Re: Financial Results

McInerney Holdings PLC
24 February 2005




Thursday, 24th February 2005



PRELIMINARY ANNOUNCEMENT
Financial Results for the Year ended 31 December 2004


The McInerney Group recorded a significant performance in the year to 31
December 2004. Strong sales and profitability were achieved.


Pre tax profits increase by 43%
Earnings per share increase by 46%
Dividend increase by 65%



Financial Highlights

The Directors are pleased to report an increase in basic earnings per share of
46% to 106.43 cent, as compared to 72.83 cent in 2003. Pre-tax profits increased
by 43% to €40.74m compared to the 2003 result of €28.46m.



Profit after tax for the year was €35.00m compared with €23.81m in 2003.



The Directors are pleased with the result for the Group. Market and trading
conditions remained robust across the Group's three core regions of Ireland, the
UK and Spain.  In particular, our business benefited from continued buoyancy in
the first time buyer market, in Ireland and the UK. This was matched closely by
our product portfolio.



Dividend

The Board is proposing to pay a final dividend of 11 cent gross per share.
Combined with the interim dividend of 7 cent gross, this provides a total of 18
cent per share for the year.  Subject to confirmation at the Annual General
Meeting, this final dividend will be paid to shareholders on Monday, 16th May
2005. The Board's objective to incorporate a more progressive dividend policy is
being achieved. The dividend cover is now c. 5.9 times basic earnings per share.



Operational Highlights

There were a total of 1,614 private home completions across all operations in
2004.  This compared to 1,481 in 2003 and represents an increase of 9%.


Ireland:  Fundamental market conditions for the Irish house building operation
were excellent. Strong volume delivery yielded 1,101 private home completions in
2004, compared to 969 in 2003. Market indicators and demographics for our target
market of first time buyers continued to be favourable. The division is well
positioned through product match and geographic spread to take best advantage of
continuing good demand going forward.



Currently, there are circa 4,800 plots under our control in the Irish land bank,
of which 57% have planning permission and the remainder are residentially zoned.
The Group is satisfied that the current land bank will support its growth
plans. 



The Group's commercial division, Hillview Securities, completed 50,000 sq ft of
industrial units in 2004. The division also sold its interest in the Eyre Square
Shopping centre in Galway. These funds were reinvested in new development
opportunities. A new project commenced in NewtownMountKennedy, Co Wicklow in
late 2004.



UK: The Group's UK housing business performed strongly. There were 500 private
home completions in 2004, compared with 447 in 2003. The year saw significant
strategic initiatives to enable future growth. The purchase of Alexander
Developments Ltd in the North-East of England in the first half of the year has
realised the Group's ambition to expand its spread right across the north of
England. Its integration into the core UK business is now complete.



In addition, progressive land bank enlargement has taken place. Over 30 sites
are now active, representing some 1,900 plots controlled. A further 400 sites
are under option. These substantial site purchases will feed through to unit
completions in the second half of 2005. The division is well placed to see
progressive growth going forward.



The commercial division completed 39,000 sq ft of sales at its Park Royal
project. It purchased two new sites at Croydon and Chesham as well as entering a
joint venture in Watford.



Spain:  Some 13 private units were completed at the Los Flamingos development in
2004 compared with 65 in 2003.  The unit short fall for 2004 will be made up in
2005.  A significant land sale provided good profit recognition during the year.
The business, supported by a well placed land bank, is primed to see significant
uplift in 2005 and beyond.



Board Renewal

The Directors welcome the recent appointment of Donal Roche as Non Executive
Director to the Board.  Mr Roche, a former Managing Partner of Matheson Ormsby
Prentice Solicitors, will bring great business acumen to the Board's
deliberations.

He will, as is normal, submit to election by the shareholders at the Annual
General Meeting on the 12th May 2005.



Outlook

The Group performed strongly in 2004, delivering good volumes and operating
margins, as well as progressing its strategic objectives. All subsidiaries are
well placed to provide continued revenue growth going forward. In particular, it
is expected substantial unit increases will be forthcoming from the UK and Spain
in 2005. Construction timelines will see profit recognition weighted to the
second half of 2005.



Fundamental market conditions across all regions are favourable. The Group has
closely aligned its product mix to exploit market demands. Our growth strategy
continues to show solid progress.  We look forward with confidence.  


Ned Sullivan
Chairman



MC INERNEY HOLDINGS PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2004

                                                        2004                  2003
                                                       €'000                 €'000

TURNOVER INCLUDING GROUP SHARE OF
JOINT VENTURES

Continuing Operations                                 381,387               352,502

Acquisitions                                            7,420                     -

                                                      388,807               352,502

Less: Share of Joint Ventures Turnover                (15,448)               (9,173)

GROUP TURNOVER                                        373,359               343,329

COST OF SALES                                        (301,521)             (284,408)

GROSS PROFIT                                           71,838                58,921

Administrative Expenses                               (29,001)              (26,341)

GROUP OPERATING PROFIT

Continuing Operations                                 40,985                32,580

Acquisitions                                           1,852                     -

                                                      42,837                32,580

Share of Operating Profits in Joint Ventures

Continuing Operations                                  6,943                 2,935

TOTAL OPERATING PROFITS INCLUDING JOINT VENTURES      49,780                35,515

Interest Payable and Similar Charges                  (9,038)               (7,058)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION         40,742                28,457

Taxation Charge arising on Ordinary Activities        (5,739)               (4,643)

PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION          35,003                23,814

Dividends                                             (5,945)               (3,610)

PROFIT RETAINED FOR THE YEAR                          29,058                20,204

BASIC EARNINGS PERSHARE                               106.43     c           72.83  c
                                                                       

FULLY DILUTED EARNINGS PER SHARE                      101.47     c           70.40  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 2004 has been extracted. The financial information
for the year ended 31 December 2003 has been extracted from the 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 2004

                                                        2004                  2003
                                                       €'000                 €'000

FIXED ASSETS

Intangible Assets                                     22,089                13,237

Tangible Assets                                       14,147                14,050
Financial Assets

Joint Ventures:       Share of Gross Assets           22,341                11,540
                      Share of Gross Liabilities     (15,487)               (8,612)

                                                       6,854                 2,928

TOTAL FIXED ASSETS
                                                      43,090                30,215

CURRENT ASSETS

Stocks                                               268,131               228,431

Debtors                                               40,827                31,136

Cash at Bank and in Hand                              26,670                26,435

                                                     335,628               286,002

CREDITORS (Amounts falling due within one year)

Bank Loans and Overdrafts                             58,433               38,837

Trade and Other Creditors                            138,833              123,756

                                                     197,266               162,593

NET CURRENT ASSETS                                   138,362               123,409

TOTAL ASSETS LESS CURRENT LIABILITIES                181,452               153,624

CREDITORS (Amounts falling due after more than one
year)

Bank Loans                                            57,043                60,238

Other Creditors                                        2,222                   253

                                                      59,265                60,491

PROVISIONS FOR LIABILITIES AND CHARGES

Deferred Taxation                                      1,011                 1,341

                                                      121,176               91,792

FINANCED BY :
CAPITAL AND RESERVES

Called up Share Capital                                4,140                4,101
                                   
Capital Conversion Reserve Fund                           62                   62

Share Premium Account                                 17,113               16,648

Revaluation Reserve                                    2,159                2,159

Profit and Loss Account                               97,702               68,822

TOTAL SHAREHOLDERS' FUNDS - ALL EQUITY               121,176               91,792




MC INERNEY HOLDINGS PLC
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2004

                                                          2004                  2003
                                                         €'000                 €'000

Net Cash Inflow from operating activities               13,442                 2,709

DIVIDENDS RECEIVED FROM JOINT VENTURES                   1,900                   130

RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE

Interest Received                                         325                     53

Interest Paid                                          (7,746)                (6,284)

Interest element of Finance Lease payments                (42)                   (34)

                                                       (7,463)                (6,265)

TAXATION                                               (4,536)                (5,020)

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT

Purchase of Tangible assets                           (1,773)                 (2,523)

Sale of Tangible Assets                                  410                     244

                                                      (1,363)                 (2,279)

ACQUISITION OF SUBSIDIARY UNDERTAKING

Consideration and Cost of Acquisition                (10,745)                     -
                                                        
Net Overdraft taken over                                (207)                     -
                                                           
                                                     (10,952)                     -
                                                        

EQUITY DIVIDENDS PAID                                 (4,273)                (3,678)

Net Cash Outflow before Financing                    (13,245)               (14,403)

FINANCING

Share Capital Subscribed                                 504                    313

Repayment of Loans                                   (26,769)               (58,049)

Proceeds from Borrowings                              41,162                 76,488

Capital Element of Finance Lease Rentals                (360)                  (287)

                                                      14,537                 18,465

Increase in cash in year                               1,292                  4,062





MC INERNEY HOLDINGS PLC
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
For the year ended 31 December 2004

                                                        2004                  2003
                                                       €'000                 €'000

Increase in cash in year                               1,292                 4,062

Cash inflow from increase in debt and lease financing(14,029)              (18,152)

Changes in net debt resulting from cashflows         (12,737)              (14,090)

Loans acquired with subsidiary undertaking            (3,066)                    -
                                                      

New finance leases                                      (670)                 (298)

Movement in net debt for the year                    (16,473)              (14,388)

Net debt as at 1 January 2004                        (73,057)              (58,669)

Net debt as at 31 December 2004                      (89,530)              (73,057)




MC INERNEY HOLDINGS PLC
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2004


SEGMENTAL INFORMATION


 Segmental Analysis of Turnover and Profit                2004                  2003
                                                         €'000                 €'000
 Group Turnover

 Ireland:                    Private Housing           223,975               183,164

                             Developed Sites & Land      4,889                17,230

                             Contracts                  23,898                31,068

                             Commercial                  5,694                14,217

                             Commercial Land             7,916                     -
                                                          
 Spain:                      Leisure                    10,030                31,684

                             Land                        2,840                     -
                                                         
 United Kingdom:             Private Housing            85,257                59,328

                             Contracts                  16,958                15,811

                             Commercial                  7,350                     -
                                                          
 Total Group Turnover including Group Share of          388,807                352,502
 Joint Ventures                                                               

 Profit  before Interest & Taxation

 Ireland:                    Private Housing            30,675                 22,275

                             Developed Sites & Land        921                  3,552

                             Contracts                   3,406                  2,154

                             Commercial                  3,253                  1,816

                             Commercial Land             1,081                      -
                                                          
 Spain:                      Leisure                     1,209                  2,342

                             Land                        1,218                      -
                                                         
 United Kingdom:             Private Housing            12,927                  7,671

                             Contracts                     125                     26

                             Commercial                    377                      -
                                                            
 Segment Profits                                        55,192                 39,836



 Common Costs                                           (4,401)                (3,541)

 Goodwill                                               (1,011)                  (780)

 Net Interest Payable                                   (9,038)                (7,058)

 Profit  Before Taxation                                40,742                 28,457





 Segmental Analysis of Net Assets                        2004                 2003
                                                        €'000                €'000

 Business Sectors

 Irish Housing                                         71,045               71,942

 Leisure                                               33,970               24,854

 Commercial                                            26,374               33,250

 UK Housing                                            83,423               37,373

 Net Operating Assets                                 214,812              167,419

 Unallocated Liabilities                               (4,830)              (2,987)

                                                      209,982              164,432
                          
 Net Borrowings                                       (88,806)             (72,640)

 Total Net Assets                                     121,176               91,792


 Comparative Figures
 Comparative figures have been reclassified on a basis consistent with the 
 current year.



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






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