2007-06-16

Great Britain | National Information Prices and Markets Housing

Property firm delivers record €25.2m profit

Great Britain: DERRY-BASED property and house-building group Taggart Holdings has turned in record profits of €25.2m before tax for 2006, a growth of 34pc.

Organic growth in house building and commercial developments across its markets and contributions from land bank sales helped boost profits.

But the results - and especially turnover, which more than doubled to €134m - also got a big boost from acquisitions.

Taggart paid €90m for Hartlepool house builder Yuill early last year and this significantly increased turnover. House building is lower margin than property sales and this accounts for a three-point narrowing of the group's operating margin to 22.1pc last year.

In July, the group linked up with Goodbody Private Clients to acquire a portfolio of sites close to Belfast's city centre owned by Fraser Estates for more than €150m.

The group has also satisfied a wish to get involved in the United States property market, buying a small development site at Naples, Florida. And it is also looking east for expansion opportunities, targeting Poland as a possible first move into central Europe.

The group is already involved in a commercial development in Luxembourg, according to Michael Taggart, director and co-founder of the business in 1989 with his brother John.

Taggart enjoyed solid growth across all of the group's businesses

Commenting on the results yesterday, he said Taggart enjoyed solid growth across all of the group's businesses in Ireland and the UK, with Northern Ireland especially strong.

"In Northern Ireland, we are seeing continued strong growth in land and house prices, both being fuelled by a lack of supply."

He expected the supply imbalance will continue to underpin the strong demand for the foreseeable future, although the group expected the rate of house price increase to start easing off towards the end of this year.

The slowing housing market in the Republic was not causing concern, he added. "We've had no problem selling our homes".

The group completed 406 houses last year as compared with 105 the previous year and was engaged in developments in the Republic, Northern Ireland and in the UK.

Cyril Hardiman Irish Independent - 2007-06-16