Preliminary Results

McInerney Holdings PLC
27 February 2003


                          Thursday 27th February 2003

                            PRELIMINARY ANNOUNCEMENT

             Financial Results for the Year ended 31 December 2002

The year proved to be a very successful one for McInerney Holdings plc with the
Group generating significant growth in our key market segments, particularly in
the UK. This resulted in a strong profit performance by the Group during the
period.

Financial Highlights

The Directors are pleased to report a pre-tax profit of €20.62m, an increase of
14% on the 2001 result of €18.14m. Basic earnings per share in 2002 increased by
15% to 50.32 cent compared to 43.74 cent in 2001.

Profit after tax for the year was €16.40m compared with €13.94m in 2001.

Our Irish house-building division remains the main contributor to Group
profitability having completed 1,011 private and contract housing units in 2002,
up from 808 units in 2001. The Group's UK division produced an excellent
performance in a strong UK housing market. The Spanish leisure activities also
performed well during the period. The performance of the Group's Irish
commercial division was satisfactory given quieter market conditions.

Dividend

Based on these results the Group is proposing to pay an increased dividend of
6.25 cent gross per share (4.5 cent gross per share in 2001). This will be paid
on 24th March 2003, to shareholders registered at 7th March 2003.

This significant increase in dividend payment marks the continuation of the more
progressive dividend policy being followed by the Group as outlined in my
statement of last year.

As is our practice, this will be paid as an interim dividend in lieu of a final
dividend.

Board

As part of our ongoing policy of strengthening our Board, it is with pleasure
that I welcome the recent appointments of Ned Sullivan and Brendan Gilmore as
Non-Executive Directors. Between them they have a broad range of commercial
experience across a range of sectors and they will enhance our collective
expertise in managing the future direction of our Group. They will, as is
normal, submit to election by shareholders at the forthcoming Annual General
Meeting in June.

Operational Highlights

The Group's operations are divided into four divisions namely, Irish
house-building and contracting, UK house-building and contracting, Irish
commercial property development and leisure developments in Spain.

House-building Ireland

The number of Irish house completions during the year was 1,011, of which 879
were in private housing and 132 were in contract housing. This compares with a
total of 808 house completions for 2001.

The Group's strategy of focussing on first time buyers and maintaining an active
land management policy is clearly reflected in the buoyant 2002 performance in
this division.

Deposits on hand at year-end were 462 compared to 233 in 2001. The spring
selling season this year has got off to a good start across the full spectrum of
our sites.

As part of our land management strategy, land sales of €10.62m were closed in
2002. The Group's residential land bank at the end of December was 4,272 plots,
up from 3,915 plots at the beginning of the year. Of these plots some 67% have
full planning permission and the balance are residentially zoned. This is a
satisfactory mix for our ongoing requirements.

Our contract housing activities had a difficult year with tighter margins being
experienced. A better performance is anticipated from these activities in the
current year.

House-building UK

We are particularly pleased with our progress in the UK marketplace. The past
year has proved to be a milestone in the development of our UK activities.
Excellent results were delivered both by our existing Hargreaves business and
the newly acquired Charlton Group.

The integration of Charlton with our existing operations proceeded very smoothly
during the year and significant synergies have developed. These combined
operations provide the Group with an effective, profitable division servicing
the developing North West regional housing market. The target product sectors of
starter and middle market homes and city centre apartment developments have
experienced strong demand in recent years and indications are that this demand
should continue.

In 2002 our UK house completions increased dramatically to 310 units of which
257 were private completions and 53 were contract completions. Of the 257
private units, 192 were provided by Charlton and 65 by Hargreaves Homes. At year
end the UK operations had 131 deposits on hand.

Commercial Division

Hillview Securities continues to develop the Millennium Business Park in
Ballycoolin, Dublin and the smaller Euro Business Park in Cork. During the year
Hillview successfully disposed of 11 acres of land at Ballycoolin to an end
user. In a strategic move Hillview, in joint venture with Bank of Scotland,
acquired a building in Galway that will be used to extend the adjoining Eyre
Square shopping centre.

Spanish Division

The Group continues to grow its freehold activities in Spain. The Los Flamingos
development in the Marbella region has been a resounding success with sales
deposits achieved for all apartment units in the first two phases of 150 units.
During the year 17 sales completions were achieved with a further 79 sales
completions planned for 2003 and the balance in 2004.  At year-end 133 deposits
were on hand.

A strategic land sale during the year generated a profit of €931,000 for the
Group. Funds released contributed to the purchase of alternative land at Los
Flamingos.

Towards the end of 2002 the Group announced a new corporate brand identity for
our freehold and rental operations in Spain. The new identity, Alanda Group,
encompasses all McInerney's business activities in the region, namely; freehold
sales, holiday rentals and resort management, under one name. Freehold
activities will be marketed as Alanda Homes and holiday rentals as Alanda
Holidays.

The introduction of the Alanda brand name for the McInerney operations in Spain
marks the final stage of a transition from the original Club based business to a
leisure based freehold and holiday rentals business.

The Future

We believe the Group is well positioned to face the future with continued
optimism.

Demand for housing in Ireland continues to be strong and all indicators point to
another good year for our house-building activities. The successful integration
of the Charlton Group acquisition in the UK has given significant impetus to our
operations there and makes the UK an important profit and future growth centre
for the Group. Our freehold operations order book in Spain is full with booked
commitments well into 2005.

The increased level of business already written in the current year provides the
Group with a solid base for 2003 and a platform for planning further growth in
2004.

Roy B. Ferris
Chairman


MC INERNEY HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2002

                                                                                       2002               2001        
                                                                                      €'000              €'000        
  TURNOVER INCLUDING GROUP SHARE OF                                                                                   
  JOINT VENTURES                                                                                                      

  Continuing Operations                                                             231,148            186,485        

  Acquisitions                                                                       30,453                   -       

                                                                                    261,601            186,485        

  Less: Share of Joint Ventures Turnover                                             (3,547)            (1,331)       

  GROUP TURNOVER                                                                    258,054            185,154        

  COST OF SALES                                                                    (213,876)          (150,533)       

  GROSS PROFIT                                                                       44,178             34,621        

  Administrative Expenses                                                           (19,885)           (13,755)       

  GROUP OPERATING PROFIT                                                                                              

  Continuing Operations                                                              22,199             20,866        
  Acquisitions                                                                        2,094                   -       

                                                                                     24,293             20,866        
  Share of Operating Profits in Joint Ventures                                                                        

  Continuing Operations                                                                 986                578        
  Acquisitions                                                                          945                   -       

  TOTAL OPERATING PROFITS INCLUDING JOINT VENTURES                                   26,224             21,444        

  Profit on Disposal of Office Buildings                                                   -             1,178        
  Interest Payable and Similar Charges                                               (5,600)            (4,480)       

  PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                                      20,624             18,142        
  Taxation Charge arising on Ordinary Activities                                     (4,220)            (4,199)       

  PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                                       16,404             13,943        

  Proposed Dividend                                                                  (2,039)            (1,465)       

  PROFIT RETAINED FOR THE YEAR                                                       14,365             12,478        

  BASIC EARNINGS PER SHARE                                                            50.32 c            43.74 c   

  FULLY DILUTED EARNINGS PER SHARE                                                    48.49 c            41.69 c   


  The Auditors have confirmed that they will be issuing an unqualified opinion 
  on the accounts from which the financial information set out on pages 4 to 8 
  for the year ended 31 December 2002 has been extracted. The Financial 
  information for the year ended 31 December 2001 has been extracted from 
  audited accounts on which the Auditors issued an unqualified opinion and which 
  have been delivered to the Registrar of Companies.                                                                    
                                                                                                                      
  MC INERNEY HOLDINGS PLC                                                                                             
  CONSOLIDATED BALANCE SHEET                                                                                          
  As at 31 December 2002                                                                                              
                                                                                                   2002         2001  
                                                                                                  €'000        €'000  
  FIXED ASSETS                                                                                                        
  Intangible Assets                                                                              15,084        5,566  
  Tangible Assets                                                                                13,786        9,411  
  Financial Assets                                                                                                    
  Joint Ventures:                   Share of Gross Assets                                         9,057        7,342  
                                    Share of Gross Liabilities                                   (8,263)      (7,246) 
                                    Loans to Joint Ventures                                       3,238        1,451  
                                                                                                  4,032        1,547  
  TOTAL FIXED ASSETS                                                                             32,902       16,524  

  CURRENT ASSETS                                                                                                      
  Stocks                                                                                        178,994      124,433  
  Debtors                                                                                        30,700       21,691  
  Cash at Bank and in Hand                                                                       20,994       21,103  
                                                                                                230,688      167,227  
  CREDITORS (Amounts falling due within one year)                                                                     
  Bank Loans and Overdrafts                                                                      23,642       23,839  
  Trade and Other Creditors                                                                     106,992       64,861  
                                                                                                130,634       88,700  
  NET CURRENT ASSETS                                                                            100,054       78,527  
  TOTAL ASSETS LESS CURRENT LIABILITIES                                                         132,956       95,051  
  CREDITORS (Amounts falling due after more than one year)                                                            
  Bank Loans                                                                                     55,615       36,140  
  Other Creditors                                                                                 3,710        1,505  
                                                                                                 59,325       37,645  
  PROVISIONS FOR LIABILITIES AND CHARGES                                                                              
  Deferred Taxation                                                                               1,173          504  
                                                                                                 72,458       56,902  
  FINANCED BY :                                                                                                       
  CAPITAL AND RESERVES                                                                                                
  Called up Share Capital                                                                         4,078        4,072  
  Capital Conversion Reserve Fund                                                                    62           62  
  Share Premium Account                                                                          16,358       16,298  
  Revaluation Reserve                                                                             2,159          138  
  Profit and Loss Account                                                                        49,801       36,332  
  TOTAL SHAREHOLDERS' FUNDS - ALL EQUITY                                                         72,458       56,902  
                                                                                                 
MC INERNEY HOLDINGS PLC                                                  
CONSOLIDATED CASH FLOW STATEMENT                                         
For the year ended 31 December 2002                                      
                                                                                                   2002         2001  
                                                                                                  €'000        €'000  
Net Cash Inflow from operating activities                                                        12,984        4,924  

DIVIDENDS RECEIVED FROM JOINT VENTURES                                                              576          112  
RETURNS ON INVESTMENTS AND                                               
SERVICING OF FINANCE                                                     
Interest Received                                                                                   145           46  
Interest Paid                                                                                    (5,827)      (4,912) 
Interest element of Finance Lease payments                                                          (38)         (32) 
                                                                                                 (5,720)      (4,898) 
TAXATION                                                                                         (4,942)      (4,476) 
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT                             
Purchase of Tangible assets                                                                      (3,456)      (4,208) 
Sale of Tangible Assets                                                                             208        2,474  
Investment in Financial Assets                                                                   (1,663)         532  
                                                                                                 (4,911)      (1,202) 
ACQUISITION OF SUBSIDIARY UNDERTAKING                                                           (10,309)           - 

EQUITY DIVIDENDS PAID                                                                            (1,465)      (1,110) 

Net Cash Outflow before Financing                                                               (13,787)      (6,650) 

FINANCING                                                                
Share Capital Subscribed                                                                             66          112  
Repayment of Loans                                                                              (59,456)     (31,353) 
Proceeds from Borrowings                                                                         74,550       47,750  
Capital Element of Finance Lease Rentals                                                           (242)        (178) 
                                                                                                 14,918       16,331  
Increase in cash in year                                                                          1,131        9,681  
                                                                                                      

MC INERNEY HOLDINGS PLC                                                             
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT                             
For the year ended 31 December 2002                                                 
                                                                                                   2002         2001  
                                                                                                  €'000        €'000  
Increase in cash in year                                                                          1,131        9,681  

Cash inflow from increase in debt and lease financing                                           (14,852)     (16,219) 

Changes in net debt resulting from cashflows                                                    (13,721)      (6,538) 

Loans acquired with subsidiary undertaking                                                       (5,424)           - 

New finance leases                                                                                  (14)        (323) 

Movement in net debt for the year                                                               (19,159)      (6,861) 

Net debt as at 1 January 2002                                                                   (39,510)     (32,649) 

Net debt as at 31 December 2002                                                                 (58,669)     (39,510) 
                                                                                                                  
      MC INERNEY HOLDINGS PLC                                                                                     
      NOTES TO THE FINANCIAL STATEMENTS                                                                           
      For the year ended 31 December 2002                                                                         

      SEGMENTAL INFORMATION                                                                                       
      Segmental Analysis of Turnover and Profit                                                2002         2001  
                                                                                              €'000        €'000  
      Group Turnover                                                                                              
      Ireland:                                                 Private Housing              137,189      107,696  
                                                               Developed Sites & Land        10,624       16,740  
                                                               Contracts                     29,151       22,203  
                                                               Commercial                     1,970        8,096  
                                                               Commercial Land                6,429            - 
      Spain:                                                   Leisure                       13,219       12,999  
                                                               Land                           6,297            - 
      United Kingdom:                                          Private Housing               36,676        3,844  
                                                               Developed Sites & Land         2,476            - 
                                                               Contracts                     14,023       13,576  
      Total Group Turnover                                                                  258,054      185,154  
      Profit before Interest & Taxation                                                                           
      Ireland:                                                 Private Housing               18,643       14,054  
                                                               Developed Sites & Land         2,977        5,774  
                                                               Contracts                       (747)       1,414  
                                                               Commercial                       386          919  
                                                               Commercial Land                1,022            - 
      Spain:                                                   Leisure                        1,996        2,201  
                                                               Land                             931            - 
      United Kingdom:                                          Private Housing                3,164         (244) 
                                                               Developed Sites & Land           729            - 
                                                               Contracts                      1,021          322  
      Segment Profits                                                                        30,122       24,440  
      Profit on disposal of office buildings                                                      -        1,178  
      Common Costs                                                                           (2,929)      (2,503) 
      Costs incurred in on-going Development / Acquisition                                                        
      Activities                                                                               (175)        (176) 
      Goodwill                                                                                 (794)        (317) 
      Net Interest Payable                                                                   (5,600)      (4,480) 
      Profit Before Taxation                                                                 20,624       18,142  

      Segmental Analysis of Net Assets                                                         2002         2001 
                                                                                              €'000        €'000 
      Business Sectors                                                                                            
      Private Housing                                                                        62,505       55,036  
      Leisure                                                                                21,963       11,548  
      Commercial                                                                             18,319       23,239  
      UK Construction                                                                        31,009        8,467  
      Net Operating Assets                                                                  133,796       98,290  
      Unallocated Liabilities                                                                (3,075)      (2,512) 
                                                                                            130,721       95,778  
      Net Borrowings                                                                        (58,263)     (38,876) 
      Total Net Assets                                                                       72,458       56,902  



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