Sales of new residential units built by Gannon Homes have continued to be strong during the Covid-19 pandemic. 

That is according to new accounts for Gannon Homes – led by Gerry Gannon – which show that pre-tax profits reduced by 28.5pc to €3.68 million in 2019.

The drop in profit came in spite of revenues increasing by 2.5pc from €77.1m to €79.19m.

In an extensive note concerning the impact of Covid-19 on the business, the directors state that Government measures and health guidance resulted in stoppages in construction during 2020.

The directors state that as a result of the stoppages from March 28 to May 18, 2020, the company has experienced a 10pc drop in the number of residential units for sale in 2020.

The directors also say that “sales have been strong during the period of the pandemic to date and based on the level of interest expressed in the phases currently under constriction, it is expected that the launches of these units will be as successful as those launched since the beginning of 2020”.

The company’s projects under construction are well funded with some of the funding extending to 2022/23, according to the directors.

On the performance in 2019, the directors say the increased turnover reflects the increased activity in house construction and sales.

The company “continues to develop stock for sale reflecting a confidence in the underlying demand for new homes”.

The accounts show that the company’s operating profits reduced by 23pc to €6.6m in 2019.

Interest payments of €2.96m reduced profits to €3.68m. The profits recorded in 2019 reduced the company’s accumulated losses to €107m. The company’s cash reduced from €20.8m to €14.3m.

The company’s loan facilities continue to be held by the National Asset Management Agency (NAMA) and new funding was received in 2020 through a Connection Management Agreement (CMA) to continue development until 2023.

The company remains confident that NAMA will continue to provide financial support for the company.

Numbers employed reduced to 10 as staff costs increased marginally to €546,427.

The company recorded sales of €76.9m during the year and rental income of €2.2m.