Interim Results

McInerney Holdings PLC
27 September 2000


McInerney Holdings plc
Interim Statement 2000


Overview
The Directors are pleased to report the Group's interim results for the period
ending 30th June 2000. 

A profit before tax of EUR7.639m (IR£6.016m) was recorded. This compares with
EUR7.277m (IR£5.731m) for the corresponding period in 1999.

The 1999 interim results included an exceptional profit of EUR0.596m
(IR£0.469m) relating to the disposal of an office property. Excluding the
contribution from this sale, the profit before tax for the first six months in
1999 was EUR6.681m (IR£5.262m).  For the full year of 1999 a profit before tax
of EUR14.155m (IR£11.148m) was achieved which included the exceptional profit
above.

Group turnover in the six-month period increased by 33% from EUR50.339m
(IR£39.645m) to EUR66.711m (IR£52.539m). This increase is mainly due to the UK
subsidiary, William Hargreaves contributing to the half-year results for the
first time. Operating profits increased by 17% from EUR7.547m (IR£5.944m) to
EUR8.859m (IR£6.977m).

Basic earnings per share increased to 18.24 cent (IR14.37p) from 17.32 cent
(IR13.64p) for the same period in 1999.  The profit attributable to Group
shareholders was EUR5.785m (IR£4.555m) compared with EUR5.046m (IR£3.974m) for
the first half of 1999.

The Directors are satisfied with these results given the Group is operating in
an environment where commencement of new housing sites have been delayed due
to the slow receipt of planning permissions and other infra-structural
bottle-necks. This is purely a function of the continuing strong growth in the
Irish Economy.

The Directors are particularly pleased to announce that a significant number
of new planning permissions have recently been obtained by the house-building
division. In the year to date we have planning for 2200 units in hand with a
further 1700 units subject to planning appeals.

The Group's commercial division has secured planning for the initial phase of
a major industrial development in west Dublin and for its first development of
industrial units in Cork. The Spanish division has commenced hand-over of
freehold units to purchasers. 

The Group is now well placed to step up its activities. Accordingly a strong
second half is expected from all our divisions. 

While no interim dividend is proposed, the Directors expect, as in previous
years, to propose a final dividend in 2001 based on the result for the year
ended 31st December 2000.

Review of Operations 
The Group's operations are divided into housebuilding, commercial property
division, leisure activities and UK activities.

Housebuilding Division
The number of house completions for the six-month period was 227 compared with
299 for the same period in 1999. As referred to above completions are down due
to delays in the planning process.
 
A strong underlying demand exists for housing, especially in the first time
buyer market. The key to take best advantage of this demand will be to provide
a good quality product at an appropriate price. The new planning permissions
obtained by the Group are predominantly aimed at the first time buyer's
market. This places the housing division in an excellent position to target
its product in the direction of this buoyant market.  

The Group is concerned with the provisions of Part 5 of the Planning and
Development Bill that provides for up to 20% of all new homes being delivered
as social housing. The Group recently outlined its view that this initiative,
whilst attempting to make home ownership more attainable, will in effect only
serve to worsen the market for the first time buyer. The implementation of
similar provisions in the UK housing market only served to push up the price
of building land and reduced the number of first time buyer units being
delivered. These provisions could result in private purchasers effectively
cross-subsidising the public sector.
 
Commercial Division
Hillview Securities' sales of industrial units in the Tolka Valley Business
Park in Glasnevin and Whitestown Business Park in Tallaght made solid progress
in the first half. Profit recognition will not occur until the second half
when these sales are closed. It is expected that all units at both locations
will be sold by the year-end.

The company recently completed the purchase of a 40-acre site for a major new
industrial park in the north west of Dublin.  Situated at Ballycoolin,
adjacent to the M50 motorway, it offers the potential for developing 600,000
sq.ft. of light industrial space. Planning permission has already been
obtained for the first phase development of 125,000 sq.ft. of small industrial
units at the site.   In addition, the company has secured planning permission
to develop 65,000 sq.ft. of a similar product at Euro Business Park, Little
Island in Cork.  It is planned that construction will commence on both these
new developments in the second half of the year.

Spanish Division
The focus on rentals at the Group's Four Seasons Country Club at Marbella
continues to pay dividends. The company has started developing a new phase of
28 apartments in three blocks to augment its rental pool at the resort.  It is
planned to complete the first block of 12 apartments by next summer.

Construction of the freehold development of 72 apartments at Carib Playa is
progressing well. Over 40 of the units are already sold with 30 units expected
to close during the second half of the year. This will provide a strong
contribution to the Spanish operations. Carib Playa is due for completion by
summer 2001. The Group is confident of securing a new site for further
freehold leisure development in the latter half of this year.

UK Division
William Hargreaves, acquired in 1999 as a small turnaround opportunity,
continues to develop, though slowly, under McInerney's guidance. Working with
the company's management team to improve operating and financial controls is
bringing positive results. The Group has commenced its investment programme at
the company with the purchase of three small sites for housing development.
The Group will continue to seek further acquisition opportunities in the UK
marketplace.
 
Outlook
The Group looks forward to another strong full year result. The new planning
permissions obtained provide an excellent bank of housing sites for future
development. We are pleased with the continuing strong progress of our
commercial activities in Ireland.  The Group's diversification into freehold
in Spain offers exciting new growth opportunities and a base in the UK market
is now established.

The Interim Report will be circulated to shareholders shortly.

R.B. Ferris
Chairman  


 CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the period ended 30 June 2000

                                  30 June        30 June        31 December
                                     2000           1999               1999 
                                  EUR'000        EUR'000            EUR'000 
                               (unaudited)    (unaudited)         (audited) 
TURNOVER INCLUDING GROUP SHARE 
OF JOINT VENTURES             
Continuing Operations             67,947         50,367            101,307 
Acquisitions                           -              -              9,878 
                               --------------------------------------------
                                  67,947         50,367            111,185 
Less: Share of Turnover of 
Joint Ventures                    (1,236)           (28)            (1,519) 
                               --------------------------------------------
GROUP TURNOVER                    66,711         50,339            109,666 
           
COST OF SALES                    (52,945)       (39,347)           (86,655) 
                               --------------------------------------------

GROSS PROFIT                      13,766         10,992             23,011 
           
Administrative Expenses           (5,405)        (3,468)            (8,519) 
                               --------------------------------------------
Group Operating Profit
  Continuing Operations            8,361          7,524             14,696 
  Acquisitions                         -              -               (204) 
                               --------------------------------------------
                                   8,361          7,524             14,492 
Share of Operating Profits in Joint Ventures             
  Continuing Operations              498             23                155 
  Acquisitions                         -              -                 95 
                               --------------------------------------------
TOTAL OPERATING PROFITS INCLUDING 
JOINT VENTURES                     8,859          7,547             14,742 
Surplus on disposal of Investment 
Properties                           191            596              1,580 
Interest Payable and Similar 
Charges                           (1,411)          (866)            (2,167) 
                               --------------------------------------------
PROFIT ON ORDINARY ACTIVITIES 
BEFORE TAXATION                    7,639          7,277             14,155 
Taxation Charge arising on 
Ordinary Activities               (1,854)        (2,231)            (3,423) 
                               --------------------------------------------
PROFIT ON ORDINARY ACTIVITIES 
AFTER TAXATION                     5,785          5,046             10,732 

Proposed Dividend                      -              -               (804) 
                               --------------------------------------------
PROFIT RETAINED FOR THE YEAR       5,785          5,046              9,928 
                               ============================================

BASIC EARNINGS PER SHARE        c. 18.24       c. 17.32           c. 35.31

FULLY DILUTED EARNINGS PER 
SHARE                           c. 17.36       c. 16.34           c. 33.39
 
CONSOLIDATED BALANCE SHEET
As at 30 June 2000

                                                  30 June       31 December
                                                     2000              1999
                                                  EUR'000           EUR'000
                                               (unaudited)        (audited)
FIXED ASSETS       
Intangible Assets                                  5,814             6,042
Tangible Assets                                    4,955             4,934
                                                ---------------------------
Financial Assets       
  Joint Ventures: Share of Gross Assets           10,137             9,004
                  Share of Gross Liabilities      (9,635)           (9,020)
                  Loans                            1,899             2,383
                                                ---------------------------
                                                   2,401             2,367 
                                                ---------------------------
TOTAL FIXED ASSETS                                13,170            13,343
                                                ---------------------------
CURRENT ASSETS       
Stocks                                            92,321            64,995
Debtors                                           18,869            12,613
Cash at Bank and in Hand                           9,645            11,793
                                                ---------------------------
                                                 120,835            89,401
                                                ---------------------------
CREDITORS (Amounts falling due within one year)       
Bank Loans and Overdrafts                         35,768            19,444
Trade and Other Creditors                         54,801            43,356
                                                ---------------------------
                                                  90,569            62,800
                                                ---------------------------
NET CURRENT ASSETS                                30,266            26,601
                                                ---------------------------
TOTAL ASSETS LESS CURRENT LIABILITIES             43,436            39,944
                                                ---------------------------
CREDITORS (Amounts falling due after more than one year)       
Bank Loans                                         5,479             6,287
Other Creditors                                      343             1,818
                                                ---------------------------
                                                   5,822             8,105
                                                ---------------------------
PROVISIONS FOR LIABILITIES AND CHARGES       
Deferred Taxation                                    844               921
                                                ---------------------------
                                                  36,770            30,918
                                                ===========================

FINANCED BY:       
CAPITAL AND RESERVES       
Called up Share Capital                            3,964             3,955
Capital Conversion Reserve Fund                       62                62
Share Premium Account                             16,293            16,271
Revaluation Reserve                                  243               371
Profit and Loss Account                           16,208            10,259
                                                ---------------------------
TOTAL SHAREHOLDERS' FUNDS - ALL EQUITY            36,770            30,918
                                                ===========================
 
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 June 2000

                                                  30 June       31 December
                                                     2000              1999
                                                  EUR'000           EUR'000
                                               (unaudited)        (audited)

Net Cash Inflow /(Outflow) from operating 
activities                                        (11,118)           2,159 
                                                ---------------------------
DIVIDENDS RECEIVED FROM JOINT VENTURES                 18               38 
                                                ---------------------------
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest Received                                      22              165 
Interest Paid                                      (1,376)          (2,072)
Interest element of Finance Lease payments            (13)             (13) 
                                                ---------------------------
                                                   (1,367)          (1,920) 
                                                ---------------------------

                                                ---------------------------
TAXATION                                           (4,377)          (1,836) 
                                                ---------------------------
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT       
Purchase of Tangible assets                          (744)            (960)
Sale of Tangible Assets                               598            4,520 
Investment in Financial Assets                        (29)             188 
                                                ---------------------------
                                                     (175)           3,748 
                                                ---------------------------
ACQUISITION OF SUBSIDIARY UNDERTAKING                   -           (5,953) 
                                                ---------------------------
EQUITY DIVIDENDS PAID                                (804)            (542) 
                                                ---------------------------
Net Cash Outflow before Financing                 (17,823)          (4,306) 
                                                ---------------------------

FINANCING       
Share Capital Subscribed                               31            9,114 
Repayment of Loans                                (13,174)         (15,044)
Proceeds from Borrowings                           28,228           18,307 
                                                ---------------------------
Capital Element of Finance Lease Rentals              128             (143) 
                                                ---------------------------
                                                   15,213           12,234 
                                                ---------------------------
Increase/(Decrease) in cash in year                (2,610)           7,928
                                                ===========================

 NOTES TO THE INTERIM REPORT
For the period ended 30 June 2000

1.  Basis of preparation of Interim Financial Information 
The Interim Financial Information has been prepared on the going concern
basis, and on the basis of the other accounting policies set out in the
Group's published accounts for the year ended 31 December 1999. 

2.  Segmental Analysis of Turnover and Profit 

                                      30 June      30 June      31 December
                                         2000         1999             1999
                                      EUR'000      EUR'000          EUR'000
TURNOVER     
Private Housing                       34,715       39,460           77,647
Land & Sites                             447        1,276            1,614
Contracts                              6,211        7,761           13,086
Leisure                                1,270        1,446            2,762
Commercial                             6,157          396            4,679
UK Construction                       17,911            -            9,878
                                    ---------------------------------------
GROUP TURNOVER                        66,711       50,339          109,666
                                    =======================================
PROFIT BEFORE INTEREST AND TAXATION     
Private Housing                        6,491        7,027           13,560 
Land & Sites                             409          303              140 
Contracts                              1,124          637            1,307 
Leisure                                  380          568            1,172 
Commercial                             1,347          422            2,016 
UK Construction                           59            -             (204) 
                                    ---------------------------------------
Segment Profits                        9,810        8,957           17,991 

Share of Operating Profits in 
Joint Ventures                           498           23              250 
Common Costs                            (932)        (709)          (1,569)
Costs incurred in on-going 
Development/Acquisition Activities      (326)        (128)            (350)
Net Interest Payable                  (1,411)        (866)          (2,167) 
                                    ---------------------------------------
PROFIT BEFORE TAXATION                 7,639        7,277           14,155 
                                    =======================================

3. Taxation
The taxation charge for the period is estimated based on the results for the
period.

4.        Reconciliation of movement in Group Shareholders' Funds
                                                                    EUR'000
                                                                (unaudited)
Opening Shareholders' Funds as at 1 January 2000                   30,918
Retained Profit for the Period                                      5,785
Proceeds of new Share Subscription                                     31
Currency Translation Adjustment                                        36
                                                                -----------
Closing Shareholders' Funds as at 30 June 2000                     36,770
                                                                ===========

During the period 10,000 options were exercised at a price of 44c per share.