Interim Results

McInerney Holdings PLC
09 September 2004


                                                    Thursday, 9th September 2004


McInerney Holdings plc
Interim Statement for the six months to 30th June 2004


Highlights:

  • Pre-tax profits increased by 100% to €17.03 m (2003: €8.53m)

  • Earnings per share increased by 106% to 43.33 cent (2003: 21 cent)

  • Interim dividend up 41% to 7 cent per share gross

  • 723 total private unit completions in first six months (2003: 570)

  • Further UK expansion achieved through Alexander Developments acquisition.


McInerney Holdings plc reports a profit before taxation of €17.03m for the
period ending 30th June 2004 which compares to €8.53m for the corresponding
period in 2003. Group turnover increased from €138.5m in the six months to 30
June 2003 to €158.3m. Basic earnings per share were 43.33 cent compared to 21.0
cent for the same period in 2003 and this represents an increase of 106%.

The Directors are very pleased with this strong performance, which was driven by
higher output in our Irish housing business and margin growth in our Irish and
UK housing businesses. An interim dividend of 7 cent gross will be paid on 4th
October 2004 to shareholders registered at 17th September 2004. This dividend is
covered six times. This reflects the Directors' policy to align dividends with
revenue growth and to bring dividend cover to a level comparable to the housing
peer group.


Ireland

The Irish house building division experienced an excellent first half with a
strong volume of sales being achieved. Some 574 private housing units have been
completed compared with 355 for the first six months of 2003. The number of
units completed for the full year is expected to exceed 1,100. Market conditions
remain particularly strong with our broad regional spread ensuring continued
favourable demand for the Group's range of housing products.

The contracting division had a particularly robust first half in line with the
Group's growth plans. It is benefiting from the division's product alignment
with the housing needs of local authorities as well as an increasing market for
a range of commercial and retail properties.

The recent sale of the Group's interest in the Eyre Square Shopping Centre
resulted in a good first half for the commercial division and provided
additional funds for reinvestment in new business opportunities.  Development at
the new site in NewtownMountKennedy will commence shortly.


United Kingdom

The UK housing operation is continuing to increase its contribution to the Group
with a strong first half performance. 141 private housing completions, at
increased margins, were recorded in the first six months as compared to 181 for
the same period in 2003. It is expected over 550 units will be completed for the
full year.

The integration of the recently acquired Alexander Developments is progressing
very well.

Critical mass has been attained by the successful amalgamation of our three UK
acquisitions over recent years. This has resulted in a favourable market
position being secured for our product portfolio. This portfolio, primarily
aimed at the affordable end of the market, is well placed across North England
to take best advantage of a market where demand exceeds supply.

Progressive opportunities for organic growth are planned for the near term. Our
expansion programme is underway into the West Yorkshire and North Midlands
areas.

Our commercial project at Park Royal London is over three quarters sold and a
new site in the West London area has been secured for future development.


Spain

The Spanish freehold division completed 8 units in the first six months with 60
sales on hand for completion in 2005. The division is progressing two
significant freehold developments. The first at Mijas, where planning is
advancing steadily, and the second more medium term project at Sotogrande. These
developments will provide significant growth and profit revenue streams in the
2005 period and beyond.


Outlook

The Group is pleased with the pace of profit growth achieved over the last three
years.

The Directors anticipate another excellent full year result. Our growth strategy
is exceeding targets and is ahead of expectations.


Ned Sullivan
Chairman





MC INERNEY HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the period ended 30 June 2004
                                                                  30 June        30 June         31 December
                                                                   2004            2003             2003
                                                                  €'000           €'000            €'000
                                                                (unaudited)     (unaudited)       (audited)

TURNOVER INCLUDING GROUP SHARE OF JOINT VENTURES

Continuing Operations                                            165,401          139,973          352,502
Acquisitions                                                         868                -                -

                                                                 166,269          139,973          352,502

Less: Share of Joint Ventures Turnover                            (7,973)          (1,504)          (9,173)

GROUP TURNOVER                                                   158,296          138,469          343,329

COST OF SALES                                                   (127,644)        (115,738)        (284,408)

GROSS PROFIT                                                      30,652           22,731           58,921

Administrative Expenses                                          (13,650)         (11,948)         (26,341)

GROUP OPERATING PROFIT

Continuing Operations                                             16,695           10,783           32,580
Acquisitions                                                         307                -                -

                                                                  17,002           10,783           32,580

Share of Operating Profits in Joint Ventures

Continuing Operations                                              4,100              744            2,935

TOTAL OPERATING PROFITS INCLUDING JOINT VENTURES                  21,102           11,527           35,515

Interest Payable and Similar Charges                              (4,077)          (2,999)          (7,058)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                     17,025            8,528           28,457

Taxation Charge arising on Ordinary Activities                    (2,785)          (1,663)          (4,643)

PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                      14,240            6,865           23,814

Dividends                                                         (2,302)          (1,634)          (3,610)

PROFIT RETAINED FOR THE PERIOD                                    11,938            5,231           20,204

BASIC EARNINGS PER SHARE                                           43.33 c          21.00 c          72.83 c

FULLY DILUTED EARNINGS PER SHARE                                   41.86 c          20.33 c          70.40 c
                                                                                      




MC INERNEY HOLDINGS PLC
CONSOLIDATED BALANCE SHEET
As at 30 June 2004
                                                                 30 June         30 June        31 December
                                                                   2004            2003             2003
                                                                   €'000           €'000            €'000
                                                                (unaudited)     (unaudited)       (audited)

FIXED ASSETS
Intangible Assets                                                 25,315           13,819           13,237
Tangible Assets                                                   14,593           14,544           14,050
Financial Assets
Joint Ventures:                Share of Gross Assets              9,056            12,141           11,540
                               Share of Gross Liabilities        (4,473)          (10,763)          (8,612)

                                                                  4,583             1,378            2,928

TOTAL FIXED ASSETS                                               44,491            29,741           30,215

CURRENT ASSETS
Stocks                                                          249,729           197,502          211,706
Debtors                                                          55,609            46,499           47,861
Cash at Bank and in Hand                                         18,595            23,422           26,435

                                                                323,933           267,423          286,002

CREDITORS (Amounts falling due within one year)
Bank Loans and Overdrafts                                        24,291            39,924           38,837
Trade and Other Creditors                                       148,623           113,397          123,756

                                                                172,914           153,321          162,593

NET CURRENT ASSETS                                              151,019           114,102          123,409

TOTAL ASSETS LESS CURRENT LIABILITIES                           195,510           143,843          153,624

CREDITORS (Amounts falling due after more than one year)
Bank Loans                                                       87,611            60,862           60,238
Other Creditors                                                   4,220             3,550              253

                                                                 91,831            64,412           60,491

PROVISIONS FOR LIABILITIES AND CHARGES
Deferred Taxation                                                 1,139             1,158            1,341

                                                                102,540            78,273           91,792

FINANCED BY :
CAPITAL AND RESERVES
Called up Share Capital                                           4,110             4,086            4,101
Capital Conversion Reserve Fund                                      62                62               62
Share Premium Account                                            16,764            16,443           16,648
Revaluation Reserve                                               2,159             2,159            2,159
Profit and Loss Account                                          79,445            55,523           68,822

TOTAL SHAREHOLDERS' FUNDS - ALL EQUITY                          102,540            78,273           91,792





MC INERNEY HOLDINGS PLC
CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30 June 2004
                                                                  30 June         30 June        31 December
                                                                   2004            2003             2003
                                                                   €'000           €'000            €'000
                                                                (unaudited)     (unaudited)       (audited)

Net Cash (Outflow) / Inflow from operating activities              (996)          (10,288)           2,709

DIVIDENDS RECEIVED FROM JOINT VENTURES                            1,900                 -              130

RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest Received                                                    54                71               53
Interest Paid                                                    (3,864)           (2,938)          (6,284)
Interest element of Finance Lease payments                          (17)              (14)             (34)

                                                                 (3,827)           (2,881)          (6,265)

TAXATION                                                         (1,938)           (2,395)          (5,020)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Expenditure on Tangible assets                                   (1,081)           (1,563)          (2,523)
Sale of Tangible Assets                                               -               133              244

                                                                 (1,081)           (1,430)          (2,279)

ACQUISITION OF SUBSIDIARY UNDERTAKINGS                           (9,959)                -                -

EQUITY DIVIDEND PAID                                             (1,971)           (2,039)          (3,678)
                                                               

Net Cash Outflow before Financing                               (17,872)          (19,033)         (14,403)


FINANCING

Share Capital Subscribed                                            125                93              313
Repayment of Loans                                              (26,769)          (17,427)         (58,049)
Proceeds from Borrowings                                         38,191            35,744           76,488
Capital Element of Finance Lease Rentals                           (154)             (161)            (287)

                                                                 11,393            18,249           18,465

(Decrease) / Increase in cash in period                          (6,479)             (784)           4,062





MC INERNEY HOLDINGS PLC
NOTES TO THE INTERIM REPORT
For the period ended 30 June 2004

     
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 2003.

2.   Segmental Analysis of Turnover and Profit
                                                                  30 June         30 June        31 December
                                                                   2004            2003             2003
                                                                   €'000           €'000            €'000
                                                                (unaudited)     (unaudited)       (audited)
     Group Turnover
     Ireland:                           Private Housing           112,511          60,165          183,164
                                        Developed Sites & Land      3,320           9,973           17,230
                                        Contracts                  10,093          17,913           31,068
                                        Commercial                  3,899           6,205           14,217
     Spain:                             Leisure                     5,518          15,577           31,684
     United Kingdom:                    Private Housing            25,461          24,920           59,328
                                        Contracts                   5,467           3,716           15,811
     Total Group Turnover including Group Share of Joint 
     Ventures                                                     166,269         138,469          352,502

     Profit  before Interest & Taxation
     Ireland:                           Private Housing            16,352           7,190           22,275
                                        Developed Sites & Land        918           1,980            3,552
                                        Contracts                   1,303             529            2,154
                                        Commercial                  2,362             547            1,816
     Spain:                             Leisure                       254           1,285            2,342
     United Kingdom:                    Private Housing             2,304           2,145            7,671
                                        Contracts                     180            (121)              26
     Segment Profits                                               23,673          13,555           39,836

     Common Costs                                                  (2,119)         (1,632)          (3,541)
     Goodwill                                                        (452)           (396)            (780)
     Net Interest Payable                                          (4,077)         (2,999)          (7,058)
     Profit  Before Taxation                                       17,025           8,528            28,457
                                                                                   
     
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
                                                                                                €'000
                                                                                             (unaudited)

     Opening Shareholders' Funds as at 1 January 2004                                           91,792
     Retained Profit for the period                                                             11,938
     Proceeds of new Share Subscription                                                            125
     Currency Translation Adjustment                                                            (1,315)
     Closing Shareholders' Funds as at 30 June 2004                                            102,540

     During the period 71,500 options were exercised at a price of €1.75 per
     share.





This announcement has been issued through the Companies Announcement Service of
                           the Irish Stock Exchange.



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