Group shall be entitled to recover the aggregate purchase
consideration in respect of the development rights. OCM has agreed to
guarantee this obligation of TIO.
30 Commitments and contingent liabilities
(a) Commitments arising from development land acquisitions
The Group had no contingent liabilities at 31 December 2024. The Group had the
following commitments at 31 December 2024 relating to Development Land
Acquisitions.
Hollystown Golf and Leisure Limited ("HGL")
During 2018, the Group acquired 100 per cent of the share capital of HGL.
Under the terms of an overage covenant signed in connection with the
acquisition, the Group has committed to paying the vendor an amount equal to
an agreed percentage of the uplift in market value of the property should any
lands owned by HGL, that are not currently zoned for residential development
be awarded a residential zoning. This commitment has been treated as
contingent consideration and the fair value of the contingent consideration at
the acquisition date was initially recognised at €nil. At the reporting
date, the fair value of this contingent consideration was considered
insignificant.
Contracted acquisitions
At 31 December 2024, the Group had contracted to acquire 7 development sites;
two in County Dublin in, two in County Meath, one in County Galway, one in
county Westmeath and one in County Cork for aggregate consideration of
approximately €62.0 million (excluding stamp duty and legal fees). Deposits
totalling €7.0 million were paid pre-year end and are included within trade
and other receivables at 31 December 2024.
31 Subsequent events
In February 2025, the Group announced a partnership with the Land Development
Authority ("LDA") to build 337 dwelling units in Cork Docklands for
approximately €150.0 million.
On 3 March 2025, the number of shares repurchased in the share buyback
programme had reached 27,881,557 for a cost of €44.3 million. All
repurchased shares were cancelled.
32 Profit of the Parent Company
The parent company is Glenveagh Properties PLC. In accordance with section 304
of the Companies Act 2014, the Company is availing of the exemption from
presenting its individual statement of profit or loss and other comprehensive
income to the Annual General Meeting and from filing it at the Companies
Registration Office. The Company's loss after tax for the financial year was
€0.044 million (for the year ended 31 December 2023: loss of €0.001
million).
33 Approved financial statements
The Board of Directors approved the financial statements on 12 March 2025.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR GPURUWUPAPGPRecent news on Glenveagh Properties
See all newsREG - Glenveagh Properties - Director/PDMR Shareholding
AnnouncementREG - Glenveagh Properties - Total Voting Rights
AnnouncementREG - Glenveagh Properties - Transaction in Own Shares
AnnouncementREG - Glenveagh Properties - Transaction in Own Shares
AnnouncementREG - Glenveagh Properties - Transaction in Own Shares
Announcement