Preliminary Results 2001

McInerney Holdings PLC
28 February 2002


Thursday 28th February 2002

                            PRELIMINARY ANNOUNCEMENT

               Financial Results for Year ended 31 December 2001


McInerney Holdings plc performed solidly despite an undoubtedly turbulent period
in the Irish construction industry in 2001.

Financial Highlights

The Directors are pleased to report a pre-tax profit of €18.14m, compared to the
2000 result of €19.10m. Basic earnings per share in 2001 were 43.74 cent as
compared to 46.32 cent in 2000.

Profit after tax for the year was €13.94m compared with €14.67m in 2000. Group
turnover rose from €174.34m in 2000 to €185.15m in 2001.

The Group has become diversified with five businesses in three countries. Our
Irish house-building division remains the main contributor to Group
profitability having completed 808 private and contract housing units in 2001,
up from 652 units in 2000. The Group's Irish contracting operations and Spanish
leisure activities also performed well during the period. However the
performances of the Group's Irish commercial division and the UK division were
below expectations during the year. Significant improvement is anticipated in
both these divisions in 2002.

Dividend

Based on these results, as is our practice, the Group is proposing to pay an
interim gross dividend of 4.5 cent (3.5 cent in 2000) in lieu of a final
dividend. This will be paid on 22nd March 2002, to shareholders registered at
8th March 2002.

This increase in dividend represents a more progressive dividend policy by the
Group. In the past our dividend pay-out has been maintained at a lower level to
facilitate the retention of earnings to grow the Group's asset base. McInerney
now has a strong asset base and consequently the Board has decided that the
proportion of earnings distributed to shareholders should be increased over a
period of time to match our peer group.



Board

As part of our policy of strengthening our knowledge and understanding of the UK
construction and leisure markets, it is with pleasure that I welcome the recent
appointment of Michael Leece as a Non-Executive Director to our Board.



Operational Highlights

The Group's operations are divided into Irish house-building and contracting,
Irish commercial property development, Spanish leisure development and UK
construction activities.

House-building Division

The number of Irish house completions during the year was 808, of which 663 were
in private housing and 145 were in contract housing. This compares with a total
of 652 house completions for 2000.

The Group's strategy of focussing on first time buyers and maintaining an active
land management policy is clearly reflected in the robust 2001 performance in
this division despite difficult trading conditions. The Budget changes in
December re-introducing mortgage interest relief for investors occurred too late
in the year to impact on our 2001 result.

Deposits on hand at year-end were 233 compared to 183 in 2000. The spring
selling season this year has got off to a good start.

As part of our land management strategy, land sales of €16.7m were closed in
2001, including the sale of serviced sites to other developers. An additional
€10m in contracted land sales are expected to close in the first half of 2002.
The Group's residential land bank at the end of December was 3,915 plots, down
from 4,800 plots at the beginning of the year. Of these plots some 75% have full
planning permission.

During the year our contract housing activities increased by 15% to €22.2m. The
Group secured local authority housing contracts in Dublin, Cork and Waterford
and it is anticipated that further growth in this activity will be achieved in
the current year.

Commercial Division

Hillview Securities continues to develop its 40 acre, Millennium Business Park
in Ballycoolin, Dublin. The first development phase of 12,000 square metres of
industrial units has sold well and is near completion. In January 2002, Hillview
successfully disposed of 11 acres of land at Ballycoolin to an end user. The
company is also developing the smaller Euro Business Park in Cork.



Spanish Division

The Spanish division performed strongly during the period. In particular there
was a highly successful launch of our second major freehold development at Los
Flamingos in the Marbella region. Demand for these upmarket apartments has been
well ahead of expectations. At year-end 73 deposits were on hand with a sales
value of €27m. Significant further development is planned for this location

Our successful freehold apartment development at Carib Playa near Marbella is
completed. Income from our rental activities at the Four Seasons Country Club at
Marbella increased during the period with 8 new rental apartments completed
during 2001 and a further 22 apartments coming on-stream in early 2002.

UK Division

During 2001, a new Regional Director was appointed for McInerney UK with the
objective of increasing the level of capital invested in our UK operations. In
January 2002 we completed the acquisition of the Charlton Group, a successful
Lancashire development and construction company for a total consideration of
stg£8.05m (€12.98m). Combined with our existing operation in the North West,
William Hargreaves, this company provides the Group with the critical mass
necessary to service a regional population of 8 million people. The acquisition
will be immediately earnings enhancing and was financed without recourse to
shareholders.

During the year William Hargreaves realised €2m of cash for reinvestment as a
result of the sale of its interest in the Riverside joint venture project.

The Future

We believe the Group is well positioned to face the future with renewed
optimism. Our acquisition of the Charlton Group in the UK represents important
progress in diversifying our income stream and spreading our capital base across
our three chosen markets of Ireland, UK and Iberia.

The recent Budget change in Ireland re-introducing mortgage interest relief for
investment properties has encouraged investors back into the housing market and
is stimulating increased demand from owner occupier purchasers in the current
year.

We continue to have a strong land-bank for our house-building, industrial and
leisure operations. We have a high level of planning permissions in place and a
solid demand for our products in our chosen markets. In addition, an increased
level of business already written for 2002 provides the Group with a solid base
for the year ahead.


Roy B. Ferris
Chairman


MC INERNEY HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 December 2001
                                                                                  2001                2000
                                                                                  €'000               €'000
TURNOVER INCLUDING GROUP SHARE OF
JOINT VENTURE                                                                       186,485            178,120
                                                                                                   
Less: Share of Joint Venture Turnover                                               (1,331)            (3,784)

GROUP TURNOVER                                                                      185,154            174,336

COST OF SALES                                                                      (150,533)          (141,176)

GROSS PROFIT                                                                         34,621              33,160

Administrative Expenses                                                            (13,755)            (12,525)

GROUP OPERATING PROFIT                                                               20,866              20,635

Share of Operating Profits in Joint Ventures                                            578               1,210

TOTAL OPERATING PROFITS INCLUDING JOINT VENTURES                                     21,444              21,845

Profit on Disposal of Office Buildings                                                1,178                 277

Interest Payable and Similar Charges                                                (4,480)             (3,019)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                                        18,142              19,103

Taxation Charge arising on Ordinary Activities                                      (4,199)             (4,432)

PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                                         13,943              14,671

Proposed Dividend                                                                   (1,465)              (1,110)

PROFIT RETAINED FOR THE YEAR                                                         12,478               13,561

BASIC EARNINGS PER SHARE                                                              43.74 c              46.32 c

FULLY DILUTED EARNINGS PER SHARE                                                      41.69 c              43.98 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 2001 has been extracted. The

Financial information for the year ended 31 December 2000 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 2001
                                                                                  2001                      2000
                                                                                 €'000                     €'000
FIXED ASSETS

Intangible Assets                                                                5,566                         5,733

Tangible Assets                                                                  9,411                         7,007

Financial Assets

Joint Ventures:                    Share of Gross Assets                         7,342                        12,353

                                   Share of Gross Liabilities                   (7,246)                     (12,111)

                                   Loans to Joint Ventures                       1,451                         1,858

                                                                                 1,547                         2,100

TOTAL FIXED ASSETS                                                              16,524                        14,840

CURRENT ASSETS

Stocks                                                                          124,433                      105,710

Debtors                                                                          21,691                       13,405

Cash at Bank and in Hand                                                         33,713                       11,582

                                                                                   179,837                   130,697

CREDITORS (Amounts falling due within one year)

Bank Loans and Overdrafts                                                        23,839                       13,925

Trade and Other Creditors                                                        64,861                       54,830

                                                                                    88,700                    68,755

NET CURRENT ASSETS                                                                  91,137                    61,942

TOTAL ASSETS LESS CURRENT LIABILITIES                                              107,661                    76,782

CREDITORS (Amounts falling due after more than one year)

Bank Loans                                                                       48,750                       29,817

Other Creditors                                                                  1,505                         1,786

                                                                                50,255                        31,603

PROVISIONS FOR LIABILITIES AND CHARGES

Deferred Taxation                                                                 504                            651

                                                                                56,902                        44,528
                                                                        
FINANCED BY :

CAPITAL AND RESERVES

Called up Share Capital                                                          4,072                         3,964

Capital Conversion Reserve Fund                                                    62                             62

Share Premium Account                                                            16,298                       16,294

Revaluation Reserve                                                               138                            171

Profit and Loss Account                                                          36,332                       24,037

TOTAL SHAREHOLDERS' FUNDS - ALL EQUITY                                              56,902                    44,528


MC INERNEY HOLDINGS PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2001
                                                                                                2001           2000
                                                                                                €'000         €'000

Net Cash Inflow / (Outflow) from operating activities                                             4,866        (8,039)

DIVIDENDS RECEIVED FROM JOINT VENTURES                                                              112             76

RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE

Interest Received                                                                                    46            124

Interest Paid                                                                                   (4,912)        (2,969)

Interest element of Finance Lease payments                                                         (32)            (6)

                                                                                                (4,898)        (2,851)

TAXATION                                                                                        (4,476)        (4,479)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT

Expenditure on Tangible Assets                                                                  (4,208)        (3,457)

Sale of Tangible Assets                                                                           2,532            940

Investment in Financial Assets                                                                      529            525

                                                                                                (1,147)        (1,992)

EQUITY DIVIDENDS PAID                                                                           (1,110)          (804)

Net Cash Outflow before Financing                                                               (6,653)       (18,089)

FINANCING

Share Capital Subscribed                                                                            114             32

Repayment of Loans                                                                             (18,742)       (17,373)

Proceeds from Borrowings                                                                         47,751         35,358

Capital Element of Finance Lease Rentals                                                          (179)          (165)

                                                                                                 28,944         17,852

Increase / (Decrease) in cash in year                                                            22,291          (237)


MC INERNEY HOLDINGS PLC
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
For the year ended 31 December 2001
                                                                                 2001                     2000
                                                                                 €'000                   €'000

Increase / (Decrease) in cash in year                                               22,291                   (237)

Cash inflow from increase in debt and lease financing                             (28,829)                (17,820)

Changes in net debt resulting from cashflows                                       (6,538)                (18,057)

New finance leases                                                                   (323)                   (416)

Movement in net debt for the year                                                  (6,861)                (18,473)

Net debt as at 1 January 2001                                                     (32,649)                (14,176)

Net debt as at 31 December 2001                                                   (39,510)                (32,649)



MC INERNEY HOLDINGS PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2001

SEGMENTAL INFORMATION

Segmental Analysis of Turnover and Profit

                                                                                 2001                     2000
                                                                                 €'000                   €'000

Turnover

Private Housing                                                                    107,696                  90,756

Developed Sites & Land                                                              16,740                  13,526

Contracts                                                                           22,203                  19,650

Leisure                                                                             12,999                   7,304

Commercial                                                                           8,096                  10,631

UK Construction                                                                     17,420                  32,469

Total Turnover                                                                     185,154                 174,336

Profit before Interest & Taxation

Private Housing                                                                     14,054                  15,865

Developed Sites & Land                                                               5,774                   2,086

Contracts                                                                            1,414                   1,562

Leisure                                                                              2,201                   2,089

Commercial                                                                             919                   2,341

UK Construction                                                                         78                     767

Segment Profits                                                                     24,440                  24,710

Profit on Disposal of Office Buildings                                               1,178                       -

Common Costs                                                                       (2,820)                 (2,088)

Costs incurred in on-going Development / Acquisition

Activities                                                                           (176)                   (500)

Net Interest Payable                                                               (4,480)                 (3,019)

Profit Before Taxation                                                              18,142                  19,103

Segmental Analysis of Net Assets

                                                                                 2001                     2000
                                                                                 €'000                   €'000
Business Sectors

Private Housing                                                                     55,036                  48,388

Leisure                                                                             11,548                   9,482

Commercial                                                                          23,239                  10,305

UK Construction                                                                      8,467                  10,375

Net Operating Assets                                                                98,290                  78,550

Unallocated Liabilities                                                            (2,512)                 (1,862)

                                                                                    95,778                  76,688

Net Borrowings                                                                    (38,876)                (32,160)

Total Net Assets                                                                    56,902                  44,528

All activities are located in Ireland with the exception of Leisure, which is located in Spain,
and UK Construction which is located in the North of England.


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