Making life better.
Annual Report &
Accounts 2021
Company highlights
Financials
Revenue
€476.8m
€46.4m
€562.7m
Operating profit1
Land utilisation
2021
2020
2019
2018
2021
2020
2019
2018
2021
2020
2019
2018
€476.8m
€232.3m
€284.6m
€84.2m
€7.6m
€30.5m
-€2.1m
€46.4m
€562.7m
€619.2m
€667.8m
€617.9m
No. of sites in landbank
Non-financials
16,800
1,150
No. of units sold
1,921
Units
contracted/reserved2
Operational and sustainability
Customer
satisfaction
2021
2020
2019
89%
83%
84%
H&S audits
6
4
12
16
Strategic report
Glenveagh at a glance
Vision, mission and culture
8
Chairman’s letter
CEO’s review
CFO’s review
Our KPIs
Market overview
22
Stakeholder engagement
Our sustainable business model
Our strategic priorities
30
Our landbank
36
Our sustainability pillars
Risk management report
20
38
68
25
28
Barnhall Meadows
Leixlip, Co. Kildare
Financial Statements
Company Information
119
169
Governance
Corporate governance statement
Audit and risk committee report
Remuneration committee report
Nomination committee report
Environmental and social responsibility committee report
Board of directors
Directors’ report
81
88
91
108
115
112
110
2021
2020
2019
2018
2021
2020
2019
2018
2021
2020
2019
2018
2021
2020
2019
16,800
14,100
14,500
12,600
1,150
700
844
1,921
950
275
475
451
89%
88%
75%
A-
CDP
AA
MSCI
Low risk
72%
Sustainalytics
Employment engagement
Ledwill Park
Kilcock, Co. Kildare
1 Operating profit has been presented before exceptional items and impairment reversals / charges
2 As at the Annual Report approval date
Contents
1
Leadership
The challenge we set
ourselves is to deliver
housing with sustainability
and relentless innovation
at the core. Only by
challenging every aspect of
our business will we achieve
our vision of truly creating
thriving communities
Ruxton Oaks
Navan, Co. Meath
2
Glenveagh Properties PLC Annual Report and Accounts 2021
Riversend
Trim, Co. Meath
Strategic
report
3
Glenveagh at
a glance
Sustainability pillars built around our
people and our communities
Putting customers at the
heart of what we do
Attracting, inspiring and
investing in people
Keeping people safe
Creating sustainable
homes and communities
Environmentally considerate
and efficient operations
Sustainable and
responsible sourcing
Read more about our
sustainability pillars on page 38
4
Glenveagh Properties PLC Annual Report and Accounts 2021
Our vision is that everyone should have the
opportunity to access great value, high quality
homes in flourishing communities across Ireland.
Strategic priorities
€
€
Disciplined
investment
across our target
segments
Customer-
centric focus
Sustainably
scale delivery
capability
Drive fair
returns for
shareholders
Our
landbank
Key
Active suburban
Future suburban
Active urban
Future urban
Future partnerships
Completed sites
Our
vision
Read more about our
strategic priorities on page 30
Our business segments - key characteristics
Underpinned by
sustainability
Glenveagh
Our
strategy
Our
business
segments
Suburban
Urban
Partnerships
Product
Houses and low-rise
apartments
Apartments
Houses and
apartments
End market
Private/institutions
Institutions
Private/State/
institutions
Locations
Ireland
Dublin/Cork City
Ireland
Exit
Traditional/forward
sale (FS)
FS/forward
fund (FF)
State/traditonal/
FF/FS
Read more about our business
segments on page 31
Split by units
64%
Suburban
Urban
Partnerships
24%
12%
16,800
75%
64%
96%
Total units
GDA focused3
Suburban4
Starter homes5
3 By value 4 By units 5 Suburban portfolio
Strategic report: Glenveagh at a glance
5
Vision, mission
and culture
Our vision
Our mission
Our culture
Our values
Our vision is that everyone should have
the opportunity to access great-value,
high-quality homes in flourishing
communities across Ireland.
Our mission is to innovate how new
homes are planned, designed, built and
marketed in Ireland, and to make the
journey for customers transparent, easy
and joyful.
At Glenveagh, we foster a culture of
fresh thinking, teamwork and trust
to challenge the status quo in our
industry. We believe that building
homes and communities is a worthy
cause and will positively impact Irish
society. We want to forge a new path,
relentlessly innovating every stage of
the homebuilding process.
Our values inform everything we do and how
we do it. These values are integral to building a
Glenveagh that we are all proud to be part of.
Safety first
Before everything else, safety
comes first.
The health and wellbeing of
everyone who we engage and work
with is the most important thing to
us. This is why we are committed to
maintaining the health and safety of
all those who work with us and who
are impacted by what we do. We do
this by integrating health and safety
into all our decision making.
Collaborative
We believe in the power
of teamwork to create new
possibilities.
Building homes at scale requires
the close collaboration of many
different people with specialist
skills and distinct perspectives.
We respect and trust each other
while acting responsibly and with
integrity, believing that how we get
things done is just as important as
our achievements.
Innovative
Each day we work to bring new
ideas home.
Customer-centred
Customers are at the heart of every
decision we make.
Can-do
With the right attitude we can
achieve anything.
We constantly seek to innovate
to satisfy customer needs, drive
sustainability and deliver value for
money. We find new ways of solving
current and future challenges to
create flourishing communities
across Ireland.
We build for the people who call
our developments ‘home’. To do this
well, we take the time to understand
them, their lives and their ever-
changing needs. By putting our
customers at the centre of everything
we do we create homes and
communities that have lasting value.
We positively impact each other,
our partners and our customers
through our dedication, grit, and
can-do attitude. We are continuously
learning and growing our skills to
ensure we realise our vision.
6
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Vision, mission and culture
7
Barnhall Meadows
Leixlip, Co. Kildare
John Mulcahy
Chairman
Chairman’s
letter
I am pleased to present the
Glenveagh Annual Report for
the year ended 31 December
2021. The Group’s successful
performance in 2021, despite the
intense challenges presented
by Covid-19, demonstrates the
strength of our business model
and strategy, and the dedication
of the whole Glenveagh team.
We began the year in a protracted lockdown due
to the second wave of Covid-19. This meant that
activity had to cease on most of our sites. When
restrictions lifted, the strength of our construction
teams and on-site processes meant we were
able to maintain our guidance of delivering 1,150
houses in 2021. This was a major achievement
requiring enormous effort in the face of a global
pandemic and a 13-week shut-down.
Proven success of business model
and strategy
Our clear strategy to concentrate on three
business areas – Suburban, Urban and
Partnerships – continues to provide the best
platform for targeting the deepest and most
resilient segments of the market. The benefit of
this approach is demonstrated by Glenveagh’s
impressive performance during 2021.
Total revenue for the year was €476.8 million (2020: €232.3
million) as we delivered to our customers in a pandemic
dominated and demanding operational environment, 1,150
unit sales completed (2020: 700). Glenveagh finished the year
with 1,921 units6 contracted or reserved for 2021 (2020: 9507)
providing further evidence of the strong demand and maturing
sales profile within the business.
Our people
The board recognises the significant role the people of
Glenveagh have played in delivering our success to date. As we
build our capacity, we are committed to creating a culture that
fosters fresh thinking, teamwork and trust. We want Glenveagh
to be a great place to work for every single employee and will
do whatever it takes to achieve this ambition.
Looking ahead, we expect the market environment to remain
favourable with significant demand from owner occupiers for
own-door homes and institutional demand for apartments.
Government policy is supportive of increased output from the
industry by enabling a significant amount of first time buyers to
access finance through a combination of the extended help to
buy scheme and recently announced shared equity scheme. The
Government’s Housing For All strategy sets out a clear path
for housing related policy and should support the continued
growth of the industry. Our starter home focused landbank
and sector leading delivery platform is uniquely positioned to
address the access and affordability challenges outlined in
Housing For All.
Real progress across our core segments
We were delighted to secure two significant partnerships
during the year. In May, Fingal County Council chose our 1,200
home development on the Ballymastone site in Donabate;
and in November, Dublin City Council chose our 853 home
development on the Oscar Traynor Road site in Coolock. These
major partnerships will lay the foundations for our work with
housing authorities into the future.
In our Urban segment, we closed a number of significant
transactions during the year. In June, we announced that Union
Investment Real Estate GmbH had acquired our Castleforbes
Hotel site in the Dublin Docklands, as part of a €70.0
million forward fund transaction. Construction on this site is
progressing well with handover expected in 2023.
In August, we announced that contracts had been exchanged
for the sale of the remaining residential and second hotel
sites in Castleforbes for €78.5 million and this transaction has
since completed.
Our Suburban segment continued to scale this year, delivering
902 homes across 13 developments. These homes were
delivered across the entire range of tenures, including two of
the first cost rental schemes in the country.
The health and safety of our people is our number one
priority and we work relentlessly to promote a safety first
culture to protect our people and our reputation. This year,
our hard work was recognised with certifications from the
National Standards Authority of Ireland of ISO 14001 for
environmental management and ISO 45001 for occupational
health and safety.
Sustainability
2021 has been another crucial year for sustainability at both a
global and local level.
At an international level, COP 26 in Glasgow focused many
to make commitments and take action with respect to climate
change, while developments in sustainability reporting such as
the establishment of the International Sustainability Standards
Board paved the way for further transparency and consistency.
In Ireland, the Climate Action and Low Carbon Development
(Amendment) Act 2021 was signed into law putting Ireland
on a legally binding path to net zero emissions no later than
2050 and to a 51% reduction in emissions by the end of this
decade. All sectors will have to play their part in meeting these
commitments and the Climate Action Plan 2021 provides a
detailed plan, including for the built environment sector, to
achieve it. Another important development in Ireland during
2021 was the Gender Pay Gap Information Act 2021 which will
require employers to disclose the pay gap between female and
male employees, including any bonuses.
In Glenveagh, we have used the opportunity to further embed
sustainability across our operations, as we set out to deliver our
sustainability ambition: to set a new benchmark in our sector
by delivering the maximum possible social benefit at the lowest
possible environmental cost. Against the backdrop of the
Covid-19 pandemic, we focused ourselves on the path ahead
(pages 38 to 67).
Our values
Safety first
Collaborative
Innovative
Customer-centred
Can-do
8
Glenveagh Properties PLC Annual Report and Accounts 2021
6
7
Includes core and non-core units as at the 2021 Annual Report approval date
Includes core and non-core units as at the 2020 Annual Report approval date
Strategic report: Chairman's letter
9
Capital allocation
The efficient management of capital set the backdrop for
a revised capital allocation policy in May. We continue to
prioritise our investments in supply chain, manufacturing,
land and work-in-progress. Throughout the year, we
invested approximately €72.4 million in land opportunities
for approximately 2,700 units, adding 2,050 units to our
Partnerships business, additional timber frame manufacturing
and soil recovery facilities, and in work-in-progress through the
opening of new sites.
Having met our capital allocation investment priorities, we
were able to return €107.5 million in 2021 in two separate share
buyback programmes, the second of which is ongoing. The
board will keep this policy under constant review.
Governance and board composition
In April, we were pleased to welcome Camilla Hughes to the
board, as an independent non-executive director. This followed
a process led by the nomination committee and external
consultant Korn Ferry to identify a replacement following the
very sad passing of Lady Barbara Judge in 2020. Camilla has
added significant value to the board in her short time here and
I am looking forward to many years of collaboration ahead.
Finally, I announced my own intention to move from executive
chairman to a non-executive chairman role, from 31 December
2021. As I hand over the executive responsibilities, I am
confident that the business will continue to thrive under
Stephen’s guidance. It is a pleasure working closely with
Stephen in particular as we sought to bring our vision to life
since the IPO.
Conclusion and outlook
In what was a challenging year for many people and
businesses here in Ireland and across the world, I am
particularly grateful to my fellow board members and to all our
employees across Glenveagh for their hard work, commitment
and support this year. Our business continues to grow, and we
recognise that our employees are critical to our growth plans
while maintaining the high standards expected of Glenveagh.
In the market there continues to be a strong long-term demand
for in excess of 34,000 units per annum. We intend to be the
volume homebuilder operating in Ireland, supplying homes to
the market across our three target verticals. The board remains
very confident about the future and we look forward to further
progress in 2022 and beyond.
As we moved into 2022, Richard Cherry, independent non-
executive director, announced his intention not to seek re-
election to the board. Richard has been a valued and trusted
colleague since he joined Glenveagh and he takes with him our
very best wishes for the future.
John Mulcahy
Chairman
The Hawthorns
Tullamore, Co. Offaly
3,000
we continue to target
3,000 units per annum
Riversend
Trim, Co. Meath
10
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Chairman’s letter
11
Stephen Garvey
Chief Executive Officer
CEO’s
review
I am pleased to update you
on the continued strong
performance of Glenveagh during
2021 and how we are positioned
for the next phase of growth.
As the world entered the second year of the
pandemic, our business continued to be agile
and respond effectively to the challenging and
changeable situation. I am delighted that we
were able to post such a positive performance in
the face of significant headwinds.
To be able to maintain and deliver on our original
guidance is down to the work of the entire
Glenveagh team and our industry partners. I want
to thank each and every one of them for their
contribution. As a business we have been moving
at pace since 2017, setting up our infrastructure
and scaling our business operations. We have
been able to do this because of the commitment,
enthusiasm and professionalism of the team that
we have put together.
Reflection on the year
Globally, 2021 was a landmark year. The world was learning
to live with Covid-19 and was moving through the vaccination
phase. Then, as we moved into 2022 and into a mode of living
with Covid, attention turned to the conflict in Ukraine and
global events once again reminded us of the constant state of
flux we all now live within.
At Glenveagh, we say we are ‘Home of the new’. We use this
to articulate that we are innovative, as a nod to our focus
on building new homes in flourishing communities, and as a
general rallying call that says we are different from what has
come before us in the construction industry in Ireland.
But what does ‘Home of the new’ mean in the context of the
global upheaval that Covid-19 has caused? As we collectively
and individually take stock of our lives and the world we live in,
do we want to go back to the old ways of doing things – or do
we want to chart a new path? A new path that could address
the fundamental inequalities of the societies we live in, reimagine
how we live and build our communities, and find ways to move
away from harmful practices that damage the environment.
In Glenveagh, we feel there is a collective need to be more
sustainable, to innovate at every turn to make sure that we are
contributing positively to the world and society that we live in.
We cannot go back to business as usual.
As we look forward, our vision is more relevant than ever. We
want everyone to have the opportunity to access great value,
high quality homes in thriving communities across Ireland. How
we do that as a collective within the industry is changing and
we see ourselves as leading the way.
Within the context of Ireland’s housing crisis, we find our
business at the vanguard. When fully scaled we will deliver
10% of the country’s housing needs every year. The challenge
we set for ourselves is to deliver this housing with sustainability
and relentless innovation at the core. Only by challenging
every aspect of our business will we achieve our vision of truly
creating thriving communities.
Business update
As always, our commitment to ‘safety first’ was top-of-mind
as we sought to keep everyone working on our sites, in head
office and from home offices safe. In this regard, the leadership
demonstrated across the business was exemplary and showed
how seriously we take the health and wellbeing of our people.
Operationally, we pressed on with scaling our sites and delivery
capabilities. We opened six sites, capable of delivering 1,410
homes over the next few years. We invested in strategically
important land purchases which will further strengthen our
landbank. We submitted planning applications for 19 new sites
and at year end more than half of our landbank was making its
way through the planning system.
We continue to move towards controlling more of our supply
chain and off-site manufacturing. Controlling elements of
the supply chain allows the business to be more innovative,
working with manufacturing partners to design and create
more sustainable housing. Furthermore, our continued roll-out
of standardised house types combined with newly developed
high-density housing schemes currently in the planning process
will assist in managing cost price inflation (CPI) in future periods,
as well as allowing us to further align with our sustainability
pillars. It also guarantees high quality supply in an environment,
in which, supply has been disrupted, and underpins our ability to
produce high quality, sustainable homes into the future.
Over the last number of years, we have invested in our supply
chain with investments in the timber frame manufacturing facility
in Dundalk and soil recovery facility in north Dublin, both of
which became fully operational in 2021. As of 2021, we invested
further in our supply chain with a €16.0 million investment in
additional timber frame and soil recovery facilities.
Part of our success has always been the strength of the team
and people we surround ourselves with. We invested significant
time and resources into reviewing our performance in diversity
and inclusion through a series of surveys and management
training. We were pleased to see our efforts recognised when
we achieved the silver standard from the Investors in Diversity
of Ireland in November.
Sustainability
2021 saw Glenveagh progress significantly on its journey towards
its sustainability ambition: to set a new benchmark in our
sector by delivering the maximum possible social benefit at
the lowest possible environmental cost. Having published our
first sustainability report last year, we set up robust governance
structures to embed sustainability throughout our business.
We have focused our efforts on our most material issues. We
continued to design and build energy-efficient homes that go
beyond regulatory compliance. 82% of our homes in 2021 had
an A2 building energy rating (BER), while we estimate that
up to 50% of our homes will be A1 rated in 2022. This is just
one element of our commitment to taking action on climate
change and reducing the cost of ownership for our customers.
We have started to map out our pathway towards net zero in
line with national and EU commitments and will publish this
transition plan during 2022.
The timber frame facility is strategically located in the Suburban
South region to better serve our expanding network of
construction sites throughout the country. The purchase of this
facility was completed in the second half of 2021 and it will be
operational from 2023. We expect it will have capacity to self
deliver over 2,000 timber frames by 2024.
Our certification during 2021 to ISO 45001 (occupational health
and safety) demonstrates our commitment to promoting a safety
culture in Glenveagh. Likewise, we have put in place strong
systems to manage our environmental impact which has been
recognised by certification to ISO 14001.
Our soil recovery capabilities have been augmented with the
addition of our new facility in the Suburban South region
which will complement our existing facility at Bay Lane in the
Suburban North region.
These investments will allow for the sustainable growth of the
business to deliver 3,000 units per year and beyond while
also controlling the costs in a manner that improves return on
capital in the medium-term.
With an eye to the future, we reviewed the working models of
the business and accelerated plans to introduce more flexibility
across our office teams. We were delighted to unveil a new
hybrid working model which will see us integrate a mix of home
and office working into our working model beyond Covid-19.
The social aspects of sustainability increased in focus globally
during the pandemic and this was no different in Glenveagh.
In addition to introducing more flexibility and a greater
understanding of diversity and inclusion, we also placed a
strong emphasis on the wellbeing of our colleagues, developing
our senior leaders and improving our employee engagement.
In recognition of this, we are delighted to have been awarded
Great Place to Work certification for 2022.
Our increased focus during 2021 on sustainability and disclosure
to our stakeholders has been reflected in our improved ESG
ratings from MSCI, Sustainalytics and CDP. As we look forward,
we plan to set out a longer-term roadmap during 2022 informed
by engagement with our key stakeholders.
12
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: CEO’s review
13
Housing For All
During the year, the Government announced its new Housing
For All strategy. The aim of the plan is to deliver 300,000
housing units by 2030, with the Government committing an
investment of €20 billion over the next five years. The plan
aims to secure delivery of large scale sustainable mixed tenure
communities through a range of schemes, mainly focused on
shared equity, help to buy and cost rental schemes.
The shared equity and help to buy schemes are designed to
increase affordability for qualifying first-time buyers. The shared
equity scheme allows the Government to take an equity stake
of up to 30% of the sales value of the home. The help to buy
scheme, which can be used in conjunction with the shared
equity scheme, can provide funding of up to €30,000 to a first-
time buyer.
The cost rental scheme provides rental accommodation to
qualifying tenants at a discount of at least 25% to market rates.
The Government will acquire these properties at market value.
The 10% stamp duty imposed on investment funds has resulted
in the demand now coming from approved housing bodies.
Glenveagh has provided 65 units to Clúid Housing Agency, the
largest landlord in Ireland, in 2021 with further units forecasted
in 2022 and beyond.
The Government will focus this spending across the three
schemes but will also make State lands available for
development predominantly through the Land Development
Agency (LDA). The LDA’s strategy is to enter into forward
purchase transactions with housebuilders and/or landowners
in order to unlock and accelerate delivery on planning
consented residential land that is currently in their control.
Given Glenveagh’s scale, focus on affordability and specific
Partnership segment, we remain uniquely positioned to
participate in these processes. In line with our sustainability
pillars, delivery of social housing is a key objective for us.
With this in mind, we have secured two landmark Partnership
agreements for the proposed development of over 2,050 homes
with Fingal County Council and Dublin City Council.
target of scaling the industry to deliver 34,000 homes a year.
Issues such as high cost price inflation are also on our radar.
Notwithstanding these challenges, we are looking forward to
a successful 2022. As we move into our next phase of growth,
we will soon be delivering homes across all three segments
of our business as we made major strides developing these in
2021. We will scale Suburban delivery to a level of 1,400 units in
the year and will move into the planning phase for our major
Partnerships in Ballymastone and Oscar Traynor Road. And our
Urban sites will continue moving through construction phase.
To close, I would like to acknowledge the work of our chairman
and executive director, John Mulcahy. As he moves into a
non-executive role, I know he will continue to offer a steady
hand and astute insights into how we will continue to grow
Glenveagh into the Irish business success story that it can
be. I am sure the board and the Glenveagh team join me in
thanking John for his contributions.
Stephen Garvey
Chief Executive Officer
Capital allocation
In May 2021, we outlined our capital allocation policy which
prioritises our investments in supply chain, land, and work-in-
progress with excess capital thereafter returned to shareholders.
Throughout the year, we invested approximately €72.4
million in land opportunities for approximately 2,700 units,
adding 2,050 units to our Partnerships business, additional
timber frame and soil recovery facilities, and in work-in-
progress through the opening of new sites.
As a result of strong operational delivery and our continued
reduction of net investment in land, in line with stated targets,
Glenveagh ended the period with net cash of approximately
€20.8 million.
Having met our capital allocation investment priorities, we
were able to return €107.5 million in 2021 in two separate share
buyback programmes, totaling €175.0 million.
Conclusion
I am very proud of what we have achieved in the year, and it
would be remiss of me, not to address the many challenges we
face as a business, not least of all the regulatory and policy
environment. We saw many positives emerge this year, with the
publication of Housing For All setting out the policy framework
for housing for the next nine years. However, immediate
issues such as the National Planning Framework and reform
of the planning system, particularly of the Strategic Housing
Development system, have the potential to negatively impact
our business. It is my hope that the Government moves quickly
to ensure a planning framework and system that are fit-for-
purpose and which support the delivery of the Government’s
14
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: CEO’s review
15
1,150
completed homes
in 2021
Riversend
Trim, Co. Meath
CFO’s
review
Glenveagh had another
strong year in 2021 delivering
our highest ever number of
completions, as well as record
revenue and profits, all the
while dealing with the continued
impact of Covid-19 on our sites,
including a 13-week Government
enforced lockdown in the first
half of the year.
2021 has been a transformative year for
Glenveagh’s capital efficiency strategy with
significant progress made in this area. The
Group released its first capital allocation policy,
set a medium-term return on equity target of
15% by 2024 while also initiating two separate
share buyback programmes totalling €175.0
million. In addition, the Group continued to
tighten and create a more active land portfolio
with over €100.0 million of a net reduction in a
24-month period.
Group performance
Total group revenue was €476.8 million (2020:
€232.3 million) from three main income streams:
•
•
•
€301.0 million relating to unit sales from our
977 core units. The average selling price was
€308k (2020: €311k) reflecting the Group’s
focus on suburban starter-home schemes.
€73.7 million relating to the 173 non-core
units in Marina Village, Greystones.
€102.1 million mainly from our urban
business, which includes the disposal of
our residential and second hotel sites
in Castleforbes as well as the revenue
generated from the forward fund
arrangement with Union Investment for
the construction of the Premier Inn hotel
in Castleforbes.
Michael Rice
Chief Financial Officer
2021 has been a transformative
year for Glenveagh’s capital
efficiency strategy with significant
progress made in this area.
€301m
relating to unit sales from
our 977 core units.
Glenveagh delivered the 977 core units and finished the year with
1,105 core units contracted or reserved for future years (2020: 544)
providing further evidence of the strong demand and maturing
sales profile within the business.
The Group’s gross profit for the year amounted to €83.1
million (2020: €9.5 million) with an overall gross margin of
17.4% (2020: 4.1%).
The underlying core gross margin is 19.6% (2020: 14.1%) and
reflects the impact of the Premier Inn forward fund land sale and
associated development revenue, in addition to the sale of the
residential and second hotels sites at Castleforbes. To allow for
greater visibility and clarity on the Suburban business, the gross
margin delivered on our active Suburban units was 17.5% with this
margin expected to increase to in excess of 18.0% in 2022.
Our operating profit was €50.6 million (2020: loss of €12.7
million). The Group’s central costs for the year were €30.1
million (2020: €20.2 million), which along with €2.4 million
(2020: €2.0 million) of depreciation and amortisation gives total
administrative expenses of €32.5 million (2020: €22.2 million).
Net finance costs for the year were €4.8 million (2020: €3.0
million), primarily reflecting interest on the drawn portion of our
debt facility, commitment fees on the undrawn element of the
facility and arrangement fees, which are being amortised over
the life of the facility.
Overall, the Group delivered a profit after tax of €37.7 million
(2020: Loss of €13.9 million) and an earnings per share of 4.5 cent
(2020: Loss per share of 1.6 cent).
Balance sheet
In line with our continuing commitment to drive capital efficiency,
we have reduced the Group’s net assets to €784.1 million at 31
December 2021 (2020: €853.5 million). This has mainly been
driven by a reduction in the land portfolio to €562.7 million
(2020: €619.3 million). We intend to further reduce our land
portfolio over the coming 12 months with our carrying value of
land expected to reduce to approximately €500.0 million by 31
December 2022. The Group has continued to invest in work-in
progress in line with the growth strategy of the business with a
year end balance of €204.5 million (2020: €201.9 million).
This cash generation, along with our new and increased debt
facilities, allowed the business to invest in line with our capital
allocation priorities such as the capital expenditure of €15.7
million, primarily relating to supply chain integration and initiate
two separate share buyback programmes totalling €175.0 million,
where we invested €107.5 million in the year.
Despite this significant investment, the Group ended the year in
a net cash position of €20.8 million demonstrating the strength
and resilience of our balance sheet and provides a very strong
platform for further capital allocation initiatives in 2022.
The business has increased its property, plant and equipment
during the year with our continued investment in innovation
and our supply chain initiatives. The purchase of our additional
timber frame and soil recovery facilities, in Carlow and Kildare
respectively, will enhance our off-site manufacturing capabilities
considerably. The business will now have the capacity to self-
deliver over 2,000 off-site timber frame units by 2024.
Capital allocation
At the Group’s AGM in May 2021, we set out, for the first time,
our capital allocation policy which included our capital allocation
priorities of investment in supply chain, land, and work-in-
progress. We were very clear in our policy that once the business
has sufficiently invested in each of these priorities, excess capital
will be returned to shareholders.
The balance sheet reflects the completed €75.0 million share
buyback programme and the progress to 31 December of the
second programme for €100.0 million. At 31 December, a total
of 100 million shares had been repurchased and subsequently
cancelled for consideration of €107.5 million.
The Group continues to make strong progress towards greater
efficiency, having invested approximately €72.4 million in land
opportunities in the year, the addition of our second timber
frame and soil recovery facilities and investing in work in progress
through the opening of new sites.
Cash flow
As a result of our continued focus on capital efficiency, the
business generated significant cash, with €104.3 million
generated from operating activities (2020: €11.5 million used in
operating activities). The main drivers of this cash generation are
€51.7 million from the Group’s profitability and €59.4 million from
the reduction in our land portfolio.
Taking these capital allocation priorities into consideration, along
with our prudent leverage policy and successful execution of
our strategy, we identified €175.0 million as excess capital which
we began returning to shareholders in the form of two separate
share buyback programmes.
16
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: CFO’s review
17
The Group has maintained a strong balance sheet throughout
the year with €20.8 million (2020: €36.7 million) of net cash at
year end and funds available of €261.6 million (2020: €162.9
million). This strong balance sheet position is enhanced by the
Group’s new debt facility which provides the necessary funding
for the Group’s significant growth trajectory.
The business is looking forward to another exciting year of
significant operational and financial growth as we continue to
deliver on our commitments of increased financial returns and
further capital efficiency.
Michael Rice
CFO
The initial share buyback programme of €75.0 million
commenced immediately following our AGM in May and
was successfully concluded in October. The successful
execution of the first share buyback programme led to our
second programme of €100.0 million which was announced
in November and which, at the current trajectory, we would
expect to conclude by June 2022.
The Group has had a very strong share price performance
over the last 12 months, aided by the strong profitability and
the initiatives introduced to improve capital efficiency of the
business. The Group’s shares traded between €0.82 and €1.24
during the year (2020: €0.43 to €0.92). The share price at 31
December 2021 was €1.23 (31 December 2020: €0.86) giving a
market capitalisation of €950.8 million (2020: €749.0 million).
Group financing
In February, the Group finalised a new five-year debt facility of
€250.0 million, consisting of €100.0 million term component and
a committed revolving credit facility of €150.0 million. This was
a direct replacement of our previous €125.0 million revolving
credit facility, with the maturity and growth trajectory of the
business now requiring additional funding, more permanent
capital and longer term facilities.
To ensure the optimal balance and structure within the
syndicate, the Group increased the number of financial
institutions participating from three to four. Even though the
facility was finalised during an enforced Covid-19 lockdown for
the construction sector, providing a huge amount of uncertainty
in the market, we were pleased with the pricing obtained in the
market, which was broadly in line with the existing facility while
also raising larger committed facilities and an extension in the
tenure of those facilities to five years.
The structure and quantum of this facility will support the
significant growth of the business over the next five years and
will provide the flexibility and funding to allow the business to
reach its target of 3,000 units per annum.
The quantum available to the Group and the significant interest
from financial institutions during the refinancing process
continues to demonstrate that Glenveagh is a very strong
counterparty and a partner of choice within the industry.
Investor relations and share price
Glenveagh is committed to interacting with the international
financial community to ensure a full understanding of the
Group’s strategic plans and targets and its performance
against these plans and targets. During the year, the executive
management and investor relations team presented at six
capital market conferences and conducted 217 institutional one-
on-one and group meetings.
Financial risk management
The Group’s financial risk management is governed by policies
and procedures which have been approved by the board of
directors and are reviewed on an annual basis. These policies
primarily cover credit risk, liquidity risk and interest rate risk.
The principal objective of these policies is the minimisation of
financial risk at reasonable cost.
Credit risk
The Group transacts with a variety of high credit rated financial
institutions for both placing deposits and managing our day-
to-day cash flow requirements. The Group actively monitors its
credit exposure to each counterparty to ensure compliance with
internal limits approved by the board.
Liquidity and interest rate risk
The Group has a strong balance sheet with its cash balance
and debt facility allowing the business to finance its current
growth strategy. The Group’s debt facility is drawn on a
floating interest rate, with no related derivatives or financial
instruments in place. The Group will continue to review this
approach based on the level of drawn funds and the wider
interest rate environment.
Outlook
The Group has forward sales of 1,105 core units (2020: 544
units) at 31 December 2021 which gives strong visibility for our
1,400 unit completion target for 2022 with all sites required to
deliver these units now active.
The Group has signed head of terms on two urban forward
fund deals, both of which will deliver site sale and development
revenue in 2022.
18
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: CFO’s review
19
The Hawthorns
Tullamore, Co. Offaly
Our KPIs
We now design all new developments
in pre-construction to have A1 rated
houses and A2 rated apartments.
Riversend
Trim, Co. Meath
€
Revenue
Adjusted
EBITDA
Financial KPIs
Non-financial KPIs
Revenue predominantly includes housing
revenue, which reflects the number of
units sold by the average selling price of
those units, and non-core land disposals.
As the business continues to grow,
revenue is seen as a key measure of top-
line business improvement.
Glenveagh’s management consider
adjusted EBITDA pre exceptional items
and the related margin percentage of
revenue, to be an important measure for
assessing profitability. It demonstrates
profitable and sustainable growth during
our initial ramp-up phase and shows
improvements in the operating efficiencies
of the business.
€476.8m
€48.8m
Adjusted EBITDA margin
10.2%
2021
2020
2019
2021
2020
2019
2021
2020
2019
€476.8m
€232.3m
€284.6m
Health &
safety
Health & safety audit scores are an important indicator
of performance for Glenveagh. The metric is the average
site safety audit score percentage from both internally and
externally completed audits.
2021
performance
achieved
89%
€48.8m
€9.6m
€31.9m
4.1%
10.2%
11.2%
Customer
satisfaction
Exceeding customer expectations is central to Glenveagh's
strategy and a key indicator of performance linked
to variable remuneration. Glenveagh engages an
independent external firm to survey our customers
on topics linked to their experience with us.
2021
performance
achieved
89%
2021
2020
2019
2021
2020
2019
89%
88%
75%
89%
83%
84%
20
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our KPIs
21
Market overview
Irish economy continues to grow
Strong economy
Ireland’s economy has shown remarkable resilience throughout
the Covid-19 pandemic, with GDP growth in 2020 and 2021
demonstrating the country’s economy as a global outlier.
The Irish economy grew by 13% in 2021, another year of strong
growth, further building on the growth seen in 2020.
Looking forward, this positive trajectory is expected to
continue with positive forecasts for both GDP growth and core
domestic demand.
Ireland’s GDP per capita has accelerated in recent years to
$94k per person8, far ahead of the EU27 average.
This growth is largely driven by the strong multi-
national sector, and supported by a resilient
domestic economy. These factors now underpin
the increasing buying power in the population
and subsequent demand in the economy.
Ireland is expected to be among the fastest
growing economies in the euro zone for
domestic demand in 20229. Looking forward,
forecasts show that growth is set to remain
positive signifying confidence in the general
health of the economy. This outlook displays a
level of confidence in the outlook of domestic
demand in the economy of Ireland.
GDP - strong economic growth again in 2021
15%
12%
9%
6%
3%
0%
N
P
J
U
E
D
S
U
A
K
N
D
D
L
N
E
W
S
S
U
R
L
O
P
L
E
B
P
S
E
A
T
I
A
S
U
X
E
M
A
R
F
R
B
G
N
H
C
R
U
T
D
N
I
L
R
I
Source: IMF
Ireland’s domestic demand % forecasted growth rate - 2022
12%
8%
4%
0%
K
N
D
R
U
T
X
E
M
S
U
R
D
L
N
N
P
J
E
W
S
L
E
B
A
S
U
A
T
I
U
E
D
7
1
A
E
A
R
F
S
U
A
P
S
E
N
H
C
L
O
P
R
B
G
L
R
I
D
N
I
Source: OECD
New legislation will support balanced housing supply and demand
Legislation
New legislation enacted will positively impact the delivery of
housing.
A commitment to accelerate housing delivery is reflected in the
measures introduced.
Housing For All, announced in 2021, is the Government’s new
housing delivery plan to 2030. The plan is designed to secure
delivery of large scale sustainable mixed tenure communities
through a range of schemes; 1-shared equity, 2-cost rental and
3-help to buy. The plan represents an investment of €20 billion
over the next five years, the largest housing budget in the
history of the State.
8 Source: OECD
9 Source: Goodbody
22
Glenveagh Properties PLC Annual Report and Accounts 2021
The Large-scale Residential Development (LRD) system has
come into effect and has replaced the Strategic Housing
Development (SHD) system.
Regional limits on purchase prices will apply. The help to buy
scheme has also been increased to €30,000 from €20,000 and
can be used in conjunction with the shared equity scheme.
The Housing For All plan has a number of different schemes
that will afford first-time buyers more opportunity to get
on the housing ladder. The plan is designed to cater for
prospective buyers and renters for which market dynamics and
market rules have made either owning or renting a property a
difficult prospect.
The cost rental scheme is designed to relieve the burden
on renters, an area in which a shortage of supply has
exacerbated the cost of renting. In this scheme the State
will take ownership of new build properties at market cost
and rent them to the tenant at a rate that is at least a 25%
discount to the private market.
The shared equity scheme will allow access to the housing
ladder for individuals that are able to make mortgage
repayments, but are prohibited from buying a property
because of the limits imposed by the macroprudential rules.
The Government will take up to a 30% stake in the property to
reduce the burden on the buyer from a financing perspective.
The planning system is being overhauled with the introduction
of the new LRD system. This system was enacted into law
in December 2021 and its purpose is to allow planning
applications to move more efficiently through the system in
order to increase the supply of housing as quickly as possible.
Supply/demand gap
Demand
Demand for housing has never been
stronger. This demand is being driven
by economic growth, population
growth and weak supply which has
created a pent up demand that has
been building for a decade.
Demand
In 2021, the population of Ireland surpassed 5 million
people10. This is an increase of over 400,000 people in
the past ten years. In this period, annual additions to
the housing stock have remained low in the aftermath of
the financial crisis. This has been putting undue pressure
on the demand for housing. Additional pressure is also
being attributed to increased demand due to net inward
migration driven by economic opportunities. Ireland
has seen continual net inward migration and that trend
is set to continue. However, in order to underpin this
projected economic growth, additional housing stock is
an essential requirement.
Economic growth, as outlined, is also a main driver
of demand for housing in Ireland. Ireland has a high
employment rate, high GDP versus the OECD average,
above average salaries and wage growth. This has
created the capacity and the desire among the
population to own their own homes. This can be seen
in the growth in mortgage approvals which have been
increasing year on year. There has been a continual
growth in approvals since 2011 and due to shortfalls in
supply there is a large pent up demand that has built up
among the population.
10 Source: CSO
11 Source: Goodbody
The Irish labour market is also forecasted to grow by 3.7%
by 202311. This is likely to cause the population to grow
even more, which will further fuel demand for housing.
In the same period, wage inflation is set to average 4%
per annum. In addition to demand, this is likely to create
further capacity and increased affordability for people to
purchase new homes in Ireland.
While there are many reasons for the elevated and
increasing demand for housing in Ireland, the problem
can largely be alleviated with adequate supply.
Mortgage approvals continue to
trend upwards
Mortgage approvals
60,000
50,000
40,000
30,000
20,000
10,000
Population growth
Continued population growth and the age profile of the population
are key contributors to growing housing demand in Ireland.
5.10
5.00
4.90
4.80
4.70
4.60
4.50
4.40
4.98m 5.01m
4.92m
4.86m
4.79m
4.74m
4.64m
Population hit
5m in 2021
2015 2016 2017 2018 2019 2020 2021
Source: CSO
Population
Wage inflation continuing
(000’s)
2,550
2,500
2,450
2,400
2,350
2,300
2,250
2,200
2,150
2,100
6%
5%
4%
3%
2%
1%
0
1
1
c
e
D
2
1
2
1
3
1
3
1
4
1
4
1
4
1
5
1
5
1
6
1
6
1
6
1
7
1
7
1
8
1
8
1
9
1
9
1
9
1
y
a
M
t
c
O
r
a
M
g
u
A
n
a
J
n
u
J
v
o
N
r
p
A
p
e
S
b
e
F
l
u
J
c
e
D
y
a
M
t
c
O
r
a
M
g
u
A
n
a
J
n
u
J
v
o
N
0
2
0
2
r
p
A
p
e
S
1
2
1
2
l
u
J
b
e
F
1
2
-
c
e
D
2018 2019 2020 2021 2022f 2023f
Source: BPFI
Sources: CSO, Goodbody
Total at work
Wage inflation
Strategic report: Market overview
23
Stock of housing has been decreasing
largely due to exceptional demand
Housing stock is now severely depleted
Stakeholder
engagement
Supply
Housing supply in Ireland has been
lower than the corresponding demand
for a number of years. This dynamic has
created a scenario of unprecedented
pressure on the demand for housing. The
solution to this is an increase in supply.
Supply
The planning system has been a major factor in the lack
of supply of housing in Ireland. The SHD allowed large
scale planning applicants to apply directly to the Irish
planning board. However, it left the system open to many
judicial reviews, which inevitably stalled a large number
of applications and in turn, the supply of housing. In
2021, applications with a total of over 11,000 housing
units went for judicial review. The new LRD system, which
came into law on 17 December 2021, adds an additional
stage to the application process, but it should reduce the
overall impact of judicial reviews on the system. The LRD
is intended to allow large-scale residential applications to
flow more efficiently through the planning system in an
attempt to alleviate the demand/supply imbalance that
currently exists.
Another market dynamic that is impacting supply in the
Irish market is the fragmented nature of the homebuilding
industry. There are only two scale players, Glenveagh and
Cairn, that can each contribute more than 1,000 units
annually. All other market participants contribute less than
500 units each, with 266 of them building less than 50 units
in 202012. This represents a significant advantage for a scale
player, such as Glenveagh, but also means that elevated
demand is more likely to persist in the short to medium-term.
11k
Housing stock
available to buy:
December 2021
12 Source: Goodbody
13 Source: Daft.ie report Q4 2021
24
Glenveagh Properties PLC Annual Report and Accounts 2021
Housing stock is now severely depleted and is at record
low levels. The total number of properties available to buy
at December 2021 was 11,48313, almost 4,000 lower than
the prior year. These low levels are the result of years of
undersupply, and market conditions are putting further
emphasis on this issue.
According to the GeoDirectory Residential Buildings report
in Q4 2021, “The shortfall in supply over the period 2011-
2021, including ‘latent’ demand (housing demand which was
not met) in the housing market, has been estimated by EY
at over 225,000 homes, due to years of undersupply, inward
migration and evolving demographics. Excluding this latent
demand, the Housing For All plan targets an average of
at least 33,000 new homes to be delivered each year from
2021 to 2030”. However, the new dwelling forecasts project
that supply will be below the required 33,000 average to
2023. The result of this is likely to be further pressure on
the demand for housing and further increasing pent up
demand in the short to medium-term.
Planning system
Planning issues have been a systemic problem, but
is being addressed in the new LRD planning system
which was launched in December 2021.
Units in judicial review
12,000
10,000
8,000
6,000
4,000
2,000
0
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Q4 2020 Q4 2021
Source: Daft.ie report Q4 2021
New dwellings not forecasted to hit
33,000 average by 2023
30,000
25,000
20,000
15,000
10,000
5,000
0
2019 2020 2021
2018 2019 2020 2021 2022f 2023f
Source: FP Logue
Sources: CSO, BPFI, Department of Housing, Goodbody
The board believes that to secure
Glenveagh’s long-term success,
it must take account of the perspectives,
insights and opinions of stakeholders
when key strategic, financial or
operational decisions are being made.
Glenveagh identifies six key stakeholder groups, with each
requiring a tailored engagement. By fostering business
relationships and maintaining effective engagement with these
stakeholder groups, it should help to ensure that Glenveagh is
a company in which people want to invest, from which people
want to buy, with which people want to partner and for which
people want to work.
The board continues to engage with each stakeholder group
on a regular basis. Further information on how the board
directly engaged with shareholders and employees is outlined
in the corporate governance report on pages 82 to 87, and
details on how Glenveagh engaged with employees, suppliers,
shareholders, customers, communities, government and
regulators and outcomes from these engagements are outlined
on pages 25 to 27.
The board is kept continuously up-to-date on the feedback
received from each stakeholder group through the various
reports and presentations received from executive management.
This feedback is carefully considered when making decisions
that may impact stakeholders either collectively or individually.
Employees
How do we engage?
We engage with our employees using a variety of methods including one-
to-one meetings, team meetings, online training platforms, performance
reviews, employee recognition awards and site visits. During November
2021, 71% of employees participated in the Great Place to Work culture
and engagement survey. Periodic pulse surveys of our employees on
working from home were also conducted during the year. As the Covid-19
pandemic continued in 2021, we provided regular internal communication
which included an employee newsletter to all our employees on regulatory
updates, workplace changes and health, safety and wellbeing.
Our workforce engagement director, Cara Ryan, engaged directly with
employees on two occasions during 2021 and presented her findings to the
board. Details of these activities are outlined in the corporate governance
report on page 84.
Monthly updates are provided to the board by the CEO on various HR
KPIs, key employee priorities and the plans to address these priorities.
HR initiatives are also presented to the board by the head of HR, several
times a year.
What are the key areas
of interest?
What are the outcomes?
Matters of importance to
employees included the
impact of Covid-19 on
Glenveagh’s performance,
opportunities for
training, development
and progression, greater
focus on employee
communication, health
and safety of employees
on sites and working from
home, and diversity and
inclusion (D&I).
The board, through the workforce engagement
director considered the findings and plans to address
the matters raised in the pulse surveys. During the
year, the board also provided feedback on training
and development plans.
The board reviewed Glenveagh’s progress in respect
of diversity and inclusion during the year, noting
that the D&I policy was embedded into all company
policy, procedures and practices and D&I training was
delivered to senior leaders and managers.
Executive management committed to hosting
quarterly town hall meetings from 2021 onwards and
invested in employee communication technologies.
Strategic report: Stakeholder engagement
25
Suppliers
Shareholders
How do we engage?
We continuously engage with our supply chain partners on a wide range
of matters including health and safety, project performance and spend,
pipeline of upcoming work, development plans and feedback via meetings,
working groups and collaborative workshops. We will commence monthly
environmental health and safety awards to incentivise exemplary behaviour
on sites in 2022. As part of our enhanced supplier engagement programme,
we conducted two surveys of our supply chain partners on sustainability and
reputational matters during the year.
All our supply chain partners sign up to our standardised processes and
procedures covering site set up, health & safety, environmental requirements,
procurement and valuation processes, and logistics, planning and
coordination. Our most economically advantageous tender (MEAT) process
enables us to ensure our supply chain partners are aligned with our health
and safety and quality requirements, and our sustainability goals.
Monthly updates are provided to the board by the CEO on health and
safety KPIs, procurement matters and sites progress. The environmental and
social responsibility (ESR) committee also updated the board on its activities
twice during the year.
Glenveagh’s management team undertakes a comprehensive programme
of investor meetings, particularly following the release of annual and half
year results and trading updates. During 2021, the management team held
over 217 investor meetings and participated at six investor and industry
conferences. Glenveagh also communicates with shareholders via published
material including results releases, presentations, press releases and at the
annual general meeting and extraordinary general meeting.
The board and committee chairs and the company secretary also engage
directly with shareholders, when necessary, on specific topics, and where
relevant, provide feedback to the directors. During 2021, the remuneration
committee chair consulted with Glenveagh’s large shareholders on the
proposed changes to the executive remuneration policy. The company
secretary also engaged with shareholders on the migration of the central
securities depository.
Monthly updates are provided to the board by the management team
on Glenveagh’s investor relations activities. Investor feedback is provided
as available, to ensure that all directors are aware of, and have a clear
understanding of, the views of major shareholders.
What are the key areas
of interest?
Matters of importance to
our supply chain partners
include the need for
visibility of future projects
and workloads, delivery
of an energy-efficient and
low carbon supply chain,
prompt payment of invoices,
ensuring safety practices
and business conduct are
not impacted by Covid-19
and the impact of global
supply chain challenges
on the availability and cost
of materials.
Matters of importance
to shareholders included
the impact of Covid-19 on
Glenveagh’s performance
and outlook, the impact of
global inflation on operating
costs, the need for progress
updates on the long-term
targets of the business,
the rationale for the share
buyback programme, an
increased focus on ESG
matters and the board’s
composition and diversity.
What are the outcomes?
How do we engage?
The board ensured that as part of Glenveagh’s Brexit
planning and response to Covid-19, contingency
supply arrangements were put in place to limit any
potential disruption in output. The board approved
the purchase of a manufacturing facility in Carlow,
where plans to manufacture will commence in 2023.
The information gathered as part of the supply
chain sustainability survey will be used to further
inform the development of Glenveagh’s approach to
sustainability. See pages 38 to 67 for more detail.
Read more on page 56
Shareholders were kept fully informed of the Group’s
performance and the measures being taken to
protect employees, visitors to our sites and the wider
community as a result of Covid-19. Shareholders’
views were considered by the board on the share
buyback programme and by the remuneration
committee in determining the proposed changes to
the executive remuneration policy. Further detail of
the remuneration policy review is available in the
remuneration report on page 91.
Read more on page 84
Customers
Communities
Government
and regulators
We engage with our customers through our redeveloped customer website,
which provides advice and tips on each step of the home buying journey
together with a best-in-class digital home viewing platform. We also update
our buyers from the time of purchase through automated site updates and
the latest news within their communities. Our customer care department is
also available to provide support throughout the customer journey and we
conduct monthly customer satisfaction surveys and bi-annual brand surveys
to obtain customer feedback.
In 2021, the Maynooth University carried out a comparison of the home
buying journey at Glenveagh with other home builders and the second-hand
home buying experience, and identified areas of improvements.
At Glenveagh, we play a vital role in building sustainable, lasting and
thriving communities. By adopting a multi-disciplinary approach, involving
our acquisitions, sales, planning and design teams, we identify the needs
of local community groups and in partnership with local authorities, decide
on the best way to meet these needs. Engagements with local authorities
is via one-to-one meetings and workshops, while engagements with local
community groups is via town hall meetings and consultation events which
are facilitated by our community engagement officer. We also keep local
communities informed of the progress on sites via published material on the
Glenveagh website and social media.
We engage with government departments, State agencies and local
authorities on an ongoing basis directly or through membership of trade
associations. We also attend and contribute to webinars and policy
consultation events. Our environmental health and safety teams work closely
with state agencies via health and safety and environmental audits, and
our planning teams engage with local authorities through the planning
application process.
We engage with local authorities on housing partnerships via the
e-tendering process.
Monthly updates are provided to the board by the CEO on planning,
environmental health and safety matters and engagements with government
and regulators.
What are the key areas
of interest?
Matters of importance to
our customers include the
need for regular, consistent
communication in the home
buying process, the ability
to conduct a remote home
buying journey, clarity
on moving dates, greater
location and community
information, and the
quality and affordability of
the house.
Matters of importance to
communities include the
need to be responsive to
the views of local people,
the efficient use of land
and sustainable place
making, the protection of
biodiversity, investment
in local infrastructure,
restoration of listed and
protected features and
support for community
groups and charities.
Planning policies, building
and environmental
regulations, health and
safety matters, social and
community issues, home
affordability, economic
policy to underpin a
sustainable housebuilding
industry in Ireland.
What are the outcomes?
In October 2021, we launched our national brand
campaign which focused on our community values
ensuring that Glenveagh is at the top of the minds of
all home buyers in the future.
Following on from the findings and recommendations
made by Maynooth University on the customer
journey, the executive management approved
the establishment of an after sales customer care
department which provides a central platform for our
buyers to register any queries they have after the sale
of their property has closed.
Read more on page 40
A community engagement strategy, including the
‘Building Lasting Communities’ initiative, was launched
in May 2021. Further details of our community
activities are outlined in our sustainability pillars on
pages 38 to 57.
Glenveagh completed a behaviours and attitudes
survey in 2021 and plans to incorporate the findings
into the proposed development at our Hollystown site.
Read more on page 50
The board provides feedback to executive
management on government policies and regulations
to ensure that their views and insights into all aspects
of the industry are fed into policymakers, enabling
them to make informed policy decisions on the future
of the industry.
The board approved partnership with Dublin City
Council and Fingal County Council on Partnerships in
Oscar Traynor Road and Ballymastone. The purpose
of these partnerships is that the developments will
significantly enhance the place making of Coolock
and Donabate.
Read more on page 32
26
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Stakeholder engagement
27
Our sustainable
business model
Inputs for value creation
Talented and dedicated people
Talented and motivated employees with the expertise and
dedication to deliver our commitment to expand access
to home ownership and create flourishing communities.
A strategic landbank
A landbank focused on starter-homes and the private
rental sector with affordability and value for money
at its core. Our landbank was acquired at attractive
rates in the context of both cost per site and site
cost as a percentage of net development value.
Strong relationships
A recognised and trusted partner, we have built strong
relationships with our partners, communities, suppliers
and customers.
A strong financial position
Financial capital underpinned by a strong balance sheet
and forward sales; rigorous investment appraisal process.
A trusted brand
An established and trusted brand built on a
customer-focused and high quality approach.
Disciplined
investment
across target
segments
Our strategic
priorities
Drive fair
returns for
shareholders
Customer-
centric focus
Sustainably
scale our
delivery
capability
Our
sustainability
pillars
Putting customers at the
heart of what we do
Attracting, inspiring and
investing in people
Keeping people safe
Creating sustainable
homes and communities
Environmentally considerate
and efficient operations
Sustainable and
responsible sourcing
Value created
Customers and communities
A seamless customer journey, high quality homes and
developments designed to promote people’s health,
happiness, and wellbeing. Our customer satisfaction score
in 2021 was 89%.
Employees
We create a great place to work, where the health,
safety and wellbeing of our people is central. We aim to
attract and retain the best talent through growth and
development opportunities.
Society
High quality housing built in a way that minimises the
impact on the environment, including using land in the
most efficient way, driving down waste, reducing emissions
during construction and delivering A-rated energy-efficient
homes across all our developments, while contributing
to economic growth at local and national level.
Shareholders
The creation of the leading Irish homebuilder focused on
growth and capital optimisation to drive a fair return for
shareholders. Completions and revenue growth of 36% and
68% versus 2019. Return on equity target of 15% by 2024.
Suppliers and subcontractors
Meaningful long-term relationships with suppliers and
subcontractors who meet our high standards increasing
quality while minimising cost price inflation.
28
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our sustainable business model
29
Our strategic
priorities
Disciplined
investment
across target
segments
Customer-
centric focus
Sustainably
scale our
delivery
capability
Our strategic
priorities
Drive fair
returns for
shareholders
30
30
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Business model and organisational structure
Glenveagh is focused on strategically located developments
across Ireland with a focus on the Greater Dublin Area (GDA)
and Cork. We provide homes for our private, institutional and
State customers via three business segments – Suburban,
Urban and Partnerships. We operate as a single business,
capitalising on scale advantages and investing sustainably
across each segment to deliver a fair return on capital.
Each business segment benefits from our proven delivery
platform and industry leading central resources.
These central resources span the entire process outside
of construction delivery. Our single underwriting team is
complemented by centralised sustainability, planning and
design, manufacturing, procurement, construction management
and corporate functions.
Disciplined investment across target segments
We have assembled a starter home and affordable private
rental sector (PRS) focused landbank with affordability and
value for money at its core. Our landbank was acquired at
attractive rates in the context of both cost per site and site cost
as a percentage of net development value (NDV).
Glenveagh is positioned to deliver housing to the deepest
segments of the market with 96% of Suburban units on
forthcoming developments priced at €450k or less. With an
average site size of 238 units coupled with a focus on starter
homes, the portfolio is monetisable in the current regulatory
and market environment within a short time frame.
Our valuable Urban sites allow us to capitalise on the large
quantum of capital currently seeking to access the Urban PRS
opportunity in Ireland. Our Urban sites include high density
apartments focused on sustainable rental locations primarily in
Dublin City and Cork City.
Our Partnerships segment will enable the business to continue
to provide much needed housing without tying up significant
amounts of capital in land. In 2021, we proved the Partnerships
model in Ireland and were successful on two tenders which will
deliver over 2,050 units.
Further opportunities continue to exist to make accretive land
acquisitions which target the most attractive starter home
markets in the strongest locations. Once acquired these
acquisitions will contribute to the achievement of delivery
targets in the near term and help achieve our target returns in
future periods.
2,000
In 2021, we proved the
Partnerships model in Ireland
and were successful on two
tenders which will deliver
over 2,000 units.
Our business segments - key characteristics
Suburban Urban Partnerships
Product
Houses and low-rise
apartments
Apartments
End-Market
Private/institutions
Institutions
Houses and
apartments
Private/State/
institutions
Locations
Exit
Ireland
Traditional/
forward sale (FS)
Dublin/Cork City
Ireland
FS/forward
fund (FF)
State/traditional/
FF/FS
Investing across three segments to optimise return on capital
Attractive development portfolio designed to deliver on our strategy
3% Dublin Docklands
75%
GDA focused14
96%
Starter-homes15
64%
Suburban14
40%
Dublin (ex Docklands)
63%
Selling price <€350k
64%
Suburban
30%
Optionality in
suburban portfolio15
60%
Suburban Private
32%
GDA (ex Dublin)
13%
Cork
12%
Other
4%>€450k
8%
€400k -
€450k
25%
€350k - €400k
36%
Urban
30%
Optionality for
Government support
initiatives
10%
Part V
Attractive portfolio delivering homes to underserved segments of the market
14 By units 15 Suburban portfolio, <€450k
Strategic report: Our strategic priorities
31
Customer-centric focus
Our approach to innovation, planning and design is geared
towards bringing home ownership within reach of a broader
range of people and addressing the undersupply of affordable
quality housing in Urban and Suburban areas.
Quality homes in flourishing communities should be within
reach of everyone. This is a founding principle of Glenveagh
and it governs everything we do. In order to deliver on our
promise, we are focused on ensuring that our homes are
affordable for first time buyers and families, that the customer
journey is as seamless as possible, and that our build quality
and customer service are second to none.
Retail customer focus
Our retail customer service offering is built around three core
customer promises: access, quality and innovation:
•
Access – building where our customers want to live at a
price that is affordable.
• Quality is a promise we do not compromise on. Energy-
efficient homes designed for how people want to live.
•
Innovate – to achieve access and quality for our
customers we will continue to innovate relentlessly in how
we plan, design and build - bringing new ideas home.
This approach is driving our customer service reputation.
Institutional customer focus
Institutional customers are a feature of the multi family
apartment market that we believe is here to stay. These
institutions choose Glenveagh not only because we are
one of the few companies delivering product targeted at
affordable rents in strong sustainable locations, but because
we have a track record of delivering, which offers certainty to
organisations who are considering an investment in one of
our developments.
These features have established Glenveagh as the partner of
choice within the industry.
Suburban product is primarily housing with some low rise apartments with demand
coming from private buyers and institutions. This means affordable, high quality
homes in locations of choice at €450,000 or below. Glenveagh has an overwhelming
GDA focus in our portfolio, however the product is required nationally. Suburban
sees private and institutional demand for our product via traditional and forward
sale structures.
Urban product consists of apartments to be delivered to institutions primarily in
Dublin and Cork but also on sites adjacent to significant rail transportation hubs.
Demand in this segment is being driven by the shift to rental by millennials and
lifestyles, and the exodus of private landlords due to fiscal policy and regulation who
are being replaced by institutional investors.
Urban offers significant attractions from a risk and return on capital perspective
given the opportunities that exist to forward fund these developments. This provides
longer term earnings visibility due to early commitment from a forward sale or
forward fund transaction.
Partnerships are critical to the business over the long-term. A partnership typically
involves the Government or local authority or State agency contributing their land
on a reduced cost or phased basis into a development agreement with Glenveagh. It
has a reduced risk from a sales perspective where approximately 50% of the product
will be delivered back to the government or local authority for social and affordable
homes. This will derisk the Glenveagh market exposure and provide:
•
•
•
•
strong Return on Capital Employed (ROCE)
increased business resilience
reduced risk
access to both land and deliveries for our Suburban and Urban segments.
The Partnerships segment is going to take the most time to come to fruition but it is
the one where we are investing significant time and effort given our skillset and the
attractions of the segment from a ROCE perspective.
Sustainably scaling our delivery capabilities
We are now actively constructing from 16 sites which are
expected to deliver our 2022 unit guidance of 1,400 units.
In order to achieve Glenveagh’s medium-term construction
objectives, our key priorities have been to:
•
•
•
•
Develop our low rise and high rise capabilities
Standardise our processes and end-products
Invest in off-site manufacturing
Innovate and utilise technology across our business.
Develop low rise and high rise capabilities
Our central resources have allowed our construction operations
to focus on opening sites and controlling the build programme.
This delivery of our developments is now aligned to our target
markets and reflects the different skill sets involved in delivering
Suburban and Urban product.
For Suburban delivery we now have dedicated teams for site
openings – the most challenging part of any development.
These delivery teams are organised into clusters by region to
maximise efficiencies but also to help train, retain and promote
our construction talent in a structured and deliberate manner.
We recognised early that Urban apartment delivery is a
specialised segment. Our highly experienced Urban delivery
team delivered a large number of apartments in 2021
across multiple schemes and is well positioned to deliver
the forthcoming Urban developments in a timely and cost
effective manner.
Standardisation of processes and production
Our construction methodologies are built around a
standardised process to deliver high quality sustainable homes
as efficiently as possible. This approach has allowed Glenveagh
to build sustainably at volume across our active sites and
deliver on our multi site strategy.
Supporting this approach is our centralised procurement team
that has established strong relationships with suppliers and
subcontractors enabling us to enter into comparatively attractive
contracts for key labour and materials thereby allowing us to
manage our exposure to construction cost inflation.
Operational Review
Controlling Our Cost Base
Soil Recovery Facility
✓ Purchased in 2018
✓ Fully operational in 2021
✓ Strategically located in GDA
✓ Mitigate the increasing cost of soil
disposal from sites
✓ Ability to generate revenue
✓ Second soil recovery facility
Timber Frame Factory
✓ Guaranteed supply in line with growth targets
✓ Likely to produce in excess of 650 units in
2021
✓ Greater importance in light of the timber price
pressures in H1
✓ Ability to mitigate against these price
increases
✓ Second timber frame facility
Utilising our scale with attractive offering
✓ 20 active construction sites
✓ Target of 3,000+ units
✓ Long term supply contracts
✓ 12-18 month line of sight for subcontractors
✓ Volume rebates with suppliers
✓ Consolidation of packages/tenders
Offsite manufacturing
Glenveagh continues to invest in more efficient and cost
effective construction techniques. Completed initiatives include
the optimisation of our processes and finished product, in
addition to adopting modern building practices, including
utilising panelised and modular manufacturing systems.
Our manufacturing strategy involves a mix of long-term
supply agreements and self manufacture aligned to the
innovation, expertise and integration required to deliver
sustainable, cost effective solutions for our on-site operations.
In order to enhance our off-site panelised construction
solutions and guarantee long-term supply, we have invested
early in supply chain integration. To date, this has included
investment in two strategically located manufacturing facilities
in Dundalk and Carlow.
22
The open book supply agreement and the factory investment
by Glenveagh in Dundalk has facilitated the delivery of 700
timber frame units onto our sites in 2021. To complement the
current volume, we have invested in a second manufacturing
facility in Carlow. Combined, these initiatives deliver over
2,000 units per annum across a variety of off-site panelised
construction methodologies. In addition to improving
construction schedules, facilitating product innovation, and
delivering cost benefits, these facilities will give our team
greater ability to influence the pace of de-carbonisation
required to meet our climate obligations.
Separately, our first quarry for the offsite disposal of inert
material continues to be operational further derisking the costs
associated with groundworks on site. During 2021, 348,482
tonnes of inert material were recovered at the site16. During
2021, we invested in a second soil recovery site which can
accommodate 400,000 cubic meters and is expected to be
operational from Q2 2022.
700
Timber frame units
delivered via supply
chain partnership
Partnering with our supply chain
CPI Controlled At 5% On Tenders In The Period Impacting Deliveries In 2022
In order to further enhance Glenveagh’s off-site manufacturing
solutions, we entered into an exclusive multi-year open book
supply agreement with Keenan Timber Frame (KTF) in 2020.
In conjunction with the agreement, we purchased a production
facility in a strategic location close to our active Suburban North
construction sites. This manufacturing facility which is operated
by KTF, became operational in H1 2020 and delivered over 700
timber frame kits in 2021.
Attractions for Glenveagh
•
Guaranteed long-term supply in line with growth targets
•
•
•
700 units produced in 2021 with the potential to grow this
further in 2022
Ability to mitigate against price increases
Partnering with a highly capable management team with
significant manufacturing experience and a demonstrable
track record
In 2021, we purchased a second strategically located off-site
panelised manufacturing facility, close to our Suburban South
sites which will begin production in 2023 across a number of
methodologies. Ultimately both facilities will provide over 2,000
kits per annum when operating at full capacity.
32
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our strategic priorities
33
16 Until June 2021, material moved to Bay Lane under Fingal Waste Permit (217,882 tones) and under Article
27 of the European Communities (Waste Directive) Regulations thereafter (130,600 tones)
Sustainably scaling our delivery capabilities continued
Technology
Along with a stable and sustainable supply chain, technology is
an asset that we are utilising to facilitate our continued growth.
The aim is to utilise technology to connect construction across
our sites and the rest of the business.
Our ability and motivation to invest in technology early
ensures we have a stable platform for growth and helps deliver
transparency and control throughout our projects. Examples
of this include drone scans, document management and a
mobile field app. This helps ensure that collaboration, cost
management, quality control and health and safety are all
managed effectively.
Our ambition at Glenveagh is to be innovators and leaders.
Technology allows us to create a collaborative environment
where the whole business is connected. One of the challenges
within our business is how best we can connect sites to our
head office. To facilitate coordination, we use an online
platform that is accessible to everyone in the business. We
use multiple modules across the platform such as document
control, health and safety, tendering, supplier packages and
workflows. Our field app allows us to inspect, observe, identify
and report any positive or negative corrective actions.
Drone scans and videos are used to record and communicate
on this platform with all parts of the business. This offers the
ability to predict constraints and reprogramme construction
work, which derisks the entire process and greatly improves
coordination. Utilising our drone technology, 3D scans are used
in our earthworks modelling software which allows us to value
engineer and manage our civil engineering projects at an early
stage before we open a site.
Optimise capital employed to drive fair returns for shareholders
We remain disciplined in our approach to the allocation of
capital with the overriding objective of enhancing shareholder
value. Our capital allocation framework prioritises:
• Working capital investment across Suburban, Urban
and Partnerships.
•
•
•
Investment in organisational and supply chain
capabilities.
The replacement of land to ensure we maintain a five year
landbank capable of delivering 3,000 units per annum
where we are targeting an ROE of 15%.
Furthermore, we believe that the opportunities beyond
3,000 units per annum are significant and will ensure that
we have the resources to deliver on that objective, as
well as the ability to invest in the next phase of growth.
In doing so, we will maintain a strong balance sheet with
prudent leverage not exceeding 15% of net assets.
We continue to make good progress in our drive to optimise
capital use within the business including:
•
•
•
•
Investing €72.4 million in land opportunities for
approximately 2,700 units in 2021.
Adding 2,050 units to our Partnerships business.
Adding our second timber frame and soil recovery
facilities.
Investing in work-in-progress through the opening of
new sites.
As a result of strong operational delivery and our continued
reduction of net investment in land, in line with stated targets,
Glenveagh ended the period with net cash of €20.8 million.
Having met all of our capital allocation investment priorities,
we returned €107.5 million to shareholders in 2021.
2,700
Investing approximately €72.4
million in land opportunities for
approximately 2,700 units in 2021
Belin Woods
Newbridge, Co. Kildare
Capital efficient land utilisation
€710m
€668m
€659m
14,500
14,500
€619m
14,000
16,600
€642m
16,800
€563m
13,350
June 19 Dec 19 June 20 Dec 20 June 21 Dec 21
Landbank value
Landbank units
Silver Banks
Stamullen, Co. Meath
Our ambition at Glenveagh is to be
innovators and leaders. Technology
allows us to create a collaborative
environment where the whole
business is connected.
34
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our strategic priorities
35
Our landbank
Balanced Greater Dublin Area (GDA) focused portfolio
11
Key
Active suburban
Future suburban
Active urban
Future urban
Future partnerships
Completed sites
Motorway network
Rail network
23
1
22
13
24
8
9
49
5
31
42
38
20
3
27
53
2
19
35
30
4
18
15
16
7
12
14
51
26
48
52
39
45
41
43
50
54
33
40
32
25
36
17
29
37
10
21
47
28
46
6
34
44
Site schedule
Active suburban
Selling from
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Baker’s Hall
Barnhall Meadows
Barn Oaks
Belin Woods
Bellingsmore
Blackrock Villas
Castleland Park
Riversend
Ledwill Park
Mount Woods
Oldbridge Manor
Ravens Mill
Ruxton Oaks
Semple Woods
Silver Banks
Taylor Hill
The Hawthorns
Walkers Gate
2022
2020
2022
2020
2020
2019
2022
2022
2019
2019
2020
2022
2020
2019
2020
2018
2021
2022
Future suburan
Blessington
Brownsbarn
Castleredmond
Clonmagadden
Cluain Adain
Cois Glaisín
Cornamaddy
Donabate East
Dunboyne
Ennis
Grange Castle
Great Connell Abbey
Hollystown
Keatingstown
Killruddery
Maple Woods
Millennium Park
Mullingar
The Paddocks
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Active urban
Selling from
Barn Oaks - Apartments
Castleforbes
Marina Village
The Collection
2022
2021
2019
2021
Future urban
Carpenterstown
Cluain Mhuire
Cork Docklands
East Road
Eden
Galway
Howth
Parson Street
Tallaght
Future partnerships
Ballymastone
Oscar Traynor Road
Completed sites
Holsteiner Park
Dargan Hall
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
Landbank highlights
16,800
75%
64%
96%
Total units
GDA focused17
Suburban18
Starter homes19
Split by units
64%
Suburban
Urban
Partnerships
24%
12%
17 By value 18 By units 19 Suburban portfolio
36
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our landbank
37
Our
sustainability
pillars
Our approach
Glenveagh’s ambition is to set a new benchmark in our
sector by delivering the maximum possible social benefit
at the lowest possible environmental cost. We have set up
the structures and have commenced our journey towards
delivering on this commitment. Last year, we published our
first sustainability report and we set out our approach to
sustainability which is built around six pillars.
These pillars are informed by our material topics and
are sense checked as part of our ongoing stakeholder
engagement throughout the year (see pages 25 to 27 for
more information on how stakeholder engagement informs
our strategy and decisions).
We are committed to embedding sustainability throughout our
business, integrating it into everything we do, while supporting
our strategic priorities. Management of each topic is integrated
into “business as usual” operations through commitments, KPIs,
governance, accountability, and risk management processes
and structures. The following pages detail the progress we are
making against our various commitments.
We are committed to embedding
sustainability throughout
our business, integrating it into
everything we do, while
supporting our strategic priorities.
Our
sustainability
pillars
Putting customers at the
heart of what we do
Attracting, inspiring and
investing in people
Keeping people safe
Creating sustainable
homes and communities
Environmentally considerate
and efficient operations
Sustainable and
responsible sourcing
Supporting the UN Sustainable Development Goals
During 2021, we carried out an assessment of the alignment
of Glenveagh’s strategy to the UN Sustainable Development
Goals (SDGs), including understanding which SDGs are
relevant to each aspect of our value chain. We have now
mapped the most relevant SDGs to our six sustainability
pillars and will examine in more detail how we can contribute
towards the specific targets and indicators under each of the
relevant goals in 2022.
Ratings
Rating: A-
As at: 2 November 2021 *
ESG Risk Rating 19.3
(Low ESG Risk) As at: 21
September 2021 **
For our up to date information on our ESG Ratings, visit https://glenveagh.ie/corporate/sustainability
Awards and certifications
Developing our sustainability roadmap and path to
net zero
Building on the strong foundation that we have set, we plan to
review our overall approach to sustainability in 2022. We will
engage with our key stakeholders through a revised materiality
assessment, and we will use this to inform a longer-term
roadmap including commitments and targets. A key focus in
2022 will be the development of our approach to transitioning
to net zero, which we will publish during the year.
ISO 14001 acheived
in May 2021.
ISO 45001 achieved
in May 2021.
(cid:31)(cid:31)(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:25)(cid:24)(cid:30)(cid:26)(cid:23)(cid:29)(cid:28)(cid:31)(cid:27)(cid:22)(cid:30)(cid:26)(cid:29)(cid:25)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)(cid:31)
Certified to Safe-T Cert
Grade A status for third
year running.
Innovation
Read about our new
high-density housing
solution in Hollystown
Page 51
Certified as a Great
Place to Work 2022.
NISO Construction
Housebuilding Award
second year in a row.
Investors in Diversity Silver
mark, awarded by the Irish
Centre for Diversity.
Disclaimer
* The use by Glenveagh Properties PLC of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service
marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of entity Glenveagh Properties PLC by MSCI.
MSCI services and data are the property of MSCI or its information providers and are provided ‘as-is’ and without warranty. MSCI names and logos are
trademarks or service marks of MSCI.
** Copyright ©2022 Sustainalytics. All rights reserved. This report contains information developed by Sustainalytics (www.sustainalytics.com). Such information
and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not
constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a
particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers.
38
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our sustainability pillars
39
Putting customers at the heart of what we do
Objective:
Create a seamless customer journey, while always adapting to the changing needs of our customers, and ensure the highest levels of build quality.
Our commitments and targets
Key
achieved
on track
off-track
Access and affordability
Build quality
Customer service and satisfaction
Commitments
Continue to deliver housing linked to
local affordability
Continue to provide high quality homes that exceed
customer expectations
Put customers first, continually striving for excellent
service throughout the customer journey
Targets
• Maintain group core ASP below
GDA and Cork new homes
market ASP
•
•
•
Achieve ISO 9001:2015 certification
by 2022
•
Achieve customer satisfaction rating in
excess of 89% by 2022
Implement integrated site QMS on
all projects by 2022
Conduct over 2,000 internal quality
inspections by the end of 2021
Progress
Access and affordability
Ireland is in a housing crisis and needs upwards of 33,00020
homes a year to keep pace with the demand. This year, the
country has only delivered 20,433 homes, which is 38% below
the minimum requirement. Moreover, 2021 has been marked
by significant price increases, primarily in the second hand
market. Lack of supply and rising construction costs have led
to increasing costs for our customer base.
In Glenveagh, our focus is on getting supply into the system
as quickly as possible with a target of building 3,000 homes
a year.
20 Ireland’s Housing For All Plan
21 Source: The Residential Property Price Register
40
Glenveagh Properties PLC Annual Report and Accounts 2021
Median new homes prices (including VAT)
400k
€390k
Furthermore, we are relentlessly focusing on affordability of
our homes with 69% of all core units delivered in 2021 being
priced below the median price of new homes sold in the GDA
and Cork.21
€347k
350k
300k
New homes market 2021
(GDA and Cork)
Glenveagh Core 2021
Our focus is on getting
supply into the system
as quickly as possible
with a target of building
3,000 homes a year.
We are confident that the
business will continue to
play an important part in
addressing one of the
key social challenges of
recent decades.
Supporting Government initiatives
In 2021, the Irish Government introduced multiple measures
aimed at supporting much needed housing supply.
Of note is the intention to introduce a shared equity scheme
where the State will come onboard and take up to a 20% stake
in the homes of first-time buyers subject to regional price caps.
Glenveagh has an established suburban land portfolio aimed
at the more affordable end of the market with 74% of our
overall portfolio qualifying for the scheme.
The cost rental scheme is another important Government
initiative, whereby Approved Housing Bodies (AHBs) purchase
cost rental units from the private market to be rented out at
least 25% below open market rates. To date, Glenveagh has
delivered two of the State’s first ever cost rental transactions in
Taylor Hill and Barnhall Meadows.
In 2021, the Group delivered 302 units (33% of our suburban
units) as part of social and affordable Government supported
initiatives including Part V and the cost rental scheme.
We are confident that the business will continue to play an
important part in addressing one of the key social challenges of
recent decades.
1,150
Units sold in 2021
Cost rental homes in Barnhall Meadows
56 properties located in our Barnhall Meadows development in Leixlip, Co Kildare
were launched through the cost rental scheme by Clúid Housing in October
2021. These houses will be leased at sub-market rates starting at €900 a month,
approximately 45% below market rates22.
22 Source: Clúid Housing
Strategic report: Our sustainability pillars
41
1
Culture
Leadership
driving a quality
first approach
to all aspects of
construction and
suburban delivery.
2
3
4
5
6
7
Roles and
responsibilities
Clear roles
and defined
responsibilities at
both group and
project level.
Customer
satisfaction
Evaluating
workmanship
through our QMS
to ensure the
highest levels
of quality are
achieved.
Delivering high
quality homes and
maintaining the
Glenveagh brand.
Improvements
Robust reporting,
analysis and KPIs.
Trend analysis:
site, subcontractor
and management
performance.
Improved competencies,
improved training
& development and
processes.
Greater communication
and meeting.
Technology
Utilising existing
technology.
Common data set for
use across various
departments.
Ease of use with
real time updates.
Mobile and user
friendly.
Exportable reports to
enable analysis and KPI.
Changes
control
Changes request
controls and
approval processes.
Understanding
changes impact.
Communicating
change.
Change traceability.
ISO 9001:2015
On a path
to achieving
ISO 9001:2015
certification.
Quality first approach
Build quality
Glenveagh is dedicated to delivering high quality homes
across all our developments. We believe quality should be
at the forefront of everything we do; with the workmanship,
materials and products we use assisting in achieving a high
level of quality and ensuring customer satisfaction. Our quality
first approach sets out the framework we use to drive action
in this area. To ensure consistent quality standards across all
of our sites, we have developed a robust construction quality
management system (QMS). Throughout 2021, we progressed
with the roll out of this on all newly commenced construction
projects and phases, with 81% of our sites now operating under
QMS (2020: 50%). This forms part of our broader commitment
to achieve ISO 9001: 2015 certification in 2022.
Dedicated training and role specific responsibilities under the
QMS are in place, to enable us to work towards improving
our product efficiencies, improve the quality of workmanship,
whilst reducing rework. Quality responsibility matrices and
inspection plans are now in place for all projects which
commenced in 2021.
Furthermore, we have continued to strengthen our quality
culture among subcontractors and professional teams. This has
been supported by the integration of our major subcontractors
into our QMS, monthly quality bulletins, quality site audits and
attendance by quality team members at weekly site meetings.
Quality targets are set and reviewed by the business annually.
The targets relate: to the high grade finish across all our
homes, consistency across sites, improvements in efficiencies
and reduced rework. Quality performance is presented at senior
management meetings monthly.
Customer service and satisfaction
At Glenveagh, we have established the leading home buying
platform in Ireland, by providing a best in class journey
for our customers. To inform our approach and ensure we
continue to meet our customers’ expectations, we track our
customer satisfaction score through an externally facilitated
customer service survey. We capture feedback on design,
build quality, the snagging process, and their overall
engagement process including our sales teams, sales agents,
and customer care department.
Feedback from the survey is reported at board level. We also
incorporate the survey data and feedback into monthly reporting
to relevant departments to inform decision making. In response
to customer feedback, we made several enhancements to our
customer journey during 2021. We launched the first phase of
our new customer website allowing customers to view homes
long before they are built. We enriched the customer experience
by providing an immersive digital viewing experience using the
latest CGI technology. We also introduced development specific
updates, so customers can be kept up to date when it matters
most including construction updates, moving in advice and local
community news.
We have developed strategic partnerships with several
providers, including electricity, broadband and appliances, to
support the smooth transition of our customers into their new
homes and reduce the stress points associated with this.
We also established a dedicated customer care department in
2021 to support and assist our customers on any matters that
arise following the completion of the home sale.
In recognition of the importance of customer satisfaction, in
2021, 20% of the executive and senior team bonus was linked to
customer service survey responses.
Customer satisfaction
‘Would you recommend Glenveagh to a friend?’
82%
83%
89%
We established a
dedicated customer
care department in
2021, to support and
assist our customers on
any matters that arise
following the completion
of the home sale.
2019
2020
2021
89%
of customers said they would
recommend Glenveagh to a
friend in 2021
Material issues
KPIs
Relevant SDGs
Affordable housing
Build quality
Customer service/satisfaction
€308K
Core ASP
81%
of sites with
integrated QMS
89%
Customer satisfaction
rating
42
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our sustainability pillars
43
Attracting, inspiring and investing in people
Objective: Be an employer of choice, attract and retain the best people by investing in their development and success.
Our commitments and targets
Key
achieved
on track
off-track
Employee engagement and wellbeing
Training and development
Diversity and inclusion
Commitments
Demonstrate commitment to improving the
wellbeing of our workforce
Aim to be the industry destination of choice for
graduate, trainee and apprentice recruitment
Create an inclusive workplace that promotes diversity and
ensures equal pay
Improve employee communication
and engagement
Ensure we have appropriate development
programmes to further encourage promotion and
career development
Become a more accessible employer for employees
with disabilities
Targets
•
•
Aim to achieve 82% or above in
the employee satisfaction survey
in 2021
Aim to reduce employee turnover
rate to 10%
•
•
•
Invest in at least 13 hours of
training per salaried employee
in 2021
Continue graduate intake and
completion of supporting
programme
Align career mapping with
departmental strategy and
development plans for all
Promote ethnicity in the workplace
• Maintain female employees
percentage above industry average
•
•
Recruit at least 30% females
amongst new college recruits in a
given year
Continue to drive and ensure equal
pay for equal work
Progress
Employee engagement and wellbeing
Improving engagement and communication
Having an engaged workforce is fundamental to the success of
our business especially as we continue to grow. Improving our
communication with colleagues has been a key aspect of our
approach to this. The nature of our business, with colleagues
dispersed between site and office presents challenges in this
respect. The Covid-19 pandemic has added to these challenges
given the large proportion of colleagues who have worked
remotely. Throughout 2021, we have sought to address these
challenges head on and have focused on creating meaningful
engagement opportunities with our colleagues.
A targeted and structured internal communications strategy
was rolled out. As part of this, we implemented a dedicated
employee communications platform, quarterly all staff town
halls and our Great Place to Work (GPTW) committee also
regularly seeks ideas from colleagues around improvements in
the workplace. We measure our employee engagement and
satisfaction levels annually through our participation in the
Trust Index employee survey conducted by GPTW. This year,
we have achieved an overall score of 72% and we will use the
insight gathered from the survey to evolve our approach in
2022. We are delighted to have been awarded certification
from GPTW in 2022.
We also monitor our employee turnover rate, which this year
reduced to 10%.
We are committed to
creating a learning
and growth culture
that creates real
engagement and trust
with our people.
Average training hours (excluding Health &
Safety) per salaried employee
16
11
7
2019
2020
2021
Enhancing wellbeing
The wellbeing of our colleagues is vital for an engaged and
productive workforce, which in turn contributes significantly
to the continued success of our business. We know that the
pandemic has placed additional challenges on people’s
wellbeing, in particular mental wellbeing. We continued to build
on our existing physical wellbeing programme throughout 2021
with monthly initiatives including virtual physical exercise events
and informative talks. We have also invested in supporting
the mental wellbeing of our colleagues with mental health
first aiders now trained and the continued promotion of
our employee assistance programme (EAP). In 2022, we will
continue to evolve our wellbeing programme and will set up a
wellbeing working group to coordinate this.
We have also agreed new flexible working arrangements
to provide office based employees with greater flexibility
regarding their place of work and working hours.
programme is an extensive, multi faceted development journey
for the Glenveagh senior leadership team (SLT). It focuses
on stretching and strengthening the leadership mindset
and capability of each member of the SLT, as well as the
collaboration and structure of the leadership team as a whole.
The development and training of employees
During 2021, Glenveagh delivered approximately 3,919 training
hours to employees. This translates to 16 hours per employee
per annum, which is a 44% increase from 11 hours last year.
As part of our talent management approach, we have focused
on our performance development programme this year to align
career paths with the company strategy and growth plans.
Development programmes are now addressed at annual and
mid year performance development review meetings between
employees and their line managers.
Training and development
We are committed to creating a learning and growth culture
that creates real engagement and trust with our people and is
aligned with our business objectives and values.
We also successfully held a careers week for colleagues in
September where we launched a new Glenveagh traineeship
programme and promoted our referral programme, internal
mobility opportunities, enhanced education supports and
career progression opportunities.
Developing our leaders
In 2021, we launched a senior leadership development
programme. This is an ambitious growth programme which
focuses on continuing to build a high performing senior
leadership team that can continue to deliver results in a
demanding, constantly evolving operating environment. This
Our graduate and placement programmes
With the ongoing challenge that the construction sector is
facing regarding skills shortages and the ageing demographic,
attracting and retaining graduates and school leavers in our
workforce, is now more essential than ever for the sustainable
growth of the company. In 2021, 24 people joined our graduate
programme across the business including in the areas of
planning, construction management and environmental health
and safety.
Our second and third level student placement programmes
provide ongoing training to participants to encourage their
possible return as graduates in 2022.
We will focus on developing graduates and students through
the organisation building their careers and developing growth
pathways.
44
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our sustainability pillars
45
Glenveagh’s gender breakdown in 2021
9%
27%
25%
25%
91%
73%
75%
75%
Industry average All employees Executive committee members Board members
Male
Female
We also commenced using a diversity monitoring tool on our
recruitment database to help us better understand the profile of
our applicants. This included getting a better understanding of
the proportion of people from different ethnicities and people
with disabilities who are applying for roles.
Inclusive leadership training was also delivered to the senior
leadership team by the Irish Centre for Diversity and all
hiring managers have received training in unconscious bias
interviewing skills.
Our efforts to date have been recognised by the achievement
of Investors in Diversity Silver mark, awarded by the Irish Centre
for Diversity. It is Ireland’s only equality, diversity and inclusion
(EDI) mark for Irish businesses.
Attracting and
supporting a diverse
workforce and
ensuring a culture of
inclusion will help us
to attract and retain
the best talent to grow
our business.
Diversity and inclusion
We know that attracting and supporting a diverse workforce and
ensuring a culture of inclusion will help us to attract and retain the
best talent to grow our business. Our commitment to this is set out
in our diversity and inclusion (D&I) policy. In 2021, a D&I steering
group was formed to develop a comprehensive strategy which will
focus on the following areas:
•
•
•
Better representation – to ensure our workforce is reflective
of the society/communities in which we operate.
An inclusive environment – where everyone feels safe
and included.
Embedding D&I in our value chain - using our influence and
voice to promote and drive D&I among our supply chain, in
our community engagement and through our sponsorship
and communications.
This approach was informed by insights from an survey of
Glenveagh’s employees by the Irish Centre for Diversity, our Great
Place to Work annual survey, data from the diversity monitoring tool
on our recruitment database as well as the evolving regulatory and
stakeholder expectations in this area.
Female representation
Female representation is a key challenge in the construction
sector. While our overall share of female employees has
increased to 27% (current industry average: 9%23), we recognise
that representation at senior level and among site roles is
more challenging. Throughout 2021, we worked on a number
of initiatives to address this including attracting females to the
industry from grassroots level and a strong emphasis on attracting
and recruiting females to senior roles. We also achieved our target
to recruit at least 30% female graduates in 2021.
Promoting inclusivity
During 2021, we made several changes, in particular to our
recruitment process, to promote inclusivity. These included new
and updated policies, communicating clearly the interview process
to support candidates who may need additional resources to
prepare for interview and the inclusion of hybrid working on all
job relevant advertisements.
23 Source: CSO - average share of female in construction at Q4 2021
46
Glenveagh Properties PLC Annual Report and Accounts 2021
Material issues
KPIs
Relevant SDGs
Employee engagement
and wellbeing
Diversity and inclusion
Training and development
72%
Employee
satisfaction score
10%
Employee turnover
16
Hours of training per
salaried employee
(excluding health
& safety)
27%
Females in
workforce
30%
Percentage of females
recruited on graduate
programmes in 2021
Strategic report: Our sustainability pillars
47
Keeping people safe
Objective: Ensure our operations are safe for all those employed and affected by what we do.
Our commitments and targets
Key
achieved
on track
off-track
Culture, policies and processes
H&S training and awareness
General H&S performance
Commitments
Strive to ensure the highest standards of health
and safety across our workforce and sites
Continue to raise health and safety awareness amongst
our directly employed and supply chain workforce
Maintain group health and safety total recordable
incident rate (TRIR)
Targets
•
•
Proportion of sites with
independent audits to be 20%
Achieve ISO45001 certification
by the end of Q2 2021
• Maintain Grade A in Safe T Cert
•
Increase training hours and
participation per employee
• Maintain low group health and
safety total recordable incident
rate (TRIR)
Progress
Culture, policies and processes
The health and safety of our people is our number one priority
and we work relentlessly to promote a safety first culture to
protect our people.
– Grade A during the year. Both certifications demonstrate our
commitment to the continual improvement of employee safety,
reducing workplace risks and creating better, safer working
conditions for our employees, subcontractors and all who we
interact with.
Our key aim is that our colleagues, subcontractors, suppliers
and visitors come into work and go home safely. We are
focused on creating a culture of safety and we believe that this
starts by setting the right tone at the top. Health & Safety (H&S)
continues to be one of the first items on our board’s agenda,
with reports included in monthly board packs. To reinforce the
importance of H&S, 20% of the bonus for the executive and
senior leadership team was linked to overall H&S performance.
Internal and external audits
In 2021, our audit score increased to 89% (2020: 88%). Auditing
our performance is a critical element of our H&S approach
to ensure we incorporate continuous improvement. Our H&S
audits are carried out monthly on each active site. The audit
document covers 138 individual items, which track our compliance
with the safety management system, statutory regulations,
physical conditions on site, as well as employee and contractor
behaviours in relation to safety.
Safety Management System
During 2021, we achieved our goal of ISO 45001 Occupational
Health and Safety accreditation. H&S is managed under this
management system which covers all business activities, with
specific plans for each site. We also maintained our Safe T Cert
All active sites were independently audited at least once in
2021, ensuring our target to have at least 20% of overall audits
carried out via independent inspectors was met. This external
assessment is important to continually test that our internal
procedures are robust and fit for purpose.
48
Glenveagh Properties PLC Annual Report and Accounts 2021
Award winning health and safety team
For the second year in a row, Glenveagh was delighted
to be awarded the NISO Construction Housebuilding
Award for 2021. This was a great result for everybody in
the organisation and reflects all the work we put into
maintaining and improving our safety standards.
Investing in technology
We believe that integrating appropriate technology into
our H&S management processes will increase the accuracy
of collected data, ensure greater awareness, and minimise
incidents of non-compliance.
We are transitioning our monthly audits to an online app that
we have developed with our software provider. This will allow
for easier identification of trends following the monthly audits
and enable the leadership team to put a plan in place to
address these challenges, as well as monitor progress.
H&S training and awareness
Continuous training and awareness are fundamental to
improving the H&S competency of all Glenveagh employees
especially those on site. All staff undergo various levels of H&S
training, supplemented by regular workshops and briefings.
In 2021, we also developed and rolled out awareness videos
in relation to lift management and excavation safety. Going
forward we will focus on scaffold management, working at
heights, and plant and pedestrians.
We continued the roll out of the Institute of Occupational
Safety and Health (IOSH) ‘Managing Safely in Construction’
certification with 16 site based personnel having completed this
in 2021.
In support of the industry’s collective commitment to this
agenda, we participated in the Construction Industry
Federation’s (CIF) annual safety week, raising awareness
through our internal and external communications channels.
Finally, to promote broader wellbeing we invested in training
several mental health first aiders. H&S training hours per
employee have increased from 6 hours in 2020 to 11 hours in 2021.
Working with subcontractors
Our ISO 45001 safety management system also ensures
a rigorous approach to H&S for our subcontractors. All
subcontractors’ staff are required to have Safe Pass and Manual
Handling training and be 100% compliant. This is tracked
through our TAG System.
All subcontractors go through our vetting procedure prior to
being put on our approved suppliers list and must have a
competent supervisor on site, whose responsibilities are set out
by our safety team member.
General H&S performance
We monitor all major and reportable injuries, as well as lost
time involving direct employees, subcontractors, and other
member of the public.
Our Total Recordable Incident Rate (TRIR) has reduced from
2.43 in 2020 to 2.38 in 2021.
Total recordable incident rate (TRIR)24
2.43
2.38
2020
2021
Material issues
EHS culture, policies and
processes
EHS training and awareness
General H&S performance
KPIs
89%
H&S audit score (%)
11
2.38
Number H&S training
hours per all employees
Total Recordable Incident
Rate (TRIR)
Relevant SDGs
24 Reportable incidents in Ireland are absences for more than 3 days not including the day of injury
Strategic report: Our sustainability pillars
49
Creating sustainable homes and communities
Objective: Deliver high quality homes with low environmental impact where people can live a sustainable life.
Our commitments and targets
Key
achieved
on track
off-track
Sustainable
communities
Sustainable and
energy-efficient homes
Land use and
biodiversity
Community
engagement
Commitments
Exceed local authority development
standards
Design and build homes with reduced
carbon emissions over their lifetime
Maximise efficiency of land use on our
developments
Continually invest in communities
adding value to the lives of residents
and the wider community
Provide quality private and public open
spaces for our customers
Promote biodiversity of our developments
and connect communities with nature
Targets
•
•
Ensure all our
developments are
designed based on
consumer needs and
latent needs
Incorporate quality
landscaping in public
open spaces and
quality private open
space on all our
scheme designs
•
•
Research options
for reducing lifetime
carbon emissions of
homes
Continue reducing
carbon emissions
over time measured
by BER Ratings
•
•
•
Bring our new innovative
own door high density
housing solution to
planning lodgement
Introduce landscaping
techniques that promote
biodiversity and support
natural habitat
Retain existing hedgerows
where possible in our
developments
•
•
•
Create a best
practice hub to
enrich our community
engagement activities
Launch our building
lasting communities
initiative
Develop a social
barometer and
sentiment survey to
measure success
Progress
Sustainable Communities
Community is at the heart of what we do, and we aim to
play a vital role in building sustainable, lasting and thriving
communities across Ireland. We adopt a multi disciplinary
approach, involving our Acquisitions, Sales, Planning and
Design Teams, to identify and understand the needs of the local
community. In partnership with the local authorities, we decide
on the best way to meet these needs ensuring that our schemes
promote social, environmental and economic sustainability, as
well as the wellbeing of future residents.
Our developments are designed with connection to existing
transport and other amenities in mind. We build on this by
incorporating new sustainable infrastructure and amenities
into our schemes e.g. Electric vehicle (EV) charging points,
cycle lanes, playgrounds and natural play areas. We also
take care to ensure that our developments reflect the local
built environment and that existing structures are restored or
protected where possible.
Our research with potential customers has demonstrated a
preference for an environment that is conducive to regular
interaction with neighbours in a variety of ways, quality outdoor
space, a space that can double as a workspace and social
space, reliable broadband, energy-efficiency and affordability.
We aim to incorporate these into our scheme designs e.g. in
our new own door high density scheme in Hollystown, which
commenced construction in early 2022.
Sustainable and energy-efficient homes
Customer interest in sustainability has grown considerably in
recent years particularly among first-time buyers. Designing
and building energy-efficient homes has always been a key
objective for Glenveagh. Our aim is to create homes that
enhance the wellbeing of our customers, whilst reducing the
operational and embodied carbon of the build.
Operational energy-efficiency of our products is measured using
mandatory energy performance certificates – Building Energy
Rating (BER). A typical home with a BER of A2 is classified as a
Nearly Zero Energy Building (NZEB) and requires approx. 25 to
50 kilowatt-hours per square metre of its floor area per year to
operate (kWh/m2/year).
From 2018 to 2021, we have decreased the operational energy
requirements of our homes by 18% from an average of 55 to 45
kWh/m2/year. This has resulted in an increase in the proportion
of our homes which are A2 rated. In 2021, A2 rated homes
represented 82% of the total, while we estimate that 50% of
our homes will be A1 rated in 2022. Further improvements
will be achieved through our continuous focus on design,
insulation measures, quality of materials and implementation of
renewable technologies.
A growing proportion of our houses are timber frame and
manufactured off-site making it easier to meet and exceed
energy standards and reduce waste during construction. In
2021, houses constructed using off-site manufacturing methods
represented 77% of units sold.
Finally we have continued to investigate other options for
reducing lifetime carbon emissions of homes. This year we
commenced several trial projects utilising various methodologies
such as the Insulated Concrete Formwork and Light Gauge Steel.
We continue to evolve the way we deliver our homes. Going
forward, this will be significantly influenced by our pathway
towards net zero, which we will outline in 2022.
Glenveagh BER evolution (2019, 2020, 2021, 2022E)
62%
28%
18%
50%
38%
72%
82%
50%
2019
2020
2021
2022E
A1
A2
A3
High density scheme
at Hollystown
Our new high density housing solution in Hollystown
satisfies a new future proofed sustainable planning
policy maximising density to achieve sustainable land
use. The goal is to produce high quality homes that
blend to create cohesive neighbourhoods without
the need to build apartments which have limited
demand from owner occupiers. We have taken a
holistic approach with the intention of finding the
right balance between higher density, quality living
environments and creating a keen sense of place.
All of the housing typologies are ‘own door’ and will
cater for the whole community including starter-homes,
family homes as well as homes for older people. A key
aspect is the flexibility within the unit design which
allows for adaptability throughout its lifetime including
the option to consolidate a car parking space into
the building or private garden area. Clever design
promotes amalgamation of indoor and outdoor living.
Higher quality and more useable private open space
via a series of spaces such as courtyards and upper
external terraces are a key feature. The development
facilitates and promotes a community environment
with pedestrian priority streetscapes which create
a safer environment for all ages. Critical to this
innovation is the balance of homes that are of high
quality, aesthetically pleasing, affordable to build,
whilst still being affordable for the consumer.
Construction has commenced and we expect the
first units will be available for occupancy later
this year.
Detailed ecological
studies are completed
for each development to
guide our design process.
Land use and biodiversity
We understand the huge pressures facing biodiversity globally
and locally and yet the significant benefits that it can bring
were brought to the fore during the Covid-19 pandemic. We are
committed to reducing the impact that our operations have on
biodiversity as well as enhancing it as a key aspect of building
sustainable communities.
In 2021, we reviewed our approach to biodiversity under the
headings of 1. people and biodiversity, 2. biodiversity in
the built environment and 3. protection, conservation, and
restoration of existing priority habitats. We mapped our
current initiatives and explored the opportunities for additional
activities in these areas. During 2022, we will publish a
comprehensive biodiversity plan setting out our commitments
and targets on this important agenda.
In the meantime, we have continued our detailed ecological
studies for each development and have increased the number
of recommendations we incorporate into the design and layout
of the development proposals to further preserve biodiversity.
These include reestablishing and retaining existing wildlife
corridors and augmenting with suitable tree and native
hedgerow planting, establishing green roofs on apartments,
incorporating Sustainable Drainage Systems (SuDS) which can
provide shelter, food and foraging and breeding opportunities
for a variety of wildlife species and encouraging wildflowers to
aid pollinators.
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Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our sustainability pillars
51
Community Engagement
In June 2021, we launched our ‘Building Lasting Communities’
programme to invest in the local communities where we build
and across Ireland. We focus our investment in improving the
lives of our residents, and the lives of the wider community.
Through this programme we focus on six community pillars:
sustainability, education, health & wellbeing, local economy,
sports & fitness, and charity.
Community activities have taken place at schools, sports clubs
and local businesses across twelve developments since the
programme was launched. Each agreed activity is assessed
against a matrix to ensure alignment with key aims and
objectives for community based activity with tactical plans
devised for each development. These have included providing
equipment to Tidy Towns groups, sponsorship of jerseys for local
GAA teams and the provision of AED units.
To understand the impact that this work is having, we are
developing a social barometer and a sentiment survey. Survey
work is currently being undertaken based on our activities,
which will form the basis of our social value barometer.
In 2021, we contributed just under €129k through our community
engagement programme and donations to charitable
causes including our national partners ALONE, the Jack &
Jill Foundation and the National College of Ireland’s Early
Learning Initiative educational programme. In addition, our
colleagues raised €18.7k for charitable causes through events
and initiatives organised by Glenveagh.
Ledwill Park
Community day
Community day at
Ledwill Park
In September 2021, we organised a biodiversity
themed community day involving local
businesses, sports clubs and community
partners at our Ledwill Park development in
Kilcock, Co. Kildare. Over 130 local residents
took part in wildflower seed planting
on designated biodiversity zones in the
development together with our biodiversity
partners. Other community partners were also
present on the day. The event served to build
community spirit, provided a platform for local
businesses and groups, and raised awareness
of the importance of biodiversity in the area.
Material issues
KPIs
Relevant SDGs
Energy-efficient buildings
Sustainable placemaking
Land use and biodiversity
Social value and community
82%
homes with A2 rating
€128.6k
Donations to charities/local
communities
€18.7k
Employee
fundraising
52
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our sustainability pillars
53
Environmentally considerate and efficient operations
Objective:
Focus on excellence and innovation across all aspects of construction to increase build efficiency while minimising environmental impact.
Our commitments and targets
Key
achieved
on track
off-track
Commitments
Targets
Environmental training,
awareness and culture
management
Improve environmental awareness
and knowledge of the entire
workforce
Emissions from our
operations
Waste and resource use
Innovation
Achieve continuous reduction in
carbon footprint from our operations
Achieve continuous reduction in waste
intensity and increase waste
reuse/recycling rate
Continue to invest in offsite
construction techniques
Reduce the carbon
intensity of our
construction operations
and offices by 25% by
2025 (2020 baseline)
•
•
•
Achieve ISO 14001 by end
of Q2 2021
•
100% of employees to
receive environmental
awareness training in
2022
100% of site managers
to complete energy
efficiency training in 2022
Reduced use of generators
Through our initial emissions reduction roadmap, we identified
that a considerable proportion of our scope 1 and 2 emissions
could be avoided through transitioning construction sites
from generators to the electrical grid as quickly as possible.
During 2021, we have transitioned three additional sites
to electric power, with 67% of our active sites now having
electricity powered facilities. Despite the challenges arranging
grid connections to some newer sites, our dedicated services
department has made significant progress delivering utility
connections earlier to the business. The number of sites with
utility connections secured in advance of construction has
increased from 3% in 2018 to 92% in 2021.
Transport
In 2021, we started to implement our strategy to move towards
EV usage within the business. In total, 16 diesel vehicles
were replaced with EVs and 24% of our fleet is now electric.
Additional vehicles will be replaced in line with lease renewals.
EV charging infrastructure has been installed at relevant
colleagues’ homes and EV charging infrastructure across the
country is facilitated using charge cards.
Flexible working policies and technologies, which were fast
tracked in light of the Covid-19 pandemic, have reduced
the requirement for commuting and business travel and the
emissions associated with this. In a survey on returning to the
office, most staff indicated a wish to retain a level of flexibility
in our working model. Following this, a hybrid working model
was implemented allowing colleagues to work from home
for a number of days per week depending on job type,
seniority, seasonality, individual performance and the level of
collaboration required for particular roles.
Offsite manufacturing
We continue to invest in more efficient construction
techniques such as utilising off site timber frame and
modular manufacturing systems which produce less emissions
than more traditional methods and result in less waste. To
enhance Glenveagh’s timber frame construction solutions and
guarantee long-term supply, Glenveagh has entered into an
exclusive multi-year open book supply agreement with KTF
in our Dundalk facility. The open book supply agreement
and the factory investment by Glenveagh has facilitated the
manufacture of 700 timber frame units in 2021. To complement
the current volume, we have invested in an additional
manufacturing facility in Carlow and have also lodged planning
for the expansion of the existing facility in Dundalk. Combined,
these initiatives will deliver over 2,000 panelised manufactured
units per annum.
Additional initiatives
In addition to the initiatives outlined above, we have also
piloted the use of solar lights in our site in Stamullen and we
have standardised our set-up for all sites to enable increased
efficiency of energy and materials.
Waste and resource use
We continue to monitor and measure our waste. In 2021, our
construction waste intensity per 100sqm of delivered units was
4.9 tonnes (2020: 4.2), and no collected waste went to landfill.
We recognise the opportunity to introduce more circularity into
our processes and in 2021 participated in a circular economy
pilot project. We will explore this further at an organisational
level in 2022 and we will work with our supply chain to reduce
our construction waste intensity and to ensure we support the
principles of a circular economy throughout the lifecycles of the
projects we are involved in.
Our soil recovery capabilities have been augmented with the
addition of our new facility in the Suburban South region
which will complement our existing facility at Bay Lane in the
Suburban North region.
Water and wastewater
We always aim to reduce water use in our operations, and in our
homes, through the use of water efficiency features. We continue
to protect water quality during construction and remediation,
including managing surface water, and reducing flood risk. In
2022, we will commence measurement of water use and will put
in place a more detailed plan for its efficient management.
Circular Economy pilot project
In 2021, we entered a pilot circular economy
scheme on three of our sites, in conjunction with
a number of our suppliers under ‘The CIRCULÉIRE
Innovation Fund 2021’. With recycling rates for
construction related plastic waste very low in
Ireland, the project aims to develop a sustainable
solution and increase recycling rates for a number
of targeted waste products from 15% to 100%.
Central to this is maintaining the value of the
materials by reusing them in products similar or
the same as what they originated as. It is hoped
that the project serves as a catalyst for how
a circular supply chain in the plastic building
products industry can be created.
Progress
At Glenveagh, we are committed to operating to the highest
environmental standards. Climate change, biodiversity loss
and resource scarcity all have the potential to be impacted
by our activities, and in turn pose risks to our business. We
continue to evolve our understanding of these impacts and
develop strategies to manage our risks and take advantage of
opportunities. Central to this will be setting out our pathway
towards net zero which we will develop during 2022.
Environmental training, awareness and culture
management
During 2021, we achieved our goal of ISO 14001 environmental
accreditation. We are committed to continually improving our
environmental performance at every level of the business. This
external certification will help to ensure we measure, monitor
and assess our operations continually. It will also support us
in meeting our compliance obligations and ensuring that our
environmental performance goes beyond legal compliance,
while solidifying responsibility and reporting structure at a
project and site level.
Emissions from our operations
In 2021, we set a target to achieve a 25% reduction in our
direct emissions (scope 1 and 2) intensity by 2025 against a
2020 baseline (tonnes of CO2e per 100 sqm of sold homes).
We have already achieved this through our continued focus
on changes to the areas we identified for emissions reductions
last year. As part of the development of our pathway towards
net zero we will set new carbon emissions targets across
scopes 1, 2 and 3. Please see page 63 for a full breakdown
of our carbon emissions. The following pages provide an
overview of the some of the key initiatives we took in this area
throughout the year.
Material issues
KPIs
Relevant SDGs
Climate change and energy use
Waste and resource use
154
4.9
11
Water usage
Innovation
tCO2e/100sqm
(Scope 1, 2 & 3)
tonnes/100sqm construction
waste intensity
mWh/100sqm operational
energy intensity
54
Glenveagh Properties PLC Annual Report and Accounts 2021
Strategic report: Our sustainability pillars
55
Sustainable and responsible sourcing
Objective: Select suppliers who meet high standards on sustainability issues and build meaningful, long-term relationships with them.
Our commitments and targets
Key
achieved
on track
off-track
Commitments
Engage with our suppliers to drive down emissions in our supply chain (Scope 3)
Promote and improve the efficiency of sustainable procurement across the business
Energy-efficient and low carbon supply chain
Ethical sourcing and human rights
Purchase sustainable materials to reduce embodied carbon in purchased
materials (Scope 3)
Targets
•
•
•
Hold toolbox talks on every active site before Q3 2021
discussing sustainability issues and its importance to
Glenveagh
Carry out a feasibility study for using Irish FSC certified
timber by end of Q4 2021
Commence an engagement programme with our
suppliers on sustainability issues
•
•
All active suppliers to be signed up to Glenveagh’s supplier
code of conduct
Engage with our labour suppliers to ensure they have a
robust process for managing and reducing modern slavery
Progress
Long-term meaningful partnerships with our supply chain
are vital to the success of Glenveagh. Our suppliers are an
integral part of our value chain, with the vast majority of
the people working across our sites being subcontractors.
In addition, a significant element of our carbon emissions
come from the materials we use to build our homes as well
as the fuel and transport associated within our supply chain.
This provides us with both risks and opportunities. We are
committed to working in partnership with our suppliers
to ensure these risks are mitigated and to co-create the
necessary solutions to mutual benefit.
Our centralised and standardised procurement process ensures
a disciplined approach to facilitating supplier compliance
to our sustainability standards, set through our sustainable
procurement policy and the supplier code of conduct.
56
Glenveagh Properties PLC Annual Report and Accounts 2021
Our subcontractors undergo a standardised evaluation
and onboarding process, which includes site set up,
health and safety, environmental requirements, as well as
logistics, planning and coordination. As a result, we can
ensure consistency across sites which helps to achieve our
sustainability targets.
Furthermore, we continue to centrally procure most high
value items which allows us to select materials with lower
environmental impact, whilst ensuring consistent quality.
Energy-efficient and low carbon supply chain
As we map out our pathway towards net zero we are cognisant
of the need to find ways to collaborate with our suppliers to
drive down emissions in our value chain, while mitigating the
physical and transitional impacts of climate change.
Supplier engagement
During 2021, we commenced engagement with our suppliers
in relation to sustainability to help us better understand their
current approach to sustainability as well as their needs and
requirements in this area.
With approximately 800 suppliers in total, around 80 suppliers
account for 80% of the spend. For this reason, we concentrated
on these suppliers in our initial engagement.
We surveyed both our materials and labour suppliers. We
asked for information on their approach to issues such as
greenhouse gas emissions, waste, water, biodiversity, as well as
social aspects of sustainability related to employer wellbeing
and ethical standards for suppliers.
Responses to the survey helped us better understand the
current sustainability practices of our suppliers, as well as
providing some insight for potential collaboration opportunities
on sustainability. On a positive note, many material suppliers
provided insightful information on their sustainability initiatives
which allowed us to identify opportunities for lowering
embodied carbon in our build.
We will use the insights gathered from this initial survey to
further develop our engagement approach with suppliers on
sustainability issues as well as finding solutions to decrease our
scope 3 carbon emissions.
Optimising logistics
Driven by the desire to increase cost efficiency, reduce the need
for storage and ensure materials are delivered at the appropriate
time for our contractor to use, we established a new logistics
function within our procurement department in 2021. This further
optimised the overall number of deliveries onto site.
Before construction begins, a site plan is developed with
material suppliers for each unit type. Every day, materials are
packaged for each trade so that when they arrive on site, the
correct quantities of materials needed for the day ahead are at
the right locations. This saves time, drives energy efficiencies,
and reduces waste.
Irish timber
In 2021, we carried out a feasibility study into the use of native
Irish timber in timber frame kits. The study has recognised that,
despite challenges around its broad use certain components can
be manufactured successfully using native Irish timber. In light of
this, we hosted a range of Irish sawmills in Dundalk with a view
to getting a commitment for supply in the future.
Ethical sourcing and human rights
We expect all of our suppliers to align with our high standard
on safety, quality, ethics, human rights and the environment.
These standards are set out in our sustainable procurement
policy and our supplier code of conduct. During 2021, we
commenced the process of signing up all active suppliers to
our sustainable procurement policy and the supplier code
of conduct. For labour suppliers, adherence to these policies
is now included as part of the pre-qualification, tender, and
contract documents. The polices were also provided to all
material suppliers and will be included in all contracts from
2022. We will also work to sign up all other suppliers, outside
of construction.
We expect all of our
suppliers to align with
our high standard on
safety, quality, ethics,
human rights and the
environment.
Material issues
KPIs
Relevant SDGs
Managing our supply chain
Energy-efficient and low carbon
supply chain
Ethical sourcing and human rights
700
100%
timber framed units manufactured
timber framed units with FSC or
PEFC certification
Strategic report: Our sustainability pillars
57
Task Force on Climate-related Financial Disclosures (TCFD)
We know that climate change presents both risks and
opportunities to our business and we are committed to
continually evolving our understanding of these, putting in
place strategies to mitigate the risks while taking advantage
of the opportunities to the benefit of our business and our
customers. Climate change is considered an emerging risk
within the organisation and this will be kept under review as
this agenda evolves.
We support the recommendations of the Financial Stability
Board’s (FSB) Task Force on Climate-related Financial
Disclosures (TCFD) and acknowledge its central role in
forthcoming reporting regulation and standards.
In 2021, we were proud to support the Irish TCFD campaign
led by Sustainable Finance Ireland in the lead up to COP
26 in Glasgow and we look forward to continuing to work
together with other Irish businesses on this agenda through this
collective approach. We also continue to participate in CDP
and were delighted to be recognised with an A-rating in 2021 in
recognition of our increased disclosure.
Planned actions for 2022
•
•
Training for board directors and management
on climate change
Review of terms of reference to further embed
climate change and sustainability into governance
Strategy
Taking action on climate change is a key aspect of our
overall approach to sustainability. It is embedded in three of
our six sustainability pillars i.e. creating sustainable homes
and communities, environmentally considerate and efficient
operations and sustainable and responsible sourcing. The
commitments, targets and initiatives set out in each of these
pillars aim to address our key climate risks and opportunities.
These are set out in the table on pages 58 and 59. In 2022, we
will publish our longer-term approach to climate change and
pathway towards net zero.
In 2022, we will set out our strategy with respect to climate
change and our pathway towards net zero.
The following provides an overview of how we are currently
implementing the recommendations of TCFD and we aim to
evolve this further over the coming years.
Planned actions for 2022
•
•
Publication of strategy setting out
Glenveagh’s pathway towards net zero
Commence scenario analysis
Key climate risks
Timeline
Response
Transition risks
Current and emerging regulation at national
and EU level to reduce carbon emissions
and increase reporting may place additional
requirements on the group both from a
buildings standard and disclosure point
of view.
Short-term
Medium-term
Short-term
Physical risks
An increase in extreme weather events and
permanent changes in weather patterns
including high winds, floods and prolonged
days with heavy rain could increase
operating costs through construction delays,
supply chain disruption, damage to existing
materials and products in stock, shorter
working days, reduced productivity and
higher health and safety risks.
We continually monitor related policy developments.
We now install EV infrastructure on all of our suburban
housing units.
All houses and apartments delivered by Glenveagh from
November 2020 have a BER rating of at least A2.
As part of our land acquisition process all our sites are
screened for their potential exposure to flooding.
Health and safety systems and procedures are in place
to manage risks from extreme weather.
Increased adoption of offsite manufacturing which
provides resilience against extreme weather events.
Key climate opportunities
Timeline
Response
Governance
In line with our governance of the overall sustainability agenda,
Glenveagh’s board has ultimate responsibility and oversight
of climate change and receives regular updates throughout
the year. It is supported in this by two board committees
namely the environmental and social responsibility committee
(ESR), which is responsible for developing and monitoring our
approach to sustainability (including climate change) and the
audit and risk committee (ARC) which has responsibility with
respect to climate risks and opportunities. Climate change is
considered an emerging risk within the organisation.
Since 1 January 2022, the executive committee, led by the
CEO, has overall executive responsibility for sustainability and
climate change which will be a regular agenda item. For further
information on our overall sustainability governance, please see
page 60.
58
Glenveagh Properties PLC Annual Report and Accounts 2021
Taking action on climate
change is a key aspect of
our overall approach to
sustainability.
Increased revenues resulting from increased
demand for homes that are low carbon
Medium- term
Resource efficiency in our operations leading
to financial savings
Medium- term
Designing and building energy-efficient homes that
go beyond regulatory compliance is a key objective
for Glenveagh. This has included heat pumps being
installed as a standard in the majority of our new starter
homes, increased insultation and the use of renewable
technologies. This has resulted in the increase in BER
across our developments.
We have set out an emissions reduction roadmap to
achieve our current target of 25% reduction in our
direct emissions intensity by 2025 against our 2020
baseline. Initiatives include the use of renewable energy,
decreased use of generators, off-site construction and
the optimisation of logistics.
Short-term: 0 – 3 years;
Medium-term: 3 – 10 years;
Long-term: 10+ years
Risk management
Glenveagh’s approach to identifying, assessing, and managing
climate-related risks and opportunities is integrated into the
company’s overall risk management framework. Glenveagh’s
risk management process is a bottom-up integrated approach
that aims to ensure that all risks to which the business is
exposed are identified, understood and appropriate mitigating
controls are implemented to manage the risks effectively and
protect Glenveagh. At an asset level, all our sites are screened
for their ecological attributes, proximity to sensitive habitats,
and areas of significant biodiversity value, and flood risk. At
an organisation wide level, active collaboration with external
experts and all business units are utilised to ensure accurate
identification of climate related risks and opportunities. This
includes upstream and downstream activities.
Appropriate risks and opportunities that are considered to
have substantive strategic, operational, and financial impacts
are recorded in our sustainability risk and opportunities
register, which forms a part of the Glenveagh risk register.
The sustainability risk and opportunities register is updated by
members of the sustainability team who provide inputs that
are also based on suggestions from department heads, which
ensures more accurate identification of climate-related risks
and opportunities. Risks and opportunities are identified for the
short-term through to the long-term.
Risks are assessed in terms of their level of impact and
likelihood of occurrence, which produces a gross risk rating.
Risk ratings are considered when deciding the appropriate
allocation of management effort. Thereafter, controls are
applied to mitigate corresponding risks and determine a
net risk rating. Effectiveness of the corresponding control
contributes towards a lower net risk rating. Climate related
opportunities follow a similar approach in terms of allocation of
management effort, however, other benefits such as customer
satisfaction, brand reputation, benefits to local communities
and the environment are also taken into account. The audit
and risk committee is responsible for reviewing the adequacy
and effectiveness of Glenveagh’s internal controls and risk
management process. The board formally reviews and approves
the risk register on at least a bi-annual basis.
Risk and opportunity management is embedded in the day-
to-day activities of the business through aligned commitments,
benchmarks, and KPIs. The responsibilities for managing risks
and implementing opportunities are allocated to appropriate
heads of departments.
Planned actions for 2022
•
•
Review our sustainability risks and
opportunities register to further understand
transition and physical risks of climate change
Evolve our methodology to quantify the risks
and opportunities of climate change
Metrics
In 2021, we set a target to achieve a 25% reduction in our direct
emissions (scope 1 and 2) intensity by 2025 against a 2020
baseline (tonnes of CO2e per 100 sqm of completed homes).
This target will be revised as part of our climate strategy in
2022. We use a number of metrics to assess our climate related
risks and opportunities and we intend to further evolve these in
the coming years. Current metrics include:
• Our scope 1, scope 2 and scope 3 greenhouse gas (GHG)
emissions
•
•
•
Proportion of total homes with Building Energy Rating
(BER) of A1 and A2
Average kilowatt hours per sqm per year (kwh/m2/yr)
across all homes delivered
CDP score
These and other sustainability metrics can be found on pages
61 to 63.
Planned actions for 2022
•
•
Set out revised targets as part of our pathway
towards net zero
Improve scope 3 emissions data collection
Strategic report: Our sustainability pillars
59
Sustainability Governance
We recognise that robust governance in vital to embed sustainability
throughout Glenveagh. We have strengthened our governance to
ensure appropriate oversight of sustainability risks, opportunities and
strategy at both board and management level.
Glenveagh’s board has ultimate responsibility and oversight of
sustainability. It receives regular reports throughout the year on this
agenda including progress against targets.
The environmental and social responsibility committee (ESR) was
established in 2021 and is responsible for developing and monitoring
the business’ approach to sustainability. The committee meets four
times per year and provides reports to the main board after every
meeting (see page 110 for a full report of the ESR committee).
The audit and risk committee has responsibility with respect to
sustainability risks and opportunities as part of its wider responsibility
for the risk management of the business.
Since 1 January 2022, the executive committee, led by the CEO,
has overall executive responsibility for sustainability. This will be a
regular agenda item with the committee discussing sustainability
issues, reviewing performance and progress against targets. During
2021, this responsibility rested with a sustainability management
committee comprising the CEO, CFO, chief strategy officer and Head
of Sustainability.
The sustainability team is led by the Head of Sustainability, which was
a new appointment in 2021, indicating the importance that we place
on this agenda. The team is responsible for day to day management
of sustainability, providing a framework within which all parts of the
business can work. The team reports to the chief strategy officer, a
member of the executive committee.
Each of the department heads lead the execution of specific
sustainability commitments through operations, activities
and projects.
Risk management
Sustainability risks have been integrated into Glenveagh’s risk
management framework. Certain sustainability risks in the areas
of quality, health and safety, people, and customer services are
included in our principal risks. Climate change, other environmental
issues and sustainability driven social trends have been identified
as emerging risks. These are recorded and monitored through
Glenveagh’s sustainability risk and opportunity register. Please see
pages 58 and 59 for additional information on our climate change
risks and opportunities.
60
Glenveagh Properties PLC Annual Report and Accounts 2021
Board of directors
The board has ultimate responsibility for sustainability. The main board receives updates on sustainability
four times per year including progress against targets. It is supported by two board committees with
specific responsibility.
ESR committee
This committee is responsible for developing and
monitoring Glenveagh’s approach to sustainability.
The committee meets four times per year.
Audit and risk committee
The audit and risk committee reviews
sustainability risks and opportunities.
Executive committee
The executive committee has ultimate executive responsibility for sustainability. The committee discusses
sutainability issues, reviews performance and progress against targets.
Sustainability team
The sustainability team, which is led by the head of sustainability, is responsible for the day-to-day
management of sustainability, providing a framework within which all parts of the business can work. The
team reports to the chief strategy officer, a member of the executive committee.
Department leads
Lead execution of specific sustainability commitments through operations, activities and projects.
Sustainability KPIs
General
Total units delivered (number)
Active selling communities (number)
Putting
customers at
the heart of
what we do
Attracting,
inspiring and
investing in
people
Affordable homes
Core ASP (€’k)
Proportion of core homes priced below the new market median (%)
First-time buyers (% of private sales)
Customer service
Proportion of customers who would recommend us to a friend (%)
Average number of employees
Average number of salaried employees
Employee engagement and wellbeing
Great Place to Work survey score (%)
Annual employee turnover (%)
Skills, learning and development
Glenveagh’s graduate programme participants (number)
2021
1,150
15
308
69
87
89
329
247
72
10
24
2020
700
16
311
72
82
83
318
206
-
11
12
2019
844
14
321
73
-
82
293
150
68
15
-
Total training hours (excluding H&S training)
3,919
2,266
1,050
Training hours per monthly salaried employee (excluding H&S training)
Diversity
Females in workforce – all employees (%)
Females among new graduates (%)
Ratings
CDP climate change
MSCI
Sustainalytics
16
27
30
A-
AA
11
24
18
B
BBB
19.3
Low risk
23.9
Medium risk
7
28
-
F
BBB
-
Strategic report: Our sustainability pillars
61
Keeping
people safe
Total recordable incident rate (TRIR)
H&S total training hours
H&S training hours per all employees
Average monthly H&S audit compliance score across all sites (%)
Proportion of independent audits (%)25
Creating
sustainable
homes and
communities
Efficient, low carbon homes
Proportion of total homes with Building Energy Rating (BER) of A2 (%)26
Proportion of total homes with Building Energy Rating (BER) of A3 (%)
Average kilowatt hours per sq m per year (kwh/m2/yr) across all homes delivered
Homes incorporating renewable energy (%)
Biodiversity and land use
Biodiversity risks assessed at % of sites
Community engagement and contribution
Donations to charities/local communities (€’k)
Employee fundraising (€’k)
2021
2.38
3,644
11
89
30
82
18
45
94
100
128.6
18.7
2020
2.43
1,932
6
88
20
72
28
46
71
100
N/A
N/A
2019
n.a.
3,225
11
84
38
62
52
100
N/A
N/A
Sustainable
and responsible
sourcing
Energy-efficient and low carbon supply chain
Proportion of off-site manufactured houses as a share of all houses sold (%)
77
85
76
25 Due to the site closures in 2021, the independent auditor rate increased, it will return to 20% in 2022
26 2020 BER ratios were incorrectly stated in 2020 Annual Report & 2020 Sustainability Report. Restated figures for 2020 are included here
27 The assessment of Glenveagh’s GHG emissions footprint has been carried out in line with the principles and guidelines provided by the two relevant GHG protocol standards: GHG Protocol Corporate Accounting and
Reporting Standard (2004), and its supplement GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
The assessment methodology also considers the following sector specific guidance: RICS professional standards and guidance, UK - Whole life carbon assessment for the built environment 1st edition, November 2017
The organisational boundary for Glenveagh’s GHG assessment has been determined on an operational-control basis. The assessment considers the six greenhouse gases covered by the Kyoto and Montreal Protocols:
carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulphur hexafluoride (SF6), perfluorocarbons (PFCs) and hydrofluorocarbons (HFCs). The total footprint is expressed as carbon dioxide equivalent (CO2e)
applying the Global Warming Potential values provided by IPCC (2007).
A third-party verification (ISO 14064-3) was completed for reported emissions. This was carried out by Clearstream Solutions Ltd. A copy of their GHG verification statement is available at ttps://glenveagh.ie/corporate/
Sustainability.
28 2020 emissions data has been restated to improve the accuracy of reporting and to reflect improved methodology in calculation of all categories of emissions reported. This data was not subject to verification.
Environmentally
considerate
and efficient
operations
100sqm of units completed
Greenhouse gas emissions
Scope 1 – combustion of fuel (tCO2e)
Scope 2 – location based (tCO2e)
Scope 2 – market based (tCO2e)
Total scope 1 and 2 (tCO2e)
Location based
Market based
Scope 1 and 2 per 100sqm of completed units (tCO2e/100sqm)
Location based
Market based
Total scope 3 GHG emissions (tCO2e)
Total scope 1, 2 and 3 (tonnes CO2e)
Location based
Market based
Scope 1, 2 and 3 per 100sqm of completed units (tCO2e/100sqm)
Location based
Market based
Scope 3 emissions categories
Waste (tCO2e)
Business travel (tCO2e)
Well-to-tank and T&D losses (tCO2e)
Upstream transportation and distribution (tCO2e)
Employee commute (tCO2e)
Capital goods - construction materials (tCO2e)
Purchased goods and services (tCO2e)
Occupant energy use (over 60 yrs) – regulated (tCO2e)
Occupant energy use (over 60 yrs) – unregulated (tCO2e)
End of life of sold product (tCO2e)
Energy efficiency
Fuel and electricity consumption from sites and offices (mWh)
Operation energy intensity (mWh/100sqm)
Waste management
Construction waste – total (tonnes)
Construction waste per 100sqm build – total (tonnes/100sqm)
Construction waste recycled (%)
Construction waste recovered (%)
202127
1,255
2,821
484
119
3,305
2,940
2.6
2.3
202028
875
2,700
519
247
3,219
2,947
3.7
3.4
190,329
127,392
193,634
193,270
154.3
154.0
120
18
874
4,445
908
66,624
62,874
23,428
24,923
6,116
13,655
11
6,191
4.9
10.2
89.8
130,611
130,339
149.3
149.0
78
17
1,077
2,361
879
42,834
35,470
22,539
17,639
4,498
13,580
16
3,661
4.2
6.1
93.9
2019
961
2,295
192
79
2,487
2,374
2.6
2.5
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,439
10
-
-
-
-
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63
Non-financial information statement
Sustainability Accounting Standards Board disclosures
Our annual report contains a range of non-financial information. A summary of this can be found in the table below.
Reporting requirement
Relevant policies
More information on our impact and risks
Environmental matters
Social and employee matters
- Sustainability policy
- Waste and resources policy
- Climate change policy
- Environmental policy
- Sustainable procurement policy
- Community engagement policy
- Health and safety policy
- Diversity and inclusion policy
- Charitable giving policy
- Customer service policy
Respect for human rights
- Human rights, anti-slavery, and human trafficking policy
- Whistleblowing policy
- Diversity and inclusion policy
Anti-corruption and bribery matters
Business model
Non-financial KPIs
- Vendor code of conduct
- Whistleblowing policy
- Anti-bribery policy
- Environmentally considerate and efficient operations (page 54 and 55)
- Sustainable and responsible sourcing (pages 56 and 57)
- Creating sustainable homes and communities (pages 50 to 52)
- TCFD report (pages 58 and 59)
- Creating sustainable homes and communities (pages 50 to 52)
- Attracting, inspiring and investing in people (pages 44 to 47)
- Keeping people safe (page 48 and 49)
- Sustainable and responsible sourcing (pages 56 and 57)
- Attracting, inspiring and investing in people (pages 44 to 47)
- Attracting, inspiring and investing in people (page 46)
- Corporate governance (page 86)
- Stakeholder engagement (pages 25 to 27)
- Audit and risk committee report (page 90)
Information on our business model can be found on pages 28 and 29
Our non-financial KPIs can be found on page 21
Glenveagh also monitors and reports performance through additional data which can be found on pages 61 to 63
Principal risks
Our principal risks and uncertainties can be found on pages 70 to 79
We have chosen to disclose sustainability topics and
accounting methods in line with the Home Builders
Sustainability Accounting Standard issued by the Sustainability
Accounting Standards Board (SASB).
According to the SASB industry level materiality map, the
following categories are “the most likely material issues
for companies” in the home builders industry. The below
table references accounting metrics within this report and
other sources.
Activity metric
Number of controlled lots
Number of homes delivered
Code
IF-HB-000.A
IF-HB-000.B
Number of active selling communities
IF-HB-000.C
Category
Quantitative
Quantitative
Quantitative
Unit of measure
Number
Number
Number
2021
17,014
1,150
15
2020
14,147
700
16
2019
14,500
844
14
Topic
Code
Accounting metric
Land use and ecological impacts
IF-HB-160a.1
Number of (1) lots and (2) homes delivered on redevelopment sites
IF-HB-160a.2
Number of (1) lots and (2) homes delivered in regions with high or extremely high
baseline water stress
IF-HB-160a.3
IF-HB-160a.4
Total amount of monetary losses as a result of legal proceedings associated with
environmental regulations
Discussion of process to integrate environmental considerations into site selection,
site design, and site development and construction
2021
(1) 3,611
(2) 248
(1) 0
(2) 0
€nil
2020
(1) 4,005
(2) 25
(1) 0
(2) 0
€nil
2019
(1) 3,881
(2) 132
(1) 0
(2) 0
€nil
As part of the land acquisition process all our sites are screened for their
ecological attributes, proximity to sensitive habitats, and areas of significant
biodiversity value. The sites are assessed by competent environmental experts
using the appropriate recognised Irish and EU regulations.
All potential sites are assessed and designed within the context of the national
planning framework, local development standards, local authority development
plans, zoning requirements, and development standards.
In order to manage our environmental performance and minimize ecological
impacts during construction we maintain and continually improve our ISO
14001:2015 environmental management system. We manage our systems and
work activities to facilitate continual improvement and enhance environmental
performance. We also measure our environmental performance and level of
compliance by conducting self-monitoring, regular inspections, audits and reviews.
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Strategic report: Our sustainability pillars
65
Topic
Code
Accounting metric
Workforce health and safety
IF-HB-320a.1
(1) Total recordable incident rate (TRIR) and (2)
fatality rate for (a) direct employees and (b)
contract employees
Accident data includes Glenveagh
employees, contractors, suppliers, and public.
Our data collection process does not segregate
employees from contactors
*Reportable incidents in Ireland are absent for
more than three days not including the day of
injury
2021
(1) 2.38
(2) 0
2020
(1) 2.43
(2) 0
2019
(1) No data
(2) 0
Design for resource efficiency
IF-HB-410a.1
(1) Number of homes that obtained a certified
HERS® index score and (2) average score
(1) 1,150
(2)
Note that the HERS certification standard is not
applicable within the Republic of Ireland
82% of homes were
A2 rated
Information on mandatory energy performance
certificates is provided as an alternative
18% of homes were
A3 rated
Note that ratings range from BER A1 to BER G
(1) 700
(2)
72% of homes were
A2 rated
28% of homes were
A3 rated
(1) 844
(2) DC
38% of homes were
A2 rated
62% of homes were
A3 rated
IF-HB-410a.2
Percentage of installed water fixtures certified to
WaterSense® specifications
Note that WaterSense specifications are not applicable within the Republic of Ireland.
All units in our developments include fixtures that have flow restrictors and aerators or are sized to reduce the water
usage of our homes.
IF-HB-410a.4
Description of risks and opportunities related
to incorporating resource efficiency into home
design, and how benefits are communicated to
customers
Building Control Acts 1990 to 2014, Local Government requirements through planning, and the European Union
Regulations 2014 (SI 426 of 2014) are all integrated into the energy-efficiency of the homes Glenveagh builds. Non-
compliance with these standards implies a substantial number of Group-wide risks.
There are climate-related risks associated with unexpected market outcomes that are included into the sustainability
risk and opportunity register, as they are could have an impact on Glenveagh’s financial and operational
performance. One such risk is related to shifting consumer preferences towards more energy-efficient homes. New
homeowners are becoming more environmentally aware and there is a risk that Glenveagh may lose market share
if the energy-efficiency of our homes does not meet customer expectations. Glenveagh homes are more energy-
efficient than the average house and from November 2020 all our homes are A2 rated or better. The key to us
building to this standard is attention to detail during the design and construction process, which includes improved
insulation measures, airtightness detailing, greater quality of materials used, and the use of renewable technologies
in our homes, such as a heat pump.
Our marketing team communicates these sustainability features to customers at all stages of the purchasing
process, from initial marketing brochures to detailed information upon completion of the home.
Topic
Community impacts of new
developments
Code
IF-HB-410b.1
Accounting metric
2021
2020
2019
Description of how proximity and access to
infrastructure, services, and economic centers
affect site selection and development decisions
At Glenveagh, we consider where the house lives as well as where people live. It is important to us that our
developments reflect the local built environment. Therefore, we take a holistic approach to public infrastructure
understanding the needs and requirements specific to each development with respect to the surrounding
environment, public infrastructure, and amenity. Access to sustainable transport infrastructure – including public
transport, cycle lanes and walking routes – is central to the development process for every scheme.
As part of this process, we engage with public bodies, local communities and local authority policy to ensure we
consider all aspects of infrastructure provision, current and future.
IF-HB-410b.2
Number of (1) lots and (2) homes delivered on
infill sites29
(1) 4,196
(2) 248
IF-HB-410b.3
(1) Number of homes delivered in compact
developments and (2) average density30
(1) 672
(2) 15.8
(1) 3,662
(2) 25
(1) 313
(2) 16.1
(1) 3,848
(2) 132
(1) 309
(2) 19.8
Climate change adaptation
IF-HB-420a.1
Number of lots located in 100-year flood zones
0
0
0
IF-HB-420a.2
Description of climate change risk exposure
analysis, degree of systematic portfolio exposure,
and strategies for mitigating risks
For each risk and opportunity, the register identifies the: description of the risk/opportunity; its potential impact;
the time-horizon; the likely impact it will have and the magnitude of this; as well as control description and its
effectiveness.
Risks and opportunities are ranked on a scale ranging from insignificant risks (1) to catastrophic risks (5). Any given
risk with a score above 3 - ‘moderate’ – is considered to have a substantive financial or strategic impact on the
business which would require greater allocation of management effort.
This is aligned with our approach adapted through the CDP reporting benchmarks. Please see pages 58 and 59 for
our TCFD report.
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Glenveagh Properties PLC Annual Report and Accounts 2021
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67
29 Infill sites defined as those sites that are surrounded by other developments from both sides.
30 Compact developments are defined as those sites with 13 or more units per acre.
Risk management
report
Our approach to risk management
is embedded across all levels and
departments of our business with a focus
on site level risk, to ensure that barriers
to achieving strategic objectives are
identified and mitigated. The board and
senior management set the tone for risk
management in the business through
regular interaction, review and ownership
of key risks.
The board is responsible for ensuring Glenveagh maintains
the appropriate level of risk to achieve its objectives while
also ensuring good corporate governance and prudent risk
management is implemented. The board has approved our
risk management framework which provides a common risk
management process to identify, assess, mitigate, monitor and
report risks which impact the business. Our risk management
process is a bottom-up, integrated approach that aims to
ensure that all risks to which Glenveagh is exposed are
identified, understood and appropriate mitigating controls
are implemented to manage the risks effectively and protect
the business.
As part of its oversight responsibilities, the audit and risk
committee (ARC) is responsible for reviewing the adequacy
and effectiveness of Glenveagh’s internal controls and risk
management process (page 59). Our risk register and principal
risks are a standing agenda item for each ARC meeting.
The risk register is used to support the risk management
process and document risks, controls and their approved
ratings based on likelihood and impact from both an inherent
and residual risk perspective. The risk register is not a static
list, but a dynamic process to ensure risk is managed
and mitigated effectively. The board formally reviews and
approves the risk register on at least a bi-annual basis.
Our risk management framework:
Identify
Report
Assess
Risk
Monitor
Mitigate
The board has identified
environmental concerns and
sustainability driven social
trends as emerging risks. We
have undertaken an analysis of
how we manage sustainability
impacts, in particular those from
climate change, the potential
risks and the key mitigating
considerations. The board
will identify any such risk as
principal risks if significant
in the future. As a supporter
of the Task-force of Climate-
Related Financial Disclosures
and its recommendations, we
have disclosed our approach
to climate risk in the areas
of governance, strategy, risk
management and metrics and
targets on page 58 to 67.
Covid-19
The Covid-19 pandemic has been a focus for the board.
The extensive experience and skill set of the board, senior
management and operational teams, along with that of our
subcontractor base and the resilience of our business model,
has enabled us to weather the impact since its onset. In line
with Government guidelines the majority of our sites remained
operational despite the severity of the lockdown during the year.
The business continues to operate under Covid-19 working
practices and protocols. The wellbeing of our people remains
of paramount importance and we continue to implement all
the necessary steps to maintain the health and welfare of our
employees, our subcontractors and our customers.
Our risk exposure increased in early 2020 following the
commencement of the pandemic with significant uncertainties
across all sectors of the business. The progression of the
vaccination programme and steady removal of restrictions
on the economy in 2021 has enabled our risk exposure
to moderate in the year as the risks associated with the
pandemic continue to reduce. However certain risks will
continue to evolve over time and we will continue to monitor
and respond to these risks in line with public health advice.
The board continues to proactively monitor and address the
impact of transition from the pandemic as it evolves. The
board has reassessed its impact on the principal risks of
the business. An updated risk scoring has been reflected on
completion of this review.
Any changes arising from transitioning to a post pandemic
environment on each risk and the key mitigating
considerations are detailed on pages 71 to 79.
Glenveagh has implemented a three line of defence model.
Line of defence
Function
Responsibilities
First line
Department heads
Risk owners within the business with responsibility for ensuring risk
management is embedded in day to day activities and taking a
proactive approach to risk identification and mitigation.
Second line
Executive committee
Risk monitoring within the business with responsibility for ensuring
policies are implemented throughout the business.
Third line
Internal audit
Risk assurance within the business with responsibility for providing
additional assurance on the effectiveness of risk management and
internal controls to the executive committee and the audit and risk
committee.
Risk management in action
Risk management is embedded in the day to day activities
of the business through aligning key strategic KPIs and
remuneration metrics of executive and senior management
with risk management objectives.
Certain risk management and compliance activities across
Glenveagh are reported monthly to the board and executive
committee, with input received from across the business to
respond to risk in line with the risk management framework.
The board has established an environmental and social
responsibility committee with responsibility for compliance
with the evolving regulatory disclosure landscape and our
key targets in respest of sustainability.
The environmental health and safety (EHS) department
is a dedicated resource whose activities are mainly
focused on risk management throughout the business. The
certification to ISO 14001 environmental management and
ISO 45001 occupational health and safety, led by the EHS
department, demonstrates our commitment to managing our
environmental impact and continued improvement of health
and safety standards in the workplace.
There are a number of corporate office departments whose
activities support EHS and also assist in maintaining a focus
on risk management including information technology,
human resources and internal audit. In addition, third
parties are engaged where necessary to assist and provide
additional assurance in relation to risk management.
A key component of financial risk management is the
executive and senior management led development of
the annual budget and strategy planning, and quarterly
reforecast processes which are used to monitor progress
against plan and assess risk across all existing and
emerging risk categories.
Glenveagh has also invested significantly in technology, site
infrastructure and people to improve our control processes
and systems to respond to the everyday operational
risks that are faced by all companies in our industry. We
purchased our second manufacturing facility in Co. Carlow.
This, coupled with the standardisation of house typologies
and construction methodologies further derisks our medium
and long-term housing delivery targets.
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69
Risk management is
embedded in the day
to day activities of
the business through
aligning key strategic
KPIs and remuneration
metrics of executive and
senior management
with risk management
objectives.
Principal risks and uncertainties
The board has carried out a robust assessment of the
principal risks facing the business. Arising from the risk
management process, principal risks and uncertainties have
been identified which could have a material impact on the
business in achieving our strategic objectives. The board and
ARC have reviewed the principal risks and have considered
the new risks introduced for 2021.
1. Adverse changes to government policy & regulations (operational risk)
2. Availability and increased cost of materials and labour (operational risk)
3. Adverse macroeconomic conditions (external risk)
4. Mortgage availability and affordability (external risk)
5. Impact of Covid-19 (external risk)
6. Inadequate project management (operational risk)
7. Failure to obtain expected planning permission (operational risk)
8. Employee development and retention (operational risk)
9. Data protection and cyber security (operational risk)
10. Insufficient health and safety procedures (operational risk)
11. Decline in product quality (reputational risk)
10
38
24
1
6
11
7
9
5
5
Impact
3
1
1
3
Likelihood
5
Key:
Very high risk
High risk
Table legend: No change to risk rating
Increased risk rating
Decreased risk rating
New risk
Our risk
category
Operational
risk
Risk or uncertainty and
potential impact
1. Adverse changes to
government policy and
regulations
A change in the domestic
political environment and/or
government policy (including
tax legislation, support of the
housebuilding sector, Part V
allowance and first-time buyer
assistance) could adversely
affect Glenveagh’s financial
performance.
Management’s view
Key mitigating considerations
Risk rating
change
The provision of social and affordable housing will remain a
significant political issue into the future until a sustained response
to the supply/demand gap occurs. The current Government has
implemented or committed to policies which provide significant
tailwinds to the construction industry such as:
Glenveagh’s management and board monitor government policy
and political developments on an ongoing basis.
Our site forecasts are conservative by nature and allow for
expected negative changes in government policy and regulation.
• Help to buy (due to expire at the end of 2022)
• New rental tenure scheme (cost rental) and State equity scheme
We have the capability to redesign developments as appropriate
should it be required.
(shared equity) in the Affordable Housing Act 2021
• Introduction of a €500 million subvention fund to assist in the
delivery of urban apartments and five year increase in social
housing stock greater than 50,000
• Introduction of the Land Development Agency Act 2021 and LRD
However, uncertainty exists regarding the formation of any future
government and the potential policy headwinds that this might bring
for the construction industry. Political influence has and can result in
the government quickly enacting changes to legislation and policy as
seen from the stamp duty rate increase on bulk housing purchases.
Further potential changes to legislation in this area could adversely
impact Glenveagh.
Glenveagh will consider alternative sales strategies where
required to align to any changes in the domestic political
environment.
Our landbank assembly is focused on affordability, first-time
buyers, attractive locations and within the parameters of
Government support schemes.
We will continue to develop partnerships with local authorities.
We will continue to engage constructively with trade associations
and the Government.
Changes to zoning rules as a
result of the National Planning
Framework (NPF) could result in
sites being dezoned, rezoned or
phased which would adversely
impact the carrying value of
land, units available within the
delivery matrix and ultimately
diminish Glenveagh’s ability to
achieve financial targets.
Our view is that the NPF’s population growth assumption is inadequate,
and the allocation of zoned units is disproportionately weighted in
favour of cities in Ireland. The resulting impact is that local authorities
will have reduced unit allocations for zoning and therefore will have to
decrease the quantum of zoned land in their jurisdiction. Glenveagh is
therefore at risk of having sites within such jurisdictions:
• Dezoned: the site is no longer zoned residential,
• Rezoned: the sites zoning is changed to a category other than
residential, or
• Phased: the site retains its zoned residential status however the
lands would not be available for release in the short-term.
Glenveagh’s management is prioritising planning lodgements for
sites within our landbank that are in jurisdictions at risk of zoning
reductions.
Glenveagh’s planning department engages in the statutory plan
making process to seek to protect the assets of the business.
As part of the site purchase due diligence, the land acquisition
team is in communication with the planning department to
assess the planning and zoning risk under the NPF for potential
new site acquisitions.
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71
Table legend: No change to risk rating
Increased risk rating
Decreased risk rating
New risk
Table legend: No change to risk rating
Increased risk rating
Decreased risk rating
New risk
Our risk
category
Risk or uncertainty and
potential impact
Operational
risk
2. Availability and increased
cost of materials and labour
Management’s view
Key mitigating considerations
Risk rating
change
Following the full re-opening of residential construction in early 2021,
the industry has faced supply chain shortages and significant cost
increases in materials and labour.
We have fixed cost contracts in place with subcontractors and
suppliers where possible.
Our risk
category
External risk
Risk or uncertainty and
potential impact
3. Adverse macroeconomic
conditions
Shortages or increased costs of
materials and labour could lead
to an increase in construction
costs and delays in home
completions.
There is a risk of shortages in
skilled subcontractors which are
critical to construction operations
and the delivery of units in line
with our delivery matrix.
If Glenveagh is unable to control
its costs or source the requisite
labour, and/or renegotiate
improved terms with suppliers
and contractors, our margins
may reduce which could have an
adverse impact on our business
operations and financial
condition.
The business continues to leverage its purchasing power and scale
to mitigate these price increases. In addition, the supply chain
investment in our timber frame factories and soil recovery facilities
allow the business to shield itself from the full effect of the cost
increases that the wider market is experiencing, generating a
significant competitive advantage.
Our continued investment in supply chain initiatives will be a
significant contributor to managing cost increases. Over the medium
to long-term, modular build and off-site manufacturing are further
mitigants that the business is exploring.
Our size and reputation in the industry ensures strong relationships
with our subcontractor network, mitigating the risk from labour
shortages.
A reduction in typologies through increased standardisation of the
Glenveagh product and construction methodology further derisks the
business from shortages or increased costs of materials and labour.
Increased standardisation brings reduced variation in packages
procured and construction programmes which enhances our
purchasing power and increases Glenveagh’s attractiveness as the
partner of choice for subcontractors and suppliers.
We have the potential to expand our purchasing network should
it be required and are not over reliant on any one customer.
Glenveagh engages in financial planning and continuously
monitors and reviews budgeted versus actual costings.
We continuously evaluate partnerships at a site level with
outsourced labour providers to ensure agreements are in line with
the market rates.
We engage in continuous communications with our subcontractor
network and supply chain to ensure they are aware of our plans
and to reduce the impact of current restrictions and to ensure a
smooth return to normal operations.
We have strong relationships across the construction industry in
Ireland and with our existing and wider subcontractor network.
Our size and reputation in the market remains highly attractive to
subcontractors and suppliers.
Glenveagh operates in a
property market that is cyclical
by nature, which can lead to
volatility of property values and
market conditions.
Geopolitical uncertainty,including
Brexit, can lead to a potential
adverse impact on Glenveagh’s
asset valuations and financial
performance due to factors
such as slowdown in economic
growth, increased interest
rates and decline in consumer
confidence.
External risk
4. Mortgage availability and
affordability
Glenveagh understands that
affordable mortgage finance
is a crucial funding source for
buyers in the residential market
in Ireland.
Constraints on the availability
and costs of mortgage financing
and any adverse impact on this
may have a negative impact on
sales of Glenveagh’s products
due to a potential decline in
customer demand and ultimately
our profitability.
Two mortgage providers have
announced their intention to
withdraw from the Irish market
creating the potential for
reduced competition and delays
in the application process.
Management’s view
Key mitigating considerations
Risk rating
change
Market sentiment and transaction levels can change quickly,
requiring us to adopt a flexible approach to our investment
decisions. Glenveagh’s capital allocation policy allows the flexibility
to reconfigure capital allocations that best fits a particular
economic cycle.
To date, customer confidence remains strong however the medium to
long-term economic impact of the pandemic remains unknown.
We aim to maintain a reasonable but limited stock of land (c. 4-5
years)
We avoid any long-term exposure through strict land acquisition
policies which are reviewed and updated on a regular basis to
meet market sentiment and demand.
We have a robust acquisition policy and approval process in
place to ensure the best value is achieved on assets and that
they are aligned to our strategic objectives.
The Urban and Partnerships segments will assist in reducing the
cyclical nature of the business through the delivery of apartments
and houses for the rental market as well as schemes with local
authorities or other government bodies.
Management and the board actively monitor geopolitical risks
and seek expert industry advice where required.
Mortgage demand remains strong. In 2021, the level of mortgage
approvals in the Republic of Ireland increased by 23.6% from 2020 to
53,335 approvals. 2021 mortgage volumes increased by 22.1% from
2020 to 43,494 drawdowns31. The growth was primarily driven by
first-time buyers which remain the single largest segment by volume
at 54.4%.
Management and the board continuously monitor government
policy around mortgage availability.
We regularly engage with mortgage advisors to gain valuable
insights into the market and the impact of regulatory changes
impacting mortgage lending.
However, mortgage affordability remains a significant issue, with
house prices continuing to rise nationwide. In addition, the potential
for interest rate increases creates additional challenges for first-time
buyers. Competition has increased with the introduction of new
providers into the Irish market in 2021; however the affordability
hurdle remains the biggest challenge for prospective buyers.
We have increased the frequency of cashflow and sales reporting
to facilitate accurate business continuity planning.
We have increased the frequency of executive committee
meetings and board updates to respond to the pandemic, with
Covid-19 being a standing agenda point at all meetings.
Our strategy can facilitate the adjustment of delivery velocity if
required.
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Glenveagh Properties PLC Annual Report and Accounts 2021
31 Source: Banking and Payments Federation Ireland (BPFI)
Strategic report: Risk management report
73
Table legend: No change to risk rating
Increased risk rating
Decreased risk rating
New risk
Table legend: No change to risk rating
Increased risk rating
Decreased risk rating
New risk
Management’s view
Key mitigating considerations
Risk rating
change
Despite the thirteen week Government enforced lockdown at the
commencement of the financial year, Glenveagh demonstrated its
ability to continue trading.
We have increased the frequency of executive committee and
board meetings to respond to the pandemic, with Covid-19 being
a standing agenda point at all meetings.
Our risk
category
Operational
risk
Risk or uncertainty and
potential impact
6. Inadequate project
management
(continued)
Our risk
category
Risk or uncertainty and
potential impact
External risk
5. Impact of Covid-19
The outbreak of Covid-19 has
exposed us to the impact of
a macro risk related to an
economic slowdown and specific
risks as a result of government
measures taken to contain the
virus, impacting availability and
supply of materials and labour, a
reluctance of buyers to transact
in the current environment
and interruption to business
operations due to the absence of
staff and subcontractors.
On 21 January 2022, the Government announced the lifting of
almost all Covid-19 restrictions, however the risk of the emergence
of disruptive new variants still remains, which could again disrupt
operations and potentially have an adverse impact on the results of
the business.
Operational
risk
6. Inadequate project
management
Inadequate oversight of the cost
and delivery of development
projects adversely affects
expected return on investment.
The delivery matrix of
development projects could
be impacted by the spread of
Covid-19.
As the business scales, project management will play a key role in
managing timelines to meet unit delivery targets and controlling
costs to deliver gross margin and return on equity targets. Timely
and accurate reporting against financial metrics and construction
programme facilitates decision making on a site by site or overall
portfolio basis. Our commercial department has oversight of all
project costs and timelines. The commercial director works with
experienced quantity surveying and estimating teams that are
responsible for:
• pre-acquisition, planning and pre-construction stage budget
preparation
• preparing build of quantities (BoQ) to secure subcontractors based
on a detailed scope
• robust financial planning and forecasting for each site
• continuously monitoring and reviewing budget versus actual costings.
Inadequate oversight of the cost
and delivery of development
projects adversely affects
expected return on investment.
The delivery matrix of
development projects could
be impacted by the spread of
Covid-19.
We have increased the frequency of cashflow and sales reporting
to facilitate accurate business continuity planning.
We have updated and will continue to review on an ongoing
basis forecasts, cashflows and estimates about future business
performance.
We have kept in constant contact with government and local
authority representatives in addition to reviewing government
responses to Covid-19.
We have put in place a transparent and timely communications
strategy to update the market and all stakeholders (employees,
subcontractors, suppliers, shareholders and customers) of the
business in relation to the plans put in place in response to
Covid-19.
We have put in place a number of specific actions related to on
site health and safety and construction, project management,
sales activity and office operations which are outlined in the
response to risks specific to each area.
We have fixed cost contracts in place with subcontractors and
suppliers where possible.
Our commercial director is responsible for:
• reviewing pre acquisitions budgets prior to engaging in the site
acquisition process
• engaging in continuous monitoring and reforecasting of costs
at the pre-construction stage as sites move through planning
• completing a cost plan/bill of quantities at the pre-construction
start/post planning stage which acts as the budget for the site
build.
The commercial department organisational structure ensures
oversight of all costs as the business matures in line with the
business plan.
Management’s view
Key mitigating considerations
Risk rating
change
We also have in place a dedicated services and utilities department
with responsibility for working with Irish Water and ESB to ensure
timely connection to the water and electric grid to deliver units in line
with site openings and practical completion dates.
Glenveagh’s integrated ERP system provides commercial
reporting, automated payment and subcontractor accrual
functions which facilitates real-time reporting for more accurate
decision making relevant to projects at a cost object, element
and subproject level.
The procurement department forecast materials packages twelve
months in advance to lock in price and guarantee supply in advance
of commencing construction on site. In addition, the procurement
department work with suppliers to derisk the supply of scarce or at
risk materials through consignment stock agreements.
Management is now at the final stages of implementing a new
project management office to centralise processes, reporting and
communication across departments. This has been facilitated by
an external company that been engaged to review and improve
our end-to-end processes and advise of how best to automate
these. Through this process a construction committee has now been
established, which is responsible for reviewing reporting, decision
making at site by site or overall portfolio level and communicating
actions across departments.
Our suite of IT systems provides realtime reporting/information for
more accurate decision making relevant to projects at a financial,
programme and management level.
We have increased the frequency of executive committee and
board meetings to respond to the pandemic, with Covid-19 being
a standing agenda point at all meetings.
Glenveagh has updated and will continuously review all site
delivery matrix and update these as necessary to reflect the
impact of Covid-19.
We have engaged in continuous communications with our
subcontractor network and supply chain to ensure they are aware
of our plans and to reduce the impact of current restrictions and
to ensure a smooth return to normal operations.
We employ highly experienced and qualified project managers
and quantity surveyors who oversee a robust financial planning
process for each development and continuously monitor and
review the budget versus actual costings. This includes regular
updates to the executive committee and board.
We have a formal budget sign off procedure in place for each site.
The commercial department has a dedicated estimating team to
assist with reviews at pre-acquisition stage budget preparation,
planning stage budget preparation, and pre-construction stage
budget preparation, with a focus on site development and value
engineering.
The estimating team is also responsible for the preparation
of site development, curtilage & sub-structure BoQs to secure
subcontractors based on a detailed scope, which facilitates
thorough cost management and forecasting.
The commercial team uses our reporting software which is linked
directly with the Glenveagh ERP system. This ensures that budgets
and cost data are managed and verified automatically with
forecasting and variances being tracked and reviewed fluently.
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Strategic report: Risk management report
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Table legend: No change to risk rating
Increased risk rating
Decreased risk rating
New risk
Table legend: No change to risk rating
Increased risk rating
Decreased risk rating
New risk
Our risk
category
Risk or uncertainty and
potential impact
Operational
risk
7. Failure to obtain expected
planning permission
Failure to obtain expected
planning permission on sites
delivering our 1-3 year sales
pipeline or renew existing
planning permission without
significant changes could result
in failure to meet unit delivery
and return on investment targets.
Management’s view
Key mitigating considerations
Risk rating
change
Our risk
category
Risk or uncertainty and
potential impact
Management’s view
Key mitigating considerations
Risk rating
change
We ensure there is strong alignment between the planning and
acquisitions departments to ensure planning related issues are
avoided or identified and rectified on a timely basis.
We have ongoing monitoring, liaising, engaging and networking
process with both local and national government agencies
We have a set strategy for Suburban planning applications which
is reported monthly and reviewed periodically for any required
changes.
We have put in place the appropriate organisational structure
within the planning department to achieve our strategic goals.
Obtaining the necessary planning permission on sites to materially
derisk our unit delivery targets and building flexibility into our
landbank is a key strategic objective as the business scales
towards our 2024 delivery targets and beyond. Management’s
progress in obtain planning permission has been affected by the
legal challenges and lengthy delays that can arise through the
SHD planning process. The Government’s announcement that the
SHD planning process will be replaced by the LRD is welcomed by
management albeit we understand this process will take a number
of months before it is fully operational.
The delays experienced in the existing SHD planning process have
limited the rate at which units have progressed through planning.
Management does not have any immediate concerns as all planning
required to deliver the 1,400 unit target for 2022 is now in place. To
derisk 2023 and 2024 delivery targets, management has focused
the land acquisition strategy to ensure, at a minimum, 50% of the
sites purchased are acquired with or subject to planning permission.
Currently, approximately 40% of our land portfolio is planned and
it is expected that this will increase to approximately 50% by year
end. Nearly 3,000 planning lodgements have being completed in
2021 which will further increase the planned units in our landbank
throughout 2022.
It is worth noting that from an urban site perspective, the segment
most susceptible to judicial reviews, the business has limited exposure
as most of our urban sites are through the planning process.
Furthermore, management has been prudent and realistic with unit
delivery dates within the group delivery matrix which forms the
starting point of forecasting, financial and strategy planning.
Glenveagh has put in place the appropriate organisational structure
within the planning department to achieve our strategic goals. The
planning department is focused on the short-term needs of the
business (i.e. progressing a large volume of units through planning
within the existing processes) but also focuses on mapping out the
long-term strategy for sites and the planning route these will take
based on the planning processes available.
As the business continues to grow in line with our targets, management
is aware there will be a greater need to recruit quality skilled staff to
ensure the site and head office employee headcount keeps pace with
growth. The growth of the business also brings with it opportunities for
increased responsibility and advancement for current staff and there
needs to be a continued focus by management on the development of
existing staff and succession planning.
Operational
risk
8. Employee development and
retention
Glenveagh’s success is
dependent on recruiting,
retaining and developing highly
skilled, competent people.
We are aware that loss of key
personnel and/or the inability
to attract/retain adequately
skilled and qualified people
could lead to:
• Poor operational and financial
performance
• Inadequate staff knowledge
and understanding of policies
and procedures
• Reduced control environment
• Insufficient transfer of
knowledge amongst staff to
allow for succession planning
• Demotivated staff
• Failure to achieve/deliver on
our strategic objectives.
Glenveagh offers competitive and attractive remuneration
packages and where appropriate long-term interest alignment.
We offer the opportunity for advancement through creating a
positive working environment.
We have introduced a graduate programme across all
departments to develop and ensure progression within the
business.
We have in place a performance management and appraisal
process which includes open channels of communication and
feedback and development plans for employees.
We are developing a succession plan to ensure continuity of
quality service and knowledge retention.
We have a dedicated learning and development manager with
a focus on developing and deploying continuous professional
development and upskilling of staff.
We have implemented flexible working arrangements for
staff following the Covid-19 pandemic as well as offering
support to ensure employees have suitable working from home
arrangements.
We ensure that all staff have access to relevant internal and
external training.
We have implemented a flexible working policy in line with
Government guidelines.
We are committed to the Great Place to Work credentials to
further improve our internal and external culture and reputation.
We have hired a head of corporate affairs who is responsible for
enhancing internal communications.
We have put in place various initiatives at senior and middle
management levels to address the greater need to recruit and
maintain existing skilled staff to ensure the site and head office
employee headcount keeps pace with the continued growth of
the business.
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Glenveagh Properties PLC Annual Report and Accounts 2021
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77
Table legend: No change to risk rating
Increased risk rating
Decreased risk rating
New risk
Table legend: No change to risk rating
Increased risk rating
Decreased risk rating
New risk
Our risk
category
Risk or uncertainty and
potential impact
Operational &
reputational
risk
9. Data protection and cyber
security
Glenveagh uses information
technology to perform
operational and marketing
activities and to maintain its
business records.
A cyber attack could lead
to potential data breaches
or disruption to our systems
and operations which in turn
could lead to damage to our
reputation and potential loss of
customers and revenue.
Any security or privacy breach
of the information technology
systems may also expose
Glenveagh to liability and
regulatory scrutiny.
Management’s view
Key mitigating considerations
Risk rating
change
The threat from cyber attacks remains high, and the pandemic has
created additional opportunities for attacks, particularly with many
businesses now operating in a hybrid environment. Enhanced controls
and quarterly security awareness training have been implemented
which allow for better detection and prevention from cyber attacks.
However methods of attack continue to evolve and are becoming
more sophisticated, requiring additional technical controls and
awareness training. Email based attacks remain a significant risk.
An email security platform is in place and is constantly reviewed and
improved to address new threats.
Glenveagh’s IT director leads our initiatives in mitigating the risk
of cyber and data security breaches further.
We have a personal data retention policy in place to
appropriately manage the information held.
We use internal and external back-up systems under the
supervision of a third-party service provider pursuant to
agreements that specify certain security and service level
standards.
We have in place sensitive data password protection and all
such information is stored in secure locations and fully encrypted
systems.
Glenveagh is proactively managing the cyber threat, is
continuously monitoring and evolving systems internally and has
engaged a third party to assist and ensure that best practices are
implemented to identify and remediate any potential weaknesses
or control gaps.
We have put in place a schedule of specific cyber security
training related training programmes.
We have enabled multi factor authentication for all users.
A new VPN connection has been established increasing the
resilience and security of the connection to facilitate remote
working.
Glenveagh’s IT director completes security assessments and
implements suggested changes on a periodic basis.
Our risk
category
Risk or uncertainty and
potential impact
Operational
risk
10. Insufficient health and
safety procedures
Glenveagh is focused on the
wellbeing of its employees,
contractors, subcontractors and
the general public.
We understand that failure to
implement and adhere to the
highest standard of health and
safety practices could lead to a
significant risk to health, safety,
and welfare of staff and other
parties, resulting in increased
costs and negatively impact the
timely and safe delivery of a
project.
Additionally, any failure in
health or safety performance or
compliance, including delays in
responding to changes in health
and safety regulations may
result in financial and/or other
penalties.
Reputational
risk
11. Decline in product quality
Glenveagh’s brand and customer
satisfaction are crucial to our
performance and any negative
incidents including construction
defects, material environmental
liabilities (including hazardous
or toxic substances), quality
deficiencies or perceptions thereof
could adversely impact sales and
possibly result in litigation cases
against the business.
Management’s view
Key mitigating considerations
Risk rating
change
The wellbeing of our people remains of paramount importance
to management and the board. We strive to ensure the highest
standards of health and safety across our workforce and sites with
health and safety KPIs forming part of remuneration metrics.
We continue to implement all the necessary steps to maintain the
health and welfare of our employees, subcontractors and customers.
Management has increased the proportion of sites with independent
audits to be 20% and we have continued to maintain our health
and safety audit scoring at 89% (2020: 88%). In 2021, Glenveagh
has achieved ISO 45001 health and safety management systems
certification, maintained our grade A in Safe T cert, increased training
hours per employee and maintained a low number of total recordable
health and safety incidents.
Our continued focus on improving the quality of design and product
is an essential component of our homes. We continue to evolve
the design of our end product to meet the demands of changing
lifestyles, as well as the rapidly changing levels of expectations from
our customers.
Glenveagh has an experienced health and safety team in place
with a specific health and safety plan in place at each site.
We have a wealth of experience, adopt best practice and
regulations and have developed and implemented formal best
practice policies and procedures to support and promote a
robust health and safety environment.
Glenveagh has developed an accredited health and safety
management system and is certified to ISO 45001 by the National
Standards Authority of Ireland.
Glenveagh ensures all staff are appropriately and adequately
trained.
We hold a Grade A Safe-T certificate which is the industry health
and safety auditing standard.
We undertake monthly health and safety audits through both
internal and external parties.
We circulate a weekly incident monitoring report to construction
management.
We have undertaken significant investment to implement best
practice and public health advice for the return to working on site
and in the office in response to Covid-19.
There is adequate insurance cover in place to deal with any
claims that may arise due to injury.
Glenveagh has in place robust quality control procedures and
strictly adheres to Building Control (Amendment) Regulations
requiring (among other stipulations) the appointment of suitably
qualified engineers and architects.
Continued investment and expansion in our manufacturing facilities,
the development of modular build and offsite manufacturing and the
standardisation and reduction in our house typologies are some of
the measures we have undertaken to ensure high quality homes are
delivered.
We have a dedicated quality manager to manage and report on
site quality.
We have a dedicated environmental officer to advise on the
business challenges from an environmental perspective on a daily
basis.
Glenveagh has an experienced and professional support team
in place.
We have a dedicated customer service after-sales team.
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79
Corporate governance
statement
Throughout 2021, the board
played a central role in
ensuring that Glenveagh
observed and remained
committed to the highest
standards of corporate
governance and sustainable
corporate behaviour
Walker’s Gate
Kildare Town, Co. Kildare
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Glenveagh Properties PLC Annual Report and Accounts 2021
Governance
81
Introduction from
the chairman
Belin Woods
Newbridge, Co. Kildare
Leadership
The board recognises the
importance of its effective
leadership in promoting
the long-term success of
Glenveagh
Corporate governance
report
John Mulcahy, chairman
Dear shareholders
On behalf of the board, I am pleased to present the
corporate governance report for the year ended 31
December 2021.
Throughout 2021, the Covid-19 pandemic continued
to pose challenges for our people and the way we
operate as a business. The board played a central role
in ensuring that Glenveagh observed and remained
committed to the highest standards of corporate
governance and sustainable corporate behaviour.
The board recognises the importance of its effective leadership
in promoting the long-term success of Glenveagh and
continues to enhance and develop its engagement with key
stakeholders in the business. In 2021, the board increased
its stewardship of sustainability and ESG issues through the
establishment of the environmental and social responsibility
committee. Details in relation to the composition, duties and
activities of this committee are provided at page 110. The
significant progress made by the business during the year is
also reflected in the sustainability report set out at page 38.
During the year, the remuneration committee undertook a
fundamental review of our remuneration policy, consulting with
major shareholders on proposals which will support Glenveagh
through the next phase of growth and continue to align the
executive directors to our stakeholders, promoting long-term
sustainable growth and value creation for shareholders. Details
of the proposals are provided in the report of the remuneration
committee on page 91.
There were important changes to the board and executive
leadership of Glenveagh in 2021. Following a comprehensive
and considered appointment process, we were delighted
to welcome a new independent non-executive director,
Camilla Hughes, to the board in July. As announced at
the 2021 AGM, I transitioned to non-executive chairman of
Glenveagh with effect from 1 January 2022 and I am pleased
to confirm the smooth transition of my executive functions
to the newly expanded executive committee. Details of the
board appointment process and the approach to succession
planning for senior management are set out in the report of
the nomination committee on pages 108 and 109.
Following two years of Covid-19 restrictions, I look forward to
engaging with shareholders in person again at our annual
general meeting on 28 April 2022, full details of which can be
found in the notice of AGM.
John Mulcahy
Chairman
The corporate governance report, in conjunction with the
audit and risk committee report, the remuneration committee
report and the nomination committee report, describes how
the Company has applied the principles and followed the
provisions of the 2018 UK Corporate Governance Code (the
Code) and the Irish Corporate Governance Annex and details
any departures from their specific provisions.
As in previous years, the board acknowledges the Company’s
departure from provision 9 of the Code in relation to the
appointment of an executive chairman at IPO. The board also
acknowledges that the Company did not comply fully with
provision 41 of the Code in relation to the level of engagement
with the workforce on executive remuneration during the year.
Further details in relation to these matters are provided at
pages 85 and 100, respectively, and the board will keep them
under review during 2022.
Board leadership and purpose
Purpose and culture
Glenveagh’s purpose is the provision of access to high quality,
energy-efficient homes in flourishing communities across
Ireland.
Glenveagh has positioned itself as ‘Home of the New’ in Irish
residential development, not only in how it builds energy-
efficient, high quality homes but in how it selects land and
partners, how it plans on land, how it fosters and embeds
relationships with communities and how it utilises technology to
innovate in delivering on land.
Glenveagh’s vision is that everyone should have the opportunity
to access great-value, high-quality homes in flourishing
communities across Ireland. To do this, we foster a culture of
fresh thinking, teamwork and trust to challenge the status
quo in our industry. We believe that building homes and
communities is a worthy cause and will positively impact Irish
society. We want to forge a new path, relentlessly innovating at
every stage of the homebuilding process.
The board is committed to ensuring the continued alignment
of Glenveagh’s strategic decisions with its purpose and culture,
through both the setting of non-financial KPIs in health and
safety and customer satisfaction and through its regular
assessment of policies and practices across the business. The
board supports and encourages two-way communication with
the workforce and has established formal channels for the
workforce to raise any matters of concern directly.
Role of the board
The board is responsible for setting and guiding the strategic
direction of the Group, understanding the key risks faced by the
Group, determining the risk appetite of the Group and ensuring
that a robust internal control environment and risk management
framework is in place. The board has overall responsibility for
the management of the Group’s activities and is accountable to
shareholders for creating and sustaining shareholder value and
for the long-term success of the Group.
reserving to itself a formal schedule of matters over which
it retains control. To assist in discharging its responsibilities,
the board has established an audit and risk committee, a
remuneration committee, a nomination committee and an
environmental and social responsibility committee.
The board’s decision to establish an environmental and social
responsibility committee was announced in July 2021, to lead
the Company’s ambitious plans across its six sustainability
pillars, ensuring the delivery of quality homes for customers
alongside the highest standards of environmental stewardship
and responsible business.
The composition of each of the board committees is fully
aligned with the provisions of the Code and is detailed in the
reports of the relevant committees at pages 88 to 111.
There is a clear division of responsibilities within the Group
between the board and executive management. Responsibility
for day-to-day running of the Group’s operations is delegated by
the board to the executive committee, with the board
The terms of reference for each of the board committees and
the schedule of matters reserved for the board are reviewed
on an annual basis and made available on the Group’s
website www.glenveagh.ie.
Glenveagh Properties plc board
Audit and risk
committee
Environmental and
social responsibility
committee
Remuneration
committee
Nomination
committee
Glenveagh PLC board
Executive committee
82
Glenveagh Properties PLC Annual Report and Accounts 2021
Governance: Corporate governance report
83
The board is committed to building and maintaining
successful shareholder relationships through regular
and transparent communication.
Engagement
The board recognises the
importance of ongoing
communication and
‘reporting back’ to the
workforce
Engagement with shareholders
The board recognises the importance of effective engagement
with, and active participation from, its shareholders and is
committed to building and maintaining successful shareholder
relationships through regular and transparent communication.
This commitment is formalised through the Group’s
comprehensive investor relations program. In addition to
the detailed presentations and roadshows conducted after
the announcement of interim and full-year results, the chief
executive officer, chief financial officer and investor relations
manager regularly meet with institutional investors and
analysts throughout the year and participate in a number of
industry conferences.
Further details in relation to investor engagement during 2021
is provided in the stakeholder engagement section on page 25
and 84.
The views of shareholders are communicated to the board
through the executive directors and they receive monthly
updates on institutional shareholder meetings, broker
reporting and general market commentary, all of which assists
the board in understanding and taking account of the view
of shareholders.
In addition, the chairman and senior independent director
remain available to meet with shareholders on request, should
they have any issues or concerns that cannot be resolved
through the usual IR channels.
AGM
The annual general meeting (AGM) gives shareholders an
opportunity to hear a presentation on the Group’s activities and
performance during the year, to ask questions of the chairman
and, through him, the board committee chairs and members,
and to vote on each resolution put to the meeting.
The AGM also provides the board with a valuable opportunity
to communicate with private investors and Glenveagh
encourages all shareholders to attend the meeting each year
and to put forward any questions that they may have to
the directors at the conclusion of the formal business of
the meeting.
In order to protect the health and safety of the Company’s
shareholders and directors, certain limitations were placed on
attendance in person by shareholders at the 2021 AGM. These
limitations were in line with government guidelines in force at
the time of the AGM and had regard to the best interests of the
Company and the shareholders as a whole.
The Company recognises the importance of engagement with
shareholders at the AGM, and while it was not possible for
shareholders to attend the 2021 AGM in person, shareholders
were encouraged to use proxy voting services to ensure their
votes counted. A teleconference facility for shareholders to
follow proceedings of the AGM, and a mechanism for lodging
questions in advance, was provided by the Company.
The 2022 AGM will be held on 28 April at the Conrad Hotel
in Dublin and the Company is optimistic that attendance in
person will be possible this year.
Workforce engagement
The board is committed to meeting its responsibilities to all
stakeholders in the business and places significant value on
the maintenance of successful relationships with the Group’s
workforce, suppliers, customers and the communities in which
it operates.
In her position as workforce engagement director, Cara Ryan
has continued to work with the company secretary and the
head of HR to develop meaningful two-way dialogue between
employees across the Company and the wider board.
During 2021, the Company established a workforce engagement
forum, with representatives from each department across the
business, both site-based and office-based. Cara met with the
workforce engagement forum at key intervals in the Company’s
calendar with particular focus placed on the continued impact
of Covid-19 on the workforce. The workforce engagement forum
considered the results of an externally facilitated employee
pulse survey, taking feedback from all employees in relation
to the return to work in the office and the learnings to be
taken from remote working that could positively impact the
Company’s future way of working post-pandemic.
Cara’s engagement with the workforce engagement forum
throughout 2021 served as an additional tool for the board’s
continued assessment of the Company’s management of the
ongoing Covid-19 pandemic and the feedback received from the
workforce informed her recommendations to the board for 2022.
The board recognises the importance of ongoing
communication and ‘reporting back’ to the workforce, to
demonstrate that it has listened to and acted upon feedback,
and the board remains committed to continuing to enhance its
engagement activities and strengthen its relationship with the
workforce into 2022.
Conflicts of interest
The board considers potential conflicts of interest as a standing
agenda item at each meeting and a conflicts of interest register
is maintained by the company secretary, setting out any
conflicts of interest which a director has disclosed to the board
in line with their statutory duty.
The Company has established a comprehensive conflict of
interest policy and, in line with that policy, each director
reviews the conflict of interest register and provides an updated
declaration of interests form to the company secretary on an
annual basis.
Division of responsibilities
Chairman and chief executive
The roles of the chairman and the chief executive officer are
clearly segregated and the division of responsibilities between
them is set out in writing and reviewed by the board on an
annual basis.
The chairman, John Mulcahy, is responsible for leadership of
the board, promoting its effectiveness in all aspects of its role
and ensuring its key duties are discharged to an acceptable
degree. The chairman ensures that the board members receive
accurate and timely information, enabling them to play a full
and constructive role in the development and determination
of the Company’s strategy. He is responsible for creating an
environment which encourages open dialogue and constructive
challenge, and he ensures that there is effective communication
with the shareholders.
The chief executive officer, Stephen Garvey, is accountable to and
reports to the board and is responsible for running the Group’s
business. He is charged with the execution of agreed strategy
and implementation of the decisions of the board, with a view to
creating value for shareholders and the wider stakeholder base.
The chief executive officer is ultimately responsible for all day-to-
day management decisions, acting as a direct liaison between
the board and management and communicating to the board
on behalf of the Group’s external stakeholders.
Senior independent director
The senior independent director, Robert Dix, is available to
shareholders who have concerns that cannot be addressed
through the chairman or chief executive and will attend
meetings with major shareholders as necessary.
The senior independent director acts as a sounding board
for the chairman and serves as an intermediary for the other
directors as necessary. He is also responsible for leading the
annual performance review of the chairman.
The non-executive directors have direct access to the senior
management team within the Group and contact with the
business is encouraged by the board and assists the non-
executive directors in constructively challenging management
and offering advice and guidance on strategic decisions.
Company secretary
The company secretary, Chloe McCarthy, supports the
chairman and the executive directors in fulfilling their duties
and is available to all directors for advice and support. She is
responsible for ensuring compliance with board procedures
and for the Group’s commitment to best practice in corporate
governance. The company secretary is also responsible for
ensuring compliance with the Group’s legal and regulatory
requirements.
Independence
Provision 9 of the Code prescribes that the chairman should
be independent on appointment. The board is of the collective
belief that John Mulcahy’s role as executive chairman during
the period from IPO to 31 December 2021 enabled him to bring
his extensive knowledge and experience of the Irish residential
housing market to his leadership of the board.
As announced at the Company’s 2021 AGM, John transitioned
to a non-executive chairman role on 1 January 2022. While
John has stepped down from his executive duties, the board
unanimously considers that his commitment and contribution
as chairman is essential to the continued effective leadership of
the board and the Group.
Given John’s prior executive role within the Company, the senior
independent director remains willing and available to assume
any additional responsibilities, as required. There is also a clear
division of responsibilities between the chairman and the chief
executive officer. As such, the board remains satisfied that no
one individual or group has dominated its decision making
and that there has been sufficient challenge of executive
management in meetings of the board.
Non-executive directors
Of the eight board members, five are independent non-
executive directors. The Company’s non-executive directors
have a key role in the appointment and removal of executive
directors, and the assessment of their performance. The
non-executive directors constructively challenge and debate
management proposals and hold to account the performance
of management and of individual executive directors against
the agreed performance objectives.
The independence of each of the non-executive directors
is considered on appointment, and on an annual basis by
the board. The board has reviewed the independence of all
non-executive directors and determined that they continue to
be independent within the provisions of the Code. The board
gave particular consideration to the continued independence
of Robert Dix and Pat McCann, noting that Robert also serves
as a non-executive director of Dalata Hotel Group plc where
Pat was chief executive until his retirement in October 2021, and
both currently act as non-executive directors at Quinn Property
Group. The board was aware of this relationship on appointing
Pat to the board in 2019 and concluded that his experience,
knowledge and skills in leading and growing a company post-
IPO would be of immeasurable value to the board and in the
best interests of the Company and its shareholders.
The board remains satisfied that Robert and Pat continue
to demonstrate objectivity and autonomy in both character
and judgement, irrespective of their relationship outside the
Company, and will continue to act objectively and in the best
interests of the Company.
Board meeting attendance
The board convenes with sufficient frequency to ensure the
effective discharge of its duties during the year. Throughout
2021, the Company held ten formal board meetings. There was
full attendance by all directors
In adherence to the travel restrictions and social distancing
guidelines introduced by the Irish Government in response to
Covid-19 and remaining in place for much of 2021, the board
met virtually, using audio-video conferencing, for nine out of
the ten meetings held during the year.
In addition to formal meetings, the directors attended two
full days of training, management presentations and site tours
in 2021.
Time commitment
The time commitment required of directors is considered
on appointment, and on an annual basis by the board. All
directors are expected to allocate sufficient time to discharge
their duties effectively and confirm this as part of the annual
board evaluation each year.
Each year, the schedule of regular meetings to be held in the
following calendar year is agreed with each of the directors. If
a director is unable to attend a scheduled meeting, they are
encouraged to communicate their views on the relevant agenda
items in advance to the chairman or the company secretary for
noting at the board meeting.
Composition, succession and evaluation
Supplementary to its formal meetings, the board encourages its
non-executive directors to communicate directly with both the
executive directors and the senior management team.
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Composition, succession and evaluation
Board composition
The board is currently comprised of eight directors: the
non-executive chairman, two executive directors and five
independent non-executive directors.
As part of the annual board evaluation process, the board
reviewed the overall balance of skill, experience, knowledge
and independence of the board and its committees. The board
is satisfied that it is of an appropriate size for the requirements
of the business and that its composition provides a suitable
balance of skills and experience across a number of industry
sectors including construction, property development, capital
markets, legal and financial services, which equip the board
members in effectively discharging their duties to the Company
and its shareholders.
The board is satisfied that the balance of executive and non-
executive directors is suitable to facilitate constructive and
effective challenge and debate.
Biographies of the directors are set out on pages 112 to 114.
Appointments to the board
The nomination committee is responsible for leading the
process for new director appointments and has established a
formal, rigorous and transparent procedure for the selection
and nomination of candidates to the board. There was one new
appointment to the board during 2021, Camilla Hughes.
Re-election
All directors will submit themselves for re-election at the 2022
AGM.
Board diversity
The board has adopted a board diversity policy, intended
to assist the board, through the nomination committee, in
achieving optimum board and committee composition.
The board recognises the clear benefits of a diverse board
including with regard to diversity of experience, skills,
background and gender and agrees that these differences
should be considered in determining the optimum composition
of the board.
While all board appointments are made on merit and with
regard to the skills and experience that the board requires to
be effective, it is the Company’s policy to develop over time
the diversity of its board without compromising the calibre of
new directors.
in person for a two-day session, including an extensive tour of
active and future sites and a training and development session
at the Group’s off-site manufacturing facility.
Some areas highlighted by the 2021 evaluation for potential
improvement, and the agreed action items for 2022, are
summarised below:
the internal control framework and determine the nature and
extent of the principal and emerging risks that the Group is
willing to take in order to achieve its long-term objectives.
Following the nomination process undertaken during the year
to identify a suitable independent non-executive director,
and the subsequent appointment of Camilla Hughes, female
representation on the board as at 31 December 2021 was 25%.
The nomination committee reviews the board diversity policy
annually, including assessing its effectiveness and will discuss
any revisions that may be required, recommending any such
revisions to the board for approval.
Below board-level, female employees accounted for 25% of the
senior management as at 31 December 2021, as defined by the
Code. There were no female senior management direct reports.
Further details on diversity within the Group can be found on
page 46 and 86.
Directors’ induction, training and development
The board has established a formal induction process for new
non-executive directors, providing them with a comprehensive
understanding of their role and responsibilities as directors, the
business of the Group and the operations of the board.
The induction of non-executive directors is overseen by the
chairman with the assistance of the company secretary and
includes meetings with respective management teams in each
of the Group’s business lines and site tours of live construction
projects. Newly appointed directors have access to the
company secretary’s assistance and guidance around the
workings of the board, in addition to the experience gained
with attendance at regular meetings.
The board is committed to continued training and development
and all directors receive regular updates on the Group’s projects
and activities and are encouraged to attend site tours facilitated
by the executive directors. Directors also receive updates from the
company secretary on legal and regulatory matters.
As a result of ongoing Covid-19 restrictions during 2021, the
board continued to meet virtually throughout most of the year.
In addition to attending meetings virtually, the board also
convened for a number of strategy and training sessions over the
course of Q1 and Q2, with presentations from each key functional
area across the business. As Covid-19 restrictions eased in the
second half of the year, the board made it a priority to convene
Annual board evaluation
The performance and effectiveness of the board and its
committees is reviewed on an ongoing basis and is subject
to a formal and rigorous annual evaluation according to the
principles of the Code.
Having completed the first externally facilitated performance
evaluation in 2020, the board actioned a number of
recommendations during 2021 to enhance performance,
including increasing focus on succession planning, expanding
the integration of ESG into strategy, formalising quarterly
meetings between the chairman and the independent non-
executive directors and utilising IT capabilities to increase
engagement outside of meetings in the face of continued
Covid-19 restrictions.
Toward the end of 2021, the board initiated an internally
facilitated review to assess its performance and effectiveness
during the year, including that of the committees, the chairman
and individual directors. The evaluation process also considered
the progress made by the board during 2021 to implement the
recommendations from the 2020 external evaluation.
Led by the chairman and company secretary, the 2021 annual
review was conducted by way of a comprehensive questionnaire
developed for the board. The structure and design of the
questionnaire encouraged the directors to evaluate and
comment on the operations of the board and its committees,
and to identify any areas for potential improvement.
Diversity
The board recognises
the clear benefits of a
diverse board including
with regard to diversity
of experience, skills,
background and gender
•
•
•
•
The board will continue to enhance its engagement with
key stakeholders in the business, building on the work of
the newly established ESR committee.
The board will prioritise in person engagement between
the directors, both formally and informally, as Covid-19
restrictions are lifted.
The board confirms that a robust process for identifying,
evaluating and managing significant risks has been in place
for the financial year and up to the date of approval of the
annual report and financial statements. Details of the annual
assessment of the principal risks facing the Group are set out
at pages 70 to 79.
The board will review and assess the structure and
composition of the board committees during the year,
while also encouraging cross committee interaction
where appropriate.
The board will continue its work in relation to medium
and long-term succession planning for the board and
executive committee.
As part of the annual evaluation process, the chairman
also conducted one on one meetings with each individual
director, and the senior independent director met with the
non-executive directors to evaluate the performance of the
chairman during the year.
Having carefully considered the results of the 2021 board
evaluation in their totality, the directors are satisfied with the
effectiveness of the board and its committees, and with the
performance of the chairman and the individual directors.
Audit, risk and internal control
Audit and risk committee
The board has established an audit and risk committee
with responsibility for monitoring the integrity of the Group’s
financial reporting and the effective application of the Group’s
internal controls and risk management procedures.
The board is satisfied that the combined qualification and
experience of the individual members provides the committee
with the financial and risk management expertise necessary to
discharge its responsibilities.
A detailed overview of the audit and risk committee and its
work in discharging its responsibilities during 2021 is set out in
the committee report on pages 88 to 90.
Internal control and risk management
The board recognises its ultimate responsibility for establishing
and maintaining Group procedures to manage risk, oversee
The key elements of the Group’s system of internal controls are
as follows:
•
A clearly defined organisation structure and lines of
authority.
• Group policies for financial reporting, treasury
management, tax, risk management, information
technology and security and site acquisition and
investment.
•
•
•
Approval of annual budgets and strategic business
plans by the board, with performance against budgets
and forecasts monitored and reported back to the board
on a regular basis.
An audit and risk committee comprised of independent
non-executive directors.
An independent internal audit function reporting directly
to the audit and risk committee.
The preparation and issue of financial reports is managed
by the Group finance department in accordance with Group
accounting policies and reporting systems, and under the
direction of the chief financial officer. The interim and
preliminary results and the annual report and financial
statements of the Group are reviewed by the audit and risk
committee and recommended for approval to the board.
Remuneration
Remuneration committee
The board has established a remuneration committee with
responsibility for determining Group policy on executive
remuneration and for setting remuneration for the chairman,
executive directors and senior management.
A detailed description of the work undertaken by the
remuneration committee in its assessment, development and
application of the directors’ remuneration policy is set out in
the committee report on page 94.
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87
Audit and risk
committee report
On behalf of the board of directors and the committee I
am pleased to present the audit and risk committee (ARC)
report for financial year ended 31 December 2021. During
2021, the ARC comprised three independent non-executive
directors; Cara Ryan (chair), Robert Dix and Richard
Cherry. The biographies of these directors can be found on
pages 112 to 114.
The committee meets with the internal and external auditors
without other executive management being present, on an
annual basis in order to discuss any issues which may have
arisen during the financial year.
June
August
Cara Ryan, chair, audit and risk committee
Terms of reference
The ARC’s terms of reference are available on the
Group’s website. The terms of reference are reviewed
annually and amended in line with any future
organisational changes to ensure they continue to be
fit for purpose. These responsibilities are intended to be
performed in conjunction with the management team,
executive committee and internal/external auditors.
Committee meetings and attendance
The ARC met on five occasions during the financial
year. The attendance of committee members is
detailed in the table below. On occasion, special
attendees were invited to attend all or part of
committee meetings as deemed appropriate and
necessary by the committee chair.
Committee
member
Cara Ryan
Robert Dix
Richard Cherry
In
attendance
Committee
member as of
5/5
5/5
5/5
2020
2017
2017
The committee continues to focus its efforts on assisting
the board by proactively managing its core areas of
responsibility: the integrity of the Group’s financial reporting,
risk management and internal control and assurance
processes. The principal duties and responsibilities of the
committee together with an overview of its activities for
the year has been outlined in detail on page 89 and is
summarised in the table on the right.
Financial reporting and compliance
The committee reviewed, prior to their publication, the
Group’s annual report and financial statements, half year
and year end results announcements issued during the
year. The committee assessed whether suitable accounting
policies had been adopted in the preparation of the results
for the relevant period and whether management had made
appropriate estimates and judgements. In particular, the
committee focused on areas that involved a significant level
of judgement or complexity. The committee also considered
the view expressed by the external auditor, KPMG, in making
these assessments.
Meeting
Item discussed
February
• Internal audit update from Deloitte, in particular the
2021 schedule and the report and findings from the
recent capital expenditure processes review.
• Directors’ interests
• 2020 financial results including key judgement
areas in the financial statements
• KPMG audit findings report for the 2020
financial year
• Risk register updates
• Net realisable value of inventories
• Directors’ compliance statement review in advance
of recommending approval to the board
• Going concern and viability statements review in
advance of recommending approval to the board
• Overview and approval of 2020 annual report
overview and letter of representation
• Directors’ interests
• Internal audit update from Deloitte, in particular
the report and findings from the review of
polices and processes for business continuity and
disaster recovery including remote working
• Risk register updates
• Directors’ interests
• Internal audit update from Deloitte, in particular
the updated 2021 schedule and confirmation
Deloitte validated management’s assertion
regarding the closure of open recommendations.
• 2021 interim financial results
• KPMG interim review findings report
• Going concern review in advance of
recommending approval to the Board
• Approval of 2021 interim financial statements
and letter of representation
• Net realisable value of inventories
• Risk register updates
October
• Directors’ interests
• Strategic risks annual review
December
• Directors’ interests
• Internal audit update from Deloitte, in particular
the reports and findings from the review of site
management and security and the review of
land acquisitions
• KPMG audit plan for the 2021 year end audit
• Risk register updates
• Group insurance renewal process
• Annual review of board level policies and terms
of reference
The primary issue considered by the committee in relation
to the financial statements for the financial year ended 31
December 2021 was the Group’s assessment of the carrying
value of inventory at the reporting date and profit recognised
on completed units during the year.
The committee assessed the Group’s ability to continue
as a going concern and its viability statement prior to
recommending both for approval by the board. The
committee considered the actual and potential implications
on the Group’s financial performance and position in a
post Covid-19 pandemic environment and because of
environmental or sustainability risks. These considerations
included but were not limited to the impact on selling
prices and strategies, development costs and construction
programmes and put a focus on the adequacy of liquidity
when reaching its conclusion.
During the financial year, the committee reviewed and
recommended the Group’s 2020 Annual Report and the
condensed financial statements for the half year ended 30
June 2021 to the board for approval. The committee’s review
of the Annual Report and financial statements considered
whether, taken as a whole, it was fair, balanced and
understandable and it provides the information necessary for
shareholders to assess the Group’s position and performance,
business model and strategy. Having considered this, the
committee confirmed to the board its approval of the Annual
Report and financial statements.
The committee considered the requirements of the Irish
Companies Act 2014 in relation to the Directors’ Compliance
Statement and is satisfied that appropriate steps were taken
to ensure compliance by the Group with these requirements.
Risk management and Internal controls
The committee acknowledges its role to oversee the Group’s
risk management framework and internal controls processes.
This framework has been in place from the start of the
financial year to the approval date of the 2021 Annual Report
and financial statements and is set out on pages 68 to 79 of
the strategic report.
The Group’s internal controls manage risk and provide
reasonable assurance against events or conditions that may
result in material misstatement or loss to the Group. Internal
control processes are regularly reviewed by the committee
including an annual review by the board of directors through
the Directors Compliance Statement process. Throughout
the year, the committee continued to engage with Group
management to ensure that robust internal controls and risk
management systems continue to apply.
The committee undertook an annual review of the Group’s risk
management and internal controls framework in October. The
review focused on the strategic risks and internal controls to
address these risks. This included:
•
•
•
Assessment of the principal and emerging strategic risks
faced by the Group.
The key internal controls in place and their effectiveness
to mitigate and manage these risks.
Determining scoring thresholds and risk ratings.
The risk register and the principal risks and uncertainties
faced by the Group are outlined on pages 70 to 79 of this
report.
We have also discussed with Group management the
additional work completed in respect of the viability and
going concern statements to seek to assess the impact, in the
short to medium-term, of environmental and sustainability
risks on the prospects of the Group.
The committee’s key priorities for the year ahead will include
a continued focus on assisting the Group with cybersecurity,
emerging environmental and sustainability considerations an
ensuring recommendations from Group internal audit reviews are
Significant issue considered
Committee activity
Carrying value of inventory
The carrying value of the Group’s inventory was €767.2 million at 31 December 2021 which
comprises the cost of development land and development rights acquired, and the costs of the
work completed thereon to date. Inventory is required to be carried at the lower of cost and net
realisable value.
Management presented a summary of its review to the committee which included information in
relation to the cross functional approach taken to the net realisable value calculations, its policy
for profit recognition on completed units, as well as the review process undertaken by senior
management. Management’s presentation included a summary of the results of the review for
each development site with key assumptions highlighted for discussion.
At 30 June 2021, management undertook an exercise to assess the net realisable value of the
inventory balance in order to assess the carrying value at that date. There is a significant level
of estimation involved in this exercise which includes a review of future cash flows associated
with each individual site in order to validate current profitability projections which are also the
key determinants of profit recognition as sales complete. As part of the assessment, the Group
has re-evaluated its most likely exit strategies on all developments in the context of the current
market environment and reflected these in revenue assumptions within the forecast models. The
results of this exercise required a net impairment reversal attributable to our higher average
selling price (ASP) non-core active sites and assets.
A similar exercise was undertaken at financial year end by management. The exercise indicated
no evidence of impairment or impairment reversal and therefore no adjustment to the carrying
value was required at 31 December 2021.
The committee robustly challenged management on the additional work completed in
respect of the carrying value of inventory both at 30 June 2021 and 31 December 2021 to seek
to assess the impact of the Covid-19 pandemic and sustainability and environmental issues
on the profitability of the Group’s development sites and to understand the different scenario
analysis completed.
The committee considered the six month interim approach and financial year end approach
to the net realisable carrying value of the inventory balance. It also considered the external
auditor’s conclusion regarding management’s assessment that a net impairment reversal was
required at 30 June 2021 and no further impairment charge or reversal was required at 31
December 2021.
Based on the results of the process undertaken by management, the committee was satisfied
with the carrying value of inventory at year end and the profit recognised in the consolidated
statement of profit or loss on units closed in 2021.
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Glenveagh Properties PLC Annual Report and Accounts 2021
Governance: Audit and risk committee report
89
implemented on time and giving effect to the actions from the
reviews of the Group internal audit function.
Covid-19
The committee has monitored both the financial and
control impact of Covid-19. The Group has implemented and
adapted new ways of working resulting from the pandemic
including robust changes made to the control environment to
accommodate a flexible and hybrid working model. The key
priorities for the year ahead will include a continued focus on
assisting the Group transitioning to a post Covid-19 pandemic
environment. The committee also challenged the assumptions
underpinning the carrying of inventory and profit recognition
for the financial year, the appropriateness of the going concern
assumption and the conclusions reach on the viability of the
Company as we move into a post pandemic environment. This
mainly involved challenging managements forecasts to ensure
they have been appropriately challenged, stress tested and
relevant downside scenarios applied.
Assurance oversight
Internal audit
The committee is responsible for the scope and operation
of the internal audit function. The committee approves and
monitors the planned work of internal audit which is informed
by the strategic risk areas for the business and considering any
identified ineffective controls and findings. The committee places
a particular focus on control weaknesses identified by internal
audit and the remediation plans put in place by management. A
bi-annual update is provided to the committee by internal audit
on the remediation plan progress by management.
The committee met representatives from the outsourced internal
audit function (Deloitte) on five occasions during the financial
year and considered the findings from their reviews of business
continuity and disaster recovery, site management and security,
land acquisitions, data protection and financial controls.
During the year, the committee considered the frequency
of internal audit reviews in the context of the current and
future scale of the business. To ensure the scope, extent and
effectiveness of the internal audit function is appropriate the
committee determined to increase the frequency of the internal
audit cycle to allow for six internal audit reviews in each financial
year. Following this decision, the committee reviewed and
approved the updated internal audit programme of work for
2021-2023.
External auditor
Audit effectiveness
KPMG were appointed as the Group’s external auditors in 2017.
During 2021, the committee reviewed KPMG’s reports on its 2020
audit and interim review for the six months ended 30 June 2021. It
also reviewed and approved KPMG’s audit plan in respect of the
audit for the year ended 31 December 2021.
The effectiveness of the external audit process is assessed by
the committee, which meets regularly throughout the financial
year with the audit partner, with and without management. In
conducting this review, the committee concluded that the audit
process as a whole had been conducted robustly and that the
team selected to undertake the audit had done so thoroughly
and professionally.
The committee considers and makes recommendations to the
board, to be put to shareholders for approval at the AGM,
in relation to the appointment, re-appointment or removal of
the external auditor. KPMG attended each of the committee
meetings in 2021.
In assessing the independence and objectivity of the external
auditor, the committee considered the internal processes
which the external auditor has in place to ensure their
independence and objectivity is monitored and reviewed
sufficiently. The committee considered senior management’s
satisfaction with KPMG.
Auditor independence and non-audit services
KPMG has formally confirmed its independence to the
Committee. To further ensure independence, the committee
has a policy on the provision of non-audit services by the
external auditor that seeks to ensure services provided by the
external auditor are not, or are not perceived to be, in conflict
with auditor independence. Analysis of fees paid or payable in
respect of services provided by KPMG in the financial year are
analysed in the table below:
Audit fees
Non-audit fees
Interim review fees
Tax services fees
Other non-audit services
Total
€‘000
235
15
56
6
312
90
Glenveagh Properties PLC Annual Report and Accounts 2021
At the end of the financial year, non-audit fees paid to KPMG
represented 33% of total audit fees.
It is the Group’s practice to engage KPMG on assignments in
addition to its statutory audit duties where its expertise and
experience with the Group is important. KPMG provided certain
tax services in the financial year which were considered and
deemed appropriate by the committee.
The committee has approved a policy on the use of the
external auditor for non-audit services and continually monitors
the ratio of audit to non-audit fees, acknowledging the
legislation requiring fees for non-audit services to be capped at
70% of the average statutory audit fee over the previous three
year period. Further, in reviewing non-audit services provided
by the external auditor, the committee considers whether the
non-audit service is a permissible service under the relevant
legislation and any real or perceived threat to the external
auditor’s independence and objectivity to include, among other
considerations, a review of: the nature of the non-audit services;
whether the experience and knowledge of the external auditor
makes it the most suitable supplier of the non-audit services;
and the economic importance of the Group to the external
auditor. The policy on the supply of non-audit services includes
a case by case assessment of the services to be provided and
the costs of the services by the external auditor considering any
relevant ethical guidance on the matter.
Whistleblowing, fraud and anti-bribery
The Group has whistleblowing, fraud and anti-bribery policies
and reporting procedures in place that have been reviewed
and approved by the board. The policies are detailed in the
employee handbook and published on the Group’s intranet. All
employees are required to acknowledge and confirm that they
have read and understand these policies. Any reported cases
of whistleblowing, fraud and bribery or alleged breach of these
policies are appropriately investigated, with the results reported
to the committee.
I am pleased to conclude that the audit and risk committee has
met its obligations for 2021 and is looking forward to further
adapting the Group’s risk management framework to respond
to the opportunities and challenges that 2022 will bring as the
Group continues to deliver on its strategic objectives.
Cara Ryan
Chair
Audit and risk committee
Remuneration committee
report
On behalf of the remuneration committee, I am pleased to
present our remuneration report for the financial year ended
31 December 2021.
During the year I was delighted to welcome Camilla Hughes to
the committee who has provided important input to committee
discussions and decisions since joining in July 2021.
During 2021, along with its normal work plan, the committee
continued to monitor the impact of the Covid-19 pandemic
across Glenveagh and carefully considered the implications
for the remuneration of executive directors and others in the
business. Additionally, having made administrative changes
to the directors’ remuneration policy at the 2021 AGM to
align the policy with regulatory requirements, the committee
undertook a more fundamental review of the policy during
the year, consulting with major shareholders on a set of
proposals designed to support Glenveagh through the next
phase of growth.
The changes we have agreed to make are set out later in this
report. The committee is confident that the proposed changes
will support the continued alignment of executive directors to
all our stakeholders as well as promoting long-term growth and
value creation for shareholders.
The committee has also carefully considered the impact of
John Mulcahy moving to non-executive chairman, on the
remuneration of the remaining executive directors given the
consequent increase in their responsibilities.
Performance during 2021
As explained throughout this annual report, Glenveagh
performed strongly in 2021 and successfully overcame
significant challenges, including Covid-19 related and
government-enforced site closures, which impacted the
business in 2020 and at the start of the year under review.
Glenveagh reported an exceptional level of revenue and
profitability growth with a significant increase in the number of
home completions.
Remuneration in respect of 2021
Given the level of business performance during the year, the
executive directors were successful in achieving close to the
maximum annual bonus targets for 2021. These targets were set
towards the start of the year on the basis of the committee’s
best estimates at that time of likely performance for 2021,
recognising the ongoing uncertainties in the marketplace. The
committee was pleased with the way in which management
seized the opportunities presented and ensured that
Glenveagh finished the year with a strong set of results.
Bonuses were payable to the executive directors at 99% of
maximum as a result, which the committee believes was wholly
appropriate in light of the exceptional achievements. Full
details of the specific bonus targets, the outcomes achieved
and the resulting level of bonus payments are included later in
this report.
To date, the only executive director to participate in the long-
term incentive plan (LTIP) is Michael Rice, the CFO. None of
Michael’s outstanding LTIP awards had a performance period
ending in 2021. Performance for the award granted in April 2019
will be tested in April 2022, with full details of the resulting level
of vesting included in next year’s remuneration report.
Under the legacy founder share scheme – in which the
chairman and the CEO participate – the performance
condition was tested at the normal time during 2021 but was
not met. As a result, there was no conversion of founder shares
into ordinary shares during the year.
The committee did not exercise any discretion in terms of
incentive outcomes for the year.
Governance: Remuneration committee report
91
Richard Cherry, chair, remuneration committee
Terms of reference
The full terms of reference for the remuneration
committee are available on the Group’s website.
Committee meetings and attendance
The committee met on seven occasions during the
financial year ended 31 December 2021. On occasion,
additional attendees including the board chairman, the
CEO, the CFO, the company secretary and specialist
external advisers were invited to attend all or part
of committee meetings as deemed appropriate and
necessary by the committee chair.
Committee
member
In
attendance
Committee
member as of
Richard Cherry
Cara Ryan
Pat McCann
7/7
7/7
7/7
Camilla Hughes 3/3
2017
2020
2020
2021
Remuneration policy review
Background and context
As set out above, during 2021 the committee undertook a
detailed review of the remuneration policy to ensure that
it remains fit for purpose. When reviewing the policy, the
committee considered the following objectives/principles and
agreed that the policy should:
•
•
•
•
•
•
Continue to ensure that it supports Glenveagh’s long-
term strategy and the significant growth opportunities for
the business.
Align to the culture and values of Glenveagh.
Reflect the roles, experience, skill, and responsibilities of
the executive directors, taking into account John Mulcahy
moving from an executive to a non-executive role with
effect from 1 January 2022.
Retain and incentivise the executive directors.
Align to the UK Corporate Governance Code and other
regulatory/legislative requirements.
Help promote high levels of stakeholder engagement
and support.
In particular, the committee has been keen to ensure that
Glenveagh has a policy in place which provides an appropriate
remuneration structure for the executive directors as they grow
the business in line with the focus on scaling the operations
and working towards the target of delivering over 3,000
homes each year, as a result playing a major role in tackling
the housing crisis in Ireland. At the same time as investing in
growth, Glenveagh will maintain a strong balance sheet with
prudent leverage and will continue to consider options for
returning excess capital to shareholders. The remuneration
policy has been reviewed against this backdrop of Glenveagh
having a compelling equity story and exciting prospects for the
future, all of which has been recognised in conversations with
the Company’s leading shareholders. In addition, the committee
has been keen to “right-size” the packages of the executive
directors in the context of their roles and responsibilities and
their importance to the business, and considering also the
chairman’s move to a non-executive role.
Summary of proposals
Based on our review, it was determined that a number of
changes should be made to the remuneration policy and that
shareholder approval for a new policy should be sought at
the AGM in 2022. The committee consulted with Glenveagh’s
leading shareholders and the major proxy advisers during
2021 and early 2022 to seek their feedback on a set of
proposals. As chair of the committee, I held a number of
useful conversations with investors as part of this process and
was very grateful for the thoughtful and considered responses
received. The committee reflected on the feedback and made
a number of changes to the proposals before finalising the
new remuneration policy as set out in this report. The key
changes to the policy from that approved by shareholders in
2021 are as follows:
•
•
•
•
The annual bonus opportunity has been increased from
100% of base salary to 150%. For 2022, the bonus limit
will be 150% of base salary for the CEO and 125% of base
salary for the CFO.
Bonus deferral has been introduced, whereby one-third of
any annual bonus earned will be deferred into shares for a
period of two years.
The LTIP opportunity is increased from 150% of base salary
to 200%, with no higher “exceptional circumstances” limit.
For 2022, the intention is to grant LTIP awards at a level of
200% of base salary for the CEO and 175% of base salary
for the CFO.
Pension contributions for the executive directors, currently
set at 15% of base salary, will reduce to the average across
the wider workforce, currently 5%, with effect from the end
of 2022.
• Malus and clawback provisions in the incentive schemes
have been extended to include reputational damage and
corporate failure as trigger events.
•
•
•
The in-service shareholding requirement for the CEO has
been increased from 200% to 300% of base salary. The
shareholding requirement for the CFO of 200% of base
salary remains the same.
Post-employment shareholding requirements have been
introduced. These apply for a period of two years following
departure.
The notice periods for the executive directors have been
increased from six months to nine months.
The committee recognises that the changes above include
some significant increases to variable remuneration
opportunities. This has been done to provide the executives
with competitive incentives to drive and reward the
achievement of the significant growth opportunities which have
been identified for the business. The payment of any annual
bonus and the vesting of any LTIP award will be subject to the
achievement of stretching performance targets which take into
account the higher reward multiples.
These increases are accompanied by changes to the policy
(for example on pensions and post-employment shareholding
requirements) which bring Glenveagh’s approach into line with
the UK Corporate Governance Code and general best market
practice. This builds on good practice features in the existing
policy such as the two-year post-vesting holding period in the
LTIP. The increased notice period in the executive directors’
service contracts aligns the contracts more closely with the
market and provides greater protection in the event of a
voluntary departure.
Taken as a whole, the committee believes that the policy
changes provide a suitable reward framework for the coming
period which will help incentivise and retain the executive
directors to drive performance while acting in the interests of
shareholders and other stakeholders in the business.
Remuneration for 2022
Set out below is information on how the committee intends to
apply the new remuneration policy for the 2022 financial year.
Executive director fixed remuneration
The base salary of the CEO will increase by 33%, from €450,000
to €600,000, and, for the CFO, by 27% from €315,000 to
€400,000. Although these are substantial increases, we are
comfortable that they are appropriate given the performance,
development and growth of the executives since 2019, when
the CEO was appointed to his current role and the CFO was
appointed to the board. In addition, the new salaries take into
account increased responsibilities as the executive chairman has
now moved to a non-executive role and is no longer involved
with the business on a day-to-day basis. The salaries also reflect
the committee’s desire to ensure that the remuneration for our
key leaders is appropriately retentive in the context of the next
critical stage of the growth plans for the business.
In reaching its decision, the committee also noted pay levels
for similar roles at comparable companies in the Irish and UK
markets. The new salary levels are considered to be around
the market median level for companies of a similar size to
Glenveagh.
Executive director annual bonus
The CEO and CFO will continue to participate in the annual
bonus scheme. The performance measures and weightings
were considered as part of the remuneration policy review
and have been adjusted for 2022. A greater weighting will be
placed on financial measures, increasing from 60% to 70% of
the total award. For 2022 the financial measures will consist of
profit before tax (PBT) (50%) and operating margin (20%). As
the business has evolved the committee believes that PBT is the
best profit measure to use for the bonus scheme as it takes into
account depreciation, amortisation and interest on debt and
overall financing. This is particularly important given the desire
to reflect in the bonus metrics the income statement impact
of Glenveagh’s timber frame and soil recovery assets and
the debt facility which was negotiated in 2021. Non-financial
performance will continue to be assessed based on safety
(15%) and customer satisfaction (15%) measures, and assessed
in a similar way as in previous years by input from externally-
managed surveys and audits. All of the measures selected are
critical indicators of Glenveagh’s ability to meet its strategic
objectives over the short-term. The specific targets have been
set in the context of the business environment for the year and
will be disclosed in the 2022 remuneration report. For 2022 the
annual bonus opportunity will be 150% and 125% of base salary
for the CEO and CFO respectively, in line with the new policy.
In addition, and also in line with the proposed policy, any
2022 annual bonus will be subject to one-third deferral into
shares. The shares must be held for a minimum of two years.
Executive director LTIP
The CFO will continue to participate in the LTIP, while the
CEO will join the plan for the first time. In previous years
the CEO has not received an LTIP award on account of his
participation in the founder share scheme, which expires in
2022. The committee believes that it is now the time for the
CEO to participate in the LTIP to ensure that he is incentivised
and aligned to longer term performance and the interests
of shareholders following the expiry of the founder share
scheme. This recognises that any vesting of the first LTIP
awards will not occur until 2025, almost three years later than
the final possible vesting opportunity under the founder share
scheme (with the final performance test for the founder share
scheme taking place during 2022).
In terms of the performance conditions which will apply to
the LTIP awards to be granted in 2022, the earnings per share
(EPS) measure used in previous years is to be retained, while
absolute total shareholder return (TSR) will be replaced by
return on equity (ROE). EPS and ROE (which will be equally
weighted) are both key financial metrics for Glenveagh, and are
measures which are closely monitored internally by the board
and by management and externally by investors and analysts.
Although TSR has been removed, the committee is comfortable
that executives remain appropriately aligned to investor returns
through their own shareholdings, bonus deferral, LTIP awards,
LTIP holding periods and shareholding requirements.
Full details on the specific performance targets are set out on
page 104.
For 2022, LTIP awards will be granted at levels of 200% and
175% of salary for the CEO and CFO respectively. It is our
intention to grant the LTIP awards shortly after the AGM.
Non-executive director remuneration
As part of the directors’ remuneration policy review,
consideration has been given to the structure and fee levels
for the non-executive directors. The fee for the chairman, who
is now in a non-executive role, has been set at €200,000. He
will not receive any variable remuneration.
For the other non-executive directors, base fee levels will
increase by €5,000 in 2022.
UK Corporate Governance Code
Glenveagh continues to support the principles and provisions
of the UK Corporate Governance Code. As noted above, the
new directors’ remuneration policy has been drafted with the
Code very much in mind. While the corporate governance
report notes Glenveagh’s departure from provision 41 of
the Code in relation to the level of engagement with the
workforce on executive remuneration matters, two issues
of non-compliance with the Code (relating to pensions
alignment and post-employment shareholding requirements)
noted in last year’s remuneration committee report have been
addressed as part of the policy review.
As recommended by the Code, the policy and its
implementation are designed to support the strategy of
the business and promote long-term sustainable success.
This remuneration committee report explains the policy in
a transparent and straightforward manner, with sufficient
detail provided to give shareholders a clear understanding
of how the policy operates and the potential reward
opportunities available to the executive directors. There is
a clear link between the performance of the Group and the
rewards available to individual directors. The policy has a
relatively conventional structure and unnecessary complexity
has been avoided. There is consistency with Glenveagh’s
broader culture of rewarding excellent performance across
the organisation, and strong alignment with the interests of
shareholders and wider stakeholders.
AGM
As noted above, the committee consulted with major
shareholders on the terms of the new remuneration policy.
I am grateful for the time taken by investors and proxy
advisers to consider our proposals and to provide feedback.
I trust that you will agree the revised policy is an appropriate
framework for the remuneration of Glenveagh’s senior leaders
for the coming years, and I look forward to your support for
the policy at the AGM, which as in previous years is presented
as an advisory vote. Shareholder approval will also be
sought at the AGM for the usual separate advisory vote on
this remuneration committee report. In addition, we will be
presenting a resolution to amend the rules of the LTIP to align
the plan with the new remuneration policy.
I hope you will support all three resolutions, and ahead of the
AGM, I welcome any comments or feedback you may have on
our activities in 2021, our plans for 2022, or any other relevant
matters.
As announced on 5 January 2022, I will be stepping down
from the board at the AGM and I wish my successor as
remuneration committee chair, Pat McCann, every success for
the years ahead.
Richard Cherry
Chair,
Remuneration committee
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Roles and responsibilities
The principal responsibilities and duties of the remuneration
committee include:
•
•
Having responsibility for setting the remuneration policy
for all executive directors including pension rights and
any other compensation payments.
Recommending and monitoring the level and structure of
remuneration for senior management.
•
•
Reviewing the ongoing appropriateness and relevance of
the remuneration policy, taking into account all factors
which it deems necessary, including the risk appetite
of the Group and alignment to the Group’s long-term
strategic goals and culture.
Reviewing the total individual remuneration package
of each executive director and other designated senior
executives including any bonuses, incentive payments
and share options or other share awards.
• Overseeing any major changes in employee benefits
structures throughout the Group.
Other activities
Set out below is a summary of the committee’s key activities
during the financial year.
Activity in 2021
Topic
Review of directors’ remuneration policy
Description of activity
The committee undertook a detailed review of the directors’ remuneration policy and approved a number of changes following a
consultation process with major shareholders and proxy advisers. The review process involved consideration of all aspects of the policy,
including the levels and structures of remuneration and the way in which the policy operates (e.g. variable remuneration performance
measures).
Transition of executive chairman to non-executive
chairman
The committee considered the appropriate approach to remuneration/fees in light of the executive chairman transitioning to non-
executive chairman in 2022.
Annual bonus
Long-term incentive plan (LTIP)
Review of AGM voting
Corporate governance
Executive committee
The committee formally set the targets for the 2021 annual bonus scheme and, later in the year, considered the interim position with
regards to performance against the targets. Formal testing of the targets took place in early 2022.
The committee approved the granting of LTIP awards to certain members of the senior management team (including the CFO)
during 2021, having considered the appropriate employee population and performance conditions for these awards. As part of the
remuneration policy review, it was agreed to include the CEO in the LTIP with effect from 2022 and make changes to the performance
metrics used in the plan.
The committee considered the outcome of the 2021 AGM votes on the directors’ remuneration policy and the remuneration committee
report.
Reviewed and approved the directors’ remuneration report and considered independent market updates on corporate governance and
market practice presented to the committee by its external advisers.
The committee met representatives from the executive committee throughout the financial year to receive updates on the business and
specific areas of interest to the committee.
Committee evaluation
The committee reviewed its terms of reference to ensure they were fit for purpose.
Reporting
The chair of the committee reports to the board on the
activities of the committee. The chair of the committee will
attend the AGM to answer questions on the report on the
committee’s activities and matters within the scope of the
committee’s responsibilities.
External advisers
During the financial year, the committee continued to
obtain independent advice from Korn Ferry in relation to
market trends, comparator benchmarking, developments
in remuneration policies and practice and governance best
practice. Korn Ferry are members of the Remuneration
Consultants Group and signatories to its code of conduct, and
all advice is provided in accordance with this code. As detailed
in the report of the nomination committee set out at page
108, a separate practice within Korn Ferry provided support
to the nomination committee during the year in identifying
potential candidates for appointment to the board as a new
non-executive director. The committee is entirely comfortable
that the advice it received from Korn Ferry on executive
remuneration matters was independent and robust.
Remuneration policy
Background
The remuneration policy was approved by shareholders at the
AGM held on 27 May 2021, with a vote in favour of 100%. This
approval was sought to ensure the policy was in full compliance
with the European Union (Shareholders’ Rights) Regulations
2020. There were no substantive changes to the remuneration
policy approved at the 2020 AGM.
As signalled in the 2020 Annual Report, during 2021 the
committee has undertaken a detailed review of the policy to
ensure that it is fit for purpose in light of Glenveagh’s long-term
strategy, the significant growth opportunities for the business
and the need to incentivise our management team in the
competitive housing market.
After reviewing a number of alternative options for the
evolution of the policy, the committee has decided to maintain
the current remuneration structure with some refinements to
provide for enhanced levels of incentivisation, and to ensure
compliance with the UK Corporate Governance Code.
Remuneration principles
In designing the remuneration policy, the objective of the
committee is to continue to attract, retain and motivate
executive management of the quality required to run the
Group successfully, having regard to the views of shareholders
and other stakeholders, as well as pay and conditions across
the Group as a whole. The committee is satisfied that the
remuneration framework is in alignment with the Group’s risk
appetite, purpose and culture, while also being supportive of its
long-term strategic goals.
The policy contributes to Glenveagh’s business strategy by
setting the framework by which the executive directors and
other senior employees are incentivised and rewarded. The
performance and reward of these individuals is critical in
ensuring the Group’s ongoing success. The policy incorporates
a mix of fixed and variable remuneration which provides both
a meaningful level of guaranteed pay appropriate for senior
leaders of a major listed company and incentives which are
structured to drive performance over the short and long-term.
Glenveagh’s long-term incentive plan assesses performance
over a three-year period using performance conditions which
are relevant indicators of long-term growth and value creation.
Achievement of these performance conditions will demonstrate
success in ensuring the long-term viability and sustainability of
the business.
Determination of the remuneration policy
When developing the remuneration policy the remuneration
committee considered a number of factors, including, but not
limited to:
• Glenveagh’s evolving business strategy and objectives,
and expectations of future performance as the Company
emerged from the pandemic.
• Market practice at similar companies in the sector and
more generally.
•
The views of institutional shareholders and advisory
bodies.
The committee received input from its independent external
advisers in the form of a number of presentations and direct
discussions. The committee also took on board the views of
Glenveagh management. Shareholder feedback on the policy
and its implementation was sought through a consultation
exercise in late 2021 and early 2022.
Implementation of the policy is reviewed every year, for
example in terms of the performance measures and targets
which apply to variable remuneration and the quantum of fixed
remuneration. Proposals are presented to the remuneration
committee and are subject to rigorous debate.
Conflicts of interest are avoided. Committee members are
required to disclose any conflicts or potential conflicts ahead
of committee meetings. No executive director or other
member of management is present when his or her own
remuneration is under discussion. The committee’s external
advisers are responsible for providing advice to the committee
and not to management.
Remuneration of the non-executive directors (NEDs) is a
matter for the board (excluding the NEDs) rather than
the remuneration committee. From time to time the board
(excluding the NEDs) reviews the fees payable to NEDs, taking
into account any changes in board responsibilities and levels
of fees paid to NEDs of similar companies to Glenveagh.
No NED is involved in discussions regarding his or her own
remuneration.
Changes to the remuneration policy
The key changes that are proposed to be made to the policy
that was previously approved by shareholders at the 2021 AGM
are set out below:
•
•
•
•
•
Increase in the maximum annual bonus opportunity from
100% of base salary to 150% of base salary. For 2022, the
bonus limit will be 150% of salary for the CEO and 125% of
salary for the CFO.
Introduction of bonus deferral, whereby one-third of any
annual bonus earned will be deferred into shares for a
period of two years.
The LTIP opportunity is increased from 150% of base salary
to 200%, with no separate limit applying in exceptional
circumstances. For 2022, the intended LTIP award size
for the CEO and CFO is 200% and 175% of base salary
respectively.
Pension contributions for the executive directors, currently
set at 15% of base salary, will reduce to the average across
the wider workforce (currently 5%) with effect from the end
of 2022.
The in-service shareholding requirement for the CEO has
been increased from 200% to 300% of base salary.
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•
Post-employment shareholding requirements have been
introduced. For a minimum period of two years after the
cessation of their employment, the executive directors
will be required to hold shares at a level of the lower
of (1) the in-employment shareholding requirement in
place at the time and (2) their actual shareholding at the
time of departure. These requirements will apply to any
shares which vest from incentive awards granted from
2022 onwards. Shares which have been purchased by an
executive director from their own resources will not be
covered by this arrangement.
•
Enhanced malus and clawback provisions have been
introduced to both the annual bonus scheme and the
LTIP to ensure they are fully up to date with current best
practice. Scenarios of serious reputational damage and
corporate failure have been added as circumstances which
will trigger the potential exercise of these provisions.
•
The notice periods for the executive directors have been
increased from six months to nine months.
Components of remuneration for executive directors
The following table outlines the key elements of the executive
directors’ remuneration policy.
Element/purpose
Variable remuneration
Annual bonus
To reward the achievement of annual performance targets
Element/purpose
Fixed remuneration
Base salary
To attract and retain high calibre individuals
Benefits
To be competitive with the market
Retirement benefits
To attract and retain high calibre individuals as part of
competitive package.
Operation
Maximum opportunity
Base salaries are normally reviewed by the committee annually
in the last quarter of the year with any adjustments to take
effect from 1 January of the following year.
There are no prescribed maximum salaries or maximum
increases. Increases will normally reflect increases across the
Group and in the market generally.
Factors taken into account in the review include the individual’s
role and level of responsibility, personal performance and
developments in pay in the market generally and across the
Group.
Base salary for executive directors is inclusive of fees receivable
by the executive as a director of the Group.
However, increases may be higher or lower to reflect certain
circumstances (whether temporary or permanent) such as
changes in responsibility or in the case of newly appointed
individuals to progressively align salary with market norms.
In line with good practice, market movements will not be
considered in isolation but in conjunction with other factors.
In addition to their base salaries, executive directors’ benefits
currently include life and health insurance and a car allowance
in line with typical market practice. Other benefits may be
provided if considered appropriate.
No maximum levels are prescribed as benefits will be related to
each individual’s circumstances.
The Group operates a defined contribution pension scheme
for executive directors. Pension contributions are calculated on
base salary only.
For current executive directors, 15% of base salary, reducing
to the rate attributable to the majority of the wider workforce
(currently 5%) with effect from 1 January 2023.
Any new executive director appointed after the 2020 AGM will
have their contribution rate set in line with the rate attributable
to the majority of wider workforce.
Long-term Incentive Plan (LTIP)
To incentivise long-term sustainable performance by granting
shares which vest subject to the achievement of targets which
are linked to Glenveagh’s business strategy and central to its
long-term success.
The LTIP also contributes to Glenveagh’s long-term interests by
ensuring alignment between participants and the interests of
shareholders.
Operation
Maximum opportunity
Individuals will receive annual bonus awards based on
the achievement of financial and/or non-financial targets.
Threshold, target and maximum performance levels will be set,
with pro-rata payments between the points based on relative
achievement levels against the agreed targets.
The financial KPIs will ensure that employees are aligned with
shareholders’ interests and the parameters that the Group will
be assessed on by the market in the long-term. The financial
KPI targets will be set annually for the year ahead, based on
the budget and strategic plan process carried out in Q3/Q4 of
the preceding year. Appropriate details of the specific targets
will be included on a retrospective basis in the remuneration
committee report each year.
The committee retains discretion to adjust any award to reflect
the underlying financial position of the Group.
The maximum award for executive directors as a percentage of
base salary is 150%.
For 2022, the committee intends to apply the following
maximum opportunities as a percentage of base salary:
CEO
CFO
150%
125%
The amount payable for target performance is limited to 50%
of the relevant maximum award opportunity.
Two-thirds of the annual bonus will be paid in cash, while
one-third will be deferred into shares which vest after two
years. No further performance targets apply to the deferred
share but malus and clawback will apply to the shares during
the deferral period.
Senior executives are eligible to participate in the LTIP.
The LTIP involves the grant of nil-cost options over ordinary
shares to participants based on a percentage of their gross
base salary.
Subject to approval by shareholders at the 2021 AGM, the LTIP
rules permit awards to be granted up to 200% of base salary.
The committee intends to make grants at the following levels in
2022 (as a percentage of base salary):
LTIP awards vest subject to the satisfaction of performance
conditions over a three-year period. The committee selects the
performance condition ahead of each grant taking into account
Glenveagh’s strategic priorities and business circumstances. A
majority of the metrics chosen will be financial metrics.
CEO
CFO
200%
175%
Full details of the chosen metrics and specific targets for recent
awards and for awards to be granted in 2022 are set out on
page 104.
The vesting of any award is subject to committee discretion that
it is satisfied the Group’s underlying performance has shown a
sustained improvement in the period since date of grant.
LTIP awards are subject to a holding period of at least two
years following the date of exercise of their options. Shares that
are subject to a holding period post-exercise may be placed in
a restricted share trust for the duration of the restricted period.
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Relative proportion of fixed and variable remuneration
As indicated in the table above, the remuneration of
the executive directors includes both fixed and variable
remuneration. The charts below indicate the relative
proportion of the fixed and variable remuneration for each
executive director.
CEO
Max variable pay
Target variable pay
No variable pay
CFO
Max variable pay
Target variable pay
No variable pay
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Salary
Pension
Bonus
LTIP
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Salary
Pension
Bonus
LTIP
Notes:
(1) Max variable pay assumes a full annual bonus pay-out and the vesting of LTIP awards at the maximum level. No account
has been taken of share price appreciation since the date of grant.
(2) Target variable pay assumes a bonus pay-out at a target level of 50% of the maximum and LTIP vesting at a target level of
50% of the maximum.
(3) No variable pay assumes no annual bonus pay-out and no LTIP vesting.
(4) The value of benefits will fluctuate and therefore for simplicity have not been included in the charts.
Performance conditions
For both the annual bonus scheme and the LTIP, the committee
sets performance conditions based on business circumstances
and the key strategic priorities of the business at the time
the targets are set. Specific targets are chosen based on
the business plan and budget, the board’s expectations of
performance and external market estimates (where relevant).
The performance conditions are designed to be relevant to
achieving Glenveagh’s vision of being the leading sustainable
homebuilding platform in Ireland.
The performance conditions which apply to the annual bonus
scheme to operate in 2022 are based on a mix of financial and
non-financial criteria as set out below:
•
Profit before tax: This is considered to be the best
profit measure to use for the bonus scheme as it takes
into account depreciation, amortisation and interest on
debt and overall financing. It is considered particularly
important to use a measure which reflects the income
statement impact of Glenveagh’s timber frame and
soil recovery assets and the debt facility which was
negotiated in 2021.
• Operating margin: This ensures that management is
focused on operating profit in the context of revenue
growth.
•
•
Health and safety: Glenveagh’s health and safety
audit score is an indicator of the ability of the business
to provide a safe working environment for our people.
Among other things, this ensures we operate as a
responsible employer and can attract and retain the best
people in the industry. Safety audits are completed on a
monthly basis by an external consultant and by internal
safety specialists.
Customer satisfaction: Customers are central to the
success of the business. An independent external firm
is used to survey customers on topics linked to their
experience with Glenveagh. Annual bonuses are based
on the survey results. Ultimately, Glenveagh’s long-term
success will depend upon its ability to meet and exceed
customer expectations.
For the LTIP award to be granted in 2022, the following
performance conditions have been chosen:
•
Earnings per share: This is a key measure of profitability.
Growth in EPS over time reflects our ability to grow
earnings responsibly while having due regards to the
interests of shareholders.
•
Return on equity: This is the best measure of the Group’s
ability to generate profits from its asset base in a capital
efficient manner and to create sustainable shareholder
value.
be required to retain at least 50% of any shares which vest
following the end of the performance and holding periods for
the LTIP (excluding any shares which are required to be sold
to pay tax due at vesting).
The remuneration committee is responsible for assessing the
extent of the achievement of the performance conditions for
both the bonus scheme and the LTIP. In the case of the financial
metrics this involves reviewing Glenveagh’s financial performance
as determined by its audited results and comparing the specific
targets against the performance achieved.
Health and safety is measured by considering the result of
internal and external site safety audits. Customer satisfaction
is determined through the results of the surveys conducted on
Glenveagh’s behalf by an independent external firm.
Malus and clawback
For both the annual bonus scheme and the LTIP, recovery
provisions are in place which permit the committee to claw
back awards if certain trigger events occur within two years of
the payment or vesting date:
•
•
•
•
•
If the award was determined on the basis of materially
incorrect information, including as a result of any
material misstatement of the financial results.
If the participant has engaged in any wilful misconduct,
recklessness, fraud and/or criminal activity which
reflects negatively on Glenveagh or otherwise impairs
or impedes its operations and/or which has caused
serious injury to the financial condition and/or business
reputation of Glenveagh.
If a participant behaves in a manner which fails to reflect
Glenveagh’s governance and business values and/or
which has the effect of causing, or is likely to result in,
serious reputational damage to Glenveagh.
If there is an incidence of corporate failure (including
but not limited to Glenveagh being placed into
administration).
If the participant commits an act which constitutes a
material breach of his/her contract, restrictive covenants
and/or any confidentiality obligations.
Shareholding guidelines
The CEO is required to build a shareholding equivalent in
value to 300% of their base salary, while all other executive
directors must build a shareholding equivalent in value to
200% of base salary. Until this guideline is met, individuals will
As explained on page 96, the committee has decided to
introduce a requirement for shares to be held for a period of
time following termination of employment. For a minimum
period of two years after the cessation of their employment, the
executive directors will be required to hold shares at a level of
the lower of (1) the in-employment shareholding requirement in
place at the time and (2) their actual shareholding at the time
of departure. These requirements will apply to any shares which
vest from incentive awards granted from 2022 onwards. Shares
which have been purchased by an executive director from their
own resources will not be covered by this arrangement.
Approach to recruitment remuneration
The package for any new executive director would be based
on the elements set out in the remuneration policy table
above. For certain elements of the package, the following
approach would apply.
•
•
•
•
Base salary: The salary offered to a new executive
director would take into account a number of relevant
factors including the individual’s background and
experience, the responsibilities of the role and wider
market practice. The committee has the discretion to
appoint a new executive director on a salary below
the prevailing market rate, with a view to increasing
the salary over time depending on performance and
development in the role. Such increases may be at a level
higher than would otherwise apply.
Benefits: The benefits package will be consistent
with that provided to existing executive directors. The
committee may provide other benefits (e.g. a relocation
package in the event of a new executive director being
required to relocate in order to join Glenveagh).
Retirement benefits: As stated in the remuneration policy
table, any new executive director will have their pension
contribution rate set in line with the rate attributable to
the majority of the wider workforce. This is currently 5%
of base salary.
Annual bonus: A new executive director will normally
be eligible to participate in the annual bonus scheme,
on the same basis as the other executive directors.
Participation will normally be pro-rated to reflect the
period of service during the financial year. The maximum
•
•
bonus opportunity for a new executive director is 150% of
base salary.
LTIP: A new executive director will normally be eligible
to participate in the LTIP on the same basis as the other
executive directors. An LTIP award may be granted as
part of the arrangements agreed on appointment. In
line with the remuneration policy, any LTIP award will be
limited in size to a maximum of 200% of base salary.
Buyout awards: In certain circumstances – for example
to attract an external candidate of exceptional calibre
– the committee may consider providing a buyout
award as compensation for incentives provided by the
candidate’s previous employer which will lapse as a result
of the individual joining Glenveagh. The value of any
buyout award will take into account the performance
conditions attached to the forfeited incentives, the
likelihood of them being satisfied, the proportion of
the performance period completed as at the date of
cessation of employment, the mechanism of delivery (e.g.
in cash or equity) and any other relevant factors. The
committee may grant a buyout award under Glenveagh’s
existing incentive plans or, if necessary, may use a
bespoke arrangement.
The committee reserves the right to appoint a new executive
director on a service agreement with a twelve-month notice
period, in line with standard market practice.
Service agreements
The current executive directors all have service agreements with
Glenveagh of no fixed term. The agreements are terminable on
nine months’ notice from both the Group and the executive. The
agreements do not provide for any additional compensation to
be paid in the event of a change of control of Glenveagh.
Policy for leavers
Salary and benefits
For leavers, any termination payments are made only in
respect of annual salary excluding benefits for the relevant
notice period.
Annual bonus
In order for annual bonus payments to be made, executive
directors must normally be employed by the Group on the
bonus payment date.
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99
Long-Term Incentive Plan
Under the rules of the LTIP, the vesting of awards for
good leavers depends on the satisfaction of the relevant
performance conditions. Awards are reduced on a pro rata
basis to reflect the proportion of the vesting period which has
not elapsed at the date of cessation.
For other leavers, unvested awards lapse on cessation.
In the event of a change of control, the committee has
discretion under the LTIP rules to determine the extent of
vesting of outstanding awards, having regard to the extent
that performance conditions have been met and the length of
the performance period which has elapsed.
Wider executive/employee remuneration considerations
In addition to setting the pay for the executive directors, the
remuneration committee has responsibility for setting the
pay of members of senior management immediately below
board level (including the company secretary). The committee
also considers matters relating to pay across the Group
as a whole, including workforce remuneration policies and
incentives for the wider employee population. The committee
has not engaged directly with employees on executive
remuneration matters but has considered in detail the issue of
alignment between executive director remuneration and the
pay for the employee population more broadly. In designing
the directors’ remuneration policy the committee has been
cognisant of pay arrangements across the Group and has
sought to ensure consistency where appropriate.
For example, senior managers participate in a bonus scheme
which has a similar structure to that of the executive directors.
A number of senior managers below the board participate in
the LTIP, with the same performance conditions applying to
all awards granted under the plan. A separate bonus scheme
applies for the main employee group, under which the
majority of bonus payments are subject to the achievement of
targets linked to personal performance.
Engaging with shareholders
The committee is committed to an open line of communication
with shareholders and will seek the views of major investors
when considering significant changes to remuneration
practices or policies. The committee has engaged extensively
with major shareholders on remuneration matters in recent
years, most recently in late 2021 and early 2022 to discuss the
new remuneration policy and its implementation for 2022.
Committee discretions
The committee retains discretion to make any payments,
notwithstanding that they are not in line with the policy set
out above, where the terms of the payment were agreed
(i) before the policy came into effect, or (ii) at a time when
the relevant individual was not a director of the Company
and, in the opinion of the committee, the payment was not
in consideration of the individual becoming a director of
the Company. For these purposes ‘payments’ includes the
committee satisfying awards of variable remuneration and, in
relation to an award over shares, the terms of the payment
are determined at the time the award is granted. Details of
any such payments will be disclosed in the remuneration
committee report for the relevant year. The committee also
has the discretion to amend the policy with regard to minor
or administrative matters where it would be, in the opinion
of the committee, disproportionate to seek or await
shareholder approval.
The committee will operate the annual bonus and long-term
incentive arrangements according to their respective rules.
Consistent with market practice the committee retains certain
discretions in respect of the operation and administration of
these arrangements.
External appointments
The board recognises the benefit which the Company can
obtain if executive directors serve as non-executive directors
of other companies. Subject to review in each case, the
board’s general policy is that an executive director can accept
non-executive directorships of other companies (provide this
does not prejudice the individual’s ability to undertake their
duties at Glenveagh) and can retain the fees in respect of
such appointment.
Remuneration policy for non-executive directors
Non-executive directors (NEDs) have letters of appointment
which set out their duties and responsibilities. The
appointments are initially for a three year term but are
terminable on one month’s notice.
The NEDs each receive a fee which is set by the board on
advice from the independent professional advisers. The NEDs
are paid a fee of €65,000 per annum with additional fees
payable to the senior independent non-executive director
of €30,000 per annum and to the workforce engagement
director of €15,000 per annum. NEDs receive an additional
€15,000 for chairing the audit and risk, remuneration,
nomination and environmental and social responsibility
committees.
The non-executive chairman will receive a fee of €200,000,
inclusive of all additional fees, which for John Mulcahy is a
€100,000 reduction on the €300,000 base salary he received in
his role as executive chairman.
Accordingly, the NED letters of appointment detail the following
annual fees:
Role
John Mulcahy
Company chairman
Robert Dix
Cara Ryan
Richard Cherry
Pat McCann
Camilla Hughes
Senior independent
non-executive director
Workforce engagement
director and chair of the
audit and risk committee
Chair of the remuneration
committee
Chair of the nomination
committee
Chair of the environmental
and social responsibility
committee
€
200,000
95,000
95,000
80,000
80,000
80,000
NEDs are not eligible to participate in any Group pension
plan. The non-executive directors do not have service contracts
and do not participate in any bonus or share option schemes.
NEDs may receive benefits if considered appropriate. All
remuneration received by the NEDs is fixed remuneration.
Annual remuneration report for 2021
The following table illustrates remuneration awarded to directors for the financial year ended 31 December 2021:
Name
Salary/fees (€) (1)
Benefits (€) (2)
Employer pension
contribution (€) (3)
Total fixed (€)
Annual bonuses
(€) (4)
LTIP (€)
Total variable (€)
Total (€)
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Executive directors
John Mulcahy
300,000
300,000
18,500
18,500
-
-
318,500
318,500
222,750
Stephen Garvey
450,000
450,000
Michael Rice
315,000
315,000
25,213
16,270
24,321
15,926
67,500
67,500
542,713
541,821
445,500
47,250
47,250
378,520
378,176
311,850
Non-executive directors
Robert Dix
Richard Cherry
Lady Barbara
Judge CBE (5)
Pat McCann
Cara Ryan
Camilla Hughes (6)
90,000
75,000
-
75,000
78,750
37,500
79,875
75,000
52,500
63,427
64,875
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
90,000
79,875
75,000
75,000
-
52,500
75,000
63,427
78,750
64,875
37,500
-
-
-
-
-
-
-
Total
1,421,250
1,400,677
59,983
58,747
114,750 114,750
1,595,983
1,574,174
980,100
(1) Amounts reflect salaries in respect of executive directors and directors’ fees in respect of non-executive directors.
(2) Benefits largely relate to car allowances and healthcare provided to executive directors in accordance with their employment contracts.
(3) Only executive directors are eligible to receive pension contributions. Non-executive directors do not receive pension contributions.
(4) The executive directors waived their entitlement to an annual bonus in 2020.
(5) Lady Barbara Judge OBE passed away on 31 August 2020.
(6) Camilla Hughes was appointed to the board on 1 July 2021.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
222,750
445,500
311,850
-
-
-
-
-
-
980,100
-
-
-
-
-
-
-
-
-
-
541,250
318,500
988,213
690,370
541,821
378,176
90,000
75,000
-
75,000
78,750
37,500
79,875
75,000
52,500
63,427
64,875
-
2,576,083
1,574,174
Total remuneration received for 2021
All elements of the remuneration received by the directors
for 2021 were consistent with the directors’ remuneration
policy as approved by shareholders at the AGM in 2021.
The salaries received by the executive directors and the fees
received by the non-executive directors were as disclosed in
the 2020 remuneration committee report. The bonus payments
received by the executive directors in respect of 2021 reflected
the achievement of the performance targets, as explained
further below.
During the financial year ended 31 December 2021:
•
•
•
There were no deviations from the procedure for
implementing the remuneration policy.
There were no derogations from the remuneration policy.
No use was made of the possibility to reclaim variable
remuneration using the malus and clawback mechanisms
described in the remuneration policy.
The remuneration committee report for 2020 and the
directors’ remuneration policy were the subject of advisory
shareholder votes at the AGM in 2021. The resolutions were
passed with the support of 99% and 100% of those voting
respectively. The committee took this overwhelming level
of shareholder support into account when reflecting on the
appropriate approach to executive remuneration to take in
respect of 2021. The committee concluded that the vote results
indicated shareholder satisfaction with the current approach
and that no changes were required to be made in response.
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101
Annual bonus
The specific targets that were set for the bonus scheme in
2021 are set out in the table below:
Base salary and fees
The actual salaries paid to the executive directors for the
financial year ended 31 December 2021 are set out in the
table on page 101.
The base salaries for the CEO and CFO from 1 January 2022
will be €600,000 and €400,000 respectively, as explained
on page 92.
Metric
Revenue
2021 outcome
The executive directors participated in an annual bonus
scheme for 2021 with performance measured against a mix
of financial (60%) and non-financial (40%) performance
conditions.
Weight
20%
% Payable
Threshold 25%
Target 50%
Max 100%
Adjusted EBITDA
20%
Threshold 25%
Target 50%
Max 100%
Adjusted EBITDA margin
20%
Threshold 25%
Target 50%
Max 100%
Performance achieved
€476.8m
€48.8m
10.2%
Targets
€331.7m
€368.5m
€442.2m
€20.0m
€22.3m
€26.7m
5.5%
6.0%
7.0%
Health and safety
20%
Threshold 25%
65% audit score
89%
Target 50%
Max 100%
70% audit score
82.5%+ audit score
Customer satisfaction
20%
Threshold 25%
75% survey score
89%
Target 50%
Max 100%
80% survey score
90%+ survey score
The remuneration committee reviewed the outcome of the formulaic bonus calculations and was satisfied that they were a fair reflection of the overall performance of the business. As a result,
the executive directors received €980,100, being 99% of base salary for the CEO and the CFO and 74% of base salary for the executive chairman.
2022 bonus arrangements
As set out in the chair’s statement, as part of the review of
the remuneration policy the committee has made a number
of changes to the measures against which annual bonus
performance will be assessed for 2022. The measures and
associated weightings will be as follows:
Financial metrics
Weighting
PBT
Operating margin
50%
20%
Non-financial metrics
Weighting
Safety
Customer satisfaction
15%
15%
Full details of the targets including information on the extent of
achievement against them will be included in next year’s report.
The maximum annual bonus opportunity for 2022 will be 150%
of base salary for the CEO and 125% for the CFO. The amount
payable for target performance will continue to be 50% of the
maximum opportunity.
In line with the new directors’ remuneration policy, one-third of
any bonus payable will be deferred into shares for two years.
Long-term incentive plan (LTIP)
Awards granted in 2021
To date, Michael Rice has been the only executive director to
participate in the LTIP. During 2021 he received an LTIP award
as set out in the table below.
Award date
% of salary
award
Grant date
share price
Face value of
award
Number of
shares
Performance
period
Date of vesting
1 Apr 2021
100%
€0.91
€315,000
399,493
1 Jan 2021 to
31 Dec 2023
1 Apr 2024
Barnhall Meadows
Leixlip, Co. Co Kildare
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103
The performance conditions for this award are set out below:
TSR performance (applies to
50% of the award) – compound
growth per annum
Level of vesting
12.5%
6.25%
Less than 6.25%
100%
25%
Nil
Awards vest on a straight-line basis for performance
between 6.25% and 12.5%
EPS performance (applies to 50%
of the award) – Adjusted EPS to
be achieved in FY2023
Level of vesting
12.5c
9.5c
Less than 9.5c
100%
25%
Nil
Awards vest on a straight-line basis for performance
between 12.5c and 9.5c
In addition, the vesting of the awards is subject to committee
discretion that it is satisfied the Group’s underlying
performance has shown a sustained improvement in the
period since the date of grant.
The TSR performance conditions for the award are the same
as those applying to earlier LTIP awards and are considered
appropriately challenging. As announced to the market on
1 April 2021, the committee delayed setting the EPS targets
given the ongoing volatility and lack of visibility around
longer-term performance due to the pandemic. The targets
were agreed later in the year and announced to the market
on 23 September 2021. The targets are the same as those
which apply to the LTIP award granted in February 2020 (for
which performance is measured as at the end of 2022). This
approach was taken to reflect the reality that the restrictions
put in place due to the pandemic effectively delayed by
twelve months the expected progress of the business. The
targets were in line with internal and external forecasts of
performance at the time they were set, and are considered
appropriately challenging.
Awards to be granted in 2022
In line with the new directors’ remuneration policy, for 2022
the remuneration committee intends to grant an LTIP award
at a level of 200% of base salary for the CEO and 175% of
base salary for the CFO.
LTIP awards held by directors
Details of all LTIP awards held by Michael Rice are set out in the table below:
The performance conditions to apply to this award will be as
follows:
EPS performance (applies to
50% of the award) – adjusted
EPS to be achieved in FY2024
Level of vesting
20.0c
12.0c
Less than 12.0c
100%
25%
Nil
Awards vest on a straight-line basis for performance
between 12.0c and 20.0c
Return on equity performance
(applies to 50% of the award) –
ROE to be achieved in FY2024
Level of vesting
16.2%
11%
Less than 11%
100%
25%
Nil
Awards vest on a straight-line basis for performance
between 11% and 16.2%
The committee will have the flexibility to make adjustments
to the targets and/or the determination of performance
against the targets and vesting outcome to reflect the impact
of material events during the performance period. Any
such adjustment will be explained in the relevant directors’
remuneration report.
Award date*
Share price used
Share awards held
at 1 Jan 2021
Awarded during the
year
Vested during the
year
Lapsed during the
year
Share awards held
at 31 Dec 2021
17 Apr 2019
28 Feb 2020
1 Apr 2021
€0.84
€0.75
€0.91
200,893
420,000
-
-
-
399,493
-
-
-
-
-
-
200,893
420,000
399,493
Vesting date
16 Apr 2022
27 Feb 2023
1 Apr 2024
* The awards are granted as options with an exercise price of nil.
The vesting of the award granted in April 2019 is subject to a
performance condition based on the satisfaction of absolute
total shareholder return (TSR) targets. The targets are the
same as those which apply to the award granted in 2021, as
set out in the relevant table above. Performance is measured
over the three-year vesting period ending in April 2022. The
performance outcome and the subsequent level of vesting will
be disclosed in next year’s remuneration committee report.
The vesting of the award granted in February 2020 is subject
to performance conditions based on absolute TSR and EPS
performance (equally weighted on a 50/50 basis) over the
three years to the end of December 2022. The specific targets
were disclosed in the 2019 and 2020 remuneration committee
reports and are the same as those which apply to the LTIP
award granted in 2021, as set out in the relevant table above.
The performance outcome and the subsequent level of vesting
will be disclosed in next year’s remuneration committee report.
In addition to performance conditions set out above, the
vesting of any LTIP award is subject to committee discretion
that it is satisfied the Group’s underlying performance has
shown a sustained improvement in the period since the date
of grant.
In line with the directors’ remuneration policy (as set out
in the table on page 97), LTIP awards granted to executive
directors from 2020 onwards include a holding period of at
least two years post-exercise. Shares that are subject to a
post-exercise holding period may be placed in a restricted
share trust.
Change in remuneration of all directors and all employees
As required by the European Union (Shareholders’ Rights)
Regulations 2020, the table below sets out the annual
change of remuneration for each director compared with the
performance of Glenveagh.
Executive directors
John Mulcahy
Stephen Garvey
Michael Rice
Non-executive directors
Robert Dix
Richard Cherry
Pat McCann
Cara Ryan
Camilla Hughes (1)
Company performance
Adjusted EBITDA
Health and safety
Customer satisfaction
(1) Camilla Hughes was appointed to the board on 1 July 2021.
(2) From period of incorporation 9 August 2017 to 31 December 2017.
2021
2020
2019
2018
2017(2) % Change 2021 v 2020
€541,250
€988,213
€690,370
€90,000
€75,000
€75,000
€78.750
€37,500
€48.8m
89%
89%
€318,500
€541,821
€378,176
€79,875
€75,000
€63,427
€64,875
-
€9.6m
88.0%
83.0%
€480,596
€750,439
€99,918
€75,000
€75,000
€20,000
€20,000
-
€31.9m
75.0%
82.0%
€419,000
€564,401
-
€75,000
€75,000
-
-
-
€72,387
€93,309
-
€16,438
€16,438
-
-
-
€(2.0)m
€(3.6)m
N/A
N/A
N/A
N/A
69.9%
82.4%
82.6%
12.7%
-
18.3%
21.4%
N/A
408.3%
1.1%
7.2%
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105
The table below sets out the change in average remuneration (on a full-time equivalent basis) of Glenveagh employees (other than the directors).
Average full time employee remuneration
2021
2020
2019
2018
2017(1)
% Change
2021 vs 2020
Average remuneration
employees of the Group
(1) From period of incorporation 9 August 2017 to 31 December 2017.
€98,350
€73,610
€84,286
€90,110
€25,990
33.6%
Directors’ and secretary’s interest in shares
The biographical information for the directors and the company
secretary at the time of this report can be found on pages
112 to 114 of the director’s report. The table below sets out the
interests of the directors and company secretary in ordinary
shares of the Company as at 31 December 2021. As stated in
the new directors’ remuneration policy, the CEO is required to
build a shareholding equivalent in value to 300% of his base
salary. Other executive directors are required to build a holding
of 200% of base salary. Until this guideline is met, individuals
will be required to retain at least 50% of any shares which vest
following the end of the performance and holding periods for
the LTIP (excluding any shares which are required to be sold to
pay tax due at vesting).
Name
John Mulcahy
Stephen Garvey
Michael Rice
Richard Cherry
Robert Dix
Cara Ryan
Pat McCann
Camilla Hughes
Chloe McCarthy
Ordinary shares
Founder shares
Deferred shares
Lapsed shares
Ordinary shares under
option**
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2,682,766
2,682,766
18,100,684
18,100,684
9,411,329
13,411,329
81,453,077
81,453,077
23,333
1,371,069
350,000
28,000
70.000
-
-
23,333
1,371,069
350,000
28,000
70,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(225,000)
1,050,386
650,893*
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(65,000)
368,677
264,048*
* The exercise price of the ordinary shares under options detailed above is €nil. The expiry date for the options granted during 2020 and 2021 are 7 years from 27 February 2023 and 31 March 2024 respectively.
** Shares under options include options from both LTIP and SAYE schemes.
Founder share scheme
This scheme was established in 2017 in advance of the
Company’s IPO to incentivise the three founders of Glenveagh
(John Mulcahy, Stephen Garvey and Justin Bickle) to grow the
business over the initial five-year period following listing.
Under the performance condition, the closing Glenveagh
share price must, for a period of 15 or more consecutive
business days during the test period, exceed the adjusted
issue price32 by 12.5%. This percentage increase is measured
on a compound basis.
Each of the founders holds a number of founder shares,
which are a specific class of shares in the share capital of
the Company, with their terms set out in the memorandum
and articles of association. The founder shares are converted
into ordinary shares (or a cash equivalent) subject to
the achievement of a performance condition linked to
Glenveagh’s share price.
The scheme runs over the five years from 2018 to 2022.
Performance is assessed separately over five separate test
periods, with founder shares converting into ordinary shares
based on performance in each test period. The test period is
from 1 March to 30 June each year.
If the performance condition is satisfied, the founders are
entitled to convert founder shares into such number of ordinary
shares which, at the highest average closing price of an
ordinary share during the test period, have an aggregate value
equal to the “founder share value.” This is calculated as 20%
of the TSR in the relevant period, being (i) the first time the
performance condition is satisfied, the period from admission
to the test period in which the performance condition is first
satisfied and (ii) for subsequent test periods, the period from
the end of the previous test period in respect of which founder
shares were last converted or redeemed to the test period in
which the performance condition is next satisfied.
The performance condition was satisfied during the first test
period from 1 March 2018 to 30 June 2018, resulting in the
conversion of founder shares into 18,993,162 ordinary shares in
2018. The performance condition was not satisfied during the
test periods from 1 March 2019 to 30 June 2019, 1 March 2020
to 30 June 2020, and 1 March 2021 to 30 June 2021. As a result,
there has been no conversion of founder shares into ordinary
shares since 2018. The final test period for the scheme will be
from 1 March 2022 to 30 June 2022.
Any shares converted in accordance with the terms and
conditions of the founder share scheme are subject to a one
year lock-up period, with 50% of the converted shares subject
to a further one year lock-up period thereafter.
The table below sets out the ownership split between the
holders of founder shares:
Name
Justin Bickle*
Stephen Garvey
John Mulcahy
Total
* Beneficially held by Durrow Ventures.
31 December 2021
31 December 2020
81,453,077
81,453,077
18,100,684
181,006,838
81,453,077
81,453,077
18,100,684
181,006,838
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Glenveagh Properties PLC Annual Report and Accounts 2021
Governance: Remuneration committee report
107
32 The adjusted issue price is defined as the IPO offer price (€1) as adjusted to reflect any subsequent consolidation or subdivision of ordinary
shares or any allotment of ordinary shares pursuant to a capitalisation of profits or reserves.
Nomination committee
report
I am pleased to report on the main responsibilities
of the nomination committee, how it has fulfilled these
responsibilities during the year ended 31 December 2021, and
its plans and intentions for the coming year.
The committee is also tasked with leading the process for
appointments and ensuring that a formal, rigorous and
transparent procedure is undertaken for effective and orderly
succession to both board and senior management positions.
During 2021, there have been important changes to both
the board and the executive leadership of Glenveagh. The
committee engaged the executive search firm Korn Ferry to
support the appointment process for a new independent non-
executive director and we were delighted to welcome Camilla
Hughes to the board on 1 July 2021.
At the 2021 AGM, John Mulcahy announced his intention to
transition to the role of non-executive chairman with effect from
1 January 2022. Significant consideration was given to succession
planning for the smooth transition of John’s executive functions
and the expansion of the Company’s executive committee.
From 1 January 2022, the executive directors Stephen Garvey
and Michael Rice will be joined on the executive committee by
Wesley Rothwell (chief commercial officer), Conor Murtagh (chief
strategy officer), Barney O’Reilly (head of construction) and Tony
McLoughlin (director of planning, design and manufacturing
operations).
Looking ahead to 2022, the committee will continue to keep
under review the leadership needs of the Company, both
executive and non-executive, giving full consideration to
succession planning for the board and its committees following
the announcement on 5 January 2022 that Richard Cherry will
step down as a non-executive director at the conclusion of the
2022 AGM.
Roles and responsibilities of the committee
The committee is responsible for regularly reviewing the structure,
size and composition (including skills, experience and knowledge)
of the board and other senior management positions and
making recommendations to the board with regard to any
proposed changes.
The committee promotes the development of greater diversity at
board level, and it is tasked with reviewing the board diversity
policy on an annual basis.
The committee also reviews the results of the annual board
performance evaluation process that relate to the composition of
the board and the time commitment required from non-executive
directors.
Areas of focus for the committee in 2021
Board appointment process
As announced in the 2020 Annual Report, the key priority
identified by the committee entering into 2021 was the selection
and appointment process for a new independent non-executive
director.
The committee worked with Korn Ferry, a leading independent
recruitment firm engaged at the end of 2020, to identify a
suitable list of potential candidates based on the candidate
profile prepared and approved by the committee. In identifying
the key candidate characteristics and experience required for this
role, the committee took into account the existing balance of the
board’s skills, experience, gender and backgrounds.
The short listed candidates met with each of the committee
members, following which the committee collectively identified
Camilla Hughes as the preferred candidate and she then
met with the executive directors. The recommendation by the
committee that Camilla Hughes be appointed as a non-
executive director of the Company with effect from 1 July 2021
was approved by the board and announced to the market on
30 April 2021.
Pat McCann, chair, nomination committee
Terms of reference
The full terms of reference for the nomination committee
are available on the Group’s website.
Committee meetings and attendance
The committee meets at least once per annum, and
additionally as circumstances require. The committee
met on four occasions during 2021.
Committee
member
Pat McCann
Robert Dix
Richard Cherry
John Mulcahy
Cara Ryan
In
attendance
Committee
member as of
4/4
4/4
4/4
2/2
3/3
2020
2020
2020
2021
2020 to 2021
Camilla Hughes
1/1
2021
Executive succession planning
The committee oversees the long-term succession planning
for members of the executive committee and, following John
Mulcahy’s decision to step down from his executive duties at the
end of the year, the committee met with the executive directors
throughout 2021 to finalise succession plans, agreeing changes to
the membership, composition and responsibilities of the executive
committee for 2022.
Board diversity
Diversity continues to be a key focus area for the board and
across the wider Group. The board diversity policy is reviewed
annually by the committee and is taken into account in the
committee’s review of board balance and composition.
An overview of the board’s diversity policy, as well as details on
the diversity of the board and executive committee, can be found
on page 86. Further details on diversity within the Group can be
found on page 46.
Annual board evaluation
The committee reviews the size, structure and composition of
the board during the year and, as part of its annual review,
consideration was given to the results of the 2021 board
performance evaluation process that related to the composition
of the board.
Further details of the annual board evaluation can be found on
page 86.
Following Richard Cherry’s announcement in early 2022 that
he does not intend to seek re-election to the board at the 2022
AGM, the committee is further reviewing the size, structure and
composition of the board and its committees to ensure that
the combination of skills, expertise and knowledge remains
appropriate for the business.
Pat McCann
Chair,
Nomination committee
The board diversity policy is reviewed annually by the
committee and is taken into account in the committee’s
review of board balance and composition.
Barnhall Meadows
Leixlip, Co. Co Kildare
108
Glenveagh Properties PLC Annual Report and Accounts 2021
Governance: Nomination committee report
109
Environmental and social
responsibility committee report
The committee also reviewed the
workplan presented by management for
the sustainability agenda in 2022.
On behalf of the committee I am pleased to present the
environment and social responsibility (ESR) committee
report for financial year ended 31 December 2021. This
committee was established in July 2021 and comprises
three independent non-executive directors; Camilla Hughes
(Chair), Robert Dix and Pat McCann and the chief executive
officer, Stephen Garvey.
On occasion, special attendees were invited to attend all
or part of committee meetings as deemed appropriate and
necessary by the committee chair.
The committee focuses its efforts on assisting the board
by proactively managing its core areas of responsibility:
reviewing and monitoring the Group’s environmental and
social responsibilities and targets, and ensuring compliance
with the evolving regulatory disclosure landscape in respect
of sustainability. An overview of the committee’s activities for
the year has been summarised in the table below.
Roles and responsibilites
The committee is responsible for reviewing the environmental
and social responsibility targets and areas of focus proposed
by management and for ensuring compliance with the evolving
regulatory disclosure land scape in respect of sustainability
It makes recommendations to the board regarding any
action to be taken with regard to statutory prosecutions or
notices in relation to environmental and community issues.
It also considers budgetary and financial implications of the
environmental social responsibilities strategy.
Areas of focus for the committee in 2021
Strategy
The committee reviewed the Group’s sustainability strategy,
its environmental and social responsibility targets and the
progress being made against these in areas of focus as
defined by management, which are as follows:
Meeting
Item discussed
August
• Sustainability strategy update
• Benchmarking (ratings and peers)
• Preparing for future obligations
• Key risks and mitigants
November
• Update on group sustainability
commitments
• UN Sustainable Development Goals
• Recent external developments e.g., Climate
Action Plan, Net Zero standard from SBTi
and the establishment of the International
Sustainability Standards Board.
• Overview and approach to achieving our
sustainability ambition
• Workplan for 2022
•
•
•
•
•
•
Environmentally considerate and efficient operations
Attracting, inspiring and investing in people
Putting customer at the heart of what we do
Keeping people safe
Sustainable and responsible sourcing
Creating sustainable homes and communities
In doing so, it also assessed the key risks which could impact
the delivery of the strategy and the mitigants that are in
place to address these.
The committee reviewed a benchmarking exercise to
understand how the Group compares to its peers in terms
of external ratings including MSCI, CDP as well as a number
of ESG indicators such as carbon emissions, customer
satisfaction, employee turnover and the gender pay gap.
Camilla Hughes, chair, ESR committee
Terms of reference
The ESR committee’s terms of reference are available
on Glenveagh’s website www.glenveagh.ie.
Committee meetings and attendance
The ESR committee met on two occasions during the
financial year. The attendance of committee members
is detailed in the table below.
Committee member No. of
meetings
Committee
member as of
Camilla Hughes
Robert Dix
Pat McCann
Stephen Garvey
2/2
2/2
1/2
2/2
2021
2021
2021
2021
The committee assessed the alignment of the Group’s
strategy to the UN Sustainable Development Goals (SDGs), as
presented by management. Management plan to conduct a
more detailed assessment of the SDGs in 2022.
The committee also reviewed and approved the sustainability
workplan presented by management.
Compliance
The committee reviewed future obligations and recent
external developments with respect to standards and
legislation and assessed the Group’s preparedness for
these. These included the Corporate Sustainability Reporting
Directive (CSRD), the Gender Pay Gap Information Act 2021,
the Climate Action Plan, the net zero standard from SBTi
and the establishment of the International Sustainability
Standards Board.
I am pleased to conclude that the environmental and social
responsibility committee has made considerable progress in
its first year and I am looking forward to further evolving the
Group’s sustainability approach to respond to the needs of
our stakeholders.
Camilla Hughes
Chair
Environmental and social responsibility committee
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Glenveagh Properties PLC Annual Report and Accounts 2021
Governance: Environmental and social responsiblity committee report
111
Board of directors
John Mulcahy (73)
Chairman
Stephen Garvey (42)
CEO
Michael Rice (39)
CFO
Richard Cherry (60)
Independent non-executive director and chair
of the remuneration committee
Pat McCann (70)
Independent non-executive director and chair
of the nomination committee
Cara Ryan (49)
Independent non-executive director, chair of the audit
and risk committee and workforce engagement director
Nationality: Irish
Date of appointment: 11 August 2017
Nationality: Irish
Date of appointment: 9 August 2017
Nationality: Irish
Date of appointment: 1 November 2019
Nationality: British
Date of appointment: 2 October 2017
Nationality: Irish
Date of appointment: 1 September 2019
Nationality: Irish
Date of appointment: 1 September 2019
John Mulcahy is a chartered surveyor with over 40 years’ experience
in the Irish real estate sector. John is currently the chairman of
IPUT plc and a member of the board of TIO ICAV. Previously, he
was a member of the board (from 2012 to 2014), and head of asset
management (from 2011 to 2014), at National Asset Management
Agency and, prior to that, was chairman and CEO of JLL’s
operations in Ireland from 2002 to 2010. John was also a founding
member of the RICS Asset Valuations Standards Committee and the
Property Advisory Committee of the National Pension Reserve Fund.
Other appointments:
•
Chairman of IPUT plc
•
Board member of TIO ICAV, and Quinta do Lago S.A.,
a Portuguese resort developer.
Committee memberships:
• Member of the nomination committee (1 year).
Stephen Garvey was appointed chief executive officer in August 2019.
Stephen is responsible for delivering on the Glenveagh’s vision to
create Ireland’s leading and most sustainable homebuilder. Stephen
has over 20 years’ experience in the construction and property
industry in Ireland. Prior to founding his own successful residential
development business, Bridgedale Homes, Stephen worked with a
number of Ireland’s largest property developers. From 2014 to 2017,
Stephen advised and managed the acquisition of Irish residential
development opportunities on behalf of TIO RLF. A co-founder
of Glenveagh, Stephen had led the growth and development of
Glenveagh since IPO.
Michael Rice is Glenveagh’s chief financial officer. Michael joined
Glenveagh in September 2017 having previously worked as the
group financial controller of Kingspan Group plc. Michael oversees
a wide range of functions including finance, treasury, IT, corporate
governance and investor relations. He is a qualified chartered
accountant with significant experience of finance management in
both domestic and international environments.
112
Glenveagh Properties PLC Annual Report and Accounts 2021
Richard Cherry was formerly a director and chief executive of the
partnerships business at UK housebuilder Countryside, where he
worked for over 35 years until his retirement in September 2017. He
served on the main board for 30 years and previously held the
roles of group new business director and deputy chairman. He
has significant experience in the real estate sector, including in the
execution of partnership projects with public authorities and housing
associations. Richard is a graduate of the University of Reading and
is a Fellow of the Royal Institution of Chartered Surveyors.
Other appointments:
•
Richard holds directorships at a small number of private
companies including UK house builder Stonebond Properties
where he is co-chairman.
Committee memberships:
•
Chair of the remuneration committee (4 years).
• Member of the audit and risk committee (4 years).
• Member of the nomination committee (2 years).
Pat McCann has 50 years’ experience in the hotel industry, having
begun his career in 1969 with Ryan Hotels plc. He joined Jurys Hotel
Group plc in 1989 and became chief executive of Jurys Doyle Hotel
Group plc in 2000. In 2007, Pat founded Dalata Hotel Group plc.
He is a non-executive director of a number of private companies
and was appointed to the board of Ibec in 2017. Pat completed his
term as president of Ibec in September 2020. He is a former non-
executive director of EBS Building Society, Greencore Group plc
and Whitfield Private Hospital. He has served as national president
of the Irish Hotels Federation and as a member of the National
Tourism Council.
Other appointments:
•
Former CEO of Dalata Hotel Group plc (retired 31
October 2021)
•
Non-executive director of Ibec and Quinn Property Group.
Committee memberships:
•
Chair of the nomination committee (2 years).
• Member of the remuneration committee (2 years).
• Member of the environmental and social responsibility
committee (1 year).
Cara Ryan is an experienced non-executive director, with over
20 years’ experience at board level in publicly listed and private
companies in both regulated and non-regulated entities. Cara is
a non-executive director of Mercer Ireland, where she chairs the
risk committee, remuneration committee and is also a member
of the audit committee. She is also a non-executive director of
BNP Paribas Fund Administration Services in Ireland and is a
member of the audit committee. Cara has experience in the house
building industry and was the director of finance of Manor Park
Homebuilders. She was formerly a non-executive director of IFG
Group plc, a listed financial services group in Dublin & London and
was the managing director of IFG Investment Managers until 2006.
Other appointments:
•
Non-executive director and chair of the risk committee
and remuneration committee and member of the audit
committee of Mercer Ireland Limited.
•
•
Non-executive director and chair of the audit committee of
BNP Fund Administration Services in Ireland.
Cara also holds non-executive directorships at a number of
private companies.
Committee memberships:
•
Chair of the audit and risk committee (2 years).
• Member of the remuneration committee (2 years).
Governance: Board of directors
113
Camilla Hughes (52)
Independent non-executive director and chair of the
environmental and social responsibility committee
Robert Dix (69)
Senior independent director
Chloe McCarthy (37)
Company secretary
Chloe McCarthy is an ICSA qualified company secretary and
a barrister-at-law in Ireland. Chloe was called to the Bar of
Ireland in 2008 and was a member of the Law Library for a
number of years before gaining experience at international
law firms including Taylor Wessing in London, Allens Linklaters
in Sydney and A&L Goodbody in Dublin. Prior to joining
Glenveagh at IPO in 2017, Chloe was the assistant company
secretary at Aegon Ireland plc.
Nationality: British
Date of appointment: 1 July 2021
Nationality: Irish
Date of appointment: 26 September 2017
Camilla Hughes is a highly experienced strategic and financial
advisor, having spent over twenty-five years in investment
banking and capital markets advising companies on
transactions and shareholder engagement. Camilla currently
provides independent strategic advice around all aspects of
ESG considerations at Rothschild & Co in the global advisory
business based in London and, prior to expanding her
executive career, Camilla served as a corporate broker within
UK investment banking at Credit Suisse. Camilla brings to
the board her significant and diverse experience of financial
markets and investor influences with in-depth knowledge
and expertise in the real estate, consumer and technology
sectors. She holds an MA (hons) in PPE, philosophy, politics
and economics, from Oxford University and a certificate in
sustainable finance from Cambridge University Institute for
Sustainability Leadership.
Robert Dix was formerly a partner and head of transaction
services at KPMG Ireland, where he worked for 20 years
before his retirement in 2008. He now operates his own firm,
Sopal Limited, which advises organisations on capital markets,
corporate governance and strategic planning issues. Robert is
a graduate of Trinity College Dublin and a Fellow of Chartered
Accountants Ireland.
Other appointments:
•
CEO of Sopal Limited.
•
•
•
Non-executive director and chairman of Quinn
Property Group.
Non-executive director and chairman of the audit committee
of Dalata Hotel Group plc.
Robert also holds non-executive directorships at a number
of private companies.
Committee memberships:
•
Chair of the environmental & social responsibility committee
(1 year).
Committee memberships:
• Member of the audit and risk committee (4 years).
• Member of the nomination committee (2 years).
• Member of the remuneration committee (1 year).
• Member of the environmental & social responsibility
• Member of the nomination committee (1 year).
committee (1 year).
Directors’ report
The directors present their report and
the consolidated financial statements of
Glenveagh Properties plc (“Glenveagh” or the
“Company”) and its subsidiaries (the “Group”)
for the year ended 31 December 2021.
Principal activities and business review
Glenveagh is a leading Irish homebuilder listed on Euronext
Dublin and the London Stock Exchange. Supported by
innovation and supply chain integration, Glenveagh is
committed to opening up access to sustainable high-
quality homes to as many people as possible in flourishing
communities across Ireland.
Glenveagh is focused on three core markets - suburban
housing, urban apartments and partnerships with local
authorities and State agencies, and is targeting delivery of
1,400 suburban homes in 2022 with a longer-term target of
over 3,000 homes per annum. The landbank that Glenveagh
has assembled can deliver housing that is both in demand
and affordable.
Shareholders are referred to the chairman’s letter, the CEO’s
review and the CFO’s review on pages 8, 12 and 16, respectively,
which set out management’s review of the Group’s operations
and financial performance in 2021 and the outlook for 2022.
These are deemed to be incorporated into the directors’ report.
Results and dividends
Group revenue for the year ended 31 December 2021 was
€476.8 million (2020: €232.3 million), gross profit was €83.1
million (2020: €9.5 million), profit after tax was €37.7 million
(2020: loss of €13.9 million) and basic earnings per share of 4.5
cent (2020: loss per share of 1.60 cent).
The Company did not pay a dividend during the financial year
ended 31 December 2021 (2020: €nil).
Key performance indicators
Group performance against 2021 key performance indicators
is outlined in the table below. A detailed commentary
incorporating key performance indicators is contained within
the ‘Our KPIs’ section on page 20 in this annual report. The
key performance indicators upon which particular emphasis is
placed are listed below.
KPIs financial
Revenue
2021
2020
% change
€476.8m €232.3m
+105.3%
Adjusted EBITDA
€48.8m
€9.6m
+408.3%
KPIs non-financial
Customer satisfaction
Health and safety
89%
89%
83%
88%
+7%
+1%
Group strategy
A review of the Group’s strategic priorities is set out in the
strategic report, which is deemed to be incorporated into the
directors’ report.
Principal risks and uncertainties
In accordance with Section 327(1)(b) of the Companies Act 2014,
the Company is required to give a description of the principal
risks and uncertainties faced by the Group. These principal risks
and uncertainties, and the steps taken to mitigate them, are
detailed at pages 70 to 79 of the risk management report and
deemed to be incorporated into the directors’ report.
Directors and company secretary
The names of the directors and company secretary and a
biographical note on each appear on pages 112 to 114.
In accordance with the provisions contained in the UK
Corporate Governance Code, all directors will voluntarily retire
and be subject to election by shareholders at the 2022 AGM.
Directors’ and company secretary’s interests in shares
Details of the directors’ and company secretary’s share interests
and interests in unvested share awards of the Company are set
out in the remuneration committee report on page 106.
Share capital
The issued share capital of the Company as at 7 March 2022
consists of 730,366,645 ordinary shares and 181,006,838 founder
shares. Each share class has a nominal value of €0.001. Holders
of ordinary shares are entitled to one vote per ordinary share
at general meetings of the Company, while no voting rights are
conferred on holders of founder shares. Founder shares may be
converted to ordinary shares (or an equivalent value in cash) in
the future subject to the achievement of performance hurdles
related to the Company’s share price. Further information
on the Company’s share capital and the rights attaching
to the different classes of shares is set out in note 25 to the
consolidated financial statements.
The Group has a long-term incentive plan in place, the details
of which are set out at page 100 of the remuneration committee
report and in note 14 to the consolidated financial statements.
114
Glenveagh Properties PLC Annual Report and Accounts 2021
Governance: Directors’ report
115
Significant shareholdings
As at 31 December 2021 and 7 March 2022, the Company has been notified of the following interests of 3% or more in its ordinary share capital:
Shareholder
Teleios Capital Partners
FIL Investment International
GIC
Rye Bay Capital
Lansdowne Partners
Pelham Capital Mgt
Paradice Investment Mgt
Man GLG
Helikon Investments
1
2
3
4
5
6
7
8
9
10
PM Capital
31 December 2021
28 February 2022
Ordinary shares held
121,032,991
82,919,782
64,649,008
47,749,719
39,763,757
32,398,255
30,784,569
30,358,429
23,359,197
23,351,180
%
15.68
10.74
8.38
6.19
5.15
4.20
3.99
3.93
3.03
3.03
Ordinary shares held
121,032,991
80,765,022
64,649,008
45,843,516
39,315,772
35,169,985
27,339,957
30,746,064
19,687,208
23,351,180
%
16.50
11.01
8.81
6.25
5.36
4.79
3.73
4.19
2.68
3.18
Accounting records
The directors believe that they have complied with the
requirements of Sections 281 to 285 of the Companies Act,
2014 with regard to maintaining adequate accounting records
through the implementation and maintenance of appropriate
accounting systems and resources, including the employment
of suitably qualified accounting personnel and the provision
of adequate resources to the Group finance department. The
accounting records of the Company are maintained at Block B,
Maynooth Business Campus, Maynooth, Co. Kildare.
Takeover regulations 2006
For the purposes of Regulation 21 of Statutory Instrument
255/2006 “European Communities (Takeover Bids (Directive
2004/25/EC)) Regulations 2006”, the details provided
on share capital and substantial shareholdings above,
and the disclosures in relation directors’ remuneration and
interests in the remuneration committee report on pages
91 to 107 are deemed to be incorporated in this section of
the directors’ report.
Further required information in relation to the change of
control provisions contained in the founder share scheme
and long-term incentive plan is set out below.
Founder shares
In the event of a change of control of the Company at any time
prior to 30 June 2022 which results in an offer to all holders of
shares, if the performance condition has been satisfied and
such offer becomes unconditional in all respects, the founder
shares shall convert into such number of ordinary shares
which, at such offer price, have an aggregate value equal to
his relative proportion of 20% of the total shareholder return
(calculated by reference to the change of control price plus
dividends and distributions made) between admission and the
change of control (less the value of any ordinary shares (at their
original conversion or redemption price)) which have previously
been converted or redeemed.
Long-term incentive plan
The remuneration committee will determine the extent to which
unvested awards with regard to the extent that the applicable
performance condition has been satisfied up to the date of the
change of control event.
Transparency regulations 2007
For the purposes of information required by Statutory
Instrument 277/2007 ‘Transparency (Directive 2004/109/
EC) Regulations 2007’ concerning the development and
performance of the Group, and the principal risks and
uncertainties faced, the chairman’s letter on pages 8 to 10, the
CEO’s review on pages 12 to 14, the CFO’s review on pages 16 to
18 and the principal risks and uncertainties detailed on pages
70 to 79 are deemed to be incorporated in this part of the
directors’ report.
Corporate governance
The directors are committed to achieving the highest standards
of corporate governance. The directors have prepared a
corporate governance report, which is set out on pages 83 to
87 and, for the purposes of s1373 of the Companies Act 2014, is
deemed to be incorporated into the directors’ report.
The corporate governance report includes a detailed
description of the way in which the Company has applied
the principles of good governance set out in the UK
Corporate Governance Code and the Irish Corporate
Governance Annex.
Directors’ compliance statement
The directors acknowledge their responsibility for securing
the Company’s compliance with its relevant obligations under
Section 225(2)(a) of the Companies Act 2014 (the “Act”) (the
“Relevant Obligations”).
In accordance with Section 225 (2) (b) of the Act, the directors
confirm that they have:
1. drawn up a compliance policy statement setting out
the Company’s policies (that are, in the opinion of the
directors, appropriate to the Company) in respect of
compliance with the Relevant Obligations;
2. put in place appropriate arrangements or structures that,
in the opinion of the directors, provide a reasonable
assurance of compliance in all material respects with the
Company’s Relevant Obligations; and
3. conducted a review of the arrangements or structures
that the directors have put in place to ensure material
compliance with the Company’s Relevant Obligations
during the financial year to which this report relates.
Going concern
The directors have assessed the financial position of the Group
in light of the principal business risks facing the construction
industry as a whole and the Group’s strategic plan. In light of
Covid-19 a number of extra considerations have been assessed
as outlined in note 7 of the consolidated financial statements.
The directors believe that the Group is well placed to manage
and mitigate these risks. Thus, they have a reasonable
expectation that the Company and the Group have adequate
resources to continue in operational existence for twelve months
from the date of approval of the financial statements. For this
reason, the directors consider it appropriate to adopt the going
concern basis in preparing the financial statements.
Viability statement
In accordance with the provisions of the UK Corporate
Governance Code, the directors are required to assess the
prospects of the Company, explain the period over which
they have done so and state whether they have a reasonable
expectation that the Company will be able to continue in
operation and meet liabilities as they fall due over this period
of assessment.
Political donations
No political donations were made during the year that require
disclosure under the Electoral Act 1997.
Subsidiary companies
Information in relation to the Group’s subsidiaries is set out in
note 24 to the financial statements. The Group does not have
any branches outside of Ireland.
The directors assessed the prospects of the Group over the
three-year period to March 2025. The directors concluded that
three years was an appropriate period for the assessment,
having regard to the following:
•
•
The Group’s strategic plan is predominantly based on a
three-year horizon with longer term strategic forecasting
and any statement with foresight greater than three
years having to be made with a considerable level of
estimation; and
In general, the inherent short cycle nature of the
residential market in Ireland, including the Group’s
forward sales and project pipeline, does not lend itself
to making long-term projection statements greater than
three years.
It is recognised that such future assessments are subject to
a level of uncertainty that increases with time, and therefore
future outcomes cannot be guaranteed or predicted with
certainty.
The Group’s strategic plan was approved by the board at its
meeting in January 2022 and is based on forecasts undertaken
by management of the relevant business functions. The
plan reflects construction cost and house price inflationary
assumptions which were reviewed at Board and management
level. The underlying assumptions of the Group’s strategic
plan are subject to sensitivity analysis for scenarios that could
reasonably materialise. The risk factors outlined in the risk
management report on pages 68 to 79 were also considered in
the strategic plan process.
Based on the above assessment the directors have a
reasonable expectation that the Company and the Group will
be able to continue in operation and meet liabilities as they fall
due over the three-year period.
Subsequent events
Information in respect of events since the year end is contained
in note 30 to the consolidated financial statements.
Audit and risk committee
The Company has an established audit and risk committee
comprising of three independent non-executive directors.
Details of the committee and its activities are set out on
pages 88 to 90.
Auditor
KPMG, chartered accountants, were appointed statutory
auditor on 21 August 2017 and have been re-appointed
annually since that date. Pursuant to section 383(2) KPMG will
continue in office and a resolution authorising the directors to
fix the auditor’s remuneration will be proposed at the Annual
General Meeting.
Relevant audit information
The directors confirm that so far as they are each aware,
there is no relevant audit information of which the Company’s
auditors are unaware and that each director has taken all
the steps that they ought to have taken as a director to make
themselves aware of any relevant audit information and to
establish that the Company’s auditors are aware of that
information.
Approval of financial statements
The financial statements were approved by the board on 7
March 2022.
On behalf of the board
Michael Rice
Director
Stephen Garvey
Director
116
Glenveagh Properties PLC Annual Report and Accounts 2021
Governance: Directors’ report
117
Ruxton Oaks
Navan, Co. Meath
120
127
126
Statement of directors’ responsibilities
Independent auditor’s report
121
Consolidated statement of profit or loss
and other comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Company balance sheet
Company statement of changes in equity
Notes to the Company financial statements
Supplementary Information
Company Information
169
162
167
130
128
131
163
165
118
Glenveagh Properties PLC Annual Report and Accounts 2021
The Hawthorns
Tullamore, Co. Offaly
Financial
Statements
119
Statement of directors’ responsibilities
in respect of the annual report and the financial statements
Independent auditor’s report
to the members of Glenveagh Properties plc
The directors are responsible for preparing the annual
report and the Group and Company financial statements, in
accordance with applicable law and regulations.
Company law requires the directors to prepare Group and
Company financial statements for each financial year. Under
that law, the directors are required to prepare the Group
financial statements in accordance with IFRS as adopted by the
European Union and applicable law including the Commission
Delegated Regulation 2018/815 regarding the single electronic
reporting format (ESEF) and Article 4 of the IAS Regulation.
The directors have elected to prepare the Company financial
statements in accordance with FRS 101 Reduced Disclosure
Framework as applied in accordance with the provisions of
Companies Act 2014.
Under company law the directors must not approve the Group
and Company financial statements unless they are satisfied
that they give a true and fair view of the assets, liabilities
and financial position of the Group and Company and of the
Group’s profit or loss for that year. In preparing each of the
Group and Company financial statements, the directors are
required to:
• select suitable accounting policies and then apply
them consistently;
• make judgements and estimates that are reasonable
and prudent;
• state whether applicable Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the financial statements;
• assess the Group and Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to
going concern; and
• use the going concern basis of accounting unless they either
intend to liquidate the Group or Company or to cease
operations, or have no realistic alternative but to do so.
The directors are also required by the Transparency (Directive
2004/109/EC) Regulations 2007 and the Transparency Rules of
the Central Bank of Ireland to include a management report
containing a fair review of the business and a description of
the principal risks and uncertainties facing the Group.
The directors are responsible for keeping adequate accounting
records which disclose with reasonable accuracy at any
time the assets, liabilities, financial position and profit or
loss of the Company and which enable them to ensure that
the financial statements comply with the provision of the
Companies Act 2014. The directors are also responsible for
taking all reasonable steps to ensure such records are kept
by its subsidiaries which enable them to ensure that the
financial statements of the Group comply with the provisions
of the Companies Act 2014 including Article 4 of the IAS
Regulation. They are responsible for such internal controls
as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement,
whether due to fraud or error, and have general responsible
for safeguarding the assets of the Group, and hence for taking
reasonable steps for the prevention and detection of fraud
and other irregularities. The directors are also responsible
for preparing a directors’ report that complies with the
requirements of the Companies Act 2014.
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Group’s and Company’s website www.glenveagh.ie. Legislation
in the Republic of Ireland concerning the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
Responsibility statement as required by the
Transparency Directive and UK Corporate
Governance Code
Each of the directors, whose names and functions are listed on
pages 112 to 114 of this annual report, confirm that, to the best
of each person’s knowledge and belief:
• The Group financial statements, prepared in accordance
with IFRS as adopted by the European Union and the
Company financial statements prepared in accordance with
FRS 101 Reduced Disclosure Framework, give a true and fair
view of the assets, liabilities, and financial position of the
Group and Company at 31 December 2021 and of the profit
or loss of the Group for the year then ended;
• The Directors’ report contained in the annual report includes
a fair review of the development and performance of the
business and the position of the Group and Company,
together with a description of the principal risks and
uncertainties that they face; and
• The annual report and financial statements, taken as a
whole, provides the information necessary to assess the
Group’s performance, business model and strategy and
is fair, balanced and understandable and provides the
information necessary for shareholders to assess the
Company’s position and performance, business model
and strategy.
On behalf of the board
Michael Rice
Director
Stephen Garvey
Director
7 March 2022
120
120
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Report on the audit of
the financial statements
Opinion
We have audited the financial statements of Glenveagh
Properties PLC (‘the Company’) and its consolidated undertakings
(‘the Group’) for the year ended 31 December 2021 contained
within the reporting package 635400QUQ2YYGMOAK834-
2021-12-31-en.zip, which comprise the Consolidated statement of
profit or loss and other comprehensive income, the Consolidated
and Company Balance Sheets, the Consolidated and Company
Statements of Changes in Equity, the Consolidated Statement
of Cash Flows and related notes thereto. The financial reporting
framework that has been applied in the preparation of the
Group financial statements is Irish Law, including the Commission
Delegated Regulation 2018/815 regarding the single electronic
reporting format (ESEF) and International Financial Reporting
Standards (IFRS) as adopted by the European Union and, as
regards the Company financial statements, Irish Law and FRS 101
Reduced Disclosure Framework issued in the United Kingdom by
the Financial Reporting Council.
In our opinion:
• the financial statements give a true and fair view of the
assets, liabilities and financial position of the Group and
Company as at 31 December 2021 and of the Group’s profit
for the year then ended;
• the Group financial statements have been properly
prepared in accordance with IFRS as adopted by the
European Union;
• the Company financial statements have been properly
prepared in accordance with FRS 101 Reduced Disclosure
Framework issued by the UK’s Financial Reporting Council; and
• the Group and Company financial statements have been
properly prepared in accordance with the requirements
of the Companies Act 2014 and, as regards the Group
financial statements, Article 4 of the IAS Regulation.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable
law. Our responsibilities under those standards are further
described in the Auditor’s Responsibilities section of our report. We
believe that the audit evidence we have obtained is a sufficient
and appropriate basis for our opinion. Our audit opinion is
consistent with our report to the Audit and Risk committee.
We were appointed as auditor by the directors on 21 August
2017. The period of total uninterrupted engagement is the 5
years ended 31 December 2021. We have fulfilled our ethical
responsibilities under, and we remained independent of the
Group in accordance with, ethical requirements applicable
in Ireland, including the Ethical Standard issued by the Irish
Auditing and Accounting Supervisory Authority (IAASA) as
applied to public interest entities. No non-audit services
prohibited by that standard were provided.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that
the director’s use of the going concern basis of accounting
in the preparation of the financial statements is appropriate.
Our evaluation of the director’s assessment of the Group’s
and Company’s ability to continue to adopt the going concern
basis of accounting included the inherent risks to the Group’s
and Company’s business model and analysed how those risks
might affect the Group’s and Company’s financial resources or
ability to continue operations over the going concern period.
The risk that we considered most likely to adversely affect the
Group’s and Company’s available financial resources over this
period was the impact of construction cost inflation and/or a
reduction in the volume of units sold.
As this was the risk that could potentially cast significant
doubt on the Group’s and the Company’s ability to continue
as a going concern, we considered sensitivities over the level
of available financial resources indicated by the Group’s
financial forecasts taking account of reasonably possible (but
not unrealistic) adverse effects that could arise from these risks
individually and collectively and evaluated the achievability of
the actions the directors consider they would take to improve
the position should the risks materialise.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on
the Group’s or the Company’s ability to continue as a going
concern for a period of at least twelve months from the date
when the financial statements are authorised for issue.
In relation to the Group’s and the Company’s reporting on
how they have applied the UK Corporate Governance Code
and the Irish Corporate Governance Annex, we have nothing
material to add or draw attention to in relation to the directors’
statement in the financial statements about whether the
directors considered it appropriate to adopt the going concern
basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections
of this report.
Key audit matters: our assessment of risks of
material misstatement
Key audit matters are those matters that, in our professional
judgment, were of most significance in the audit of the
financial statements and include the most significant assessed
risks of material misstatement (whether or not due to fraud)
identified by us, including those which had the greatest effect
on: the overall audit strategy; the allocation of resources in
the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on
these matters.
Chairman’s Statement
Financial Statements
121
121
Independent auditor’s report
to the members of Glenveagh Properties plc
Independent auditor’s report
to the members of Glenveagh Properties plc
In arriving at our audit opinion above, we have identified one the key audit matters, as follows:
Carrying value of Inventory €767.2 million (2020 - €821.2 million) and profit recognition
Refer to, page 137 (accounting policy for inventory) page 135 (accounting policy for expenditure) and page 150 (financial disclosures - inventory)
The key audit matter
How the matter was addressed in our audit
Inventories, relating to work-in-progress on sites
under development and land yet to be developed,
represent a significant asset of the Group.
Work-in-progress comprises of the costs of the land
being built on, direct materials and direct labour
costs that have been incurred in bringing the
inventories to their present location and condition.
Work-in-progress per site is stated at the lower of
cost and net realisable value (NRV), NRV being the
estimated net selling price less costs to sell and
management’s estimated total costs of completion.
The forecasting of selling prices and costs to
complete is inherently judgemental and may be
subject to estimation error.
For each development project, site-wide residential
development costs are allocated between units
built in the current period and units to be built in
future years, which requires further judgement.
The Group recognises profit on each unit sale by
reference to the overall expected margin to be
achieved on the site.
There is a risk that the assumptions of such
forecasts and estimations may be inaccurate with a
resulting impact on the carrying value of inventory
or the amount of profit recognised.
Our audit procedures included, amongst others:
• We obtained and documented our understanding of the process to determine the NRV of the Group’s work-in-progress and tested
the design and implementation of the key controls therein.
• For all new land acquisitions, we inspected purchase contracts and agreed the costs of acquisition including related purchase costs.
• We agreed a sample of costs incurred and included in inventory in the year such as direct materials and direct labour costs to
supporting documentary evidence, which included checking that they were allocated to the appropriate site.
• We inspected the Group’s NRV reports on a sample basis and challenged the key inputs and assumptions in the following ways:
a) We agreed a sample of forecast costs to purchase contracts, supplier agreements or tenders and other
relevant documentation.
b) We compared the forecast sales prices against recent prices achieved for similar properties and properties that were
reserved/contracted to support the validity of the estimated sales price in the forecast.
c) We enquired as to whether there were any site-specific factors which may indicate that an individual site could be impaired.
d) We inspected the Group’s calculation of the impairment reversal recognised.
e) We evaluated the sensitivity of certain forecast development margins to a change in sales prices and costs and considered
f)
whether this indicated a risk of impairment of the inventory balance.
For sites in development, we compared actual unit sales and costs incurred to NRV estimates to assess that NRV estimates
were updated and that the overall expected site margin was adjusted accordingly.
• For completed sales, we tested the accuracy of the release from inventory to cost of sales recorded in the general ledger for
consistency with the NRV reports for the relevant sites.
• We considered the adequacy of the Group’s disclosures regarding the carrying value of inventory.
We found that the profit margins recognised on completed sales during the year appropriately reflected the attributable costs of the
units sold.
We found that the key assumptions used in the calculations of NRV were within a reasonable range and supported the carrying value
of inventory as at 31 December 2021, and the related disclosures in respect of work-in-progress to be appropriate.
Due to the nature of the Company’s activities, there are no key audit matters that we are required to communicate in accordance with ISAs (Ireland).
Our application of materiality and an
overview of the scope of our audit
The materiality for the Group financial statements as a whole
was set at €4.8 million (2020: €4.9 million). This has been
calculated with reference to a benchmark of total assets which
we consider to be one of the principal considerations for
members of the Group in assessing the financial performance
of the Group as the principal focus of the Group in the
financial period has been the deployment of capital raised.
Materiality represents approximately 0.5% of this benchmark.
We report to the Audit and Risk Committee all corrected and
uncorrected misstatements we identified through our audit
with a value in excess of €0.2 million (2020 €0.2 million).
We applied materiality to assist us determine what risks
were significant risks and the procedures to be performed.
In addition, we applied a lower specific materiality level of
€2.1 million (2020: €1.1 million) for testing certain profit and
loss items, representing approximately 0.5% of total revenues
for the year. In our judgement, the application of this lower
specific materiality is appropriate due to key performance
indicators reported by the Group.
Materiality for the Company financial statements as a
whole was set at €3.7 million (2020: €4.3 million). This was
determined with reference to a 0.5% benchmark of total assets.
We reported to the Audit and Risk Committee any corrected
or uncorrected identified misstatements exceeding €0.1 million
(2019 €0.2 million).
We subjected all of the Group’s reporting components
to audits for group reporting purposes. The work on all
components was performed by the Group audit team.
Other information
The directors are responsible for the preparation of the other
information presented in the Annual Report together with
the financial statements. The other information comprises
the information included in the Directors’ Report, Chairman’s
Letter, CEO’s Review, CFO’s Review, Strategic Report, Risk
Management Report, Corporate Governance Statement, Audit
and Risk Committee Report, Remuneration Committee Report,
Nomination Committee Report and Environmental and Social
Responsibility Committee Report.
The financial statements and our auditor’s report thereon do
not comprise part of the other information. Our opinion on
the financial statements does not cover the other information
and, accordingly, we do not express an audit opinion or,
except as explicitly stated below, any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in
doing so, consider whether, based on our financial statements
audit work, the information therein is materially misstated
or inconsistent with the financial statements or our audit
knowledge. Based solely on that work we have not identified
material misstatements in the other information.
Based solely on our work on the other information undertaken
during the course of the audit, we report that, in those parts of
the directors’ report specified for our consideration:
• we have not identified material misstatements in the
•
•
directors’ report;
in our opinion, the information given in the directors’ report
is consistent with the financial statements; and
in our opinion, the directors’ report has been prepared in
accordance with the Companies Act 2014.
Disclosures of principal risks
and longer-term viability
Based on the knowledge we acquired during our financial
statements audit, we have nothing material to add or draw
attention to in relation to:
• the Principal Risks disclosures describing these risks and
explaining how they are being managed and mitigated;
• the directors’ confirmation within the Viability Statement
page 117 that they have carried out a robust assessment of
the principal risks facing the Group, including those that
would threaten its business model, future performance,
solvency and liquidity; and
• the directors’ explanation in the Viability Statement of how
they have assessed the prospects of the Group, over what
period they have done so and why they considered that
period to be appropriate, and their statement as to whether
they have a reasonable expectation that the Group will
be able to continue in operation and meet its liabilities as
they fall due over the period of their assessment, including
any related disclosures drawing attention to any necessary
qualifications or assumptions.
Other corporate governance disclosures
We are required to address the following items and report to
you in the following circumstances:
• Fair, balanced and understandable: if we have identified
material inconsistencies between the knowledge we
acquired during our financial statements audit and the
directors’ statement that they consider that the Annual
Report and financial statements taken as a whole is fair,
balanced and understandable and provides the information
necessary for shareholders to assess the Group’s position
and performance, business model and strategy;
122
122
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
123
123
Independent auditor’s report
to the members of Glenveagh Properties plc
Independent auditor’s report
to the members of Glenveagh Properties plc
• Report of the Audit and Risk Committee: if the section of
the Annual Report describing the work of the Audit and
Risk Committee does not appropriately address matters
communicated by us to the Audit and Risk Committee;
• Statement of compliance with UK Corporate Governance
Code: if the directors’ statement does not properly
disclose a departure from provisions of the UK Corporate
Governance Code specified by the Listing Rules of Euronext
Dublin and the UK Listing Authority for our review;
if the directors’ statement relating to Going Concern
required under the Listing Rules of Euronext Dublin and the
UK Listing Authority set out on page 116 and 117 is materially
inconsistent with our audit knowledge.
•
We have nothing to report in these respects.
In addition as required by the Companies Act 2014, we report,
in relation to information given in the Corporate Governance
Statement on pages 83 to 87, that:
• based on the work undertaken for our audit, in our opinion,
the description of the main features of internal control
and risk management systems in relation to the financial
reporting process and information relating to voting rights
and other matters required by the European Communities
(Takeover Bids (Directive 2004/EC) Regulations 2006
and specified for our consideration, is consistent with the
financial statements and has been prepared in accordance
with the Act;
• based on our knowledge and understanding of the
Company and its environment obtained in the course of our
audit, we have not identified any material misstatements in
that information; and
• the Corporate Governance Statement contains the
information required by the European Union (Disclosure of
Non-Financial and Diversity Information by certain large
undertakings and groups) Regulations 2017.
We also report that, based on work undertaken for our
audit, the information required by the Act is contained in the
Corporate Governance Statement.
The Listing Rules of Euronext Dublin and the UK Listing
Authority require us to review:
Our opinions on other matters prescribed
by the Companies Act 2014 are unmodified
We have obtained all the information and explanations which
we consider necessary for the purpose of our audit.
In our opinion, the accounting records of the Company were
sufficient to permit the financial statements to be readily
and properly audited and the financial statements are in
agreement with the accounting records.
We have nothing to report on other
matters on which we are required to
report by exception
The Companies Act 2014 requires us to report to you if,
in our opinion:
• the disclosures of directors’ remuneration and transactions
required by Sections 305 to 312 of the Act are not made;
• the Company has not provided the information required by
Section 1110N in relation to its remuneration report for the
financial year 31 December 2020;
• the Company has not provided the information required
by section 5(2) to (7) of the European Union (Disclosure of
Non-Financial and Diversity Information by certain large
undertakings and groups) Regulations 2017 for the year
ended 31 December 2020 as required by the European
Union (Disclosure of Non-Financial and Diversity Information
by certain large undertakings and groups) (amendment)
Regulations 2018.
We have nothing to report in this regard.
• the Directors’ Statement, set out on page 117, in relation to
going concern and longer-term viability;
• the part of the Corporate Governance Statement on pages
83 to 87 relating to the Company’s compliance with the
provisions of the UK Corporate Governance Code and the
Irish Corporate Governance Annex specified for our review;
and
• certain elements of disclosures in the report to shareholders
by the Board of Directors’ Remuneration Committee.
We have nothing to report in this regard.
Respective responsibilities and
restrictions on use
Directors’ responsibilities
As explained more fully in their statement set out on page
120, the directors are responsible for: the preparation of the
financial statements including being satisfied that they give a
true and fair view; such internal control as they determine is
necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to
fraud or error; assessing the Group’s and Company’s ability to
continue as a going concern, disclosing, as applicable, matters
related to going concern; and using the going concern basis
of accounting unless they either intend to liquidate the Group
or the Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue our opinion in an auditor’s report. Reasonable assurance
is a high level of assurance but does not guarantee that an
audit conducted in accordance with ISAs (Ireland) will always
detect a material misstatement when it exists. Misstatements
can arise from fraud, other irregularities or error and are
considered material if, individually or in aggregate, they could
reasonably be expected to influence the economic decisions of
users taken on the basis of the financial statements. The risk of
not detecting a material misstatement resulting from fraud or
other irregularities is higher than for one resulting from error,
as they may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control and
may involve any area of law and regulation and not just those
directly affecting the financial statements.
A fuller description of our responsibilities is provided on
IAASA’s website at http://www.iaasa.ie/Publications/Auditing-
standards/International-Standards-on-Auditing-for-use-in-Ire/
Description-of-the-auditor-s-responsibilities-for.
The purpose of our audit work and to
whom we owe our responsibilities
Our report is made solely to the Company’s members, as
a body, in accordance with Section 391 of the Companies
Act 2014. Our audit work has been undertaken so that we
might state to the Company’s members those matters we are
required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
Company and the Company’s members, as a body, for our
audit work, for our report, or for the opinions we have formed.
Michael Gibbons
7 March 2022
for and on behalf of KPMG
Chartered Accountants, Statutory Audit Firm
1 Stokes Place
St. Stephen’s Green
Dublin 2 Ireland
124
124
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
125
125
Consolidated statement of profit or loss
and other comprehensive income
For the financial year ended 31 December 2021
Revenue
Cost of sales
Impairment reversal/(charge)
Gross profit
Administrative expenses
Operating profit/(loss)
Finance expense
Profit/(loss) before tax
Income tax (charge)/credit
Profit/(loss) after tax attributable to the owners of the Company
Other comprehensive income
Total comprehensive profit/(loss) for the year attributable of the owners of the Company
Basic earnings/(loss) per share (cent)
Diluted earnings/(loss) per share (cent)
Note
10
19
11
12
16
15
15
2021
€’000
476,807
(397,969)
4,219
2020
€’000
232,296
(202,530)
(20,291)
83,057
9,475
(32,490)
(22,188)
50,567
(4,845)
(12,713)
(3,033)
45,722
(15,746)
(8,020)
1,844
37,702
(13,902)
-
37,702
4.48
4.46
-
(13,902)
(1.60)
(1.60)
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126
126
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
127
127
Consolidated statement of changes in equity
for the financial year ended 31 December 2021
Consolidated statement of changes in equity
for the financial year ended 31 December 2020
Share Capital
Ordinary
shares
€’000
Founder
shares
€’000
Undenominated
capital
€’000
Note
Share
premium
€’000
Share-based
payment
reserve
€’000
Retained
earnings
€’000
Total
equity
€’000
Share Capital
Ordinary
shares
€’000
Founder
shares
€’000
Share
premium
€’000
Share-based
payment
reserve
€’000
Note
Retained
earnings
€’000
Total
equity
€’000
179,281
44,129
629,044
853,506
Balance as at 1 January 2020
Balance as at 1 January 2021
Total comprehensive profit for the year
Income for the year
Other comprehensive income
Transactions with owners of the Company
Equity-settled share-based payments
Lapsed share options
Exercise of options
Purchase of own shares
Balance as at 31 December 2021
871
-
-
871
-
-
-
(100)
(100)
771
181
-
-
181
-
-
-
-
-
181
14
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-
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100
100
100
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-
-
-
37,702
-
37,702
-
179,281
44,129
666,746
891,208
-
-
29
-
29
1,219
(97)
-
-
-
97
-
(108,375)
1,122
(108,278)
179,310
45,251
558,468
1,219
-
29
(108,375)
(107,127)
784,081
Total comprehensive loss for the financial year
Loss for the financial year
Other comprehensive income
Transactions with owners of the Company
Equity-settled share-based payments
Lapsed share options
Share premium reduction and transfer to distributable reserves
14
25
871
-
-
871
-
-
-
-
181
879,281
44,035
(57,821)
866,547
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-
-
-
-
-
(13,902)
-
(13,902)
-
181
879,281
44,035
(71,723)
852,645
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-
-
-
-
-
(700,000)
(700,000)
861
(767)
-
94
44,129
-
767
700,000
700,767
629,044
861
-
-
861
853,506
Balance as at 31 December 2020
871
181
179,281
128
128
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
129
129
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Notes to the consolidated financial statements
For the financial year ended 31 December 2021
1
Reporting entity
Critical accounting judgements
Glenveagh Properties PLC (“the Company) is domiciled in the Republic of Ireland. The Company’s
registered office is Block B, Maynooth Business Campus, Maynooth Co. Kildare. These
consolidated financial statements comprise the Company and its subsidiaries (together referred
to as “the Group”) and cover the financial year ended 31 December 2021. The Group’s principal
activities are the construction and sale of houses and apartments for the private buyer, local
authorities and the private rental sector.
The consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union which comprise
standards and interpretations approved by the International Accounting Standards Board (IASB),
and those parts of the Companies Act 2014, including the Commission Delegated Regulation
2018/815 regarding the single electronic reporting format (ESEF), applicable to companies
reporting under IFRS and Article 4 of the IAS regulation.
2 Statement of compliance
The consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS’s) as adopted by the European Union which comprise
standards and interpretations approved by the International Accounting Standards Board (IASB),
and those parts of the Companies Act 2014 applicable to companies reporting under IFRS and
Article 4 of the IAS regulation.
3 Functional and presentation currency
These consolidated financial statements are presented in euro which is the Company’s functional
currency. All amounts have been rounded to the nearest thousand unless otherwise indicated.
4 Use of judgements and estimates
The preparation of the Group’s financial statements under IFRS, as adopted by the European
Union, requires the Directors to make judgments and estimates that affect the application of
policies and the reported amounts of assets, liabilities, income, expenses and related disclosures.
Actual results may differ from these estimates.
Management applies the Group’s accounting policies as described in note 8 when making critical
accounting judgements, of which no individual judgement is deemed to have a significant impact
upon the financial statements.
Key sources of estimation uncertainty
The key source of significant estimation uncertainty impacting these financial statements involves
assessing the carrying value of inventories as detailed below.
(a) Carrying value of work-in-progress, estimation of costs to complete and impact on
profit recognition
The Group holds inventories stated at the lower of cost and net realisable value. Such inventories
include land and development rights, work-in-progress and completed units. As residential
development is largely speculative by nature, not all inventories are covered by forward sales
contracts. Furthermore, due to the nature of the Group’s activity and, in particular the scale of
its developments and the length of the development cycle, the Group has to allocate site-wide
development costs between units being built and/or completed in the current year and those for
future years. It also has to forecast the costs to complete on such developments. These estimates
impact management’s assessment of the net realisable value of the Group’s inventory balance
and also determine the extent of profit or loss that should be recognised in respect of each
development in each reporting period.
In making such assessments and allocations, there is a degree of inherent estimation uncertainty.
The Group has established internal controls designed to effectively assess and centrally review
inventory carrying values and ensure the appropriateness of the estimates made. These
assessments and allocations evolve over the life of the development in line with the risk profile,
and accordingly, the margin recognised reflects these evolving assessments, particularly in
relation to the Group’s long-term developments. The impact of the global pandemic and other
macroeconomic factors have been considered in the Group’s assessment of the carrying value
of its inventories at 31 December 2021, particularly with regard to the potential implications for
future selling prices, development expenditure and construction programming. Management has
considered scenarios on each of its active developments and the consequential impact on future
profitability based on current facts and circumstances together with any implications for future
projects in undertaking its net realisable value calculations.
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4 Use of judgements and estimates (continued)
(a) Carrying value of work-in-progress, estimation of costs to complete and impact on
profit recognition (continued)
As part of the assessment, the Group has re-evaluated its most likely exit strategies on all
developments in the context of the current market environment and reflected these in revenue
assumptions within the forecast models. The results of this exercise required an impairment
reversal of €4.2 million in respect of its previously impaired non-core active sites. Further detail in
respect of the reversal of impairment for the year is included in note 19.
Management have performed a sensitivity analysis to assess the impact of a change in
estimated costs for developments on which sales were recognised in the year. A 1% increase in
estimated costs recognised in the year, which is considered to be reasonably possible, would
reduce the Group’s gross margin by approximately 65bps.
5 Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair
values, both for financial and non-financial assets and liabilities.
The Group has an established control framework with respect to the measurement of fair
values. This includes a valuation team that has overall responsibility for overseeing all
significant fair value measurements, including Level 3 fair values and reports directly to the
chief financial officer.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments.
If third party information, such as broker quotes or pricing services, is used to measure fair
values, then the valuation team assess the evidence obtained from the third parties to support
the conclusion that these valuations meet the requirements of the Standards, including the level
in the fair value hierarchy in which the valuations should be classified.
Significant valuation issues are reported to the Group’s Audit and Risk committee.
Fair value is defined in IFRS 13, Fair Value Measurement, as the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. When measuring the fair value of an asset or liability, the Group uses
market observable data as far as possible. Fair values are categorised into different levels in a
fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
Further information about the assumptions made in measuring fair values is included in the
following notes:
• Note 14 Share-based payments arrangements; and
• Note 26 Financial instruments and financial risk management.
6 Changes in significant accounting policies
6 Changes in significant accounting policies (continued)
(i) New significant accounting policies (continued)
(a) Interest Rate Benchmark reform – Phase 2
(Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) (continued)
Specific policies applicable from 1 January 2021 for interest rate benchmark reform (continued)
The Group is not impacted by the amendments Phase 2 because the benchmark rate used by
the Group is EURIBOR which was not affected by the amendments, therefore there is no material
impact on the Group’s financial statements as a result.
The details of the accounting policies are disclosed in note 8. See also note 26 for related
disclosures about risks, financial assets and financial liabilities.
Amendments to standard IFRS 16 Leases are effective from 1 January 2020 but they do not have
a material effect on the Group’s financial statements.
(b) Development revenue
•
(i) New significant accounting policies
(a) Interest Rate Benchmark reform – Phase 2
(Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
The Group has initially adopted Interest Rate Benchmark reform – Phase 2 (Amendments to IFRS
9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) effective from 1 January 2021. The reform does not have a
material effect on the Group’s financial statements.
The Group applied the Phase 2 amendments retrospectively. However, in accordance with
the exceptions permitted in the Phase 2 amendments, the Group has elected not to restate
comparatives for the prior year to reflect the application of these amendments. Since the Group
had no transactions for which the benchmark rate had been replaced with an alternative
benchmark rate as at 31 December 2020, there is no impact on opening equity balances as a
result of the retrospective application.
Specific policies applicable from 1 January 2021 for interest rate benchmark reform
The Phase 2 amendments provide practical relief from certain requirements in IFRS Standards.
These reliefs relate to modifications of financial instruments and lease contracts or hedging
relationships triggered by a replacement of a benchmark interest rate in a contract with a new
alternative benchmark rate.
Revenue arising on contracts under a development agreement which give the customer control
over properties as they are constructed, and for which the Group has a right to payments for work
performed, is recognised over time. Revenue and costs are recognised over time with reference to
the stage of completion of the contract activity at the balance sheet date where the outcome of a
contract can be estimated reliably. This is measured by surveys of work performed to date. Variations
in contract work, claims and incentive payments are included to the extent that it is probable that
they will result in revenue, and they are capable of being reliably measured. When land is transferred
at the start of a contract, revenue is not recognised until control has been transferred to the customer
which includes legal title being passed to them. Where the outcome of a contract cannot be
estimated reliably, contract revenue where recoverability is probable is recognised to the extent of
contract costs incurred. The costs associated with fulfilling a contract are recognised as expenses in
the period in which they are incurred. When it is probable that total contract costs will exceed total
contract revenue, the expected loss is recognised as an expense immediately.
There have been no other changes to significant accounting policies during the financial year
ended to 31 December 2021.
(ii) Other standards
The following new and amended standards applicable for accounting periods commencing
after 1 January 2023 are not expected to have a significant impact on the Group’s consolidated
financial statements.
•
•
•
•
•
•
IAS 37 Provisions, contingent liabilities and contingent assets: Onerous contracts – cost of
fulfilling a contract (amendment)
IAS 16 Property plant and equipment: Proceeds before intended use (amendment)
IFRS 3 Business combinations: Reference to the Conceptual Framework (amendment)
IAS 1 Presentation of financial statements: Classification of liabilities as current or non-current
(amendment)
IAS 8 Accounting policies, changes in accounting estimates and errors: Accounting policies,
changes in accounting estimates and errors definition (amendment)
IAS 1 Presentation of financial statements: Amendments to IAS 1 presentation of financial
statements and IFRS practice statement 2 making materiality judgements (amendment)
IFRS 16 Leases – Covid-19 related rent concessions beyond 30 June 2021 (amendment)
•
• Annual improvements to IFRS standards 2018-2020
•
•
IFRS 17 Insurance contracts – amendments to IFRS 17 insurance contracts (amendment)
IAS 12 Income taxes – Deferred tax related to assets and liabilities arising from a single
transaction (amendment)
IFRS 10 Consolidated financial statements and IAS 28 Investments in associates and joint
ventures – Sale or contribution of assets between an investor and its associate or joint
venture (amendment)
7
Going concern
The Group has recorded a profit before tax of €45.7 million (2020: Loss of €15.7 million) which
included a non-cash impairment reversal of €4.2 million relating to the Group’s inventory
balance, the comparative year loss included a non-cash impairment charge of €20.3 million.
The Group has an unrestricted cash balance of €116.2 million (31 December 2020: €137.3 million)
exclusive of the minimum cash balance of €25.0 million which the Group is required to maintain
under the terms of its debt facilities. The Group has committed undrawn funds available of
€120.0 million (31 December 2020: €25.0 million).
Management has prepared a detailed cash flow forecast in order to assess the Group’s ability
to continue as a going concern for at least a period of twelve months from the signing of these
financial statements. The preparation of this forecast considered the principal risks facing the
Group, including those risks that could threaten the Group’s business model, future performance,
solvency or liquidity over the forecast period. These principal risks and uncertainties and
the steps taken by the Group to mitigate them are detailed on pages 71 to 79 of the Risk
Management Report. The Group’s business activities, together with the factors likely to affect its
future development are outlined throughout our Strategic Report. Further disclosures regarding
the Group’s loans and borrowings are provided in note 22.
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Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 7
Going concern (continued)
(ii) Subsidiaries
8 Significant accounting policies (continued)
(i) Current tax
The Group is forecasting compliance with all covenant requirements throughout the period
of assessment under the current facilities including the interest cover covenant which is based
on earnings before interest, tax, depreciation and amortisation (EBITDA) excluding the non-
cash impairment charge or reversal. Other assumptions within the forecast include the Group’s
expected selling prices and sales strategies as well as its investment in work in progress which
reflect updated development programs as a result of the ongoing impact of Covid-19.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. The financial statements of subsidiaries
are included in the consolidated financial statements from the date on which control commences
until the date on which control ceases.
Based on the forecasts modelled, the Directors have assessed the Group’s going concern status for
the foreseeable future. Having considered the Group’s cash flow forecasts, the Directors are satisfied
that the Group has the appropriate working capital management strategy, operational flexibility,
and resources in place to continue in operational existence for the foreseeable future. Accordingly,
these consolidated financial statements have been prepared on a going concern basis.
(iii) Joint operations
Joint operations arise where the Group has joint control of an operation with other parties, in
which the parties have direct rights to the assets and obligations of the operation. The Group
accounts for its share of the jointly controlled assets and liabilities and income and expenditure
on a line by line basis in the consolidated financial statements.
8 Significant accounting policies
The Group has consistently applied the following accounting policies to all periods presented in
these consolidated financial statements, except if mentioned otherwise.
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from
intra-group transactions, are eliminated.
8.2 Revenue (continued)
(ii) Development revenue
Revenue arising on contracts under a development agreement which give the customer control
over properties as they are constructed, and for which the Group has a right to payments for
work performed, is recognised over time. Revenue and costs are recognised over time with
reference to the stage of completion of the contract activity at the balance sheet date where the
outcome of a contract can be estimated reliably. This is measured by surveys of work performed
to date. Variations in contract work, claims and incentive payments are included to the extent
that it is probable that they will result in revenue, and they are capable of being reliably
measured. When land is transferred at the start of a contract, revenue is not recognised until
control has been transferred to the customer which includes legal title being passed to them.
Where the outcome of a contract cannot be estimated reliably, contract revenue where
recoverability is probable is recognised to the extent of contract costs incurred. The costs
associated with fulfilling a contract are recognised as expenses in the period in which they are
incurred. When it is probable that total contract costs will exceed total contract revenue, the
expected loss is recognised as an expense immediately.
8.1 Basis of consolidation
(i) Business combinations
The Group accounts for business combinations using the acquisition method when control
is transferred to the Group. The consideration transferred in the acquisition is generally
measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is
tested annually for impairment. Any gain on a bargain purchase is recognised in profit or loss
immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or
equity securities.
The consideration transferred does not include amounts related to the settlement of pre-
existing relationships. Such amounts are generally recognised in profit or loss. Any contingent
consideration is measured at fair value at the date of acquisition. If an obligation to pay
contingent consideration that meets the definition of a financial instrument is classified as
equity, then it is not remeasured, and settlement is accounted for within equity. Otherwise,
other contingent consideration is remeasured at fair value each reporting date and subsequent
changes in the fair value of the contingent consideration are recognised in profit or loss.
8.2 Revenue
The Group develops and sells residential properties and non-core land in addition to developing
land under development agreements with third parties.
8.3 Expenditure
(i) Housing and land sales
Revenue is recognised at the point in time when control over the property has been transferred
to the customer, which occurs at legal completion.
Expenditure recorded in inventory is expensed through cost of sales at the time of the related
property sale. The amount of cost related to each property includes its share of the overall site
costs. Expenditure related to revenue recognised over time is expensed through cost of sales on
an inputs basis. Administration expense is recognised in respect of goods and services received
when supplied in accordance with contractual terms.
8.4 Taxation
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except
to the extent that it relates to a business combination, or items recognised directly in equity or
in OCI.
Current tax comprises the expected tax payable or receivable on the taxable income or loss for
the year and any adjustment to the tax payable or receivable in respect of previous years. The
amount of current tax payable or receivable is the best estimate of the tax amount expected to
be paid or received that reflects uncertainty related to income taxes, if any. It is measured using
tax rates enacted or substantively enacted at the reporting date. Current tax also includes any
tax arising from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
(ii) Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes.
Deferred tax is not recognised for:
• temporary differences on the initial recognition of assets or liabilities in a transaction that is
not a business combination and that affects neither accounting nor taxable profit or loss;
• temporary differences related to investments in subsidiaries, associates and joint arrangements
to the extent that the Group is able to control the timing of the reversal of the temporary
differences and it is probable that they will not reverse in the foreseeable future; and
• taxable temporary differences arising on the initial recognition of goodwill.
Temporary differences in relation to a right of use asset and a lease liability for a specific lease
are regarded as a net package (the lease) for the purposes of recognising deferred tax.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent that it is probable that future taxable profits will be available
against which they can be used. Future taxable profits are determined based on the reversal
of relevant taxable temporary differences. If the amount of taxable temporary differences is
insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for
reversals of existing temporary differences, are considered, based on the business plans for
individual subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be
realised; such reductions are reversed when the probability of future taxable profits improves.
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Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 8 Significant accounting policies (continued)
8.7 Property, plant and equipment
8 Significant accounting policies (continued)
Type
8.4 Taxation (continued)
(ii) Deferred tax (continued)
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the
extent that it has become probable that future taxable profits will be available against which
they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary
difference when they reverse, using tax rates enacted or substantively enacted at the reporting
date, and reflects uncertainty related to income taxes, if any.
The measurement of deferred tax reflects the tax consequences that would follow from the
manner in which the Group expects, at the reporting date, to recover or settle the carrying
amount of its assets and liabilities.
8.5 Share-based payment arrangements
The grant date fair value of equity-settled share-based payment arrangements granted to
employees is generally recognised as an expense, with a corresponding increase in equity, over
the vesting period of the awards. The amount recognised as an expense is adjusted to reflect
the number of awards for which the related service and non-market performance conditions
are expected to be met, such that the amount ultimately recognised is based on the number
of awards that meet the related service and non-market performance conditions at the vesting
date. For share-based payment awards with non-vesting conditions or market conditions, the
grant date fair value of the share-based payment is measured to reflect such conditions and
there is no true-up for differences between expected and actual outcomes.
8.6 Exceptional items
Exceptional items are those that are separately disclosed by virtue of their nature or amount
in order to highlight such items within the consolidated statement of profit or loss and other
comprehensive income for the financial year. Group management exercises judgement in assessing
each particular item which, by virtue of its scale or nature, should be highlighted as an exceptional
item. Exceptional items are included within the profit or loss caption to which they relate.
During the financial year, there were no costs considered exceptional items.
Property, plant and equipment is carried at historic purchase cost less accumulated depreciation.
Cost includes the original purchase price of the asset and the costs attributable to bringing the
asset to its working condition for its intended use. Depreciation is provided to write off the cost
of the assets on a straight-line basis to their residual value over their estimated useful lives at the
following annual rates:
• Buildings
• Plant and machinery
• Fixtures and fittings
• Computer equipment
2.5%
14-20%
20%
33%
The assets’ residual values, carrying values and useful lives are reviewed on an annual basis and
adjusted if appropriate at each reporting date.
Where an impairment is identified, the recoverable amount of the asset is identified and an
impairment loss, where appropriate, is recognised in the statement of profit or loss and other
comprehensive income.
Gains and losses on disposals are determined by comparing the proceeds with the carrying
amount and are recognised within administration expenses in the statement of profit or loss and
other comprehensive income.
Subsequent expenditure is capitalised only if it is probable that the future economic benefits
associated with the expenditure will flow to the Group.
8.8 Intangible assets – computer software
Computer software is capitalised as intangible assets as acquired and amortised on a straight-
line basis over its estimated useful life of 3 years, in line with the period over which economic
benefit from the software is expected to be derived.
The assets’ useful economic lives and residual values are reviewed and adjusted, if appropriate,
at each reporting date.
8.9 Inventory
Inventory comprises property in the course of development, completed units, land and land
development rights.
Inventories are valued at the lower of cost and net realisable value. Direct cost comprises the cost
of land, raw materials and development costs but excludes indirect overheads. Land purchased
for development, including land in the course of development, is initially recorded at cost.
Where such land is purchased on deferred settlement terms, and the cost differs from the
amount that will subsequently be paid in settling the liability, this difference is charged as a
finance cost in the statement of profit or loss and other comprehensive income over the period
to settlement.
A provision is made, where appropriate, to reduce the value of inventories and work-in-progress
to their net realisable value.
8.10 Financial instruments
Financial assets and financial liabilities
Under IFRS 9, financial assets and financial liabilities are initially recognised at fair value and
are subsequently measured based on their classification as described below. Their classification
depends on the purpose for which the financial instruments were acquired or issued, their
characteristics and the Group’s designation of such instruments. The standards require that all
financial assets and financial liabilities be classified as fair value through profit or loss (FVTPL),
amortised cost, or fair value through other comprehensive income (FVOCI).
Classification of financial instruments
The following summarises the classification and measurement the Group has elected to apply to
each of its significant categories of financial instruments:
Financial assets
Cash and cash equivalents
Trade receivables
Other receivables
Amounts recoverable on construction contracts
Deposits for sites
Restricted cash
Construction bonds
Financial liabilities
Lease liabilities
Trade payables
Inventory accruals
Other accruals
Loans and borrowings
IFRS 9
Classification
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Amortised cost
Cash and cash equivalents
Cash and cash equivalents include cash and short-term investments with an original maturity
of three months or less. Interest earned or accrued on these financial assets is included in
finance income.
Trade and other receivables
Such receivables are included in current assets, except for those with maturities more than
12 months after the reporting date, which are classified as non-current assets. Loans and other
receivables are included in trade and other receivables on the statement of financial position
and are accounted for at amortised cost. These assets are subsequently measured at amortised
cost. The amortised cost is reduced by impairment losses. The Group recognises impairment
losses on an ‘expected credit loss’ model (ECL model) basis in line with the requirements of
IFRS 9. Interest income and impairment are recognised in profit or loss. Any gain or loss on
derecognition is recognised in profit or loss.
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Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 8 Significant accounting policies (continued)
8.11 Provisions
8 Significant accounting policies (continued)
8.10 Financial instruments (continued)
Classification of financial instruments (continued)
Provisions are recognised when the Group has a present legal or constructive obligation as a
result of past events and it is probable that an outflow of resources will be required to settle that
obligation, and the amount has been reliably estimated.
8.13 Leases (continued)
(i) As a lessee (continued)
Amounts recoverable on construction contracts
Amounts recoverable on construction contracts includes recoverable revenue recognised over
time with reference to the stage of completion arising on contracts under a development
agreement which are receivable within 12 months of the reporting date.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the
liability, where the effect of discounting is considered significant. The unwinding of the discount is
recognised as a finance cost.
Deposits for sites
Deposits for sites includes a percentage amount paid of the total purchase price for the
acquisition of land intended for development.
Restricted cash
Restricted cash includes cash amounts which are classified as current assets and held in escrow
until the completion of certain criteria. Non-current restricted cash are minimum cash balances
required under the terms of the debt facilities.
Construction bonds
Construction bonds includes amounts receivable in relation to the completion of construction
activities on sites. These assets are included in trade and other receivables on the consolidated
balance sheet and are accounted for at amortised cost.
Financial liabilities
Such financial liabilities are recorded at amortised cost and include all liabilities.
Loans and borrowings
Loans and borrowings include debt facilities, interest accrued and borrowing costs classified as
current and non-current liabilities.
8.12 Pensions
The Group operates a defined contribution scheme. The assets of the scheme are held
separately from those of the Group in a separate fund. Obligations for contributions to defined
contribution plans are expensed as the related service is provided.
8.13 Leases
At the inception of a contract, the Group assess whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
(i) As a lessee
At commencement or on modification of a contract that contains a lease component, the Group
allocates the consideration in the contract to each lease component and non-lease component
on the basis of its relative stand-alone prices. However, for the leases of property the Group
has elected not to separate non-lease components and account for the lease and non-lease
components as a single lease component.
The Group recognises a right-of-use asset and a lease liability at the lease commencement
date. The right-of-use asset is initially measured at cost, which comprises the initial amount
of the lease liability adjusted for any lease payments made at or before the commencement
date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, less any
lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term, unless the lease transfers ownership of the
underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset
reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be
depreciated over the useful life of the underlying asset, which is determined on the same basis
as those of property and motor vehicles. In addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the
carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of
the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property
in ‘property, plant and equipment’ and lease liabilities in ‘lease liability’ in the statement of
financial position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of
low-value assets and short-term lease. The Group recognises the lease payments associated with
these leases as an expense on a straight-line basis over the lease term.
The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate implicit in the lease, or, if
that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the
Group uses its incremental borrowing rate as the discount rate.
(ii) As a lessor
In certain instances the Group acts as a lessor in relation to certain property assets. These
arrangements are not material to the Group’s consolidated financial statements.
The Group determines its incremental borrowing rate with reference to its current financing
sources and makes certain adjustments to reflect the terms of the lease and type of the
asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
• fixed payments, including in-substance fixed payments;
• variable lease payments that depend on an index or a rate, initially measured using the index
or rate as at the commencement date;
• amounts expected to be payable under a residual value guarantee; and
• the exercise price under a purchase option that the Group is reasonably certain to exercise,
lease payments in an optional renewal period if the Group is reasonably certain to exercise
an extension option, and penalties for early termination of a lease unless the Group is
reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in the future lease payments arising from a change in
an index or rate, if there is a change in the Group’s estimate of the amount expected to be
payable under a residual value guarantee, if the Group changes its assessment of whether it will
exercise a purchase, extension or termination option or if there is a revised in-substance fixed
lease payment.
8.14 Government grants
Grants that compensate the group for expenses incurred are recognised in the consolidated
statement of profit or loss and other comprehensive income by offsetting against expenses on a
systematic basis in the periods in which the expenses are recognised, unless the conditions for
receiving the grant are met after the related expenses have been recognised. In this case, the
grant is recognised when it becomes receivable.
8.15 Share capital
(i) Ordinary shares
Incremental costs directly attributable to the issue of ordinary shares are recognised as a
deduction from equity (retained earnings).
(ii) Founder Shares
Founder shares were initially issued as ordinary shares and subsequently re-designated as
founder shares. Following re-designation, the instruments are accounted for as equity-settled
share-based payments as set out at note 8.5 above.
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Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 8 Significant accounting policies (continued)
8.16 Finance income and costs
The Group’s finance income and finance costs include:
•
•
Interest income
Interest expense
Interest income and expense is recognised using the effective interest method.
9 Segmental information
The Group has considered the requirements of IFRS 8 Operating Segments in the context of how
the business is managed and resources are allocated.
The Group is organised into three key reportable segments, being Suburban, Urban and
Partnerships. Internal reporting to the Chief Operating Decision Maker (CODM) is provided on
this basis. The CODM has been identified as the Executive Committee.
The Group currently operates solely in the Republic of Ireland and therefore no geographically
segmented financial information is provided.
Suburban
The Suburban segment is focussed primarily on high quality housing (with some low rise apartments)
with demand coming from private buyers and institutions. Our core Suburban product is affordable
and located in well serviced communities predominantly in the Greater Dublin Area and Cork.
Urban
Urban’s strategic focus is developing apartments to deliver to institutional investors. The
apartments are located primarily in Dublin and Cork, but also on sites adjacent to significant rail
transportation hubs. Urban’s strategy is to deliver the product to institutional investors through a
forward sale, or forward fund transaction providing longer term earnings visibility.
Partnerships
A Partnership will typically involve the Government, local authorities, or state agencies
contributing their land on a reduced cost, or phased basis into a development agreement with
Glenveagh. Approx. 50% of the product is delivered back to the government or local authority
via social and affordable homes. This provides longer term access to both land and deliveries for
the business and provides financial incentive by reducing risk from a sales perspective.
The Group has restated the previously reported segment information for the year
ended 31 December 2020 with certain assets being allocated to reportable segments for
comparability purposes at the reporting date.
9 Segmental information (continued)
Segment assets and liabilities
Segmental financial results
Revenue
Suburban
Urban
Partnerships
Revenue for reportable segments
Operating profit/(loss)
Suburban
Urban
Partnerships
Operating profit/(loss) for reportable segments
Reconciliation to results for the financial year
Segment results – operating profit/(loss)
Finance expense
Directors’ remuneration
Corporate function payroll costs
Depreciation and amortisation
Professional fees
Share-based payment expense
(Loss)/gain on sale of property, plant and equipment
Other corporate costs
Profit/(loss) before tax
2021
€’000
2020
€’000
276,848
199,959
-
476,807
36,153
33,426
(1,050)
68,529
68,529
(4,845)
(2,576)
(4,350)
(2,406)
(3,451)
(1,219)
(1,707)
(2,253)
45,722
201,973
30,323
-
232,296
15,399
(15,662)
(1,166)
(1,429)
(1,429)
(3,033)
(1,574)
(2,741)
(2,031)
(1,736)
(861)
33
(2,374)
(15,746)
There are no individual costs included within other corporate costs that is greater than the
amounts listed in the above table.
Segment assets
613,168
183,848
2,519
799,535
527,461
300,422
467
828,350
31 December 2021
31 December 2020
Suburban
€’000
Urban
€’000
Partnerships
€’000
Total
€’000
As restated
Suburban
€’000
As restated
Urban
€’000
Partnerships
€’000
As restated
Total
€’000
Reconciliation to Consolidated Balance Sheet
Deferred tax asset
Trade and other receivables
Income tax receivable
Cash and cash equivalents
Restricted cash
Property, plant and equipment
Intangible assets
403
497
-
116,176
25,000
27,230
1,214
970,055
1,415
8,132
21
137,276
-
21,087
712
996,993
Segment liabilities
-
-
-
-
-
-
46
46
Reconciliation to Consolidated Balance Sheet
Trade and other payables
Loans and borrowings
Lease liabilities
Income tax payable
57,488
120,247
547
7,692
185,974
42,191
99,934
1,316
-
143,487
140
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Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
141
141
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 10 Revenue
11 Finance Expense
13 Employment costs
Suburban
Core
Non-core
Urban
Core
Non-core
Total Revenue
2021
€’000
2020
€’000
276,848
-
201,300
673
276,848
201,973
126,217
73,742
7,390
22,933
199,959
30,323
476,807
232,296
Interest on secured bank loans
Finance cost on lease liabilities
12 Statutory and other information
Amortisation of intangible assets (note 18)
Depreciation of property, plant and equipment (note 17)*
Employment costs (note 13)
Loss/(profit) on disposal of property, plant and equipment
The Group has represented the previously reported revenue information for the comparative
year and has presented revenue as split between core and non-core by business segment. This
split is in line with how internal reporting to the CODM is provided which has been in effect since
H1 2020. Core suburban product mainly relates to affordable starter homes for first time buyers.
Core urban product relates primarily to apartments suitable for institutional investors. Non-core
suburban and urban product relates to high-end, private developments and sites.
Audit of Group, Company and subsidiary financial statements**
Other assurance services
Tax advisory services
Tax compliance services
Other non-audit services
Urban core revenue includes income from the sale of land and development revenue from
construction contracts that are recognised over time by reference to the stage of completion of
the contract with the customer. Development revenue recognised in the financial year related to
the development of the Castleforbes site and amounted to €8.2 million (2020: €nil) with €3.8
million (2020: €Nil) outstanding in contract receivables at the year end. The payment terms for
this contract are 90 days.
Directors’ remuneration
Salaries, fees and other emoluments
Pension contributions
All revenue is earned in the Republic of Ireland.
2021
€’000
4,820
25
4,845
2021
€’000
487
3,144
33,481
1,707
235
15
23
33
6
312
2,461
115
2,576
2020
€’000
3,006
27
3,033
2020
€’000
406
2,722
24,400
(33)
200
15
78
31
-
324
1,459
115
1,574
142
142
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
*
Includes €1.2 million (2020: €1.1 million) capitalised in inventory during the year ended
31 December 2021
** Included in the auditor’s remuneration for the Group is an amount of €0.015 million
(2020: €0.015 million) that relates to the Company’s financial statements.
The average number of persons employed by the Group (including executive directors) during
the financial year was 336 (Executive Committee: 3; Non-executive Directors: 5; Construction:
176; and Other: 152). (2020: 315 (Executive Committee: 3; Non-executive Directors: 5;
Construction: 188; and Other: 119))
The aggregate payroll costs of these employees for the financial year were:
Wages and salaries
Social welfare costs
Pension costs - defined contribution
Share-based payment expense (note 14)
2021
€’000
28,262
2,744
1,256
1,219
33,481
2020
€’000
20,535
2,064
940
861
24,400
€12.3 million (2020: €11.2 million) of employment costs were capitalised in inventory during the
financial year.
14 Share-based payment arrangements
The Group operates three equity-settled share-based payment arrangements being the Founder
share scheme, the Long-Term Incentive Plan (LTIP) and the Savings Related Share Option
Scheme (known as the Save As You Earn or SAYE scheme). As described below, options were
granted under the terms of the LTIP and SAYE schemes during the financial year.
(a) Founder share scheme
The founders of the Company (John Mulcahy, Justin Bickle (beneficially held by Durrow Ventures),
and Stephen Garvey) subscribed for a total of 200,000,000 ordinary shares of €0.001 each for
cash at par value during 2017, which were subsequently converted to founder shares in advance
of the Company’s initial public offering. These shares entitle the founders to share 20% of the
Company’s Total Shareholder Return (TSR) (being the increase in market capitalisation of the
Company, plus dividends or distributions in the relevant period) in each of five individual testing
periods up to 30 June 2022, subject to achievement of a performance condition related to the
Company’s share price. Further details in respect of the founder shares are outlined in note 25.
Following the completion of the fourth test period (which ran from 1 March 2021 until 30 June
2021), it was confirmed that, the performance condition related to the Company’s share price was
not satisfied and therefore the founder share value in respect of the test period was €nil and
accordingly no founder shares were converted to ordinary shares during the financial year.
(b) LTIP
On 1 April 2021, the remuneration committee approved the grant of 3,998,475 options to certain
members of the management team (which do not include the Founders) in accordance with the
terms of the Company’s LTIP. These options will vest on completion of a three-year service period
from grant date subject to the achievement of certain performance condition hurdles based on
the Company’s TSR and Earnings per Share (EPS) across the vesting period. 50% of the awards
will vest based on the Company’s TSR with 50% based on EPS targets. The EPS based options
will vest based on the Group’s EPS* for the financial year ended 31 December 2023. 25% of
TSR options vest once the 3-year annualised TSR reaches 6.25% per annum with the remaining
options vesting on a pro rata basis up to 100% if TSR of 12.5% is achieved. 25% of EPS based
options will vest should the Group achieve EPS* of 9.5 cents per share with the remaining options
vesting on a pro rata basis up to 100% if EPS* of 12.5 cents per share is achieved. In line with
the Group’s remuneration policy, LTIP awards granted to Executive Directors from 2020 onwards
include a holding period of at least two years post exercise.
LTIP options in issue at 1 January
Granted during the financial year
Forfeited during the financial year
Lapsed during the financial year
Exercised during the financial year
Number of
Options
2021
Number of
Options
2020
7,675,456
3,998,475
(590,329)
(381,595)
(118,510)
4,685,800
5,185,560
(991,726)
(1,204,178)
-
LTIP options in issue at 31 December
10,583,497
7,675,456
Exercisable at 31 December
58,057
-
LTIP options were exercised during the financial year with the average share price being €0.99.
The options outstanding at 31 December 2021 had an exercise price €0.001 (2020: €0.001) and a
weighted-average contractual life of 7 years (2020: 7 years).
Chairman’s Statement
Financial Statements
143
143
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 14 Share-based payment arrangements (continued)
Details of options outstanding and grant date fair value assumptions
(b) LTIP (continued)
The fair value of LTIP options granted in the period was measured using a Monte Carlo simulation.
Service and non-market conditions attached to the arrangements were not taken into account
when measuring fair value. The inputs used in measuring fair value at grant date were as follows:
Number of
options
3 Year
2021
Number of
options
5 Year
2020
Number of
options
3 Year
Number of
options
5 Year
Fair value at grant date
Share price at grant date
Valuation methodology
Exercise price
Expected volatility
Expected life
Expected dividend yield
Risk free rate
2021
Tranche 1
2020
Tranche 1
€0.49
€0.91
Monte Carlo
€0.001
36.1%
3 years
0%
-0.7%
€0.23
€0.75
Monte Carlo
€0.001
26.6%
3 years
0%
-0.8%
The exercise price of all options granted under the LTIP to date is €0.001 and all options have a
7-year contractual life.
The expected share price and TSR volatility was based on the historical volatility of the Group
over the expected life of the equity instruments granted.
SAYE options in issue at 1 January
Granted during the financial year
Cancelled during the financial year
Exercised during the financial year
959,040
-
(130,500)
(28,800)
255,000
-
(90,000)
-
806,340
355,500
(202,800)
-
SAYE options in issue at 31 December
799,740
165,000
959,040
202,000
90,000
(37,000)
-
255,000
Fair value at grant date
Share price at grant date
Valuation methodology
Exercise price
Expected volatility
Expected life
Expected dividend yield
Risk free rate
2021
2020
3 Year
5 Year
3 Year
5 Year
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
€0.25
€0.25
N/A
N/A
€0.76
€0.76
N/A Monte Carlo Monte Carlo
€0.60
€0.60
N/A
35.5%
N/A
34.3%
5 years
3 years
N/A
1.37%
0%
N/A
-0.81%
-0.83%
N/A
The Group recognised an expense of €1.2 million (2020: €0.9 million) in the consolidated statement
of profit or loss and other comprehensive income in respect of options granted under the LTIP.
The weighted average exercise price of all options granted under the SAYE to date is €0.71.
(*Group EPS is defined as basic earnings per share as calculated in accordance with IAS 33
EPS subject to adjustment by the remuneration committee at its discretion, for items deemed
not reflective of the Group’s underlying performance for the financial year.)
The expected share price and TSR volatility was based on the historical volatility of a comparator
group of peer companies over the expected life of the equity instruments granted together with
consideration of the Group’s actual trading volatility to date.
(c) SAYE Scheme
Under the terms of the scheme, employees may save up to €500 per month from their net salaries
for a fixed term of three or five years and at the end of the savings period they have the option to
buy shares in the Company at a fixed exercise price. No options were granted in the current year.
The Group recognised an expense of €0.06 million (2020: €0.05 million) in the consolidated
statement of profit or loss in respect of options granted under the SAYE scheme.
15 Earnings/(loss) per share
(a) Basic earnings/(loss) per share
(b) Dilutive earnings/(loss) per share
Diluted earnings/(loss) per share
The calculation of basic earnings/(loss) per share has been based on the profit attributable to
ordinary shareholders and the weighted average numbers of shares outstanding for the financial
year. There were 771,770,694 ordinary shares in issue at 31 December 2021 (2020: 871,333,550).
2021
2020
Profit/(loss) for the financial year attributable to
ordinary shareholders (€’000)
Weighted average number of shares for the financial year
Basic earnings/(loss) per share (cent)
37,702
840,694,786
(13,902)
871,333,550
4.48
(1.60)
Profit/(loss) for the financial year attributable to
ordinary shareholders (€’000)
Weighted average number of shares for the financial year
Diluted earnings/(loss) per share (cent)
2021*
No. of shares
2020
No. of shares
Reconciliation of weighted average number of shares (diluted)
Weighted average number of ordinary shares (basic)
Effect of potentially dilutive shares
2021
2020
37,702
845,809,433
(13,902)
871,333,550
4.46
(1.60)
2021*
No. of shares
2020
No. of shares
840,694,786
5,114,647
871,333,550
-
845,809,433
871,333,550
Reconciliation of weighted average number of shares
Number of ordinary shares at beginning of financial year
Effect of share buyback
Effect of SAYE maturity
Effect of LTIP maturity
871,333,550
(30,664,903)
4,359
21,780
871,333,550
-
-
-
840,694,786
871,333,550
*
The number of potentially issuable shares in the Group held under option or founder share
arrangements at 31 December 2021 is 191,590,335 (2020: 188,682,294).
** Under IAS 33, founders shares and LTIP arrangements have an assumed test period ending
on 31 December 2021. Based on this assumed test period no ordinary shares would be issued
through the conversion of founder shares. Based on the assumed test period only the TSR
performance condition was met related to LTIP options and therefore only ordinary shares
related to this condition would be issued through the conversion of LTIP options.
At 31 December 2021 nil options (2020: 1,202,040) were excluded from the diluted weighted
average number of ordinary shares because their effect would have been anti-dilutive.
On 16 November 2021, the Company announced a share buyback programme that is in progress
at the financial year end. This programme has resulted in ordinary share transactions occurring
after the balance sheet date. Please see note 30 for more details on the progress made in this
programme subsequent to year end.
144
144
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
145
145
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 16 Income tax
17 Property, plant and equipment
Current tax charge/(credit) for the financial year
Deferred tax charge/(credit) for the financial year
Total income tax charge/(credit)
2021
€’000
7,008
1,012
8,020
2020
€’000
(557)
(1,287)
(1,844)
Movement in deferred tax balances
Tax losses carried forward
Balance at
1 January
2021
€’000
Balance at
Recognised in 31 December
2021
€’000
profit or loss
€’000
1,415
1,415
(1,012)
(1,012)
403
403
The tax assessed for the financial year differs from the standard rate of tax in Ireland for the
financial year. The differences are explained below.
2021
€’000
2020
€’000
Profit/(loss) before tax for the financial year
45,722
(15,746)
Tax charge/(credit) at standard Irish income tax rate of 12.5%
5,715
(1,968)
Tax effect of:
Income taxed at the higher rate of corporation tax
Non-deductible expenses – other
Adjustment in respect of prior year under/(over) accrual
Losses forward previously not recognised as deferred tax
Other adjustments
2,141
298
44
(178)
-
40
359
(5)
-
(270)
Total income tax charge/(credit)
8,020
(1,844)
The tax losses arise in Ireland and have no expiry date. Based on the return to profitability in
2021, the continued forecast profitability in the Group’s strategic plan and the sensitivities that
have been applied therein, management has considered it probable that future profits will be
available against which the above losses can be recovered and, therefore, the related deferred
tax asset can be realised.
Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Accumulated depreciation
At 1 January 2021
Charge for the financial year
Disposals
Land &
buildings
€’000
Fixtures &
fittings
€’000
Plant &
machinery
€’000
Computer
equipment
€’000
15,263
10,000
(7,024)
18,239
(1,693)
(922)
399
1,162
62
(279)
945
(389)
(197)
148
9,045
5,958
(304)
14,699
(2,551)
(1,866)
296
694
32
(9)
717
(444)
(159)
8
Total
€’000
26,164
16,052
(7,616)
34,600
(5,077)
(3,144)
851
At 31 December 2021
(2,216)
(438)
(4,121)
(595)
(7,370)
Net book value
At 31 December 2021
16,023
507
10,578
122
27,230
146
146
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
147
147
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 17 Property, plant and equipment (continued)
Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Accumulated depreciation
At 1 January 2020
Charge for the financial year
Disposals
At 31 December 2020
Net book value
At 31 December 2020
Land &
buildings
€’000
Fixtures
& fittings
€’000
Plant &
machinery
€’000
Computer
equipment
€’000
13,166
2,097
-
15,263
(779)
(914)
-
(1,693)
762
420
(20)
1,162
(228)
(171)
10
(389)
6,308
3,137
(400)
9,045
(1,396)
(1,436)
281
(2,551)
553
143
(2)
694
(244)
(201)
1
(444)
Total
€’000
20,789
5,797
(422)
26,164
(2,647)
(2,722)
292
(5,077)
13,570
773
6,494
250
21,087
The depreciation charge for the year includes €1.2 million (2020: €1.1 million) which was capitalised in inventory at
31 December 2021.
Property plant and equipment includes right of use assets of €0.5 million (2020: €1.3 million) related to leased properties and
motor vehicles.
During the year, the Group entered into new lease agreements for the use of motor vehicles amounting to €0.3 million (2020:
€0.3 million). In the prior year, the Group entered into new lease agreements for the use of land and buildings for its office
facility in Maynooth, Co. Kildare. The land and buildings lease commenced in June 2020 for a duration of two years. On lease
commencement, the Group recognised €1.8 million of right-of-use assets and lease liabilities.
18 Intangible assets
Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Accumulated amortisation
At 1 January 2021
Charge for the year
Disposals
At 31 December 2021
Net book value
At 31 December 2021
Licence
€’000
Computer
software
€’000
1,359
1,038
(7)
2,390
(696)
(487)
7
(1,176)
149
-
(149)
-
(100)
-
100
-
-
Total
€’000
1,508
1,038
(156)
Cost
At 1 January 2020
Additions
Disposals
2,390
At 31 December 2020
(796)
(487)
107
Accumulated amortisation
At 1 January 2020
Charge for the year
Disposals
(1,176)
At 31 December 2020
Net book value
Licence
€’000
Computer
software
€’000
149
-
-
149
(100)
-
-
(100)
1,225
194
(60)
1,359
(330)
(406)
40
(696)
Total
€’000
1,374
194
(60)
1,508
(430)
(406)
40
(796)
1,214
1,214
At 31 December 2020
49
663
712
148
148
Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
149
149
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 19 Inventory
(ii) Employment cost capitalised
21 Trade and other payables
Land
Development expenditure work in progress
Development rights
2021
€’000
548,728
204,458
14,008
767,194
2020
€’000
605,244
201,917
14,008
821,169
€387.5 million (2020: €198.9 million) of inventory was recognised in ‘cost of sales’ during the year
ended 31 December 2021. Sustainable materials such as heat pumps, timber frames and building
expenditure necessary to deliver A1/A2 Building Energy Rating (BER) homes are included within
development expenditure work in progress.
(i) Impairment of inventories
During the financial year, the Group carried out a net realisable value assessment of its
inventories. This assessment has resulted in an impairment reversal of €4.2 million for the
year (2020: impairment of €20.3 million) at our previously impaired non-core active sites. The
impairment reversal is reflective of management’s reassessment of sales prices on remaining
units at higher ASP sites due to better pricing being achieved on unit closings in the year. This
was recognised in cost of sales with €1.4 million allocated to land and the remainder (€2.8
million) allocated to work in progress.
€12.3 million of employment costs incurred in the financial year have been capitalised in
inventory (2020: €11.2 million).
(iii) Development rights
Tallaght, Dublin 24/Gateway Retail Park, Co. Galway
In March 2018, the Group entered into an Acquisition and Profit Share Agreement (APSA) with
Targeted Investment Opportunities ICAV (TIO), a wholly owned subsidiary of OCM Luxembourg
EPF III S.a.r.l. Under the terms of the APSA, the Group acquired certain development rights in
respect of sites at The Square Shopping Centre, Tallaght, Dublin 24 and Gateway Retail Park,
Knocknacarra, Co. Galway for aggregate consideration of approximately €13.9 million (including
stamp duty and acquisition costs). The development rights will (subject to planning) entitle the
Group to develop at least 750 residential units under two joint business plans to be undertaken
with Sigma Retail Partners (on behalf of TIO) which will also entitle TIO to control and benefit
from any retail development at both sites. The Directors have determined that joint control
over both sites exists and the arrangements have been accounted for as joint operations in
accordance with IFRS 11 Joint Arrangements. For further information regarding the APSA, see
note 28 of these financial statements.
20 Trade and other receivables
In the prior financial year, the Group amended its sales strategy on its remaining high end,
private customer units which was reflected in its net realisable value calculations at the balance
sheet date. The revised sales strategy on these developments is to exit within 12 months versus
in excess of 48 months at previously forecasted sales rates. The Group also identified three
non-core assets which are also suited to higher ASP product on which construction has not
commenced and has amended its exit strategy on these sites from development to site sale.
This resulted in an impairment charge of €20.3 million being recorded in the prior year financial
statements. This was recognised in cost of sales with €10.3 million allocated to land and the
remainder (€10.0 million) allocated to work in progress.
Trade receivables
Contract receivables
Other receivables
Prepayments
Construction bonds
Deposits for sites
2021
€’000
6,549
3,825
2,172
698
10,012
9,124
32,380
2020
€’000
1,948
-
1,985
462
7,670
2,540
14,605
Trade payables
Payroll and other taxes
Inventory accruals
Other accruals
VAT payable
Non-current
Current
2021
€’000
6,202
3,524
20,069
13,238
14,455
57,488
-
57,488
57,488
2020
€’000
3,457
1,671
17,416
5,874
13,819
42,237
-
42,237
42,237
Debt facilities
Unamortised borrowing costs
Interest accrued
Total loans and borrowings
Loans and borrowings are payable as follows:
Less than one year
Between one and two years
More than two years
Total loans and borrowings
2021
€’000
122,500
(2,476)
223
120,247
2021
€’000
39,625
9,401
71,221
120,247
2020
€’000
100,000
(104)
38
99,934
2020
€’000
99,934
-
-
99,934
The carrying value of all financial liabilities and trade and other payables is approximate to their
fair value and are repayable under the normal credit cycle.
The Group’s debt facilities were entered into with AIB, Barclays and HSBC and are subject to
primary financial covenants calculated on a quarterly basis:
22 Loans and Borrowings
(a) Loans and borrowings
In February 2021, the Group entered into a new long term debt facility for a total of €250.0
million with a syndicate of domestic and international banks for a term of 5 years at an interest
rate of one month EURIBOR (subject to a floor of 0 per cent) plus a margin of 2.6%. The prior
year debt facilities were fully repaid by the Group during the year and at 31 December 2021,
€122.5 million had been drawn on the new debt facilities (31 December 2020: €100.0 million).
Pursuant to the debt facility agreement, there is a fixed and floating charge in place over certain
land assets of the Group as continuing security for the discharge of any amounts drawn down.
• A maximum net debt to net assets ratio;
• Loans to eligible assets value;
• The Group is required to maintain a minimum cash balance of €25.0 million throughout the
term of the debt facility; and
• A minimum EBITDA to net interest coverage ratio calculated on a trailing twelve month basis.
150
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Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
151
151
The carrying value of all financial assets and trade and other receivables is approximate to their
fair value and are short term in nature with the exception of construction bonds.
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 22 Loans and Borrowings (continued)
22 Loans and Borrowings (continued)
23 Restricted cash
(b) Reconciliation of movements of liabilities to cash flows arising from financing activities
(c) Net funds reconciliation
2021
Opening
2021
€’000
Credit
facility
drawdown
€’000
Credit
facility
repayment
€’000
Cash flows
Transaction
costs related
to loans and
borrowings
€’000
Share
buyback
payments
€’000
Proceeds
from share
option
exercised
€’000
Non-cash changes
Payment
of lease
liability
€’000
Interest
Paid
€’000
Amortisation
of transaction
costs
€’000
Interest
on debt
facilities
€’000
Interest
on lease
liability
€’000
New
leases
€’000
Closing
2021
€’000
Liabilities:
Loans and borrowings
Unamortised transaction costs
Lease liability
Interest accrual
Equity:
Share Buyback
Share option exercise
100,000
(104)
1,316
38
130,000
-
-
-
(107,500)
-
-
-
-
(2,993)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(107,466)
-
101,250
130,000
(107,500)
(2,993)
(107,466)
-
-
-
-
-
29
29
-
-
(1,110)
-
-
-
-
(4,009)
-
-
-
-
-
621
-
-
-
-
-
-
-
4,194
-
-
(1,110)
(4,009)
621
4,194
-
-
22
-
-
-
22
-
-
319
-
122,500
(2,476)
547
223
-
-
(107,466)
29
319
13,357
2020
Cash flows
Non-cash changes
Restricted cash
Cash and cash equivalents
Loans and borrowings
Lease liabilities
Total net funds
(d) Lease Liabilities
Lease liabilities are payable as follows:
2021
€’000
25,458
116,176
(120,247)
(547)
20,840
2020
€’000
Current
Non-current
708
137,276
(99,934)
(1,316)
36,734
The restricted cash balance relates to:
• €0.5 million held in escrow until the completion of certain infrastructural works relating to the
Group’s residential development at Balbriggan, Co. Dublin; and
• €25.0 million minimum cash balance which is required to be maintained throughout the term
of the debt facility.
24 Subsidiaries
2021
€’000
458
25,000
25,458
2020
€’000
-
708
708
31 December 2021
Present value of
minimum lease
payments
€’000
Future value of
minimum lease
payments
€’000
Interest
€’000
The principal subsidiary companies and the percentage shareholdings held by Glenveagh
Properties PLC, either directly or indirectly, pursuant to Section 314 of the Companies Act 2014 at
31 December 2021 are as follows:
Company
Principal activity
%
Reg. office
Opening
2020
€’000
Credit
facility
drawdown
€’000
Credit
facility
repayment
€’000
Payment
of lease
liability
€’000
Interest
Paid
€’000
Amortisation
of transaction
costs
€’000
Interest
on RCF
€’000
Interest
on lease
liability
€’000
New
leases
€’000
Closing
2020
€’000
Less than one year
Between one and two years
More than two years
466
80
1
547
21
-
-
21
487
80
1
568
Liabilities
Loans and borrowings
Unamortised transaction costs
Lease liability
Interest accrual
40,000
(446)
595
15
70,000
-
-
-
(10,000)
-
-
-
-
-
(1,088)
-
-
-
-
(2,638)
40,164
70,000
(10,000)
(1,088)
(2,638)
-
342
-
-
342
-
-
-
2,660
2,660
-
-
27
-
27
-
-
1,782
-
100,000
(104)
1,316
38
1,782
101,250
Glenveagh Properties (Holdings) Limited
Glenveagh Treasury DAC
Glenveagh Contracting Limited
Glenveagh Homes Limited
Greystones Devco Limited
Marina Quarter Limited
GLV Bay Lane Limited
Glenveagh Living Limited
GL Partnership Opportunities DAC
Castleforbes Development Company DAC
Hollystown Golf & Leisure Limited
Holding company
Financing activities
Property development
Property development
Property development
Property development
Property development
Property development
Property development
Property development
Golf Club operations
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
1
1
1
1
1
1
1
1
1
1
1
1 Block B, Maynooth Business Campus, Maynooth, Co. Kildare, W23W5X7
Pursuant to section 316 of the Companies Act 2014, a full list of subsidiaries will be annexed to
the Company’s Annual Return to be filed in the Companies Registration Office in Ireland.
152
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Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
153
153
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 25 Capital and reserves
(a) Authorised share capital
Number
of shares
2021
€’000
Number
of shares
Ordinary Shares of €0.001 each
Founder Shares of €0.001 each
Deferred Shares of €0.001 each
1,000,000,000
200,000,000
200,000,000
1,000
200
200
1,000,000,000
200,000,000
200,000,000
1,400,000,000
1,400 1,400,000,000
(b) Issued and fully paid share capital and share premium
2020
€’000
1,000
200
200
1,400
At 31 December 2021
Ordinary Shares of €0.001 each
Founder Shares of €0.001 each
At 31 December 2020
Number
of shares
771,770,694
181,006,838
952,777,532
Number
of shares
771
181
952
179,310
-
179,310
Share
Capital
€‘000
Share
premium
€’000
Ordinary Shares of €0.001 each
Founder Shares of €0.001 each
871,333,550
181,006,838
1,052,340,388
871
181
1,052
179,281
-
179,281
(c) Reconciliation of shares in issue
In respect of current year
Ordinary
shares
‘000
Founder Undenominated
capital
€000
shares
‘000
Share
capital
€‘000
Share
premium
€’000
In issue at 1 January 2021
Purchase of own shares
Exercise of options
871,333
(99,710)
148
771,771
181,007
-
-
181,007
-
100
-
100
1,052
(100)
-
952
179,281
-
29
179,310
In respect of prior year
Ordinary
shares
‘000
Founder
shares
‘000
Share
capital
€‘000
Share
premium
€’000
871,333
181,007
1,052
879,281
-
-
-
(700,000)
871,333
181,007
1,052
179,281
(d) Rights of shares in issue
Ordinary shares
The holders of ordinary shares are entitled to one vote per ordinary share at general meetings of
the Company and are entitled to receive dividends as declared by the Company.
Founder shares
Founder shares do not confer on any holder thereof the right to receive notice of, attend, speak
or vote at general meetings of the Company except in relation to resolutions regarding the
voluntary winding up of the Company or the granting of further founder shares. Founder shares
do not entitle their holder to receive dividends.
Share
capital
€‘000
Share
premium
€’000
In issue at 1 January 2020
Share premium transfer to
distributable reserves
25 Capital and reserves (continued)
(d) Rights of shares in issue (continued)
Founder shares (continued)
Founder shares entitle the founders of the Company namely, Justin Bickle (through Durrow
Ventures), Stephen Garvey and John Mulcahy to share 20% of the Company’s TSR (calculated
by reference to the change of control price plus dividends and distributions made) between
admission and the change of control (less the value of any ordinary shares (at their original
conversion or redemption price)) which have previously been converted or redeemed in the five
years following the IPO of the Company.
This entitlement is subject to the achievement of a performance condition related to the
Company’s share price, specifically that a compound rate of return of 12.5% (adjusted for any
dividends or other distributions and returns of capital made but excluding the value of any
founder shares which have been redeemed) is achieved across five testing periods.
Following completion of the fourth test period (which ran from 1 March 2021 until 30 June 2021),
it was confirmed that, the performance hurdle condition was not satisfied and therefore the
founder shares value for the test period was zero, and accordingly no founder shares were
converted to ordinary shares in respect of this test period.
Capital re-organisation
In the prior financial year, further to resolutions passed by shareholders of the Company on
17 December 2019, the Irish High Court approved the Group’s application on 16 March 2020 to
redesignate €700.0 million of share premium to retained earnings to allow for future distributions
under section 117 of the Companies Act 2014.
(e) Nature and purpose of reserves
Share-based payment reserve
The share-based payment reserve comprises amounts equivalent to the cumulative cost of
awards by the Group under equity settled share-based payment arrangements being the
Group’s LTIP and the SAYE scheme. On vesting, the cost of awards previously recognised in the
share-based payments reserve is transferred to retained earnings. Details of the share awards, in
addition to awards which lapsed in the year, are disclosed in note 14.
(f) Share buyback programme
Further to the authority granted at the Annual General Meeting on 27 May 2021, the Group
commenced a €75.0 million share buyback programme on 28 May 2021, the programme
completed on 13 October 2021. The total number of shares purchased was 71,689,205 at a
total cost of €75.0 million. All repurchased shares were cancelled in accordance with the share
buyback programme.
On 16 November 2021, the Group announced a second share buyback programme up to a
further €100.0 million. As at 31 December 2021, the total number of shares purchased under
the second buyback programme was 28,020,961 at a total cost of €33.1 million. 28,020,961
repurchased shares were cancelled in the year ended 31 December 2021. The programme may
continue until 31 December 2022.
154
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Chairman’s Statement
Financial Statements
155
155
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 26 Financial instruments and financial risk management
Financial instruments: financial liabilities
26 Financial instruments and financial risk management (continued)
The consolidated financial assets and financial liabilities are set out below. While all financial
assets and liabilities are measured at amortised cost, the carrying amounts of the consolidated
financial assets and financial liabilities approximate to fair value. Trade and other receivables
and trade and other payables approximate to their fair value as the transactions which give rise
to these balances arise in the normal course of trade and, where relevant, with industry standard
payment terms and have a short period to maturity (less than one year) with the exception of
construction bonds.
Financial instruments: financial assets
The consolidated financial assets can be summarised as follows:
Trade receivables
Amounts recoverable on construction contracts
Other receivables
Construction bonds
Deposits for sites
Cash and cash equivalents
Restricted cash (current)
Restricted cash (non-current)
Total financial assets
2021
€’000
6,549
3,825
2,172
10,012
9,124
116,176
458
25,000
173,316
2020
€’000
1,948
-
1,985
7,670
2,540
137,276
-
708
152,127
Cash and cash equivalents are short-term deposits held at variable rates.
156
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Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Trade payables
Lease liabilities
Inventory accruals
Other accruals
Loans and borrowings
Total financial liabilities
2021
€’000
6,202
547
20,069
13,238
120,247
160,303
2020
€’000
3,457
1,316
17,416
5,874
99,934
127,997
Financial risk management objectives and policies (continued)
Liquidity risk
Liquidity risk is the risk that the Group may not be able to generate sufficient cash reserves
to settle its obligations in full as they fall due or can only do so on terms that are materially
disadvantageous. The Group’s approach to managing liquidity is to ensure, as far as possible,
that it will always have sufficient liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring, unacceptable losses or risking damage to the Group’s
reputation. The Group’s liquidity forecasts consider all planned development expenditure.
Management monitors the adequacy of the Group’s liquidity reserves against rolling cash flow
forecasts. In addition, the Group’s liquidity risk management policy involves monitoring short-
term and long-term cash flow forecasts. Set out below are details of the Group’s contractual cash
flows arising from its financial liabilities and funds available to meet these liabilities.
Trade payables and other current liabilities are non-interest bearing.
Financial risk management objectives and policies
As all of the operations carried out by the Group are in Euro there is no direct currency risk, and
therefore the Group’s main financial risks are primarily:
•
liquidity risk – the risk that suitable funding for the Group’s activities may not be available;
• credit risk – the risk that a counter-party will default on their contractual obligations resulting
in a financial loss to the Group; and
• market risk – the risk that changes in market prices, such as interest rates and equity prices
will affect the Group’s income or the value of its holdings of financial instruments.
This note presents information and quantitative disclosures about the Group’s exposure to each
of the above risks, its objectives, policies and processes for measuring and managing risk, and
the Group’s management of capital.
Lease liabilities
Trade payables
Inventory accruals
Other accruals
Loans and borrowings
Lease liabilities
Trade payables
Inventory accruals
Other accruals
Loans and borrowings
Carrying
amount
€’000
547
6,202
20,069
13,238
120,247
160,303
Carrying
amount
€’000
1,316
3,457
17,416
5,874
99,934
127,997
Contractual
cash flows
€’000
568
6,202
20,069
13,238
130,596
170,673
Contractual
cash flows
€’000
1,377
3,457
17,416
5,874
100,010
128,134
31 December 2021
Less than
1 year
€’000
487
6,202
20,069
13,238
43,954
83,950
31 December 2020
Less than
1 year
€’000
1,078
3,457
17,416
5,874
100,010
127,835
1 year
to 2 years
€’000
More than
2 years
€’000
80
-
-
-
11,253
11,333
1
-
-
-
75,389
75,390
1 year
to 2 years
€’000
More than
2 years
€’000
295
-
-
-
-
295
4
-
-
-
-
4
Chairman’s Statement
Financial Statements
157
157
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 26 Financial instruments and financial risk management (continued)
Market risk
Financial risk management objectives and policies (continued)
Liquidity risk (continued)
Funds available
Debt facilities* (undrawn committed)
Cash and cash equivalents
2021
€’000
120,000
141,634
261,634
2020
€’000
25,000
137,984
162,984
*The Group’s RCF contains a mechanism through which the committed amount can be increased
by a further €50.0 million.
The Group’s debt facilities are subject to primary financial covenants calculated on a quarterly basis:
• A maximum net debt to net assets ratio;
• Loans to eligible assets value;
• The Group is required to maintain a minimum cash balance of €25.0 million throughout the
term of the debt facilities; and
• A minimum EBITDA to net interest coverage ratio calculated on a trailing twelve-month basis.
Credit risk
The Group’s exposure to credit risk encompasses the financial assets being: trade and
receivables and cash and cash equivalents. Credit risk is managed by regularly monitoring the
Group’s credit exposure to each counter-party to ensure credit quality of customers and financial
institutions in line with internal limits approved by the board.
There has been no impairment of trade receivables in the year presented. The impairment loss
allowance allocated against trade receivables, cash and cash equivalents and restricted cash
is not material. The credit risk on cash and cash equivalents is limited because counter-parties
are leading international banks with minimum long-term BBB- credit ratings assigned by
international credit agencies. The maximum amount of credit exposure is the financial assets in
this note.
The Group’s exposure to market risk relates to changes to interest rates and stems predominately
from its debt obligations. On 12 February 2021, the Group entered into a new debt facility
agreement for a total of €250.0 million, the agreement has a term component of €100.0
million and a committed RCF of €150.0 million. The facility is with a syndicate of domestic and
international banks for a term of 5 years at an interest rate of EURIBOR (subject to a floor of
0 per cent) plus 2.6%. €122.5 million (2020: €100.0 million) had been drawn on the facility at
31 December 2021. The Group has an exposure to cash flow interest rate risk where there are
changes in the EURIBOR rates.
Interest rate risk reflects the Group’s exposure to fluctuations in interest rates in the market.
This risk arises from bank loans that are drawn under the Group’s debt facilities with variable
interest rates based upon EURIBOR. At the year ended 31 December 2021 it is estimated that an
increase of 100 basis points to EURIBOR would have decreased the Group’s profit before tax by
€1.1 million assuming all other variables remain constant and the rate change is only applied to
the loans that are exposed to movements in EURIBOR.
The Group is also exposed to interest rate risk on its cash and cash equivalents. These balances
attract low interest rates and therefore a relative increase or decrease in their interest rates
would not have a material effect on the Group’s profit.
A fundamental review and reform of major interest rate benchmarks is being undertaken
globally, including the replacement of some interbank offered rates (IBORs) with alternative
nearly risk-free rates (referred to as ‘IBOR reform’). The Group has no exposure to these
changes as it only has exposure to EURIBOR interest rates which is outside the scope of the
current reform.
Capital management
The Group finances its operations through a combination of shareholders’ funds and working
capital. The Group’s objective when managing capital is to maintain an appropriate capital
structure in the business to allow management to focus on creating sustainable long-term value
for its shareholders, with flexibility to take advantage of opportunities as they arise in the short
and medium term. The Group’s capital allocation policy is to invest in supply chain, land, and
work-in-progress. Once the business has invested sufficiently in each of these priorities, excess
capital is returned to shareholders.
2021
€’000
2020
€’000
25
46
2021
€’000
1,110
27
12
2020
€’000
1,088
27 Leases
(a) Leases as lessee (IFRS 16)
(ii) Amounts recognised in profit or loss
The Group leases a property and motor vehicles. The leases typically run for a period of 1 to 3
years, with an option to renew the lease after that date. Lease payments are renegotiated every
1 to 3 years to reflect market rentals.
The Group leases certain motor vehicles with contract terms of one year. These leases are short
term and leases of low-value items. The Group has elected not to recognise right-of-use assets
and lease liabilities for these leases.
2021 – Leases under IFRS 16
Interest on lease liabilities
Expenses relating to short-term leases
(iii) Amounts recognised in statement of cash flows
Information about leases for which the Group is a lessee is presented below.
(i) Right-of-use assets
Right-of-use assets related to leased properties (that do not meet the definition of investment
property) and motor vehicles are presented as property, plant and equipment (see note 17).
2021
Balance at 1 January
Additions to right-of-use assets
Depreciation charge for the year
Balance at 31 December
2020
Balance at 1 January
Additions to right-of-use assets
Depreciation charge for the year
Balance at 31 December
Property
€’000
1,024
-
(738)
286
Property
€’000
280
1,455
(711)
1,024
Motor
vehicles
€’000
292
319
(350)
261
Motor
vehicles
€’000
293
303
(304)
292
Total
€’000
1,316
319
(1,088)
547
Total
€’000
573
1,758
(1,015)
1,316
Total cash outflow on leases
(b) Leases as lessor
In certain instances, the Group acts as a lessor in relation to certain property assets. These
arrangements are not material to the Group’s consolidated financial statements.
28 Related party transactions
(i) Key management personnel remuneration
Key management personnel comprise the non-executive directors and the executive committee.
The aggregate compensation paid or payable to key management personnel in respect of the
financial year was the following:
Short-term employee benefits
Post-employment benefits
LTIP and SAYE share-based payment expense
2021
€’000
2,461
115
116
2,692
2020
€’000
1,460
115
99
1,674
Compensation of the Group’s key management personnel includes salaries, non-cash benefits
and contributions to a post-employment defined contribution plan.
158
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Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
159
159
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) 28 Related party transactions (continued)
29 Commitments and contingent liabilities
30 Subsequent events
(ii) Other related party transactions
(a) Commitments arising from development land acquisitions
Acquisition of development rights
The Group entered into the APSA with TIO, a wholly owned subsidiary of OCM Luxembourg EPF
III S.a.r.l. (OCM) (and an entity in which John Mulcahy is a director) on 12 March 2018.
Under the terms of the APSA, the Group acquired certain development rights in respect of sites
at The Square Shopping Centre, Tallaght, Dublin 24 and Gateway Retail Park, Knocknacarra,
Co. Galway for aggregate consideration of approximately €13.9 million (including stamp duty
and transaction costs). The development rights will (subject to planning) entitle the Group to
develop at least 750 residential units under two joint business plans to be undertaken with Sigma
Retail Partners (on behalf of TIO) which will also entitle TIO to control and benefit from any retail
development at both sites.
The Directors have determined that joint control over both sites exists and the arrangements
have been accounted for as joint operations in accordance with IFRS 11 Joint Arrangements.
This accounting treatment was re-assessed at the end of the reporting period and the Directors
concluded that it remains appropriate.
The APSA also stipulates that TIO would be entitled to share, on a 50/50 basis, any residual
profit remaining after the Group’s purchase consideration plus interest and residential
development cost plus 20% has been deducted from sales revenue in relation to the residential
development opportunity at The Square Shopping Centre, Tallaght, Dublin 24, Gateway Retail
Park, Knocknacarra, Co. Galway and a third site, Bray Retail Park, Bray, Co. Wicklow.
The agreement defines certain default events including TIO not possessing good and marketable
title over the development sites and TIO not transferring good and marketable title over the
development sites. On the occurrence of a default event, the Group shall be entitled to recover
the aggregate purchase consideration in respect of the development rights. OCM has agreed to
guarantee this obligation of TIO.
In addition to the contingent liabilities outlined in note 28 above, the Group had the following
commitments at 31 December 2021 relating to development land acquisitions:
Hollystown Golf and Leisure Limited (“HGL”)
During 2018, the Group acquired 100 per cent of the share capital of HGL. Under the terms
of an overage covenant signed in connection with the acquisition, the Group has committed
to paying the vendor an amount equal to an agreed percentage of the uplift in market value
of the property should any lands owned by HGL, that are not currently zoned for residential
development be awarded a residential zoning. This commitment has been treated as contingent
consideration and the fair value of the contingent consideration at the acquisition date was
initially recognised at €nil. At the reporting date, the fair value of this contingent consideration
was considered insignificant.
Contracted acquisitions
At 31 December 2021, the Group had contracted to acquire six development sites; one in County
Wicklow, two in County Meath, two in County Kildare and one in North Dublin for aggregate
consideration of approximately €29.8 million (excluding stamp duty and legal fees). Deposits
totalling €8.3 million were paid pre-year end and are included within trade and other receivables
at 31 December 2021.
On 28 February 2022, the number of shares repurchased in the second share buyback
programme had reached 67,415,760 shares for a cost of €81.4 million, bringing the total number
of shares repurchased under the buyback programme to 139,104,965 at a total cost of €156.4m.
All repurchased shares were cancelled.
31 Profit/(loss) of the parent company
The parent company of the Group is Glenveagh Properties PLC. In accordance with section
304 of the Companies Act 2014, the Company is availing of the exemption from presenting its
individual statement of profit or loss and other comprehensive income to the Annual General
Meeting and from filing it at the Companies Registration Office. The Company’s profit after
tax for the financial year was €0.031 million (for the year ended 31 December 2020: profit of
€0.034m).
32 Approved financial statements
The board of directors approved the financial statements on 7 March 2022.
160
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Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
161
161
Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued)Notes to the consolidated financial statementsFor the financial year ended 31 December 2021 (continued) Company balance sheet
as at 31 December 2021
Company statement of changes in equity
for the financial year ended 31 December 2021
Assets
Non-current assets
Investments in subsidiaries
Current assets
Trade and other receivables
Amounts owed by subsidiaries
Cash and cash equivalents
Total assets
Equity
Share capital
Share premium
Retained earnings
Share-based payment reserve
Undenominated capital
Liabilities
Current liabilities
Trade and other payables
Total liabilities
Total liabilities and equity
Note
2021
€’000
2020
€’000
3
4
5
7
6
7,143
7,143
190
736,398
1,983
738,571
5,924
5,924
196
843,154
1,559
844,909
745,714
850,833
952
179,310
517,528
45,251
100
743,141
2,573
2,573
745,714
1,052
179,281
625,775
44,129
-
850,237
596
596
850,833
Balance as at 1 January 2021
Total comprehensive income for the financial year
Profit for the financial year
Other comprehensive income
Transactions with owners of the Company
Equity-settled share-based payments
Lapsed share options
Exercise of options
Purchase of own shares
Balance as at 31 December 2021
Share capital
Ordinary
shares
€’000
Founder
shares
€’000
Undenominated
capital
€’000
Share
premium
€’000
Share-based
payment
reserve
€’000
Retained
earnings
€’000
Total
equity
€’000
871
-
-
871
-
-
-
(100)
(100)
771
181
-
-
181
-
-
-
-
-
181
-
-
-
-
-
-
-
100
100
100
179,281
44,129
625,775
850,237
-
-
179,281
-
-
29
-
29
179,310
-
-
44,129
1,219
(97)
-
-
1,122
45,251
31
-
625,806
-
97
-
(108,375)
(108,278)
517,528
31
-
850,268
1,219
-
29
(108,375)
(107,127)
743,141
162
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Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
163
163
Company statement of changes in equity
for the financial year ended 31 December 2020
Notes to the Company financial statements
For the financial year ended 31 December 2021
Share capital
Ordinary
shares
€’000
Founder
shares
€’000
Share
premium
€’000
Share-based
payment
reserve
€’000
Retained
earnings
€’000
Total
equity
€’000
Balance as at 1 January 2020
Total comprehensive income for the financial year
Profit for the financial year
Other comprehensive income
Transactions with owners of the Company
Equity-settled share-based payments
Lapsed share options
Share premium reduction and transfer to distributable reserves
Balance as at 31 December 2020
871
-
-
871
-
-
-
-
871
181
-
-
181
-
-
-
-
181
879,281
44,035
(75,026)
849,342
-
-
879,281
-
-
(700,000)
(700,000)
179,281
-
-
44,035
861
(767)
-
94
44,129
34
-
(74,992)
-
767
700,000
700,767
625,775
34
-
849,376
861
-
-
861
850,237
1 Basis of preparation
(b) Intra-group guarantees
The financial statements have been prepared on a going concern basis under the historical cost
convention in accordance with the Companies Act 2014 and Generally Accepted Accounting
Practice in the Republic of Ireland (Financial Reporting Standard 101 Reduced Disclosure
Framework (FRS 101)). Note 2 describes the principal accounting policies under FRS 101, which
have been applied. The Company has applied the exemptions available under FRS 101 in respect
of the following disclosures:
Where the Company enters into financial guarantee contracts to guarantee the indebtedness
of companies within the Group, the Company considers these to be insurance arrangements
and accounts for them as such. The Company treats the guarantee contract as a contingent
liability until such time as it becomes probable that it will be required to make a payment under
the guarantee.
• Statement of Cash Flows
• Disclosures in respect of transactions with wholly owned subsidiaries
• Certain requirements of IAS 1 Presentation of Financial Statements
• Disclosures required by IFRS 7 Financial Instrument Disclosures
• Disclosures required by IFRS 13 Fair Value Measurement
• Disclosures required by IFRS 2 Share-based Payments
• Disclosures required by IAS 24 Related Party Disclosures
• The effects of new but not yet effective IFRSs
• Disclosures in respect capital management
3 Investment in subsidiaries
Investment in subsidiaries
Accumulated cost of share-based payments in
respect of subsidiaries
2021
€’000
4,025
3,118
7,143
2020
€’000
4,025
1,899
5,924
As noted in note 31 of the consolidated financial statements, the Company has also availed of
the exemption from presenting the individual statement of profit or loss and other comprehensive
income. The Company’s profit for the financial year was €0.03 million. (2020: Profit of
€0.03 million).
Details of subsidiary undertakings are given in note 24 of the consolidated financial statements.
The Company has considered triggers for impairment, including market capitalisation and
determined there was no trigger.
2 Significant accounting policies
4 Trade and other receivables
Significant accounting policies specifically applicable to these individual Company financial
statements and which are not included within the accounting policies for the consolidated
financial statements are detailed below.
(a) Investments in subsidiaries
Investments in subsidiaries are accounted for in these individual Company financial statements
on the basis of the direct equity interest, rather than on the basis of the reported results and net
assets of investees. Investments in subsidiaries are carried at cost less impairment.
The capital contributions arising from share-based payment charges represents the Company’s
granting rights over its equity instruments to employees of the Company’s subsidiaries. This
results in a corresponding increase in investment in subsidiary.
VAT receivable
Prepayments and other receivables
2021
€’000
56
134
190
2020
€’000
38
158
196
164
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Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
165
165
Notes to the Company financial statements
For the financial year ended 31 December 2021 (continued)
Supplementary Information
For the financial year ended 31 December 2021
5 Amounts due from subsidiaries
7 Share capital and share premium
Alternative Performance Measures (APMs)
2 Core gross margin percentage
Amounts due from subsidiaries
2021
€’000
736,398
736,398
2020
€’000
843,154
843,154
Amounts owed by subsidiaries are non-interest bearing and are repayable on demand. The
expected credit loss associated with the above balances is considered to be insignificant.
For further information on share capital and share premium, refer to note 25 of the consolidated
financial statements.
8 Financial instruments
The carrying value of the Company’s financial assets and liabilities are a reasonable
approximation of their fair value.
Relevant disclosures on consolidated financial instruments and risk management are given in
note 26 of the consolidated financial statements.
6 Trade and other payables
9 Share-based payments
The Group reports certain alternative performance measures (APMs) that are not required under
IFRS, which is the framework under which the consolidated financial statements are prepared.
The Group believes that these metrics assist investors in evaluating the performance of the
underlying business and provides a more meaningful understanding of how senior management
review and monitor the business on an ongoing basis.
These performance measures are referred to throughout our strategy and business update
and the discussion of our reported financial position. These performance measures may not be
uniformly defined by all companies and accordingly they may not be directly comparable with
similarly titled measures and disclosures by other companies.
The principal APMs used by the Group are defined as follows:
Suburban
Core revenue
Non-core revenue
Total revenue
Note 10
Urban
Core revenue
Non-core revenue
Total revenue
Note 10
Trade payables
Accruals
Payroll and other taxes
2021
€’000
128
2,385
60
2,573
2020
€’000
16
534
46
596
For information in relation to share-based payment arrangements impacting the Company, refer
to note 14 of the consolidated financial statements.
1 Gross margin percentage
10 Related party disclosures
See note 28 of the consolidated financial statements for information in relation to related
party transactions.
Remuneration of key management
Financial statements reference
Gross profit
Revenue
Statement of profit or loss
Note 10
Gross margin percentage
2021
€’000
83,057
476,807
17.4%
2020
€’000
9,475
232,296
Core cost of sales
Non-core cost of sales
4.1%
Total cost of sales
Statement of profit or loss
Key management of the Company is defined as the directors of the Company. The compensation
of key management personnel is set out in note 28 of the consolidated financial statements.
Gross margin percentage is calculated after an impairment reversal of €4.2 million
(2020: impairment charge of €20.3 million).
Core gross profit
Core revenue
Core gross margin percentage
2021
€’000
276,848
-
276,848
2021
€’000
126,217
73,742
199,959
2021
€’000
(324,254)
(73,715)
(397,969)
2021
€’000
78,811
403,065
19.6%
2020
€’000
201,300
673
201,973
2020
€’000
7,390
22,933
30,323
2020
€’000
(179,169)
(23,361)
(202,530)
2020
€’000
29,521
208,690
14.1%
166
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Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Chairman’s Statement
Financial Statements
167
167
Core gross margin represents gross margin before impairment and non-core revenue and cost
of sales is applied. Core gross margin is calculated from Suburban and Urban core revenue unit
sales and rental income less the equivalent cost of sales. Non-core revenue is mostly attributable
to the Urban segment.
Supplementary Information
For the financial year ended 31 December 2021 (continued)
Company Information
e
i
.
g
o
d
d
e
r
:
n
g
i
s
e
D
3 Adjusted earnings before interest, tax, depreciation and
4 Return on capital employed (ROCE)
amortisation (EBITDA) pre-exceptional items, pre-impairment
and related margin
An APM representing earnings before interest, tax, depreciation, amortisation, impairment and
exceptional items that Group management considers to be the most appropriate measure for
assessing the profitability of the Group in a given financial period. It is calculated by adding
back non-cash depreciation and amortisation charges to the Group’s operating profit or loss
for a period, and also adding back exceptional items and impairment. Adjusted EBITDA margin
pre-exceptional items, pre-impairment and related margin represents this metric as a percentage
of the Group’s revenue.
Financial statements reference
Depreciation - capitalised
Depreciation - expensed
Total depreciation
Note 17
Operating profit/(loss)
Impairment
Depreciation – expensed
Amortisation
Statement of profit or loss
Note 19
As above
Note 18
Adjusted EBITDA pre-exceptional items
Adjusted EBITDA margin pre- exceptional items
2021
€’000
1,224
1,920
3,144
2021
€’000
50,567
(4,219)
1,920
487
48,755
10.2%
2020
€’000
1,097
1,625
2,722
2020
€’000
(12,713)
20,291
1,625
406
9,609
4.1%
An APM representing return on capital employed that Group management believes is the
best measure of the Group’s ability to generate profits from its asset base in a capital efficient
manner and to create sustainable shareholder value. ROCE is calculated as operating profit
divided by average capital employed, where operating profit is earnings before interest and tax
and where capital employed is calculated as (i) net assets plus (ii) financial indebtedness, less (iii)
cash and intangible assets.
5 Return on equity (ROE)
An APM representing return on equity that Group management apply to measure the Group’s
efficiency of returns generated from shareholder equity before taxation and is calculated as
profit before tax attributable to shareholders divided by the average of opening and closing
shareholders’ funds.
6 Net development value (NDV)
An APM representing a metric the Group uses to estimate the development value of land held
in inventory. NDV is calculated by multiplying the number of units the Group expects to sell on a
given site by the estimated sales price of each unit.
7 Group EPS
This metric will be used as a performance condition for grants under the Group’s LTIP from
2020 onwards. It is defined as basic earnings per share as calculated in accordance with IAS 33
Earnings Per Share subject to adjustment by the remuneration and nomination committee at its
discretion, for items deemed not reflective of the Group’s underlying performance for the period.
Directors
Executive Directors
John Mulcahy
Stephen Garvey
Michael Rice
Non-Executive Directors
Robert Dix
Richard Cherry
Camilla Hughes
Pat McCann
Cara Ryan
Company Secretary
Chloe McCarthy
Registered Office
Glenveagh Properties PLC
Digital Office Centre
Block B
Straffan Rd
Moneycooly
Maynooth
Co. Kildare
Registrars
Computershare Investor Services
(Ireland) Limited
3100 Lake Drive
Citywest Business Campus
Dublin 24
Auditor
KPMG
Chartered Accountants
1 Stokes Place
St. Stephen’s Green
Dublin 2
Solicitor
A&L Goodbody
North Wall Quay
Dublin 1
Kane Tuohy
Hambleden House
19-26 Pembroke Street Lower
Dublin 2
Mason Hayes and Curran
South Bank House
Barrow St
Dublin 4
Bankers
Allied Irish Bank, plc
Bankcentre
Ballsbridge
Dublin 4
Bank of Ireland
27-33 Upper Baggot Street
Dublin 2
Barclays Bank Ireland plc
2 Park Place
Hatch Street
Dublin 2
Ulster Bank
George’s Quay
Dublin 2
Website
www.glenveagh.ie
Stockbrokers
Davy Group
Davy House
49 Dawson Street
Dublin 2
Ireland
168
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Glenveagh Properties PLC Annual Report and Accounts 2021
Glenveagh Properties PLC Annual Report and Accounts 2021
Cover image:
Ledwill Park
Kilcock, Co. Kildare
glenveagh.ie
Glenveagh Properties PLC
Block B, Maynooth Business Campus
Maynooth
Co. Kildare
W23 W5X7
Ireland
T: +353 (0)1 610 6546