Glenveagh Properties plc Annual Report and Accounts 2023
Building
ANNUAL REPORT AND ACCOUNTS 2023
Better
Glenveagh Properties plc
Annual Report and Accounts 2023
01-99
STRATEGIC REPORT
01
Financial and operational highlights
02
Our integrated approach
04
Building better
08
Our investment case
10
Chair’s letter
12
Chief Executive Officer’s review
16
Our market position
18
Our business model and value chain
26
Our material issues impacts, risks and opportunities
28
Our strategy
44
Our performance
46
Our value creation
51
Our landbank
53
Risk management report
62
Financial review
64
Sustainability
100-139
CORPORATE GOVERNANCE
100
Corporate Governance Report
112
Nomination Committee Report
116
Audit and Risk Committee Report
120
Remuneration Committee Report
134
Environmental and Social
Responsibility Committee Report
137
Directors’ Report
139
Statement of Directors’ responsibilities
INTRODUCTION AND CONTENTS
Supported by innovation and supply chain integration, Glenveagh is
committed to providing sustainable high-quality homes to as many
people as possible in flourishing communities across Ireland.
We provide homes for our private customers, institutional investors, and
the State in three core markets – suburban housing, urban apartments,
and partnerships with local authorities and the government. Each market
benefits from our scaled manufacturing capability, our established sales
and delivery platform and our industry-leading central resources.
NUA, our manufacturing brand, makes use of cutting-edge technology
in three factories across Ireland to drive innovation and precision
manufacturing techniques that lead the way in modern methods
of construction.
By relentlessly innovating the way we plan, design, and build our homes,
we consistently deliver better quality and improved accessibility for all.
YOU CAN READ MORE ABOUT OUR STRATEGY ON PAGE 28
We build
for everyone
140-182
FINANCIAL STATEMENTS
140
Independent auditor’s report
145
Consolidated statement of profit or loss and
other comprehensive income
146
Consolidated balance sheet
147
Consolidated statement of changes in equity
149
Consolidated statement of cash flows
150
Notes to the consolidated financial statements
175
Company balance sheet
176
Company statement of changes in equity
178
Notes to the company financial statements
180
Supplementary information
182
Company information
“2023 marked a year of strong
progress in a challenging
environment.”
John Mulcahy
Chairman
https://annualreports.glenveagh.ie/2023
01
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
€476.8m
€644.7m
€607.9m
2023
2022
2021
€46.4m
€70.1m
€70.9m
2023
2022
2021
4.5 cent
7.6 cent
8.0 cent
2023
2022
2021
€548.6m
€455.3m
€403.8m
2023
2022
2021
902
1,354
1,328
2023
2022
2021
€
675m
€
473m
€
805m
2023
2022
2021
89%
91%
94%
2023
2022
2021
89%
88%
90%
2023
2022
2021
READ MORE
PG44
READ MORE
PG44
Revenue
€607.9m
No. of suburban units sold
1,328
Customer satisfaction
94%
FINANCIAL HIGHLIGHTS
The financial highlights benchmark our progress and measure our
performance against our strategy to map our long-term success.
The operational highlights play an important role in evaluating the
efficiency and effectiveness of our business.
Adjusted operating profit*
€70.9m
Forward order book*
€805m
H&S audit score
90%
EPS
8.0 cent
Carrying value of land**
€403.8m
OPERATIONAL HIGHLIGHTS
*
Operating profit has been presented before
exceptional items and impairment reversals/charges.
** Excludes development rights.
*As at the Annual Report approval date.
Glenveagh Properties plc
Annual Report and Accounts 2023
02
OUR INTEGRATED APPROACH
Creating value for stakeholders the Glenveagh way
Our culture
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 will positively impact Irish society. We
want to forge a new path, relentlessly innovating
every stage of the homebuilding process. We
provided over
16,000 hours of training and
development
across the business in 2023.
A focus on sustainability
Sustainability, and climate change in particular,
are embedded in our Building Better Strategy. This
allows us to respond effectively to climate risks and
opportunities through each of our five strategic
priorities, ensuring action on climate change is
at the heart of how we innovate, the places we
create, and the skills we nurture in our people.
Building environment-friendly homes using
sustainable building practices not only benefits the
environment but also improves the quality of life for
our homeowners. From the selection of materials to
the design of our homes, we prioritise sustainability
at every stage of the construction process.
YOU CAN READ MORE ABOUT OUR APPROACH TO
SUSTAINABILITY
PG 64
Safety always comes first.
The health and wellbeing of our people and
those we work with is paramount. That is
why health and safety is a fundamental part
of our culture and integrated into all our
decision-making.
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.
Each day we work to bring
new ideas home.
Innovation fuels customer satisfaction,
sustainability, and efficiencies across the
business, enabling us to deliver greater
value to stakeholders. Seeking out new ways
of solving current and future challenges
helps to create flourishing communities
across Ireland.
Customers are at the heart of
every decision we make.
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.
With the right attitude, we can
achieve anything.
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.
Safety
Collaborative
Innovative
Customer-centred
Can-do
Our values
As the leading sustainable
homebuilder in Ireland, Glenveagh
harnesses innovation and cutting-
edge construction technology to
provide access to premium-quality,
low environmental impact homes at
affordable prices.
In this way, we play an important role in supporting
economic strength while promoting flourishing
communities across Ireland. Against a backdrop
of rising demand for accommodation fuelled by
sustained population growth, we are accelerating the
provision of new, high-quality, sustainable homes.
The foundations of our success – and the value
we create – are fortified by our Building Better
Strategy and underpinned by the vision, mission,
and culture we all share. As a result, we create
sustainable value for all our stakeholders.
Our vision
Our vision is that everyone should have the
opportunity to access affordable, high-quality
homes in flourishing communities across Ireland.
In 2023, we delivered
1,328 new suburban homes
and
extended our Building Lasting Communities
programme
to new localities across Ireland.
Our mission
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. In 2023, we
launched
NUA
, an extension of the business dedicated to
modern methods of construction and precision
manufacturing techniques using cutting-edge
technology to shape the homes of tomorrow.
Corporate Governance
Financial Statements
03
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
S
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Our Vision
That everyone should have the
opportunity to access great-value,
high-quality homes in flourishing
communities across Ireland.
OUR INTEGRATED APPROACH
CONTINUED
How we deliver value
Our strategic priorities are the foundations on
which we build social and economic value for
our stakeholders.
Our clear vision and strong culture and values underpin everything that
we do and shape the positive contributions we make to society. Our
operational excellence and financial strength enables us to generate
social and economic value for our customers, employees, communities,
shareholders, suppliers, and regulators.
This could not be achieved without the capabilities provided by our
talented and dedicated colleagues, a strategic landbank, strong
relationships, a robust financial position, and a trusted brand.
The integration of sustainability throughout our business allows us
to create value for all stakeholders, mitigating risk whilst actively
seeking opportunities to differentiate and unlock improvement in
margins and returns.
Strong stakeholder engagement enables us to align our activities with their
expectations on environmental, social, and governance-related matters.
YOU CAN READ MORE ABOUT OUR BUSINESS
PG 18
04
Glenveagh Properties plc
Annual Report and Accounts 2023
BUILDING BETTER
We believe that everyone should have the opportunity to access
great-value, high-quality homes in flourishing communities across Ireland.
That is why we are committed to creating new
homes with a firm focus on the environmental
and social issues that are key components for a
sustainable future for the communities we support.
Our remit goes beyond just building houses. The
homes we create and the areas we develop are
based not only on our years of experience but also
on a deep engagement with our customers and a
strong focus on insight and innovation.
That means we have a comprehensive
understanding of the housing market and the
changes it faces over the next decade. We also
focus on social change and know first-hand what
customers want from their homes – and how
and where they want to live. At the same time,
changing technology provides new opportunities
for improvements and efficiencies that benefit both
our business and our customers.
This insight allows us to design and build great-
value, energy-efficient homes that people want,
and that help create communities that will thrive
and grow. It enables us to recognise the skills we
need in our workforce, the materials required,
and the best way to make use of our healthy
land portfolio.
We pride ourselves on harnessing innovation
across every touchpoint of the business. We do
this every day in multiple ways – in product and
manufacturing innovation, in the ways we can
make housing more accessible and sustainable for
home ownership, in how we supply our customers,
and in our ability to operate effectively and
efficiently as we grow.
Innovation, particularly in off-site manufacturing,
will become increasingly important as standardised
house types become a much larger component of
our output in the coming years. It is also critical in
driving affordability and greater efficiencies.
Housing remains at the top of the political and
social agenda in Ireland, and Glenveagh is well-
placed to make a significant, positive contribution
to the issue. The knowledge and understanding
we have developed over the years means we
continue to work closely with the government
and all key stakeholders to deliver sustainable,
long-term solutions.
At the same time, we are active in supporting local
communities and deepening the relationships we
have by investing in improving the lives of our
residents and those in the wider community.
“We pride ourselves
on harnessing
innovation across
every touchpoint
of the business.”
How we make our
vision a reality
05
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
BUILDING BETTER
CONTINUED
Units priced below mean of new
homes sold in Greater Dublin Area
88%
Providing value for money
We recognise that first-time and new home buyers
want a well-located, well-designed product that
is, most of all, value for money. 88% of all units
delivered in 2023 in the Greater Dublin Area (GDA)
were priced below the mean price of new homes
sold in the region, and approximately 52% of our
suburban units were part of social, cost rental, and
affordable government-supported initiatives.
READ MORE
PG 30
Designing a cost-effective home
We think more broadly to consider how we can
make things better for customers in the long term.
We consider the wider costs of maintaining a home
such as utility costs, insurance, and life insurance.
Thinking that way has led us to invest in technology
and a better standard of product. In addition to
addressing climate and energy issues, it enables
families to make substantial savings on energy costs
over the life cycle of a property.
READ MORE
PG 30
value
Building better
Glenveagh Properties plc
Annual Report and Accounts 2023
06
Delivering best-in-class homes
Delivering homes at scale and to the highest
building standards requires a focus on quality
across all aspects of our value chain. All of
our active suburban sites operate under our
construction quality-management system and have
done so since 2022. In the same year, we achieved
ISO 9001: 2015 certification, another fundamental
underpinning of our quality principles.
READ MORE
PG 30
Championing innovation
NUA, our off-site manufacturing business, is leading
the innovation revolution in modern methods of
construction for Ireland’s homes of tomorrow.
Our people, our expertise, and our cutting-edge
manufacturing technology, thinking, and techniques
for fabricating timber frames and light gauge steel
drives our ambition to lead the market and set new
standards in home construction.
READ MORE
PG 43
BUILDING BETTER
CONTINUED
NUA’s annual capacity
2,000+
quality
Building better
07
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Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Customer satisfaction rating
94%
Building lasting communities
Before we even begin building homes, we actively
engage with local communities so that we can
understand their needs and deliver programmes
aligned with our Building Lasting Communities
strategy. Nationally, we also support our charity
partnerships through fundraising, in-kind donations
where appropriate, and staff volunteering.
READ MORE
PG 33
Engaging with stakeholders
We are committed to fostering business
relationships and maintaining active engagement
with all our stakeholder groups. This will help to
ensure Glenveagh remains a partner of choice
for home buyers and investors alike, while
continuing to attract and retain the very best
talent in the country.
READ MORE
PG 46
trust
Building better
BUILDING BETTER
CONTINUED
08
Glenveagh Properties plc
Annu
al Report and Accounts 2023
We are a vertically integrated Irish housebuilder focused on suburban
housing, urban apartments and partnerships with local authorities and
state agencies. The Irish economy is truly differentiated, providing a long-
term underpin to our growth. Within this, we are a best-in-class operator
ideally positioned to capitalise on these compelling growth trends.
OUR INVESTMENT CASE
A best in class
operator in a truly
differentiated
market
Growth in Irish population 2002-2022
31%
Growth in mortgage approvals, 2015-2023
67%
Exciting
The environment in which we operate is
healthy, reinforced by robust consumer
confidence and favourable incentives
and supports.
>
Highly resilient domestic economy with
population and wage growth.
>
Strong private customer demand in
a market with structural under-supply
across all tenures.
>
Supportive government policy via
demand and supply-side initiatives.
09
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
OUR INVESTMENT CASE
CONTINUED
Suburban units completed in FY 2023
1,328
Available landbank units
13,100
% of A1 energy rated homes, FY 2023
85%
Reduction in Scope 3 emissions intensity,
as compared to 2021 baseline
-7%
Revenue generated to date from urban
asset monetisation
€500m+
Units granted planning permission, FY 2023
4,600
Value returned to shareholders since FY 2021
€300m+
Reduction in landbank value since FY 2019
€200m+
Scalable
Our business model allows us to scale
effectively with a product set that is
ideally aligned with market demand.
>
One of the largest developers in
an undersupplied housing market,
underpinned by a balanced landbank in
exceptional locations.
>
Targeting product offering at segments
with deepest demand, focused on great-
value suburban starter homes in GDA
(Greater Dublin Area).
>
Advancing in our Partnerships business
with first revenue and profits generated
in FY 2023.
Sustainable
Operational excellence runs through
everything that we do, enabling us
to build sustainable homes and to
deliver financially.
>
Highly effective delivery, build quality
and customer service.
>
Innovation in off-site manufacturing
(NUA) and compact growth supports
our standardisation model.
>
Ambitious net zero targets in place
as we embed sustainability into our
land use, our energy-efficient homes,
people development and how we help
communities thrive.
Skilled
We have developed a comprehensive
and highly developed set of portfolio
skills throughout our business that
allows us to plan, design, construct,
deliver and sell effectively.
>
Highly experienced Board and
Executive team with relevant and
diversified sector expertise.
>
Agile senior management structure that
allows business to respond rapidly and
effectively to market developments.
>
Expert in-house planning team
to navigate the challenges and
opportunities of the Irish market.
Effective
We manage our capital with great care
and precision, maximising our returns
and allocating effectively.
>
Driving efficiency in land investment
through minimising upfront cost and
effective control of WIP investment.
>
Strong balance sheet, managed
prudently with low leverage and
high efficiency.
>
Clearly defined capital allocation
framework focused on investment in
land, WIP, and supply chain – and
to return excess cash identified
to shareholders.
Glenveagh Properties plc
Annual Report and Accounts 2023
10
I am pleased to present our
Annual Report for 2023. The
business consistently demonstrates
strong operational progress, with
improved profitability and robust
returns. This is underpinned by
the commitment and enthusiasm
of everyone at Glenveagh.
Planning delays, the continued inflationary
environment, and a rising interest rate cycle
provided a challenging backdrop to the year,
presenting significant headwinds. While these
pressures tested our resilience, it is a testament
to our strategy, our operational platform, and,
of course, our people, that we continued to grow
and thrive in the face of these obstacles.
Improved profitability and margins
In 2023, Glenveagh delivered solid financial
progress throughout the year.
Total revenue for the year was €608m (2022: €645m)
in what remained a challenging operational
environment. Excluding the one-off €63 million
disposal of the East Road site in 2022, there was
a modest increase in Group revenue in 2023. This
primarily comprised 1,328 suburban unit sales
completed (2022: 1,354) alongside urban revenue
from ongoing contracted developments and the
first contribution from our Partnerships segment.
Gross profit increased by 4% to €113 million and
earnings per share increased to 8.0 cent (2022:
7.6 cent). Our ROE was 6.9% (2022: 7.1%).
Net debt was maintained at prudent levels and
represented a modest 7% of net assets (2022: 2%).
We continue to implement a disciplined capital
allocation strategy focused on three priorities: land,
work-in-progress (‘WIP’), and investment in the
supply chain and manufacturing. Capital efficiency
improved further in 2023, while we completed our
current investment in NUA and invested in WIP to
underpin future growth in the business. We also
returned approximately €63m to shareholders
during the year.
A new era
of scale
and growth
John Mulcahy
Chairman
CHAIR’S LETTER
11
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Annual Report and Accounts 2023
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Strategic Report
Corporate Governance
The Board will continue to review the capital
allocation framework to ensure it remains effective
and appropriate for Glenveagh, its stakeholders,
and the external environment.
We anticipate that the Irish market environment
will remain favourable in 2024, notwithstanding the
broader economic and inflationary challenges that
continue to face us. The long-term demand outlook
for the Irish residential housing market also remains
very positive. You can read more about these in
Our Market Position on page 16.
A milestone year
It is gratifying to report that 2023 was a milestone
year marking the first time that all three of our
business segments generated revenue and profits.
This is a validation of the strength of our strategy,
hard work and the power of our business model
developed since our IPO.
Our Suburban segment performed well, despite
the planning challenges at the outset of 2023.
We completed 1,328 suburban units during the
year, broadly in line with 2022 levels, reflecting
the Group’s strong operational performance in
a challenging environment.
In 2022, Urban revenue was significantly boosted
by the sale of the East Road site for €63 million.
As a result, revenue in 2023 was €120m, compared
with €190 million in 2022. Nevertheless, we made
good operational progress, completing two of our
key contracted urban projects at Marina Village
and the Premier Inn hotel, with three more – Cluain
Mhuire, Citywest and Castleknock – all on track for
delivery in 2024.
I am particularly pleased that we generated
our first revenue and profits in our Partnerships
business in 2023. This milestone represents the
culmination of many years of collaboration with
public sector entities, social housing bodies, and
local communities. It vindicated our ability to deliver
value for money, sustainable, and high quality
homes through a range of channels for owner-
occupiers, renters, and people who need social
and affordable housing.
This year also marked the launch of NUA, our
manufacturing brand and another strategic
milestone for Glenveagh. NUA employs cutting-
edge technology in three strategically located
factories to drive innovation and precision
manufacturing techniques. The launch cements our
leadership in modern methods of construction and
prepares Glenveagh for the future.
Empowering our colleagues
Glenveagh is only ever as good as its people, and
their success is our success. Attracting, retaining,
and developing high-calibre talent is what makes
us competitive. Our motivated and engaged
workforce ensures we consistently deliver strong
results and outstanding customer satisfaction.
‘Valuing and Developing Our Colleagues’, is the
strategic pillar that outlines our ambitions for all
our colleagues who are integral to delivering on
every one of our strategic priorities across the
business. Through regular engagement, we support
and empower our people. By better understanding
their needs, we can offer personal and professional
development and training that supports their
growth and demonstrates the value of their
contributions to the Company’s success.
We also place 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
certified as a Great Place to Work for 2024.
In the business, health and safety is paramount,
and we work relentlessly to embed this in
everything we do. This year, we initiated a
detailed programme of engagement to enhance
and embed the safety culture within Glenveagh.
Tailored training and awareness sessions
established a deeper understanding of day-to-day
safety concerns, promoting greater accountability,
commitment, and ownership across the business.
In 2023 we were awarded the ‘House Building’
award in the Construction category at the annual
National Irish Safety Organisation’s (‘NISO’)
awards ceremony. This provides us with a strong
benchmark of our performance against industry
peers and earns us recognition within the industry
for our safety efforts.
Advancing our sustainability agenda
Glenveagh has a strong reputation for its
community support, and we play a positive role
in combating climate change by minimising our
environmental impact. We made very encouraging
progress in reducing our emissions in 2023 and
you can read more about this in our Sustainability
report on page 64.
Our Biodiversity Strategy, ‘Building a Better
Habitat’, was launched in January 2024 and
integrates biodiversity conservation into the core
of our strategy. We also published our Circular
Economy Strategy in February 2024, which
sets out actions we will take to move towards
circular design, reduce resource use and the
waste associated with it. We have set a target
to prepare 70% of construction and demolition
(non-hazardous) waste for reuse, recycling and
other material recovery.
Governance
Following a search led by the Nomination
Committee, the Board oversaw a non-executive
director appointment process in the first half of
the year which resulted in the appointment of
Emer Finnan on 1 July 2023. In addition, Robert Dix
retired from the Board during 2023, having served
as a Non-executive Director for the six years since
the Company’s IPO in 2017, and he was succeeded
as Senior Independent Director by Pat McCann.
Following the financial year-end, the Board was
pleased to announce the appointment of two
further non-executive directors, Lorna Conn and
Max Steinebach, with effect from 1 February 2024.
Further details in relation to Board composition
and nomination activities in 2023 are set out
in the Corporate Governance Report and the
Nomination Committee Report at pages 100 and
112 respectively.
An external Board effectiveness review was
undertaken in late 2023. Following completion of
the review process, the results were analysed and
key findings were extracted and presented to the
Board. As Chairman, I was pleased to see that
the results clearly demonstrated that the Board is
operating effectively and continues to evolve and
mature with the business. The report recognised
the breadth and depth of experience on the
Board and the committed engagement from our
members in challenging and holding management
to account.
An overview of the full evaluation process is set out
on page 113.
Conclusion & outlook
2023 marked a year of strong progress in a
challenging environment. I would like to thank my
fellow Board members, our colleagues, customers,
suppliers, and investors for their ongoing
commitment and support in helping to drive our
business forward in accordance with our vision
and values.
We have embarked on our journey into 2024 with
a strong platform for growth. Our healthy land
portfolio and forward order book are supported by
highly developed operational and manufacturing
capabilities that capitalise on modern methods
of construction and embrace sustainability. Our
knowledge and expertise mark us out as an
industry leader and the trusted partner of choice
for state agencies as we collaborate to tackle the
accommodation shortage in Ireland. As a result,
we are well-placed to grow at scale.
Your Board and executive leadership team are
confident about the future of Glenveagh and
will remain focused on delivering long-term
value creation for all our stakeholders in 2024
and beyond.
John Mulcahy
Chairman
CHAIR’S LETTER
CONTINUED
Glenveagh Properties plc
Annual Report and Accounts 2023
12
I am delighted about the progress
we made in 2023. Thanks to
the strength of our strategy and
the determination and drive
of our teams, Glenveagh has
demonstrated the resilience and
agility required to grow – and
deliver – at scale.
Focused on achieving our strategic objectives
Against a challenging backdrop, we set out
three clear objectives at the start of 2023 – to
grow our portfolio of planned sites, to advance
our Partnerships business, and to transform our
manufacturing business. We have delivered on
all three goals.
While planning delays proved challenging at
the start of the year, we saw a strong uptick in
permissions being granted as we progressed
through the year. In total, we received permissions
for approximately 4,600 units, almost 400 of which
are currently in post-grant appeal periods. Our
success in planning reflects the restructuring efforts
and additional resources allocated to An Bórd
Pleanála, coupled with the exceptional quality
of submissions from our team.
We also lodged planning applications for
approximately 2,900 units in 2023, as part of
our landbank growth ambitions.
Our Partnerships business flourished, exemplifying
the power of collaboration between public and
private entities. We concluded 2023 with work on
two of the largest mixed-tenure developments in
the country, a testament to our commitment to
quality and sustainability.
Meanwhile, in June, we launched NUA, a cutting-
edge off-site manufacturing business. Our three
facilities are strategically located to service all our
sites effectively as a nationwide homebuilder.
CHIEF EXECUTIVE OFFICER’S REVIEW
Growth and
objectives
achieved
Stephen Garvey
Chief Executive Officer
13
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
With a capacity to deliver product for over 2,000
homes per year, NUA has accelerated our ability
to provide greater volumes of sustainable, high-
quality, energy-efficient new homes using modern
methods of construction.
Scaling up the business safely and effectively
First and foremost, keeping people safe and well
at our sites is our primary concern. This is whether
they work for us or with us. There are underlying
risks with working at any site so it’s our shared
responsibility to work together to identify these
risks, manage them and own them. Our priorities
are safety, quality and consideration for the
environment, and we are committed to providing
and fostering a culture that is inclusive and
performance-driven.
In 2023, we delivered 1,328 suburban units,
despite the planning challenges that we faced at
the beginning of the year. We also continued to
work on some 700 apartments and 250,000 sq
ft of hotel and office space. Meanwhile, several
sites delivered well over 100 units this year as we
continued to meet rising demand from customers
with increasingly diverse requirements.
We made strong progress in our standardisation
model that will allow us to become even
more efficient and increasingly sustainable.
Standardisation is part of our broader agenda
to harness our scale and bring additional
efficiencies into all our processes.
Standardised house typologies are becoming a
much larger component of our output, enabled by
how we design our higher-density developments
and reinforced by our off-site manufacturing
capabilities at NUA.
Sustainability – at the heart of Building Better
We have placed environmental and social issues
at the heart of our Building Better Strategy,
embedding these into our overall business priorities.
Our progress and performance are underpinned
by strong governance structures with the
Environmental and Social Responsibility Committee
in place at the Board level.
The key milestone in 2023 was the launch of our
Net Zero Transition Plan in March, outlining our
near-term and long-term greenhouse gas (‘GHG’)
emissions reduction targets for Scopes 1, 2 and 3.
These targets call for a 46.2% absolute reduction
in Scopes 1 and 2 by 2031 and a 55% reduction
in Scope 3 emissions intensity (tCO
2
e/100 sq m
completed floor area ) by 2031, using 2021 as the
baseline year. Longer-term net zero targets have
been set for Scopes 1,2 and 3 by 2050. These
targets were validated by the Science Based
Targets Initiative (‘SBTi’) in January 2024.
We made solid progress against these targets in
2023. We reduced absolute Scope 1 & 2 emissions
by 11% compared to FY 2022. This is an encouraging
first step, which can be attributed to the roll out
hydrotreated vegetable oil (‘HVO’) to replace diesel
across sites during the year. We are confident that
the work we have completed puts us on the right
track to see a reduction in 2024 below our 2021
baseline. Meanwhile, our Scope 3 emissions have
now decreased by 7% against our FY 2021 baseline,
primarily due to our focus on the energy efficiency
of our homes.
In January 2024 we published our first Biodiversity
Strategy. Our commitment to biodiversity is a
strategic business decision as well as
demonstrating environmental responsibility.
As part of our strategy, we have developed a
biodiversity framework that will allow us to
manage our impacts, risks, and opportunities
across our value chain.
Our Circular Economy Strategy, launched in
February 2024, sets a target to prepare 70% of our
construction and demolition (non-hazardous) waste
for reuse, recycling and other material recovery.
Our supply chain is critical to the actions that we
take so we were proud to become a founding
partner of the Supply Chain Sustainability School in
Ireland in 2023. This will support the development
and enhancement of sustainability skills and
knowledge in the supply chain.
The Group has also started to implement its
Equity, Diversity, and Inclusion (‘ED&I’) Strategy,
Building a Better Workplace, which was published
in December 2022. We want everyone who walks
on to one of our sites or into our offices to feel
like they’re doing so as their most authentic and
genuine selves, as we know that otherwise, we
won’t reach our full potential, either as individuals
or as a business. In May we once again attained
the Investors in Diversity Silver mark and have
achieved an overall result of ‘Building Momentum’.
An ED&I Steering Group was established and
we also set up five Employee Network Groups to
provide a network for support and awareness that
will lead to greater understanding, respect, and
inclusion for all Glenveagh employees.
Planning & policy
We made significant progress in what has been an
improving planning environment in 2023, increasing
confidence in unit delivery in 2024 and beyond.
Additional resourcing has been provided to An
Bord Pleanála and the efficiency of its applications
processing is improving.
The Large Scale Residential Development (‘LRD’)
process is functioning well to date, with several
successful grants received within or ahead of
guided timelines.
In addition to an improving planning mechanism,
the change to Central Bank macroprudential
rules in late 2022 also improved affordability
for potential buyers in 2023, as did government
supports such as the Help to Buy Scheme and First
Home Scheme which have been supportive for
home buyers, especially in the context of a rising
interest rate cycle.
The Planning and Development Bill 2023 was
published at the end of 2023 following extensive
review and consultation. We welcome such policy
reform in general but are mindful that such an
extensive piece of legislation will take some time to
assimilate in practice.
EPS growth in FY 2023
5%
Capital returned to shareholders during the year
€63m
Suburban units delivered in FY 2023
1,328
FY 2023 Revenue
€608m
“I’m incredibly proud of how the
teams both on-site and in the office
go above and beyond expectations
to get projects closed and to put keys
into the hands of new homeowners.”
Stephen Garvey
Chief Executive Officer
CHIEF EXECUTIVE OFFICER’S REVIEW
CONTINUED
14
Glenveagh Properties plc
Annual Report and Accounts 2023
The Government’s Sustainable Residential
Development and Compact Settlements guidelines
were published in January 2024. Its effective
implementation will enable greater flexibility in
residential design standards that will support the
delivery of compact ‘own door’ housing that are
more viable for developers and more affordable
for purchasers.
The review of the National Planning Framework
is also under way. We would urge that this
review accurately reflects present and future
population requirements, designed for viable
and appropriately located homes and offering
increased opportunities for home ownership.
The strong performance in our Partnerships
business shows how much can be achieved when
public and private entities work together to deliver
what Ireland needs - sustainable, high-quality,
energy-efficient, mixed-tenure developments that
will alleviate the supply shortage.
That said, there remains plenty to do to ensure the
country can accelerate housing supply and provide
an opportunity for home ownership at the pace
Ireland needs. To sustainably deliver increased
housing supply requires appropriately resourcing
the planning bodies, local authorities and utility
companies and ensuring the availability of land
with critical infrastructure. Prioritising these
actions as a matter of urgency will enhance
industry-wide efforts to expedite the delivery
of quality homes and ultimately contribute to
building flourishing communities.
Allocating capital sensibly and effectively
While we ended the year with a modest increase
in net debt, this remained well within our prudent
leverage policy.
The Group implements a prudent capital allocation
strategy focused on three priorities: land, work-in-
progress, and investment in the supply chain.
We continued to generate efficiencies from our
land investment and the landbank value (excluding
development rights) at 31 December 2023 was
€404 million (31 December 2022: €455 million).
We invested €47 million in incremental WIP to fuel
future growth in our suburban and urban business
segments. We also completed our significant
investment in NUA and continued to invest in
land opportunities for over 1,050 units.
In FY 2023 we also returned approximately €63
million of capital to shareholders. This brings to
over €300 million the total capital returned to
shareholders since the beginning of FY 2021.
Well positioned for success in 2024
The long-term demand outlook for the Irish
residential housing market remains very positive.
A resilient domestic economy is coupled with a
fast-growing population and reinforced by
supportive state initiatives. Our proven operational
capability and established expertise in partnership
and urban development models mean that we
are ideally positioned to grow as a scale operator
in the Irish market.
We expect to generate strong revenue and profit
growth across each of our Suburban, Urban and
Partnerships business segments in 2024. This
growth is underpinned by our healthy land
portfolio and forward order book, continued
planning momentum and strong operational
and manufacturing capability
I spend a lot of time on-site and with colleagues in
the Boardroom and across the office. I’m incredibly
proud of how the teams both on-site and in the
office, go above and beyond expectations to get
projects closed and to put keys into the hands of
new homeowners.
So, I want to acknowledge the dedication and
support of the senior leadership team and thank all
those in the wider organisation whose tireless work
has contributed so much to our collective success.
Your backing and the continued support of all our
stakeholders have placed Glenveagh in a position
of strength as we go into 2024.
I am excited about the year ahead and the many
prospects and compelling opportunities for the
Group in the years to come.
Stephen Garvey
Chief Executive Officer
CHIEF EXECUTIVE OFFICER’S REVIEW
CONTINUED
15
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
How our Partnerships
business is thriving
Our Partnerships business flourished in 2023, providing a powerful demonstration of how public
and private entities can collaborate to deliver sustainable mixed-tenure developments.
From starting the year with no planning in place,
we closed 2023 with a busy work schedule on two
of the largest partnership sites in the country – at
Ballymastone and Oscar Traynor Road (‘OTR’).
These landmark partnerships between the
communities, local authorities, and Glenveagh
are set to deliver more than 2,000 sustainable
and high-quality homes. All the homes will be
sustainable and A-rated – the highest energy
efficiency rating – delivering significant heating
cost savings to homeowners.
Strategy in action: working better together
New homes being delivered
2,000+
A-rated homes being delivered
100%
Community and sporting amenities will be available
to residents of the new developments and the
broader community.
In Ballymastone, we will deliver approximately
1,200 A-rated and mixed tenure homes, of
which 40% will be private, 20% cost rental, 20%
affordable and 20% social. It is anticipated that the
first phase of the development will be delivered in
H2 2024. Linked to the overall development of the
local area is the Ballymastone Recreational Hub.
Fingal County Council has fully approved this €10.4
million investment in state-of-the-art sporting and
community facilities such as GAA pitches, soccer
pitches, athletics facilities, and playgrounds.
Strategic priorities linkage
In OTR, we are constructing over 850 new homes
in partnership with Dublin City Council, which will
deliver 40% social housing, 40% cost rental, and
20% affordable housing. It will be the largest such
development in the State and will serve as a model
for similar projects in the future. The first homes are
scheduled for delivery in Q4 2024.
The development will contain a wide range of
home types – ranging from one-bed to four-bed
– and a range of communal facilities, including a
community centre, a childcare facility, and high-
quality communal open spaces with a public park,
play areas, cycle trails, woodlands, allotments, and
landscaped areas.
16
Glenveagh Properties plc
Annual Report and Accounts 2023
OUR MARKET POSITION
KEY MARKET STATS
An expanding housing
market in a strong economy
In a challenging economic environment globally, the Irish economy again outperformed. Private demand
in the Irish housing market is driven by this strong domestic economy, a fast-growing population, and
increasing levels of inward migration. This is complemented by very supportive partnerships with state
agencies for both demand and supply-side initiatives. As one of the largest housebuilders in Ireland
we are ideally positioned to grow in this environment.
Mortgage approvals
The volume of mortgage approvals for first-time
buyers increased by 9% in 2023, compared with
a 14% reduction in overall mortgage approvals
that was influenced primarily by a reduction in
re-mortgaging.
Commencements and completions
New housing supply is showing steady signs of
growth, with completions up 10% to 32,700 and
rolling 12-month commencements at very similar
levels of 32,800.
Housing market
Demand for housing continues to be very strong
in Ireland, complemented by very supportive
partnerships with state agencies for both demand
and supply-side initiatives. Housing supply is slowly
improving, supported by gradual improvements in
the effectiveness of planning and policy.
But activity levels remain well below what is
required to address long-term under-supply
created by latent housing demand built over
the last decade, strong economic growth and
the rapid population increase. It is commonly
accepted that the annual housing supply
requirement is in the range of 40,000 to 60,000
appropriately located units, compared to almost
33,000 units delivered in 2023.
Residential transactions
(new homes)
Total new home transactions were broadly
unchanged in 2023, building on several years of
strong growth.
GDP growth forecasts
Domestic demand is strong and supports
consumer spending growth and additional
employment. Ireland’s buoyant and defensive
export sector has proved resilient in the tougher
international economic environment.
Employment/wage inflation
Employment numbers grew by 4% in the 12 months
to September 2023 and is creating the capacity
and desire among the population to own their
own homes. Continued wage inflation will create
increased affordability to purchase new homes.
Economy and consumers
The combination of strong domestic demand
and a buoyant export sector continues to propel
the Irish economy, with GDP growth expected to
outpace all major economies in 2024. Economic
outperformance has strengthened public
finances, allowing flexibility for Government
to invest in housing initiatives and support
affordability.
Record employment levels have been
accompanied by wage inflation, supporting
affordability. Rising household deposits also
underpin higher levels of economic output
over time.
Budget surplus as % GDP/GNI*
Healthy budget surpluses provide Ireland with
the firepower to accelerate investment and to
underpin longer-term initiatives with sensible
policy advances.
Source: Banking & Payments Federation Ireland (BPFI)
2023
2022
2020
2021
2018
2019
2017
2016
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
First time buyers
Source: CSO
2023
2022
2020
2021
2018
2019
2017
2016
0
5,000
10,000
15,000
20,000
Residential new home transactions
Source: CSO
2023
2022
2020
2021
2018
2019
2017
2016
Rolling 4-Quarters Commencements – All Units
Rolling 4-Quarters Completions – All Units
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
IRL
(GNI*)
IRL
(GDP)
PL
ES
NL
EU
FR
EA
DE
IT
2024
2025
Source: Euro Commission – Winter 2023 Economic Forecast,
Dept of Finance – Budget 2024 Economic & Fiscal Outlook
*Modified gross national income
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
IRL
(GDP)
IRL
(GNI*)
SE
NL
DE
EA
AT
ES
FR
2024
2025
Source: European Commission, Dept of Finance
*Modified gross national income
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
2023
2022
2020
2021
2018
2019
2017
2016
Average Weekly Earnings – YOY % Growth
Employment Growth – YOY % Growth
Source: CSO
-10
.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
Corporate Governance
Financial Statements
17
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
OUR MARKET POSITION
CONTINUED
TRENDS THAT ARE SHAPING OUR MARKET
Four key trends have shaped the market and helped us to guide the
execution of our strategic priorities to deliver our long-term vision.
Strategic priorities linkage
Placing the
customer first
Valuing and
developing our
colleagues
Driving
operational
excellence
Embracing
innovation
Creating
sustainable and
thriving places
Trends
01
02
03
04
Demographics
Affordability
Supply-side initiatives
Sustainability
The population of Ireland has grown 31%
to 5.1 million since 2002, according to
figures from the 2022 census. The increase
was driven by both the growth in the
domestic population and increasing net
inward migration. As a result, demand for
additional housing remains very high, and
housing stock is an essential requirement.
Years of under-supply in the market have
impacted the demographics of those
purchasing property and the average
home buyer is now older, with changing
purchasing needs.
Rising interest rates and high inflation have
created a challenging economic environment
for home buyers. However, new legislation
and updated policy measures introduced by
the government, supported by institutions
such as the Central Bank of Ireland (CBI),
have served to ensure greater affordability in
the market. Glenveagh is playing its part in
delivering value for our customers.
New partnership opportunities with state
agencies continue to emerge as part of the
government’s recent supply-side housing
initiatives. Significant additional funding
has also been proposed for the Land
Development Agency (‘LDA’). Our scale,
operational capability, and established
expertise in partnership and urban
development models ensure we are well-
positioned to participate in such initiatives.
ESG remains a high priority on the political,
social, and economic agenda and is an
issue that is increasingly important to our
stakeholders. The construction and built
environment sectors in Ireland accounts
for 37% of the country’s carbon emissions
underpinning the need for a greater
focus on more sustainable products,
manufacturing solutions, and responsible
supply chain practices.
Our
strategic
response
>
Continuing to assess and adjust
our range of house typologies to
reflect family sizes and individual
circumstances, the capability to work
from home, and stage of life.
>
Investing in digital capabilities to
enable state-of-the-art CGI walk-
through tours and other solutions
offering for customers, whose
purchasing behaviours and decisions
are increasingly technology-based.
>
Engaging earlier and intensively with
local communities so that we can
develop great places for people to
work and live.
>
Delivering 88% of all units in the GDA in
2023 at prices below the mean price of new
homes sold in the region.
>
Selling approximately 52% of our suburban
units in 2023 as part of social, cost
rental, and affordable government
supported initiatives.
>
Addressing utility and energy costs over
the life cycle of a property by ensuring
that all our homes are A-rated for
energy efficiency.
>
Initiating both of our partnerships schemes
in 2023, at OTR and Ballymastone.
>
Being approved under the Croí Cónaithe
(Cities) scheme for the development of one
of our urban schemes in Cork.
>
Aligning with other state agencies,
including the Land Development
Agency, and Approved Housing Bodies,
to accelerate the provision of housing
supply via our partnership and urban
development models.
>
Developing our Net Zero Transition Plan
that sets both near-term GHG emissions
reduction targets and long-term net zero
GHG emissions targets for Scopes 1, 2 and
3, as validated by the SBTi.
>
Introducing our first Biodiversity Strategy
that will allow us to manage our impacts,
risks, and opportunities across our value
chain, while taking the initial steps to
manage biodiversity effectively.
>
Recognising that our supply chain is critical
to deliver our sustainability targets, we are
founder members of the Irish Supply Chain
Sustainability School.
SEE MORE DETAIL IN OUR STRATEGY IN ACTION SECTION AT
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X]
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Glenveagh Properties plc
Annual Report and Accounts 2023
Bringing new
ideas home
As one of Ireland’s leading homebuilders, Glenveagh delivers
high-quality, affordable, and accessible homes in flourishing
communities. We succeed by focusing relentlessly on innovation
to improve the way we plan, design, and build.
OUR BUSINESS MODEL AND VALUE CHAIN
19
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
OUR BUSINESS MODEL AND VALUE CHAIN
CONTINUED
About us
Supported by innovation and supply-chain
integration, Glenveagh is committed to providing
sustainable high-quality homes to as many people
as possible in flourishing communities across Ireland.
We provide homes for our private, institutional,
and state customers via three business segments –
Suburban, Urban, and Partnerships. Each business
segment benefits from our scaled manufacturing
capability, our established sales and delivery
platform, and our industry-leading central resources.
These central resources span the entire process
outside of construction delivery.
We are one of the leading homebuilders in the Irish
market and have developed the largest off-site
manufacturing capability in the country. We also
benefit from a strong economic environment and
a supportive set of investments and incentives from
the State.
Our business model has a number of important
features. We operate by acquiring land, obtaining
planning permission, and then constructing houses
on that land to sell to customers, with a key focus on
sustainable practices and materials. Sustainability
is integrated throughout our model to enable us to
mitigate risk whilst actively seeking opportunities to
enhance returns.
Our scale gives us access to a larger pool
of financial and human capital to undertake
large-scale development projects. Our established
relationships with key stakeholders in the
industry such as local authorities, suppliers,
and contractors, can also help to streamline
the development process.
Alongside our ongoing evaluation of opportunities
to expand capacity in our own housing market,
we continue to explore ways to diversify into
complementary business areas. These would
leverage our existing capabilities and resources
to generate new revenue and profit streams
for the business in excess of our cost of capital.
Our investment in off-site manufacturing and
the associated launch of NUA in 2023 is an
important example of this.
Suburban
Our suburban business is focused on delivering
affordable, high-quality homes in locations
of choice at €450,000 or below. We focus in
particular on delivering affordable starter homes
in the Greater Dublin Area (GDA) and Cork, which
represents the deepest demand segment of the
Irish market. The portfolio also has other potential
sites nationally.
Product
Houses and low-rise apartments
End Market
Private/Institutions
Locations
Ireland
Exit
Traditional/forward sale (‘FS’).
Revenue (FY 2023)
€471m
Urban
Urban product consists of apartments to be
delivered to institutional investors and state
agencies primarily in Dublin and Cork but
also on sites adjacent to significant rail
transportation hubs.
Product
Apartments
End Market
Institutions
Locations
Dublin City/Cork City
Exit
FS/forward fund (‘FF’).
Revenue (FY 2023)
€120m
Partnerships
A partnership typically involves the government,
local authority or state agency contributing their
land on a reduced cost or phased basis into a
development agreement with Glenveagh.
Product
Houses and apartments
End Market
Private/Institutions
Locations
Ireland
Exit
State/traditional/FF/FS.
Revenue (FY 2023)
€17m
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Land acquisition,
planning and design
Our dependencies
01, 03, 10, 11
Raw materials
extraction
Our dependencies
01, 02, 03, 04, 05, 06,
07, 08, 09, 10, 11
Processing, manufacturing
and distribution
Our dependencies
01, 02, 03, 06, 07,
08, 09, 10
Glenveagh
manufacturing (NUA)
Our dependencies
01, 04, 07, 08, 09, 10
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Glenveagh Properties plc
Annual Report and Accounts 2023
OUR BUSINESS MODEL AND VALUE CHAIN
CONTINUED
Location in value chain
Upstream
Operations
Downstream
Our dependencies
01
Land
02
Water
03
Soils
04
Forests
05
Nutrients
06
Minerals (ores and stones)
07
Fossil fuels
08
Renewable energy (solar, wind, hydro)
09
Biofuels
10
Human capital
11
Biodiversity and ecosystem services
Our value
chain
We plan, design, and build high-quality homes
to create thriving communities in sought-after
locations across Ireland. That begins with
a carefully developed land acquisition and
management strategy underpinned by extensive
planning knowledge, strong supply chain
relationships, a highly experienced leadership
team, innovative designers, and a skilled
workforce with diverse talents.
The strength of our reputation is built on our
attention to detail, a commitment to quality
standards, and a laser-like focus on customer-
centricity. These principles are applied at every
point in our value chain, from upstream, where
we source material, to operations, where we
create and build, and downstream, where we
market and sell.
The result is exceptional customer satisfaction, outstanding
homes, strong operating efficiency, robust support
for Ireland’s local and national economies, and solid
investor returns.
READ MORE ABOUT OUR VALUE CHAIN ON
PG22
Sales and marketing
Our dependencies
10
Product use
Our dependencies
01, 02, 07, 08, 11
End of life
Our dependencies
01, 07, 10
Construction
Our dependencies
01, 02, 03, 06, 07, 09, 10
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Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
OUR BUSINESS MODEL AND VALUE CHAIN
CONTINUED
Glenveagh Properties plc
Annual Report and Accounts 2023
22
OUR BUSINESS MODEL AND VALUE CHAIN
CONTINUED
OUR RESPONSIBLE APPROACH
Operating
responsibly
We rely on a network of activities, resources and relationships within
our complex value chain to create the homes that we deliver to our
customers and end-users.
We rely on both human and natural resources,
as well as a range of business relationships with
suppliers, partners and state entities among others
right along our value chain.
With an eye on the future, we are actively
promoting a low-carbon, nature positive and
circular value chain that will benefit us all. With
the publication of our Net Zero, Biodiversity and
Circular Economy strategies, sustainability plays
an increasingly important role in our approach to
our value chain. We are committed to operating a
responsible business and improving how we work
with – and protect – people and the environment
at every stage.
Through our commitment to sustainability, we
promote a low-carbon, nature positive and circular
supply chain where health and safety remain
a priority for all. We expect our suppliers and
partners to demonstrate the same standards of
integrity, safety, and due diligence that we display.
Many of the materials we use are sourced locally,
as are the suppliers and subcontractors we partner
with. This helps to reduce our environmental
impact, supports local businesses, creates
employment, and allows communities to flourish.
Our focus on innovation supports the future, driving
our ability to produce more low-impact, affordable
homes using more cost-effective and sustainable
materials and processes.
By acting responsibly, we can create and deliver
more substantial, long-term value with our supply
chain and our business.
Location in value chain
Upstream
Operations
Downstream
Raw material extraction
Description
Raw materials extraction refers to the removal of
resources from the earth’s natural reserves. In the
context of the construction industry, the majority
of construction raw materials can be typically
classified into two categories: mined raw materials,
such as minerals and fossil fuels, and plant-based
raw materials derived from forestry and bio-based
materials, such as trees and plants. Raw materials
are typically used in the primary production of
construction products.
At Glenveagh, we rely on many raw materials to
produce the products that we need to build our
homes. These include sand and gravel, limestone,
wood, gypsum, oil and metallic and non-metallic
minerals among others. In some cases, we have a
direct relationship with a supplier engaged in these
activities e.g. those who supply us with timber and
aggregates, while in other cases the extraction of raw
materials is several layers down our supply chain and
we do not have a direct relationship with them e.g.
heatpump or PVs suppliers. The raw materials used in
our processes are primarily sourced in Ireland or the
broader EU, while a small number are sourced
further afield.
Dependencies
The main dependencies in this part of the value chain
are land, water, soil, forests, nutrients, minerals, fossil
fuels, renewable energy, biofuels, human capital, and
biodiversity and ecosystem services.
Actors
The main actors involved in this aspect of our value
chain are our suppliers (and their supply chain), those
employed by those suppliers, manufacturers and
producers, and affected communities in the areas
where our raw materials are sourced.
As part of our supply chain engagement programme,
we are working with suppliers to better understand
where our materials are sourced, the various layers of
our supply chain, and where the biggest environmental
and social impacts, risks and opportunities arise.
Corporate Governance
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OUR BUSINESS MODEL AND VALUE CHAIN
CONTINUED
OUR RESPONSIBLE APPROACH
CONTINUED
Processing, manufacturing
and distribution
Land acquisition,
planning and design
Description
The majority of the raw materials used in the
construction sector must be processed and
manufactured into construction materials products.
They play a pivotal role in Glenveagh as we ultimately
use them to build our homes. These construction
materials and products must be robust, reliable and
meet stringent safety standards to ensure the durability
of built structures. The construction materials industry
is known for its high-temperature operations, use of
large-scale processing and manufacturing plant and
machinery as well as its energy consumption. This
industry relies on its supply chain to ensure it not only
procures raw materials to create the products,
but also ensures the delivery of its products to the
likes of Glenveagh and our subcontractors.
At Glenveagh, the types of construction materials and
products we use can include concrete, steel, insulation,
timber and bricks as well as windows, doors, tiles,
and paint. Given the number of different construction
materials and products required to build a house, this
aspect of our value chain is a critical cog in the wheel.
As with the sourcing of raw materials, production and
manufacturing is typically done within the EU and in
Ireland, where possible, while some is also carried out
in Asia. The manufacturing of such a large number of
components for each of the homes we build means
that a complex logistics and distribution ecosystem
also exists. The majority of this takes place either via
sea or road transport.
Description
Land acquisition is one of the first steps within the
direct control of Glenveagh and is critical in developing
new communities across Ireland. This step requires
significant due diligence to ensure, for example,
that the land is viable, that the area is not subject
to flooding or other environmental risks, and the
appropriate zoning is in place.
This due diligence is led by our experienced land
acquisition team, who liaise with the landowners. We
also work in partnership with local authorities and state
agencies to develop social and affordable housing on
land which remains in their ownership. Once the land
has been acquired or the partnership model agreed
upon, we collaborate with a variety of professional
services, including architects, planners, ecologists, and
engineers, to plan and design developments which
align with the national and relevant local planning
requirements and building regulations. This is followed
by a rigorous planning process involving the
relevant local authorities and/or An Bord Pleanála,
Ireland’s national independent planning body. Any
community that is impacted by the plans are involved
through the statutory consultation process as well as
through our broader community engagement activities.
Dependencies
The main dependencies in this part of the value chain
are land, water, soils, minerals, fossil fuels, renewable
energy, biofuels and human capital.
Actors
The main actors involved in this aspect of our value
chain are our suppliers, manufacturers, freight
transport and our employees.
Our supply chain engagement programme will ensure
that we also understand more about this aspect of
our supply chain, in particular the environmental
and social aspects associated with the processing,
manufacturing, and distribution of the materials
required to build our homes.
Dependencies
The primary dependencies in this part of the value
chain are land, soils, human capital and biodiversity
and ecosystem services.
Actors
The main actors involved here are landowners,
government agencies, local authorities,
professional services firms, our employees
and affected communities.
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OUR BUSINESS MODEL AND VALUE CHAIN
CONTINUED
OUR RESPONSIBLE APPROACH
CONTINUED
Glenveagh
manufacturing (NUA)
Description
NUA, the manufacturing arm of Glenveagh, was
established in 2023 and comprises three factories
based in Carlow, Arklow, and Dundalk. These factories
employ over 100 people and supporting regional
businesses by sourcing materials from local suppliers.
The factories use industry-leading technology to
produce high-quality timber frames and light gauge
steel (LGS) frames used in our homebuilding process.
The process includes a type of 3D printing to produce
steel parts for the houses, using computer-generated
3D design models, as well as pre-programmed
sawing technology to cut timber into the required
shapes and sizes.
Off-site manufacturing capabilities are fostered at NUA
to create production efficiencies, promote standardised
design and adopt Modern Methods of Construction,
which will ultimately support our Net Zero Transition
Plan and make a positive contribution to society and
the environment.
Dependencies
The main dependencies in this part of the value chain
are land, forests, fossil fuels, renewable energy, biofuels
and human capital.
Actors
The main actors involved are our suppliers
and employees.
Construction
Description
Construction is a core element of our business and
sits within the operations section of our value chain.
This is where the various materials which have been
extracted, processed, and manufactured are used to
construct high-quality, energy-efficient homes for our
end-users. This is done in compliance with planning
and building regulations in place in Ireland and the
EU. This element of our value chain requires a large
skilled workforce comprising both directly employed
colleagues as well as a significant involvement of
subcontractors across an array of trades. These include
groundworks contractors, crane operators, block
layers, plasterers, painters, tilers, and landscapers
among others.
It also requires the ongoing involvement of professional
services such as architects, engineers, and ecologists.
In addition, significant interaction with utility providers,
such as Irish Water and ESB, is required for the
successful completion of projects. In 2023, construction
took place at over 20 sites across Ireland and involved
on average over 1200 people accessing our sites on a
daily basis. The involvement of such a large number
of people on our sites, working in often physically
demanding situations, requires a significant focus on
health and safety. Community engagement is also of
high importance given the presence of sites in already
established communities around the country.
Dependencies
The main dependencies in this part of the value chain
are land, water, soils, minerals, fossil fuels, biofuels and
human capital.
Actors
The main actors involved are our employees,
subcontractors, utility providers, affected communities,
local authorities and professional services.
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Sales and
marketing
Product
use
End
of life
Description
Glenveagh interacts with our potential customers
through our internal sales and marketing functions
as well as third-party selling agents. Our marketing
strategy raises awareness of our offering through a
variety of media including TV, radio, social media,
websites, and events. We also make potential
customers aware of the affordability of housing
through a variety of government schemes and
initiatives to ensure inclusiveness of our product. We
are investing in technology to further improve our
online customer portal and increase its accessibility.
Dependencies
The main dependency in this part of the value chain
is human capital.
Actors
The main actors involved are our employees, third
party agents and affected communities.
Description
The houses and apartments we create provide a
home for our customers for many years. During the
lifetime of these products, residents consume water,
energy, and other materials. They also produce
outputs such as waste, carbon emissions, and
wastewater. Elements of the house will also come
to the end of their useful life or become redundant
and require replacement. The houses we produce
are highly energy-efficient and we are developing
a more circular approach that will facilitate easier
disassembly and reuse. We also provide our
customers with valuable information on the efficient
operation of all aspects of their homes.
Dependencies
The main dependencies in this part of the value
chain are land, water, fossil fuels, reneable energy
and biodiversity and ecosystem services.
Actors
The main actors involved are customers and
affected communities.
Description
At the end of its useful life, the house or apartment
can be deconstructed. Certain components of the
house can already be reused and/or recycled and
we aim to increase this through the adoption of
more circular principles in our design, through
such initiatives as design for disassembly. These
activities can transform waste management into
sustainable materials management and drive
new patterns of production and consumption.
Inevitably, at the moment, the deconstruction is likely
to have certain environmental impacts including the
production of waste and carbon emissions.
Dependencies
The main dependencies here are land, fossil fuels
and human capital.
Actors
The main actors involved are customers, affected
communities, and local authorities.
OUR BUSINESS MODEL AND VALUE CHAIN
CONTINUED
OUR RESPONSIBLE APPROACH
CONTINUED
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Identifying
our material issues
We are committed to continuing to evolve and enhance our corporate sustainability reporting. An important
driver in this regard is the Corporate Sustainability Reporting Directive (‘CSRD’), which sets specific rules on
mandatory sustainability reporting in the European Union (‘EU’). We are among the first companies in scope
for CSRD and will be required to report under the new rules from FY 2024 onwards.
The new reporting regime will bring structure and
consistency to what a company must disclose in
relation to its most important (material) ESG issues,
and the regulations also set out in detail how a
company must assess which issues are the most
important, using a double materiality approach.
Double materiality requires us to consider the
relationship between Glenveagh and the broader
environment and society. To do this, we assess
‘impact materiality’ i.e. the Group’s actual or
potential impacts on people or the environment
as well as ‘financial materiality’ i.e. where a
sustainability topic may trigger financial effects
on the Group.
While we have always effectively adopted a
double materiality lens in the development of our
sustainability strategy, including for the materiality
assessment we conducted in 2022, in 2023 we
designed and commenced our first CSRD-aligned
double materiality assessment process. The process
is based on the European Sustainability Reporting
Standards (‘ESRS’) and draft guidance from the
European Financial Reporting Advisory Group
(‘EFRAG’). In this section of our report we set out
a summary of our double materiality assessment
process, which is still evolving and being integrated
into our day-to-day procedures.
Understand
The first step in our process was to ensure there
was deep understanding of the context and
relevant ESG issues for our business. To inform this
we completed a range of activities, including:
>
Analysing our business activities, business
model, business relationships and value chain
through an ESG lens.
>
Mapping our value chain activities and actors.
>
Developing our stakeholder engagement plan.
>
Considering different time horizons (short,
medium and long).
Identify
An important concept in a double materiality
assessment is the inclusion of a long list of impacts,
risks and opportunities (‘IROs’) related to the
relevant sustainability topics.
IROs can stem from our own operations as well
as direct and indirect business relationships in the
upstream and/or downstream value chain (refer to
page 20 for more information on our Value Chain).
Impacts can be actual or potential, and positive or
negative. Financial risks and opportunities can be
actual or potential.
To develop an initial long list of IROs, we:
>
completed extensive desk research which
included trends/horizon scanning and
sectoral benchmarking;
>
considered the dependency of the Group’s
business model and strategy on natural, human
and social resources across the value chain;
>
reviewed the identified impacts and
dependencies against the topics and sub-topics
of the relevant ESRS;
>
took into consideration the findings of our 2022
materiality assessment and broadly mapped the
material issues to the ESRS topics.
Furthermore, during 2022 we surveyed a broad
range of internal and external stakeholders,
including thought leaders, sustainability experts,
affected stakeholders and users of sustainability
statements (e.g., investors, lenders, business
partners, institutional customers and NGOs), along
with in-depth interviews. The insights gained from
this engagement also informed the identification
and assessment of the IROs by the Group.
Assess
Through a series of workshops with our
sustainability team and wider business unit
stakeholders, we assessed our IROs in line with the
OUR MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Our materiality
assessment methodology
Report
Report in annual financial statements on how
we manage our most material issues.
Assess
Engage stakeholders to score the short list of
impacts, risks, and opportunities and identify
the most material issues.
Identify
Identify a long list of relevant impacts and
dependencies. Engage stakeholders to review
the impacts and dependencies and refine
into a short list.
Understand
Analyse business activities, business model,
business relationships and value chain through
an ESG lens.
ESRS and related draft guidance from EFRAG.
IROs are generally assessed before controls or
mitigants are applied. To rate the materiality of the
impacts, we considered the severity and likelihood
of each impact. To rate the financial materiality
of the risks and opportunities, we considered the
likelihood and the potential size of the financial
effect of the risk or the opportunity.
A materiality threshold was applied and the
outputs were consolidated to finalise the list of
material IROs.
Prior to finalisation of our financial materiality
assessment, the financial risks and opportunities
are being considered in terms of integration into
our enterprise risk management system.
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Report
The material IROs determine the final list of
sustainability matters to be reported against
in line with the ESRS requirements. A high level
overview of the outcome of our impact materiality
assessment is set out below, and we have reported
against all of our material topics, with the exception
of workers in the value chain, for FY 2023.
For FY 2024 we will also incorporate the outcome
of our financial materiality assessment to report in
line with the double materiality requirement.
We will continue to evolve and adapt our
sustainability reporting processes to ensure we
report fully against the ESRS requirements in
our FY 2024 reporting, the additional phased-in
requirements that will come onstream over time;
and the evolution and expansion of the guidance
and standards over the coming years.
2023 materiality assessment
Environmental topics
Average impact materiality
Mapped to 2022 materiality assessment
Climate change
Carbon emissions, energy efficiency, renewable energy and storage, sustainable
building certification, innovation, digitalisation, climate risk – physical, climate
risk – transition
Pollution
Pollution prevention
Water and marine resources
Water management
Biodiversity and ecosystems
Biodiversity, land use and green infrastructure
Resource use and circular economy
Circular construction
Social topics
Own workforce
Diversity, equality and inclusion, working conditions, skilled workforce, health,
safety and wellbeing, employee engagement
Workers in the value chain
Responsible sourcing, supply chain, human rights
Affected communities
Human rights, placemaking and community engagement
Consumers and end-users
Customer, build quality, indoor air quality, affordability, health, safety and
wellbeing, human rights, sustainable mobility, cyber security and data protection
Governance topics
Business conduct
Business ethics, governance, transparency
low
medium
high
OUR MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
CONTINUED
OUR STRATEGY
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Our Building
Better Strategy
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28
Our Building Better Strategy is designed to carry
Glenveagh into a new chapter of growth and to
cement our position as the leading provider of
great value, high-quality homes in Ireland.
This strategy underpins our drive to bring greater
value to all our stakeholders. We want to provide
even more high-calibre housing that help families
and communities to flourish. We want to use
innovative ideas and technology to fuel greater
returns, improved sustainability, and operational
efficiencies. We also want to ensure we continue to
deliver an outstanding level of choice and personal
service to every one of our customers.
Each of our five strategic priorities is supported
by action-oriented pillars, which in turn are
underpinned by key projects. Progress against
these pillars is measured by a clear set of key
performance indicators.
Our commitment to environmental and social
issues is also embedded in the strategy with
sustainability and business priorities firmly identified
and integrated into decision making. Our Net
Zero Transition Plan, launched in 2023, sets out
our short- and long-term approach to climate
change, which includes demanding science-based
ambitions and targets.
You can read more about our performance and
progress in sustainability on page 64.
OUR STRATEGY
Guided by our vision, our
Building Better Strategy
will create long-term,
sustainable value
Placing the customer first
We will be acknowledged as providing an
outstanding customer experience, offering the
high calibre service excellence expected from
the leading provider of affordable, high-quality
homes for all tenures.
READ MORE
PG 29
Creating sustainable and
thriving places
We will establish and develop great places for
people to live, where communities and nature
can flourish for the long term.
READ MORE
PG 32
Driving operational excellence
We will plan, design, and assemble superior
products using best-in-class processes across
the build life cycle. Clear accountability will
enable us to make operational choices rapidly
and decisively, and to allocate resources as
efficiently as possible.
READ MORE
PG 35
Valuing and developing
our colleagues
We will be an employer of choice and the best
place to work in our sector. We will attract and
retain a diverse, high-performance workforce in
a safe and inclusive environment that flourishes
in a culture of teamwork and trust.
READ MORE
PG 37
Embracing innovation
We will be at the cutting edge of innovation
in the homebuilding sector, allowing us to
transition to a low-carbon economy with the
best-value, circular construction.
READ MORE
PG 42
Corporate Governance
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Annual Report and Accounts 2023
OUR STRATEGY
CONTINUED
Placing the
customer first
We will be acknowledged as providing an outstanding
customer experience, offering the high-calibre service
excellence expected from the leading provider of
affordable, high-quality homes for all tenures.
Pillars
Customer journey
Transform our customer journey into a best-in-class experience.
Affordability
Ensure that we focus on affordability in everything that we do.
Position ourselves as the partner of choice for affordable and
high-quality housing, appealing to private, institutional, and
state-supported customers.
Build quality
Deliver high-quality homes across all our developments. Embed
a quality-first approach in the workmanship, materials, and
products that we use. Extend our quality culture across the value
chain, in particular with subcontractors and professional teams.
Links to risks
01
03
04
06
11
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We take pride in
knowing our customers
and understanding
their needs
We are committed to building on our reputation
as the leading provider of high-quality, affordable
homes in Ireland. One of the ways we differentiate
ourselves is through the relationships we have with
our customers and our continuous drive to provide
an outstanding service at every touchpoint.
To support this, we have placed a strategic focus
on three key areas for continual development: the
customer journey, affordability, and build quality.
Our work across these pillars has already secured
Glenveagh as the partner of choice for a diverse
range of private, institutional, and state-supported
customers. We do not compromise on quality. We
build homes that last, are energy efficient, and are
designed for the way that people live today.
Customer journey
We pride ourselves on providing our customers
with the highest level of service. We aim to make
the buying process as straightforward as possible,
offering advice and help at every step of the way –
even after our buyers have the keys in their hands.
Improvements to our customer website and
communication with home buyers contributed to
an increase in our customer satisfaction rating to
94%. In 2023, we created a first-time buyers hub to
help new customers navigate the often-complex
purchase journey. This was supported by events as
part of our Love Where You Live campaign.
Build quality
We believe in creating homes that are built to last
and that reflect the way we live our lives today. Our
quality-first approach is embedded in everything
we do, from expert design and workmanship all
the way through to the materials and products
we use. Quality also forms an integral part of
our culture and is evident in every touchpoint of
the business, including in our subcontractors and
professional teams.
All units sold in 2023 have the highest Building
Energy Ratings (‘BER’) of A1, A2, or A3. A-rated
homes are the most energy efficient and tend
to have the lowest energy bills.
Every one of our active residential sites now
operates under our construction Quality
Management System (‘QMS’). The move is part
of our broader commitment to implement a
QMS to an international standard to manage
processes and systems. At its core is the principle
of continuous improvement. In 2022, NSAI awarded
Glenveagh Properties plc international ISO 9001:
2015 certification. ISO certification is granted for
a three-year period and is audited on an annual
basis. An audit was carried out in 2023 and found
us to be compliant with the standard. A further
audit will take place this year.
Looking ahead
To provide premium quality, low-environmental
impact homes at affordable prices, we maintain a
focus on continuous improvement across all three
pillars of our customer strategy. Innovation and
cutting-edge construction technology, combined
with a customer-centric approach and unrivalled
commitment to quality, serve to fuel our success.
We have a strong track-record of creating
sustainable mixed-tenure developments and will
continue to work with our partners, including the
government, to deliver a strategic mix of social
housing for local authority tenants, affordable
housing for those on low incomes, and private
housing all together. Specifically this year, we
will deliver our first homes from our Partnership
business segment where we have entered
development agreements with two local
authorities to build on their land.
By investing in technology and creating a more
accessible portal, we reduced our reliance on
third-party partners and increased the number of
direct enquiries from customers. In 2023, there was
a 46% increase in direct enquires from potential
buyers registering an interest in our developments
via social media ads.
At the same time, a focus on customer
communications increased our brand awareness by
four percentage points to 47% in the independent
survey by Ipsos/Behaviour & Attitudes in December
2023, making us the most recognised Irish home-
building company. Importantly, brand awareness
within our key Leinster market stands at 59%.
Affordability
Just like our customers, we know that every penny
counts, especially when it comes to buying a
home. That is why we place such an emphasis
on championing affordability and helping
young people and first-time buyers to own
their own homes.
This is most evident in our average selling price
(‘ASP’) which was €336,000 in 2023, only a very
modest increase on 2022 levels (ASP: €330,000).
70% of our units sold were at prices below the
national market mean price, and 88% of our units
sold in the GDA were below the mean price of new
homes sold in that region (source: CSO).
Among the initiatives we continue to support
are the Help to Buy and the First Home
Schemes (‘FHS’). The latter helps first-time buyers
with up to 30% of the market value of their newly
built home in a private development anywhere in
the Republic of Ireland. In 2023, 78% of the homes
in our suburban portfolio qualified under FHS.
The independent survey referenced above,
published in December 2023, found that 35% of
all adults associated Glenveagh with affordable
homes and 36% said we provided the most
information about using schemes to get on the
property ladder. These scores were significantly
ahead of our main competitors in the market.
How we measure progress
>
Customer satisfaction rating.
>
ASP FY 2023.
>
% homes priced below mean in
relevant regions.
>
% sites operating under our construction QMS.
OUR STRATEGY
CONTINUED
As part of our commitment to customer excellence,
we will continue to enhance the digital customer
journey so that they can better understand the
end-to-end planning, design, and construction
processes. Customers will be guided through the
entire buying process from registering their interest
right through to moving in – and all in real-time.
We will also continue to broaden our after-sales
service by offering a range of additional products
and services from an approved pool of suppliers at
competitive rates.
A new and exclusive web series in 2024 will
highlight the affordability of our products alongside
the government’s demand-side initiatives. The
series will also outline new options for affordable
housing solutions.
In 2024, we will also introduce the option
for customers to use Docusign to enable a
digital contract exchange as part of our
automated delivery timeline for customers,
development updates and document and
payment management.
We will also launch a centralised snagging system
alongside a comprehensive digital FAQ library.
Meanwhile, we will roll out improved inspection
checklists and introduce new quality bulletins to
target key focus areas to enhance build quality. At
the same time, we will capitalise on new reporting
software in the build quality team to provide live
quality performance data from all active projects.
Most of all, we will continue to build high-quality
and affordable homes in places where people
want to live.
Average selling price
€336k
Customer satisfaction rating
94%
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OUR STRATEGY
CONTINUED
A new benchmark for sustainable
residential development
Wilkinsons Brook is a striking collection of architect-designed family homes just outside Dublin,
an early example of our commitment to compact growth.
The development is a tangible example of the
innovative thinking that defines the Glenveagh way
and will help us continue to enhance our model for
more sustainable living.
The 69 homes – of varying sizes and designs –
were devised in partnership with master planners
Proctor and Matthews and Irish architect Dermot
Bannon to create a higher-density, family-
orientated neighbourhood that reflects the needs
of modern homeowners.
Strategy in action: Wilkinson’s Brook
The project is an early example of our commitment
to compact growth and takes advantage of
existing infrastructure, streets, transit links, walkable
areas, and proximity to shops and jobs. Compact
growth enables us to achieve higher housing
densities without compromising quality, create
own-door housing to enhance communities, and
prioritise affordability. This approach aligns with
broader efforts to address housing shortages and
create vibrant, liveable spaces for residents.
New homes delivered
69
Strategic priorities linkage
The key design principles ensure highly effective
use of public and private space, a potential
reduction in embodied carbon compared to
alternative approaches, a wider pool of qualifying
homeowners, and a better quality of life for current
and future generations. We will continue to innovate
around our compact growth initiatives.
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We will establish and develop great places for people to live,
where communities and nature can flourish for the long term.
Creating
sustainable
and thriving
places to live
Pillars
Social impact
Create places where people love to live, ensuring connectivity to
the things that matter to them.
Land use and biodiversity
Use land in the most efficient way while protecting and
ultimately contributing positively to biodiversity.
Links to risks
02
OUR STRATEGY
CONTINUED
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
OUR STRATEGY
CONTINUED
“We believe that providing high quality homes in
flourishing communities is the foundation of a better,
brighter future for homeowners.”
We don’t just build
homes; we build lasting
communities
We are committed to helping communities to
flourish by enriching the lives of the residents and
the environment that surrounds them. We do so
through our long-term support for local initiatives,
working in close collaboration with our partners
and community leaders to understand their needs,
their objectives, and their overall vision.
To make a lasting impact, we place a strategic
focus on creating positive social impact and
promoting sustainable land use and biodiversity.
In addition to promoting greater sustainability, this
includes supporting a variety of charities, the local
economy, sport and fitness initiatives, health and
wellbeing programmes, and educational schemes.
Safe working is a key priority for our business, and
we share our learnings and experience with local
schools. In 2023, we hosted 14 construction safety
talks to more than 1,000 pupils in areas where we
have a presence.
More than 50 Glenveagh staff provided a total of
over 450 volunteering hours on a range of projects
across our communities. As well as providing work
experience and mentoring through our school
outreach programme, we expanded the range
of apprenticeships and placements we offer to
second-and-third-level students.
Land use and biodiversity
As a critical resource, we want to ensure that we
use land in the most efficient way we can, while
protecting and enhancing biodiversity at each
stage of our process. We pre-plan to protect
sensitive ecosystems, design in collaboration with
local authorities, and create life cycle schemes to
cater for every consumer group.
We understand that the local environment has a
huge impact on health and wellbeing, so where
possible, cycle paths and walkways are a key
feature in our developments. At the same
time, we nurture nature through a range of
planting initiatives.
Social impact
We believe that providing high-quality homes
in flourishing communities is the foundation
of a better, brighter future for homeowners.
That’s why we are vested in our local approach
to developments – from supply chain and
manufacturing the elements needed to build, to
supporting the local economy, right up to ensuring
that local communities feel at home long after
everyone has moved in.
As we plan to develop in a locality, we always
search within the county and bordering counties
for subcontractors to carry out all works. We also
endeavour to trade with the local supply chain
where possible. From day one we need site services
such as waste management, builders providers,
and fuel suppliers and where possible these
services and many more are sourced locally to the
scheme.
To support our business objectives around our
community work, we have developed a ‘Building
Lasting Communities’ programme which focuses
on enhancing the lives of people within our
communities in a variety of ways.
To date, our community and sponsorship funds
have provided invaluable support to local initiatives
from grassroots sponsorship to sports facilities
upgrades to school donations and other local
initiatives close to the heart of our communities.
Each activation, in alignment with the overall
objectives, sits within one of the six strategic
community pillars underpinning all activity at
community level: Education, Sustainability,
Health & Wellbeing, Sports & Fitness, Local
Economy and Charity.
How we measure progress
>
‘Build Communities, not just Homes’
brand score.
>
Donations to charities/local communities.
>
Social value metric (under development).
>
Biodiversity metric (under development).
We show respect to the past too, restoring
listed and protected features such as stone
walls and hedgerows.
This year, we developed a new Biodiversity
Strategy to be rolled out in 2024. The aim of the
strategy is to provide all our stakeholders with
an understanding of how we will protect and
enhance biodiversity at each phase of the journey
on our sites from land acquisition to operation and
handover. It will be continuously updated as we
further measure and assess our impacts.
The strategy demonstrates our commitment to
engage with our supply chain on this important
issue so that we can drive real change. It also
sets out how we collaborate and engage
for biodiversity with stakeholders including
homeowners, communities, and industry groups.
In 2023, we joined the newly formed Business for
Biodiversity Community of Practice (‘COP’) along
with a small number of corporates, public sector,
and educational organisations. This allowed us to
learn from each other and share knowledge on this
evolving topic. This year, we also joined the Irish
Green Building Council’s COP on biodiversity.
Throughout the year, we sponsored over 80
biodiversity bootcamps with more than 2,200
school children as part of the Nature Hero Awards.
For more information on our approach to
biodiversity please see pages 78 and 79.
‘Build Communities not just Homes’ brand score
22%
(19%: 2022)
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OUR STRATEGY
CONTINUED
Looking ahead
We will continue to develop a bespoke tool that
measures the social value generated for each of
our new developments. The tool, which has already
been piloted in selected sites, allows us to measure
the wider societal value of our developments in
economic terms.
We also intend to roll out our biodiversity action
plan and to fully embed the topic across our
strategic pillars. This will include a communication
plan, training, and integrating biodiversity elements
into our processes and procedures.
As part of this approach we will review, evolve, and
improve our approach to biodiversity impacts and
dependencies with input from our supply chain.
We will also collaborate with key stakeholders to
increase and share knowledge about biodiversity
externally. This will include engaging with
communities and schools to raise awareness
around the issue.
Strategic priorities linkage
Strategy in action: place-making
Playing a vital role
in communities
Our Building Lasting Communities programme is dedicated to
building flourishing communities all across the country. We are the first
homebuilder in Ireland to focus on community, with a dedicated team
to support our approach.
National partnerships
The number of national-level partnerships we
brought to our local communities continued to
grow. In 2023, we had a total of seven national
partnerships in place, including our long-
standing collaborations with ALONE, the Jack
& Jill Foundation, and the National College of
Ireland’s Early Learning Initiative. We donated to
18 charitable causes nationwide in 2023.
Glenveagh and its manufacturing business NUA
were involved with 36 local sports partnerships
across Ireland, while we also supported
initiatives such as the LGFA’s Gaelic4Girls
programme and Co-operation Ireland’s cross-
border youth programme. In 2023, we increased
our ‘Build Communities not just Homes’ brand
score to 22% (2022: 19%).
Community focus
We hosted four community events in 2023 with
an average attendance of over 200 residents,
alongside two careers days in Kilmore and Carlow
(NUA) resulting in local recruitment for our sites
and manufacturing facilities. We added to this
by developing new online community hubs and
newsletter updates to communities across Kilkenny,
Coolock, Kilruddery, and Cork.
Hours of volunteering in local communities
450+
(320+: 2022)
Corporate Governance
Financial Statements
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OUR STRATEGY
CONTINUED
We will plan, design, and assemble superior
products using best-in-class processes across the
build life cycle. Clear accountability will enable
us to make operational choices rapidly and
decisively, and to allocate resources as efficiently
as possible.
Driving
operational
excellence
Pillars
Efficiency
Establish an end-to-end, time-bound process for the build
cycle, with clear accountability at each element, supported
by appropriate oversight. Enhance efficiency and use fewer
resources (time, money, materials, energy, natural resources)
to create a high-quality product.
Links to risks
02
09
03
10
05
11
06
08
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OUR STRATEGY
CONTINUED
How we measure progress
>
Operating margin.
>
Greenhouse gas emissions.
>
Operational energy intensity
(mWh/100sqm).
Leveraging our scale
and expertise is creating
greater efficiency,
higher margins and
improved returns
As our business continues to grow, we can better
leverage our scale to drive operational excellence
and generate greater efficiencies.
The strength of our leadership, the skills and
capabilities of our workforce, and a focus on
innovative ideas and technology has helped
pave the way for a more agile and productive
business. That means streamlined processes,
shorter timelines, less waste, and a need for fewer
components – all without impacting the high-
quality products for which we are known.
In 2023, we continued to enhance and expand
our Group reporting system that provides real-
time data to improve operational excellence. We
developed and embedded detailed dashboards
that capture data from across the business which
provides real-time live information on time, quality,
costs, design, and construction issues. The system
gives us a precise view of our operations, creating
greater collaboration and transparency between
teams. By harnessing our data in this way, we
have improved our agility and the quality of
decision-making.
Our disciplined approach to land management
is another critical element of our approach to
operational excellence. Our strategic landbank
allows the company to manage the supply of land
available for future development, ensuring a steady
supply in key locations. This stability in land supply
can help the business plan for the long term, as
well as negotiate better deals with local authorities
and other stakeholders.
Standardisation has also played an increasingly
significant part in our momentum in 2023, driving
greater efficiencies at every touchpoint in our value
chain and demonstrating a clear point of difference
in the way Glenveagh operates.
Our standardisation model enables us to be highly
efficient in the construction of houses and the
resources required to complete them. As a result,
we can plan, design, and build more effectively,
with greater efficiency, less cost, at greater speed,
and in greater numbers than ever before.
Standardisation begins with land acquisition and
is a key driver in our approach to the planning,
design, and construction phases of each project.
We design our homes and submit planning
applications based on our standardised typologies
that are developed in the most efficient ways
possible for manufacturing in our factories.
In 2023, we more than doubled the number of units
using standardised housing typologies, and by
next year only a small percentage of homes will
be non-standardised.
Our scale and long-term supply chain commitments
allowed us to better integrate our supply chain to
significantly mitigate build cost inflation in 2023.
The launch of NUA, the innovative manufacturing
and new technology arm of the Group, has also
provided new and valuable opportunities for
growth and productivity.
NUA applies efficient, precision, low-waste
manufacturing processes to create the components
required for our high-quality sustainable homes.
NUA gives us greater control over our supply chain,
allows for faster, more consistent construction, and
enables us to get products to market faster. We
now have the capacity to deliver more than 2,000
units per year.
Strategy in action: big data, big changes
Better connections make
building better more efficient
Quality management was further strengthened in 2023 with the
widescale roll-out of our advanced digital system for managing
construction projects from design to delivery.
Strategic priorities linkage
The cloud-based platform is active across all
construction sites and projects, providing real-
time, detail-rich data that provides insight into
quality, costs, and timing. Subcontractors and
consultants also have access to the portal. To
date, 93% of the organisations we work with are
registered and trained on the system, allowing
for better communication and collaboration.
We are adding functionality regularly and, this
year, targeted the mechanical installation in our
housing units as an area for improvement. As a
result, we saw an 67% reduction in mechanical
issues raised through customer care compared
with 2022.
In 2023, we also developed additional internal
inspection templates for site development
works. Our site development contractors are
now using these inspections on all active
projects to capture and record the quality of
their work.
Last year, we achieved an ISO 9001:2015
Certification, part of a series of quality
management system standards. Following the
award, an annual National Standards Authority
of Ireland surveillance audit was completed and
raised no issues.
One way our progress in operational excellence
can be measured is in our FY 2023 suburban
gross margin which increased to 20.2% (2022:
18.4%). There was an underlying 90 basis points
increase as the business benefitted from enhanced
operational efficiencies. This was augmented by
an impact from land sales of approximately 90
basis points.
We are also delivering operational efficiency in a
sustainable way: 85% of suburban homes delivered
in 2023 had the top A1 rating (2022: 55%), with the
remainder having a BER rating of at least A2 or A3.
Looking ahead
We will maintain a disciplined strategic approach
to landbank investment, executing an increasing
number of structured land deals which will improve
the cash and capital efficiency of the business.
We will also continue to seek to reduce costs
through greater standardisation of our products
and processes. This standardisation will enable us
to scale the business at a faster rate while offering
greater efficiencies across the Group.
A full-scale roll-out of our end-to-end process on
all sites is planned, which should enhance internal
efficiencies while also enabling better quality
subcontractor output and cost management. It
should also drive a higher rate of task completion
across all departments.
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Strategic Report
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Financial Statements
Strategic Report
Corporate Governance
OUR STRATEGY
CONTINUED
We will be an employer of choice and the best place to
work in our sector. We will attract and retain a diverse, high-
performance workforce in a safe and inclusive environment
that flourishes in a culture of teamwork and trust.
Valuing and
developing
our colleagues
Pillars
Talent
Attract and retain high-calibre talent, ensuring we have a
high-performance organisation that is fit for the future.
Culture
Create a strong culture centred on our values, with an ethos
of equity, diversity, and inclusion.
Safety
Foster a culture of safety for all those employed and affected
by what we do.
Links to risks
09
10
07
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OUR STRATEGY
CONTINUED
How we measure progress
>
Turnover rate.
>
Training hours per monthly
salaried employee.
>
Great Place to Work survey score.
>
Total Recordable Incident Rate (‘TRIR’).
Engaging, motivating,
and protecting our
people delivers
long-term success
We recognise that Glenveagh is only ever as good
as its people. Attracting, retaining, and developing
high-calibre talent is what makes us competitive
and gives us the ability to deliver strong results
and outstanding customer satisfaction.
That is why we place such importance on nurturing
a vibrant, inclusive workplace where people feel
valued, supported, and able to be themselves. To
achieve this, we are active in our engagement with
all our employees. Understanding their needs allows
us to develop and deliver the right training and
development they need so they feel valued and
motivated to contribute to the company’s success.
At the same time, we are committed to protecting
the health, safety, and wellbeing of everyone with
whom we engage and work. That is why we go
above and beyond health and safety standards
and requirements to keep our workers and the
public safe.
Talent
We look for and develop talent at every level
throughout the organisation – and even outside it.
We actively engage with schools, universities,
and youth centres offering knowledge and insight
on careers in the construction industry. This includes
offering work placements and scholarships
where appropriate.
At Glenveagh, performance development is aligned
to our overall strategy. In 2023, we significantly
enhanced our performance management
capabilities, supported by a learning management
system with much greater digital accessibility.
The performance development process closely
connects managers and their teams, highlights
areas for development, and gives employees more
opportunities to help navigate their own careers
and training needs.
Colleagues have a set of clear, attainable goals
that marry our business priorities with our values.
Development is also about the person, rather
than just their role.
The performance development framework is
designed to encourage regular feedback through
conversation, and gives colleagues a greater say
in their development. Most of our learning modules
and training courses are available for employees
to select online.
Succession planning is another important element
of our approach, and we place a great emphasis
on developing the potential of key talent across
the business. For example, in 2023, we developed
the Glenveagh Learning Academy. This is a two-
year programme for emerging talent that not only
develops our people but also provides us with the
talent we need to flourish in the future. Our first
academy, focuses on construction, and is designed
to create future site leaders, providing them with a
range of practical skills and experiences through
job rotation, coaching and mentoring, and training.
At the same time, we inaugurated a
pioneering leadership development initiative
– a comprehensive five-day course centred on
Situational Leadership, which focused on topics
such as relationship management, delegation,
problem-solving, decision-making, negotiation
skills, effective communication, and influencing
techniques. The primary aim was to equip
managers with the skills needed to adeptly
‘conduct their orchestra’, empowering them to lead
in the most effective, engaging, and impactful way.
We continued to build on the partnerships we
have created to both champion our industry
and to provide training and access to fulfilling
careers in construction. In association with the
Irish Management Institute (‘IMI’), we operate a
12-month graduate programme, designed to attract
and train recent graduates. In 2023, we offered
support for more than 30 graduates who studied a
range of subjects, including topics such as change
management, leadership, and core skills.
We are also active in raising awareness about the
construction industry itself and career opportunities
in secondary schools close to our developments.
Culture
We often describe our organisational culture as the
Glenveagh way. It’s not just about the way we do
things, but also about why and how we do them.
Our culture is based on all the experiences our
team members have each day, whether on-site or
in the office. The actions of our senior leadership
set the tone for the entire organisation, while our
colleagues’ participation and engagement at every
level bring our culture to life.
We promote open dialogue and transparency to
build trust and mutual respect, and employees feel
informed, valued, and heard. This is done through
forums, network groups, surveys, coaching, and
mentoring, supported by our newly designed,
collaborative all-hands spaces.
Our performance management and learning and
development programmes encourage continuous
learning and growth.
In 2023, we introduced G.R.I.T. – Goals, Reflection,
Impact, Talent – a new, digitally-focused
performance management programme. Strategic
priorities aligned to our strategy and individual role
goals were set and cascaded from the Executive
Committee across the organisation. A total of 2,291
goals have been included in G.R.I.T, 87% aligning
to Building Better priorities and 13% linked to
individual objectives.
To support the launch, we provided blended
training to empower managers to have regular,
short conversations focused on the individual
and to focus on the individual’s needs and goals,
not the administration. We also increased and
improved regular communication across all our
platforms – from emails to town hall meetings.
We encouraged regular check-ins and assigned
HR Business Partners to collaborate with managers
across the business. Greater automation and
a digital presence have further streamlined the
process, making it simpler and more accessible.
For example, this year, we rolled out our Learning
Hub online. This hub empowers staff to make their
own decisions about training, offering access to
a wealth of initiatives. It also gives managers a
clear view of the learning journeys of each of
their team members.
Great Place to Work Score
78%
(78%: 2022)
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OUR STRATEGY
CONTINUED
A year of growth for equity,
diversity, and inclusion
People will support what they help create, which is why collaboration is such an important part
of our culture at Glenveagh and why we are committed to positive employee engagement.
In 2023, we established five new Employee Network
Groups (‘ENG’) to provide a platform for employees
to connect, share experiences, and support each
other. Their creation was informed by the results
of a Group-wide survey led by the Irish Centre
for Diversity to understand the needs of our
people. Each ENG has a dedicated sponsor on the
Executive Committee, and the five focus on Parent/
Carers, Disability, LGBTQI+, Ethnicity, and Women.
Strategy in action: engaging and listening
We also established a dedicated steering group
to oversee our approach to equity, diversity, and
inclusion (ED&I) and execute our Building a Better
Workplace strategy. The group has quarterly
meetings, provides workplace guidance, and
ensures progress against our targets and actions
under each of our ED&I workstreams.
We are delighted to have retained the Investors
in Diversity Silver mark and have achieved an
overall result of ‘Building Momentum’. In 2024,
our goal is to achieve the coveted Investors in
Diversity Gold mark.
Strategic priorities linkage
GPTW – D&I Statements
88%
Women on the Board
43%
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Total Health & Safety Training Hours
7,406
Wellbeing is another crucial component of our
culture at Glenveagh. Employee wellbeing improves
personal, physical, financial and mental health
and increases productivity, camaraderie, and
work-life balance.
In 2023, we reinforced our drive to promote a
healthier workplace and employees’ physical and
mental wellbeing. This included Mental Health First
Aiders, our Employee Assistance Programme, and
supporting greater flexible working. Our Sports and
Social Committee is another employee-led group
that contributes to wellbeing initiatives.
This year, we also improved our physical workspace
by relocating to a new state-of-the-art head office
with ergonomically designed workspaces, standing
desks, as well as additional meeting booths
and rooms. We also created eight collaboration
areas, a large town hall/training space, an on-
site restaurant, changing room facilities, and a
dedicated wellbeing area.
We are committed to creating a workplace that
thrives on a culture of equity, diversity, and inclusion
(ED&I). Doing so is a vital part of the success of
our business, providing a richer understanding of
those we work with and for on a daily basis. We
launched our ED&I Strategy in December 2022, and
throughout 2023 we have focused on implementing
our commitments in line with our three objectives
of better representation, an inclusive environment,
and using our influence.
We recognise however that systems and
processes will only get us so far which is why we
are prioritising strengthening our safety culture.
Our Safety Culture Strategy launched in 2022 by
establishing our baseline to understand where we
were as an organisation and determine our starting
point. Throughout 2023, we have made significant
progress in line with the three objectives of the
strategy: develop the culture of safety, move from
‘what’ to ‘how’, and develop safety leadership skills
at all levels of the organisation. You can read more
about this on the opposite page.
For more information on our health and safety
performance please see page 88.
Looking Ahead
In 2024, we will continue to build on our
achievements in developing our talent, culture,
and safety across the Group.
Enhancements to the content and functionality of
our performance management system and the
continued roll-out of the Learning Academy
will help us attract and retain the talent we
need to thrive.
Meanwhile, we will further develop our safety
culture by rolling out the second phase of the
safety leadership skills programme aimed at
all managers across the organisation.
At the same time, will continue to build on our
ED&I initiatives. In 2024, we aim to achieve a Gold
Investors in Diversity ED&I Mark while developing
the ways in which our community funding can be
better used to advance inclusion in society.
One of our first actions was to set up a robust
governance structure to ensure appropriate
direction and oversight. The employee voice is
represented through our five Employee Network
Groups covering key ED&I aspects. We also
initiated a number of training modules supported
by regular communications both internally and
externally. We have formed partnerships with
schools, universities as well as organisations like
Business in the Community Ireland (‘BITCI’) to
further diversity within the industry and ensure
a more diverse pool of candidates through out
recruitment processes.
External commitments, such as BITCI’s Elevate
Pledge and our achievement of the Investors in
Diversity silver mark, are important benchmarks
for us to drive continuous improvement.
For more information on our training and skills
development and ED&I approach and performance
please see pages 85 to 88.
Safety
The health and safety of our people and
partners is critically important. We are committed
to the highest industry standards of health
and safety and recognise it is an area we
are all responsible for. Indeed, awareness,
ownership, and accountability remain
fundamental to our approach.
Our safety management system, which is
accredited to ISO 45001 (Occupational Health
& Safety), sets out a robust framework for our
approach supported by a dedicated environmental
health and safety department focused on risk
management throughout the business. Monthly in-
house and externally facilitated health and safety
audits are carried out across all sites. In 2023, we
completed 168 audits across Glenveagh sites.
OUR STRATEGY
CONTINUED
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Walk the talk
Challenge those who do not
wear 5 points of PPE on site
Challenge unsafe
behaviours & situations
Acknowledge positive
behaviour & practices
Actively promote the
importance of EHS &
actively engage with all
our stakeholders
Accept colleagues
holding me accountable
I Will...
OUR STRATEGY
CONTINUED
Enabling a
culture of safety
The safety and wellbeing of everyone who we engage and work with is
the most important thing to us. Our safety culture journey demonstrates
commitment and leadership, right across the organisation, starting at
the top.
The Glenveagh Safety Commitment was launched
in 2023 – a commitment to a robust safety culture
and to champion safer working. Known as the ‘I
Will’s’, the commitment was signed by the entire
Executive Committee and outlines six behaviours
that will positively impact and influence our safety
culture across the organisation.
In support of this commitment, we launched a
Safety Leadership Skills programme tailored to the
organisation’s specific needs. The first phase of this
was introduced in 2023 with participants including
the Executive Committee, Senior Leadership Team,
Contracts Managers, Site Managers, and EHS
Advisors. It is designed to help employees develop
their leadership skills, raise awareness about safety
issues, and strengthen local safety ownership
and accountability. The roll-out will continue in
2024 for People Managers, Site Foremen,
and Site Administrators.
Strategy in action: strengthening safety
Strategic priorities linkage
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We will be at the cutting edge of innovation
in the homebuilding sector, allowing us to
transition to a low-carbon economy with
the best value, circular construction.
Embracing
innovation
Pillars
Efficient, low-carbon,
circular construction
Develop innovative solutions throughout the project lifecycle
to reduce costs and whole-life carbon from our buildings;
incorporate circularity to support our net zero ambition.
Research and development hub
Foster a culture of research, innovation, and entrepreneurship
within the organisation and be recognised for this in the industry.
Links to risks
02
09
05
11
01
06
OUR STRATEGY
CONTINUED
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OUR STRATEGY
CONTINUED
New ways of working
are future-proofing our
business and reducing
our carbon footprint
To continue to be a market leader and a partner
of choice for our stakeholders, we must embrace
innovation. This is not just so that we can remain
competitive, but also so we can mitigate many of
the challenges our industry is facing – not least
climate change.
Innovation will help us to deliver better, more
efficient, low-carbon circular construction, while
capitalising on our research and development
capabilities will enable us to find new ways of
working to reduce margins and grow revenue.
Efficient, low-carbon, circular construction
Our homes are designed to be highly energy
efficient and increasingly employ efficient off-site
processes through Nua manufacturing. Our focus is
increasingly turning to incorporating low embodied
carbon components and circular principles.
In 2023, we published our Net Zero Transition Plan
setting out our decarbonisation ambition. This
includes our short-term and long-term science-
based targets which received approval from the
Science Based Targets institute (‘SBTi’).
Almost all our emissions – 98% – are derived from
outside our direct operations, so finding innovative
ways to adapt the design our homes and the types
of material we use is crucial. As part of our net zero
commitments and to lower our carbon footprint,
we are researching a range of alternative materials
and systems that can replace the more carbon-
intensive materials we use today.
We will also roll out our supplier engagement plan,
with four components. We will work together with
our key suppliers to evaluate and identify
key issues; collect and understand information
about sustainability targets, plans, and strategies;
engage and influence our suppliers and
subcontractors; and initiate a programme of
education and training.
In 2023, our innovation team explored and tested
alternatives for each stage of the project lifecycle
that reduce the embodied carbon, maximise
efficiencies, and streamline effort, input and
resources required to produce our product.
We are also seeking innovation from our supply
chains focused on reducing environmental impact
and technological development. In 2023, we
began work on our supply chain engagement
programme. By collaborating with our suppliers, we
can more effectively navigate our decarbonisation
and circular journey. A key part of that is our
participation as a founding member with the
Supply Chain Sustainability School in Ireland.
For more information on our approach to climate
change please see pages 67 to 77.
Research and development hub
We have created a design and innovation
department which is leading the way in future-
proofing the business against many of the
emerging challenges we face in the industry. Its
primary goal is to apply innovative techniques to
mitigate these challenges.
The ambition of the department is focused on
the design-and-build capabilities of the business.
Leveraging the expertise of NUA, we are increasing
the proportion of our off-site construction and
the premanufactured build value of our products.
Lightweighting technologies are also being
explored for various materials and components
that could provide more cost-effective solutions,
without compromising on quality or performance.
These innovations will align with and support the
standardisation model that we are employing
across the business.
Looking ahead
In 2024, we will publish and implement our Circular
Economy Strategy. This will set out our approach
to incorporating circular design into our processes
to maximise the efficiency of the materials that
go into our buildings and to minimise the use of
resources and the waste produce.
How we measure progress
>
Greenhouse gas emissions.
>
Premanufactured value.
>
Investment in research and development.
We anticipate that NUA will operate at scale in
2024, with the capacity to deliver product for over
2,000 homes annually. Ongoing innovation projects
will be focused on enhancing the premanufactured
value of the manufactured products and also
on driving further operational efficiencies in our
manufacturing process.
Strategy in action: NUA
Building tomorrow’s homes today
The launch of NUA has propelled Glenveagh into a new era of
innovative technology to help meet the housing needs of the future
and enhance efficiencies.
The creation of a standalone manufacturing
arm of the business has delivered significant
added value to the Glenveagh Group and
helped cement its reputation as the leading
homebuilder in Ireland.
NUA uses industry-leading technology
to produce high-quality timber frames
and light gauge steel frames used in
modern homebuilding.
With three factories in Ireland, NUA gives us
greater control over our supply chain, allows
for faster, more consistent construction, and
enables us to get products to market faster.
NUA already employs over 100 people and
supports regional businesses by sourcing
materials from local suppliers.
NUA applies efficient, precision, low-
waste manufacturing processes to create
the components required for high-quality
sustainable homes. The process includes a type
of 3D forming to produce steel parts for the
houses, using computer-generated 3D design
models, as well as pre-programmed sawing
technology to cut timber into the required
shapes and sizes.
This new arm of the business means Glenveagh
can deliver better quality, energy-efficient,
technologically advanced homes to even more
people. Capacity across the three factories has
already increased and is expected to deliver
units for more than 2,000 homes per year
by 2024.
Strategic priorities linkage
% units manufactured off-site
85%
71%: 2022
44
Glenveagh Properties plc
Annual Report and Accounts 2023
OUR PERFORMANCE
Our indicators
and metrics
How we measure performance
and determine our KPIs
To provide stakeholders with transparency into
the Group’s operational efficiency, financial
health, and commitment to sustainable
practices, a comprehensive outline of the KPIs
that are crucial to performance and measure
progress against the strategic priorities of our
Building Better Strategy are outlined.
Remuneration based KPIs
Strategic priorities linkage
Embracing
innovation
Placing the
customer first
Creating
sustainable and
thriving places
Valuing and
developing our
colleagues
Driving operational
excellence
Link between indicators and
Executive Director remunerations
The 3-year performance of KPIs upon which the
variable remuneration of Executive Directors is
based, are outlined.
READ MORE
PG 124
Links to risks
01
89%
91%
94%
2023
2022
2021
Customer satisfaction
01
04
07
11
Definition
Glenveagh engages an independent external firm to survey
our customers on topics linked to their experience with us.
Why we measure
Exceeding customer expectations is central to Glenveagh’s
strategy and a key indicator of performance linked to
variable remuneration.
89%
88%
90%
2023
2022
2021
H&S audit score
02
07
10
Definition
Glenveagh engages an external consultant and internal
safety specialists to complete safety audits monthly.
Why we measure
The 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.
€
45.7m
€
63.0m
€
55.1m
2023
2022
2021
Profit before tax
01
02
03
04
05
06
07
11
Definition
Total profit before income tax is applied. It takes into account
the various revenue sources and operating expenses
including depreciation, amortisation and interest on debt,
and overall financing.
Why we measure
Considered to be the best overall profit measure
of the business.
4.5 cent
7.6 cent
8.0 cent
2023
2022
2021
EPS
01
02
04
05
06
07
11
Definition
Basic Earnings Per Share as calculated in accordance
with IAS 33 Earnings Per Share subject to adjustment by
the Remuneration Committee at its discretion, for items
deemed not reflective of the Group’s underlying
performance for the period.
Why we measure
Indicates to shareholders how much each ordinary share
they have invested is earning.
4.6%
7.1%
6.9%
2023
2022
2021
ROE
01
02
03
04
05
06
07
11
Definition
Efficiency of returns generated from shareholder equity.
Why we measure
A key indicator into gauging Glenveagh’s profitability and
how efficiently profits are generated.
9.7%
10.9%
11.7%
2023
2022
2021
Operating margin
01
02
03
04
05
06
07
11
Definition
Margin before exceptional items and impairment
reversals/charges.
Why we measure
An indicator of revenue growth, this metric is an important
profitability ratio measuring revenue after the deduction of
operating expenses.
02
03
04
05
06
07
08
09
10
11
READ MORE
PG 53
45
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
OUR PERFORMANCE
CONTINUED
Performance metrics
17.4%
16.8%
18.5%
2023
2022
2021
Gross margin
01
02
03
04
05
06
07
11
Definition
Total sales revenue after incurring the direct costs
associated with producing the product after impairment
reversals/charges.
Why we measure
Indicates on a percentage basis the margin earned on
revenue generated in the financial year.
902
1,354
1,328
2023
2022
2021
No. of suburban units sold
04
05
06
07
11
Definition
The number of houses and apartments sold in the
financial year.
Why we measure
Metric is a key indicator of operational performance in the
financial year.
02
03
Definition
Glenveagh’s direct carbon emissions measured in tonnes of
carbon dioxide equivalent (tCO
2
e).
Why we measure
Measures progress against near-term and long-term GHG
emissions science-based targets (‘SBTs’) for Scopes 1 and 2.
02
03
Definition
Glenveagh’s indirect carbon emissions measured in tonnes
of carbon dioxide equivalent per 100sqm of completed
floor area.
Why we measure
Measures progress against near-term and long-term GHG
emissions science-based targets SBTs for Scope 3 emissions.
€
675m
€
473m
€
805m
2023
2022
2021
Forward order book*
04
05
06
07
11
Definition
Buyers who are contracted to buy units from Glenveagh in
the future.
Why we measure
Metric is a key indicator of future operational performance.
*As at the Annual Report approval date.
01
02
Definition
Measurement of a company’s management of financially
relevant ESG risks and opportunities.
Why we measure
Key indicator of how Glenveagh is performing to material
ESG risks and opportunities.
38%
34%
60%
2023
2022
2021
% of landbank planned
06
Definition
The percentage of land that we own or have
development rights that has approved planning
permission for development.
Why we measure
Metric is a key indicator of future operational performance.
01
02
Definition
Measures a company’s exposure to industry-specific material
ESG risks and how well a company is managing those risks.
Why we measure
To provide our current and prospective investors with a rating
on how Glenveagh is managing industry specific material
ESG risks.
Sustainalytics ESG rating
16.4 Low Risk
2022: 19.3 Low risk
2021: 19.3 Low risk
Scope 1 & 2 emissions (absolute) (tCO
2
e)
Scope 3 emissions (intensity) (tCO
2
e/100sqm)
MSCI ESG rating
AA
2022: AA rating achieved
2021: AA rating achieved
3,566
4,616
4,108
2023
2022
2021
150.3
142.9
139.1
2023
2022
2021
46
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Annual Report and Accounts 2023
How the Board considered
stakeholders during the year
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 and operational decisions are being made.
Glenveagh has identified six key stakeholder
groups, with each requiring 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 engages 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 100 to 139. Details of how
Glenveagh engaged with employees, suppliers,
shareholders, customers, communities, government
and regulators and outcomes from these
engagements are outlined on pages 47 to 49.
The Board is continuously kept 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.
OUR VALUE CREATION
47
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Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
OUR VALUE CREATION
CONTINUED
Customers
Why we engage
We are committed to building on our reputation
as the leading provider of high-quality, affordable
homes in Ireland. Central to this are the
relationships that we build with our customers and
our continuous drive to provide an outstanding
service at every part of the customer journey. We
believe that by engaging with our customers, we
can better understand their evolving needs and
preferences, and ensure that we are providing
sustainable, high-quality homes that exceed
their expectations.
How we engage
We engage with our customers by actively listening
to their feedback, responding to their needs and
concerns, and by delivering high-quality homes
that exceed their expectations, we can build trust,
loyalty, and a positive reputation in the market.
We engage with customers through our 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 sales and customer
care departments are also available to provide
support throughout the customer journey and have
developed a homeowner’s guide as a reference
point for customers. We conduct monthly customer
satisfaction surveys and bi-annual brand surveys to
obtain customer feedback.
Employees
Why we engage
We understand that our employees are at the
heart of our success and are our most valuable
asset. We are committed to creating a positive
and inclusive workplace culture that promotes
teamwork, collaboration, and innovation. By
actively engaging with our employees, we
can ensure that their needs are met, and they
feel valued and motivated to contribute to the
company’s success.
How 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, town
halls, leadership correspondence, our employee
suggestion scheme, surveys and site visits. During
November 2023, 75% of employees participated in
the Great Place to Work Culture and Engagement
Survey. Our Corporate Affairs Team provided
regular internal communication through our
dedicated employee app. Our Workforce
Engagement Director, Cara Ryan, engaged directly
with employees every six months and presented
her findings to the Board. Details of these activities
are outlined in the Corporate Governance Report
on pages 104 to 111.
How is effectiveness measured?
>
Customer satisfaction and brand
awareness surveys.
>
Reservations and enquiries from our
customer website.
>
Performance versus budget, forecast and
market data.
>
Resident surveys.
>
Customer care reporting and metrics.
Interests and concerns
>
Regular and consistent communication
throughout the many steps of the home
buying process.
>
The capability to conduct a virtual home
buying journey.
>
Clarity on moving dates.
>
Information on the locality and the
features of the community.
>
The quality, energy efficiency and
affordability of the house.
Outcome from engagement
>
Establishment of a dedicated customer
care team and development of the
homeowner’s guide.
>
Leads are up 46% year-on-year.
>
Increased brand awareness by 47%.
>
Improvements to our customer website
and investment in state-of-the-art CGI
walkthrough tours.
>
Customer satisfaction rating of 94%.
FY 2024 Priorities
>
Our priorities for FY 2024 are outlined
as part of the Placing the Customer
First strategic priority on page 29 of
this report.
How is effectiveness measured?
>
Feedback and scoring received through
the Great Places to Work culture and
engagement survey.
>
Feedback from employee committees.
>
Monthly reporting including health and
safety audits, turnover rates, training and
development levels.
>
Feedback from the Workforce
Engagement Director.
>
Engagement with staff email
communications and surveys.
Interests and concerns
>
Employee engagement.
>
Culture and Employer Value Proposition
(‘EVP’).
>
Opportunities for training, development
and career progression.
>
Health, safety and wellbeing of
employees in work environment
and processes.
>
Equity, diversity and inclusion (‘ED&I’).
Outcome from engagement
>
Embedding the Group’s ED&I strategy
and Gender Pay Gap reporting.
>
The Board received and considered
feedback from the Workforce
Engagement Director.
>
Investment in Internal Communications
function, increasing output thereof.
>
Integration of Glenveagh’s EVP pillars.
>
Senior Leadership sponsorship of
employee committees.
FY 2024 Priorities
>
Our priorities for FY 2024 are outlined as
part of the valuing and developing our
colleagues strategic priority on page 37
of this report.
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Annual Report and Accounts 2023
OUR VALUE CREATION
CONTINUED
How is effectiveness measured?
>
Feedback received from
investor meetings.
>
Analyst reports.
>
Participation at AGM and EGMs.
>
Weekly and monthly investor relations
internal reporting.
>
Monthly updates on institutional
shareholdings.
Interests and concerns
>
The impact of planning challenges on
Glenveagh’s performance and outlook.
>
The Irish political landscape and its
potential impact on how the business can
engage with the State in the future.
>
Build quality and customer
satisfaction levels.
>
Capital allocation policy.
>
ESG related risks and opportunities.
>
The need for progress updates on the
long-term targets of the business.
>
Board composition and governance.
Outcome from engagement
>
142 investor meetings in 2023.
>
Presented at four investor conferences.
>
Shareholder consent for our capital
returns programme.
>
Share register activity and
trading volumes.
>
Interest from new investors.
FY 2024 Priorities
>
Continue and extend our programme
of investor meetings.
>
Attendance at investor conferences.
>
Participation and hosting of visits to sites
and to our manufacturing facilities.
>
Engagement of the Chair and Senior
Independent Director with investors.
>
Ongoing and regular engagement with
shareholders on specific topics.
Shareholders
Why we engage
We recognise that our shareholders are
key stakeholders who invest in our business. We
are committed to maximising value for them by
achieving sustainable growth through our strategic
priorities, and by allocating capital efficiently and
effectively. We engage with our shareholders
through a combination of direct engagement,
regular communication and transparent reporting.
We provide updates on our business performance,
financial results, and progress against our
strategic initiatives.
How we engage
We maintain an active dialogue with our
shareholders through various channels, such
as regular meetings, shareholder presentations,
investor conferences and online updates. We also
engage with shareholders on specific topics, and
where relevant, provide feedback to the Board,
which we then consider as part of our decision-
making processes. Our commitment to engaging
with our shareholders is a fundamental part of our
business strategy. Our focus is to build long-term
relationships based on transparency, trust, and
mutual benefit. We will continue to work closely
and consistently with our shareholders to ensure
that we optimise value for them.
Communities
Why we engage
We understand that our business operations have
an impact on the communities in which we operate,
and we are committed to contributing positively
to the social, economic, and environmental well-
being of our communities. We engage with our
communities in a collaborative and transparent
manner, so that we can build trust, enhance
our reputation, and create sustainable, thriving
communities. This engagement is a central aspect
of our responsible business model that benefits all
of our stakeholders.
How we engage
We engage with our communities across six
community pillars – Education, Sports & Fitness,
Health & Wellbeing, Sustainability, Local Economy
and Charity. We also work closely with local
authorities and community groups to ensure that
our projects are designed and built in a way
that benefits the wider community. We utilise
a multi-disciplinary approach that involves our
land acquisitions, sales, planning and design
teams, and that allows us to identify the needs of
local community groups and, in partnership with
community groups and local authorities, decide on
the best way to meet these needs.
How is effectiveness measured?
>
Regular resident surveys and research.
>
Progress against our Community
Engagement Strategy objectives.
>
Independent stakeholder research.
Interests and concerns
>
Being responsive to the views of the local
community and managing impact in
Affected Communities.
>
The efficient use of land and sustainable
place making.
>
The protection of biodiversity, investment
in local infrastructure, restoration of listed
and protected features.
>
Support for local sports clubs, schools
and community groups.
Outcome from engagement
>
Increased ‘Building Communities not just
Homes’ brand score.
>
130 community activities in 24
communities nationally.
>
Nature Hero Awards and social value
pilot survey.
>
Positive sentiment rating in
resident surveys.
>
Development of community hubs to
update on new community activity.
>
Business Supporting Community Award.
FY 2024 Priorities
>
Increase in the number of schools
engaging in biodiversity workshops,
construction site safety talks and careers
in construction days.
>
Community days with increased resident
and local business participation.
>
Increase employee volunteering hours
and charity fundraising.
>
Community engagement launch in
new communities.
>
Improved community communication
through community newsletter reports
and digital hubs.
>
Social value tool roll-out across
all developments.
>
Biodiversity Strategy.
49
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Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
OUR VALUE CREATION
CONTINUED
How is effectiveness measured?
>
Through regular audits & inspections
in accordance with our Quality
Management System.
>
Customer satisfaction survey.
Interests and concerns
>
Visibility of future projects and workloads.
>
Delivery of an energy-efficient and low
carbon supply-chain.
>
Ethical business practices.
>
Prompt payment of invoices.
>
Safety practices and business conduct.
>
Impact of global supply-chain challenges
on the availability and cost of materials.
Outcome from engagement
>
Supply arrangements were put in place to
limit any potential disruption arising from
global supply-chain challenges.
>
The Board approved our
manufacturing strategy.
>
Monitoring of subcontractor performance
through inspection plans.
>
Engagement with subcontractors on
corrective action plans.
>
Informs our customer journey experience
and handover guide.
FY 2024 Priorities
>
Continue to implement efficiencies
across our sites in line with our
ISO 14001 accredited Environmental
Management System.
>
Publication of our circular economy plan.
>
Supplier engagement programme to
support the implementation of our
Net Zero Transition Plan.
>
Community engagement initiatives to
generate local employment for vendors
and subcontractors.
How is effectiveness measured?
>
Progress of planning applications and
planning grants.
>
Social, cost rental, and affordable
housing deliveries.
>
Outcomes of statutory policy
consultation processes.
>
Implementation and application of
legislative amendments.
Interests and concerns
>
Planning policies.
>
Building and environmental regulations.
>
Health and safety matters.
>
Social and community issues.
>
The application and effectiveness of
affordability supports to customers.
>
Economic policy to underpin a
sustainable housebuilding industry
in Ireland.
Outcome from engagement
>
Social, cost rental, and affordable
housing deliveries pipeline.
>
New compact growth guidance published
that facilitates innovative approaches to
medium and higher densities.
>
Successfully progressed the key
developments in our Partnerships
business through planning and into
commencements on-site.
>
Initiation of a review of the National
Planning Framework.
>
Publication of a new Planning and
Development Bill.
FY 2024 Priorities
>
Continue to engage with relevant
authorities on planning and development
legislation being enacted this year.
>
Participate in consultation on the review
of the National Planning Framework.
>
Work with Approved Housing Bodies and
Local Authorities to deliver social, cost
rental, and affordable housing.
Suppliers and
Subcontractors
Why we engage
We recognise that the success of our business
is dependent on our relationships with suppliers
and subcontractors. We believe in creating
strong and mutually beneficial partnerships that
enable us to deliver high-quality projects that
exceed our customers’ expectations. By fostering
open communication, promoting fair and ethical
practices, and working together towards shared
goals, we can create a sustainable and responsible
supply-chain that delivers value for all parties.
How we engage
We have implemented various initiatives to
promote communication, collaboration, and
trust between our company and our suppliers
and subcontractors. These include regular site
meetings and workshops to share best practices,
address challenges, and identify opportunities for
improvement on topics such as health and safety,
project performance and upcoming work. We also
promote fair and ethical practices and encourage
our partners to adopt sustainable and responsible
practices that align with our values and strategic
priorities. Our aim is to create a supply-chain
that is resilient, efficient, and effective, delivering
quality projects that meet or exceed our customers’
expectations which benefits all parties involved.
Government and
regulators
Why we engage
We understand that engaging with government
and regulators is essential so that we can
provide input into various policy and regulatory
developments that affect our industry. We can also
use this engagement to promote the adoption of
sustainable and responsible practices that benefit
the wider community. In doing so, this ensures that
we can continue to deliver high-quality homes that
meet our customers’ needs.
How we engage
We engage with government departments, state
agencies and local authorities on an ongoing
basis, directly and through membership of trade
associations. We also attend and contribute
to webinars and policy consultation events.
Where revelant we host visits to selected sites
and manufacturing facilities to bring to life the
challenges and opportunities that our business and
the industry is facing. Our environmental health
and safety teams work closely with state agencies
via health and safety and environmental audits,
and our human resources teams participate in
labour industry surveys and consultations to ensure
critical skills areas are adequately supplied. Our
planning teams also engage with local authorities
through the statutory plan-making processes
and through the planning application process, in
accordance with statutory provisions.
50
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Annual Report and Accounts 2023
Our stakeholders in 2023
>
Provided affordability to our customers with 70% of our units sold at prices below the
national mean price for new homes, and 88% of our units sold in the GDA below the
mean prices for new homes in the region.
>
Achieved a customer satisfaction survey score of 94%.
>
Delivered sustainable homes with 100% A rated.
>
Completed 130 activities in 24 communities nationally.
>
Entered into 7 national partnerships plus 36 local sports partnerships.
>
Nature Hero Awards: 87 biodiversity bootcamps to 2,210 schoolchildren.
>
Completed 14 construction site safety talks to 1,040 schoolchildren.
>
Delivered community days in four locations with average attendance of 200 residents.
>
Setup four online community hubs and newsletter updates.
>
94% of subcontractors registered with and trained on common data
environment software.
>
Achieved Site Safety Audit score average of 90% in the year.
>
Supported a network of approximately 400 subcontractors and 600 materials suppliers.
>
Established supply chain engagement programme as part of Net Zero Transition Plan.
>
Worked to embed ED&I throughout Glenveagh through our ED&I Strategy.
>
Publication of our Gender Pay Gap Report.
>
Embedding Glenveagh’s EVP pillars.
>
Achieved Great Places to Work (‘GPTW’) certification with a score of 78%.
>
Attended four capital market conferences and conducted 142 institutional one-on-one
or group meetings.
>
Returned €63 million to shareholders in FY 2023.
>
Achieved EPS of 8.0 cents in FY 2023.
>
Achieved ROE of 6.9% in FY 2023.
>
Active members of the Irish Home Builders Association, Construction Industry
Federation, Irish Institutional Property and Irish Green Building Council industry groups.
>
Founding members of Modern Methods of Construction (‘MMC’) Ireland.
>
Introduced science based targets for emissions reduction that were validated by the
Science Based Targets initiative (‘SBTi’).
€336k
Average selling price
86%
of employees felt ‘I can be myself in
Glenveagh’
130
Community involvement events
€63m
Returned to shareholders in 2023
135
Site safety audits completed
46.2%
Reduction in absolute Scope 1 & 2
emissions by 2031 from a 2021 base
year (science-based target)
94%
Customer satisfaction rating
78%
Great Places to Work certification
457
Total staff volunteering hours
8.0 cent
EPS in 2023
100+
Weekly site-level meetings
with subcontractors
55%
Reduction in Scope 3 emissions
intensity by 2031 from a 2021 base year
(science-based target)
Our impact
Government and regulators
Suppliers and subcontractors
Shareholders
Communities
Customers
Employees
OUR VALUE CREATION
CONTINUED
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Motorway Network
Rail network
01
34
37
27
30
07
38
31
12
18
02
14
39
03
25
13
9
10
19
32
15
04
40
17
05
26
16
41
06
11
42
33
35
20
21
22
23
44
43
24
28
29
37
14
08
36
Total units
13,100
Dublin and GDA focused by units
66%
Suburban by units
68%
Landbank units with planning
60%
Landbank Highlights
Active Suburban
01
Baker Hall
02
Bellingsmore
03
Blackrock Villas
04
Castleredmond
05
Citywest
06
Cluain Adain
07
Cluain Glaisin
08
Drumaconn
09
Dunboyne
10
Foggie Field
11
Greville Wood
12
Grey Abbey View
13
Hollystown
14
Leixlip Demesne
15
Maple Woods
16
Mount Woods
17
Port Laoise
18
Semple Woods
19
Taylor Hill
Active Urban
20
Barn Oaks – Apartments
21
Carpenterstown
22
Castleforbes Office
23
Cluain Mhuire
24
The Collection
Site schedule
Our active
portfolio
The Group continues to create
a more active land portfolio to
support continued growth and
remains focused on managing
a four to five-year land portfolio
at scale.
OUR LANDBANK
Future Urban
25
Cork Docklands
26
Citywest
27
Academy Street, Navan
Active Partnerships
28
Ballymastone
29
Oscar Traynor Road
Completed Suburban sites
30
Barn Oaks
31
Belin Woods
32
Castleland Park
33
Cois Glaisin
34
Donabate South
35
Oldbridge Manaor
36
Raven's Mill
37
Riversend
38
Ruxton Oaks
39
Silver Banks
40
The Hawthorns
41
Ushers Glen
42
Walkers Gate
Completed Urban sites
43
Marina Village
44
Castleforbes Hotel
Glenveagh Properties plc
Annual Report and Accounts 2023
52
52
OUR LANDBANK
CONTINUED
Activating our
urban portfolio
Creating new, affordable homes that meet the demands
of our growing communities.
Glenveagh is helping to accelerate the supply of
mixed-tenure developments across the country,
working in partnership with the government.
In November 2023, we were approved under the
Croí Cónaithe (Cities) Scheme to develop 274
owner-occupier apartments for sale on the open
market in Blackrock, Cork. The Scheme is a fund
established by the Irish government to bridge the
current viability gap between the cost of building
apartments and the market sale price (where the
cost of building is greater).
Strategy in action
Croí Cónaithe is a key national policy objective
under the Government’s Housing for All plan, which
emphasises the need to build more homes within
our cities and towns, resulting in compact growth
and vibrant, liveable cities. It is managed and
administered by the Housing Agency on behalf
of the Department of Housing, Local Government
and Heritage.
Our scale, operational capability and established
expertise in partnership and urban development
models leave us ideally positioned to participate in
such initiatives.
Strategic priorities linkage
Our Vision
Our Culture
Our Mission
Drivers of Success
Strategic Priorities
Our Stakeholders
Top-Down
Risk
Bottom-up
risk
Underpinned by
53
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Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
RISK MANAGEMENT REPORT
Risk management report
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 strategic 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 an integrated approach with input across
all levels of the Group that aims to ensure that all
risks to which Glenveagh is exposed are identified,
and 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 is responsible for reviewing
the adequacy and effectiveness of Glenveagh’s
internal controls and risk management process
(page 116). Our risk register and principal risks
are a standing agenda item for each Audit and
Risk Committee 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 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.
Our risk management framework
Level 1
Board of Directors
Department Heads
Senior Leadership
Team
Site
Leadership
Audit and Risk
Committee
Environmental
and Social
Responsibility
(‘ESR’) Committee
Executive
Committee
Internal Audit
Function
Level 2
Site
Non-Corporate
Departments
Corporate
Departments
Level 3
Level 4
Key to risk management
Identify
Assess
Mitigate
Monitor
Report
54
Glenveagh Properties plc
Annual Report and Accounts 2023
RISK MANAGEMENT REPORT
CONTINUED
Climate Risk and Opportunities
In line with the recommendations of the Task Force
on Climate Related Financial Disclosures (‘TCFD’)
reporting requirements, the Group has considered
climate-related impacts within the organisation
under the pillars of Governance, Strategy, Risk
Management and Metrics and Targets, as outlined
on pages 69 to 77. The Group undertook a specific
process to identify and assess climate-related
risks and opportunities (‘CROs’). This included
identifying a long list of CROs informed by relevant
literature, peer reviews and forthcoming regulatory
requirements, assessing these using our standard
risk scoring approach, applying selected climate
scenarios and finally appraising the potential
impacts on our strategy and financial position.
Risks include both transition risks, i.e. those
associated with the transition to a decarbonised
economy, and physical risks i.e. impacts from
changes in weather and climate.
Glenveagh has implemented a line of defence model
Line of defence
Function
Responsibilities
Level 1
Board of Directors
Overall responsibility for determining the nature and extent of
the significant risks it is willing to take in achieving the Group’s
strategic objectives and for setting the Group’s risk appetite.
Level 2
Executive Committee, Audit and Risk
Committee, ESR Committee and
Internal Audit
Committees have responsibility for risk monitoring and, ensuring
policies are implemented throughout the business.
Internal audit provides 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.
Level 3
Department Heads and
senior leadership team
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.
Level 4
Department teams
Identify risks within the business with responsibility for
implementing mitigation plans. Take a proactive approach
to identifying, assessing and mitigating risk.
H&S score in 2023
90%
2022: 88%
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.
At Board level, the ESR Committee maintains
responsibility for compliance with the evolving
regulatory disclosure landscape and our key
targets in respect 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.
The services and utilities department is a
dedicated resource whose activities are
mainly focused on the risk management
of product quality and building regulations
throughout the business. The certification
to ISO 9001 quality management,
demonstrates our commitment to
monitoring the quality of our products
and drive for continuous improvement.
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.
Or approach to standardisation, in particular,
of house typologies and construction
methodologies, further derisks our medium,
and long-term housing delivery targets.
55
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Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
RISK MANAGEMENT REPORT
CONTINUED
UNLIKELY
LIKELIHOOD
POSSIBLE
IMPACT
SEVERE
Principal risks
01
Adverse changes to government policy &
regulations (external risk)
02
Climate change (external risk)
03
Adverse macroeconomic conditions
(external risk)
04
Mortgage availability and affordability
(external risk)
05
Availability and increased cost of materials
and labour (operational risk)
06
Inadequate project management
(operational risk)
07
Attracting, retaining and developing people
(operational risk)
08
Failure to obtain expected planning
permission (operational risk)
09
Insufficient health and safety procedures
(operational risk)
10
Information Security & Cyber Risk
(operational risk)
11
Decline in product quality (reputational risk)
11
04
07
05
03
01
02
06
“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 & 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 Audit and Risk Commitee have reviewed the principal risks and have considered emerging risks
and the need to include new risks in 2023.
10
08
09
56
Glenveagh Properties plc
Annual Report and Accounts 2023
01
Adverse change to government
policy and regulations
Risk description
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.
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 our land portfolio and
ultimately diminish Glenveagh’s ability to
achieve financial targets.
Risk owner
CEO
Risk impact
>
Increased cost of construction.
>
Reduced profitability.
>
Reduced unit sales.
Mitigation
>
Monitor government policy and political
developments on an ongoing basis.
>
Government have committed €5.1 billion of
capital investment in housing for 2024.
>
Residential Zoned land tax deferred until 2025.
>
Conservative site forecasts.
>
Capability to redesign developments
as appropriate.
>
Flexibility in strategies to align with changes in
the domestic political environment.
>
Affordability focused landbank in attractive
locations aligned with government
support schemes.
Impact
Severe
Likelihood rating
Highly Likely
Change
Emerging factors
>
The term of the current government in the
Republic of Ireland runs until 2025, at which
point a general election is required to determine
the political environment we will operate in.
>
Government are committed to a review of the
NPF in 2024.
>
New Sustainable and Compact Growth
Guidelines have been published.
Risk Appetite
Low
Relevant KPI
>
Profit before tax.
>
Operating margin.
>
Gross margin.
>
ROE.
>
EPS.
>
No. of units sold.
>
Forward order book.
Link to strategy
READ MORE
PG 29 & 42
02
Climate change
Risk description
Changes in climate could impact on Glenveagh
either through the physical impacts of climate
change or the risks and opportunities associated
with the transition to a net zero economy. Failure
to meet evolving stakeholder and legislative
requirements could adversely affect our ability to
raise capital, financial performance, our reputation
and lead to litigation and fines.
Risk owner
CSO
Risk impact
>
Reduced profitability.
>
Increased cost of construction.
>
Reduced brand reputation.
Mitigation
>
Strong governance in place through scaling
our Sustainability department supported by the
ESR Committee.
>
Net Zero Transition Plan published with science-
based targets set.
>
On-going projects to support the transition
to net zero including within the innovation
department to assist in decarbonisation.
>
Supplier engagement strategy commenced to
assist and encourage suppliers with their own
decarbonisation journey.
>
Biodiversity Strategy published with actions and
commitments outlined.
>
Climate scenario analysis now completed to
further understand financial impact of climate
risks and opportunities.
>
Climate change now a key focus area for the
overarching Group Strategy.
>
Providing sector leading A-rated homes.
Impact
Severe
Likelihood rating
Highly Likely
Change
Emerging Factors
>
Forthcoming disclosure requirements under both
the Corporate Sustainability Reporting Directive
(‘CSRD’) and International Sustainability
Standards Board (‘ISSB’).
Risk Appetite
Low
Relevant KPI
>
Profit before tax.
>
Operating margin.
>
EPS.
>
Science-based targets.
>
CPD score.
>
MSCI rating.
>
Sustainalytics rating.
Link to strategy
READ MORE
PG 32. 35 & 42
RISK MANAGEMENT REPORT
CONTINUED
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Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
03
Adverse macroeconomic
conditions
Glenveagh operates in a property market that is
cyclical by nature, which can lead to volatility of
property values and market conditions. Geopolitical
uncertainty can lead to a potential adverse impact
on Glenveagh’s asset valuations and financial
performance factors such as a slowdown in
economic growth, increased interest rates and
a decline in consumer confidence. Changing
Government Policy can have positive and
negative impacts upon the value and viability
of the landbank.
Risk Owner
CEO
Risk Impact
>
Increased cost of construction.
>
Reduced profitability.
>
Reduced unit sales.
Mitigation
>
We maintain a reasonable but limited
stock of land.
>
Avoid any long-term exposure through
disciplined land acquisition policies.
>
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.
>
Urban and Partnerships segments 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.
>
Actively monitor political and geopolitical risks
and seek expert industry advice where required.
Impact
Severe
Likelihood rating
Highly Likely
Change
Emerging Factors
>
The Irish housing market remains materially
undersupplied.
>
The Irish economy remains resilient with continued
moderate growth expected in FY2024 and beyond.
>
Consumer confidence remains strong and is
underpinned by government support initiatives.
>
More moderate inflation expected in FY2024
and beyond.
Risk Appetite
Low
Relevant KPI
>
Gross margin.
>
Profit before tax.
>
Operating margin.
>
ROE.
>
EPS.
>
No. of units sold.
>
Forward order book.
Link to Strategy
READ MORE
PG 29 & 35
RISK MANAGEMENT REPORT
CONTINUED
04
Mortgage availability
and affordability
Risk Description
We understand that affordable mortgage finance is
a crucial funding source for buyers in the residential
housing 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 our products and ultimately
our profitability, due to a potential decline in
customer demand.
Risk Owner
Sales Director
Risk Impact
>
Reduced profitability.
>
Reduced suburban unit sales.
>
Reduced forward order book.
Mitigation
>
Government support initiatives such as
the extension of the Help to Buy Scheme to
2025 and continued commitment to the First
Home scheme.
>
Budgetary measures such as the introduction
of mortgage interest relief, increase in the
rent relief credit and positive personal
taxation measures.
>
Inflation returning to more moderate levels in
2023 and with a lower level of inflation expected
in 2024.
>
The Central Bank adjusted their macro-
prudential framework to allow first-time buyers
to borrow up to four times their gross income.
Impact
Severe
Likelihood rating
Likely
Change
Emerging Factors
>
In October 2023 the European Central Bank
stopped interest rate increases after ten
successive increases.
>
More moderate inflation expected in FY2024
and beyond.
>
First time buyer mortgage approvals and
drawdowns continue to increase year on year.
Risk Appetite
Low
Relevant KPI
>
Profit before tax.
>
Operating margin.
>
ROE.
>
EPS.
>
No. of units sold.
>
Forward order book.
Link to Strategy
READ MORE
PG 29
58
Glenveagh Properties plc
Annual Report and Accounts 2023
06
Inadequate project management
Risk description
Inadequate oversight of the cost and delivery of
development projects adversely affects expected
return on investment.
Risk owner
Commercial Director
Risk Impact
>
Increased cost of construction.
>
Reduced profitability.
>
Reduced unit sales.
mitigation
>
Introduction of commercial risk registers and
their integration into the construction and
project review process.
>
The commercial department organisational
structure ensures oversight of all costs as the
business matures in line with the business plan.
>
We have a formal budget sign-off procedure in
place for each site.
>
We have developed and implemented a project
management office to centralise processes,
reporting, communication across departments
and improve our end-to- end processes.
>
We have a dedicated estimating team to assist
with budgeting and value engineering. They
are also responsible for the preparation of site
development, curtilage & sub-structure build of
quantities to secure subcontractors based on a
detailed scope, which facilitates thorough cost
management and forecasting.
>
We have in place a dedicated services and
utilities department with responsibility for
ensuring timely connection to the water and
electric grids.
Impact
Severe
Likelihood rating
Highly Likely
Change
Emerging Factors
>
More moderate inflation expected in FY 2024
and beyond.
>
Construction activity across Europe is slowing.
>
Industry transitioning to modular build and off-
site construction.
Risk Appetite
Low
Relevant KPI
>
Gross margin.
>
Profit before tax.
>
Operating margin.
>
ROE.
>
EPS.
>
Customer satisfaction.
>
H&S audit score.
>
No. of units sold.
>
Forward order book.
Link to Strategy
READ MORE
PG 29, 35 & 42
RISK MANAGEMENT REPORT
CONTINUED
05
Availability and increased cost
of materials and labour
Risk Description
Shortages, increased costs of materials and labour
and the low availability/higher cost of more
sustainable materials could lead to an increase in
construction costs and delays in the completion
of units. If the Group is unable to control its costs
or pass on any increase in costs to the purchasers
of the Group’s product, appropriately source the
requisite labour, and/or renegotiate improved terms
with suppliers and contractors, the Group’s margins
may reduce which could have an adverse impact
on the Group’s business operations and financial
condition. In addition, if ethical or responsible
procurement procedures are not being implemented
and followed this could lead to reputational
damage and/or litigation.
Risk owner
Construction Operations Director
Risk impact
>
Increased cost of construction.
>
Reduced profitability.
>
Reduced build quality.
Mitigation
>
We continue to leverage our purchasing power
and scale to negotiate strong terms with both
domestic and international suppliers allowing us
to purchase more competitively.
>
Our Supply Chain Integration Strategy primarily
from investment in NUA manufacturing provides
greater control over input costs.
>
Through recruitment and training initiatives
we continue to attract and retain a high
performing workforce.
>
Increased standardisation of housing typologies
and construction methodology will further de-
risk the business from shortages or increased
costs of materials and labour.
>
NUA manufacturing investment helps protects
business from any longer-term structural labour
shortages in the industry.
>
We continue to transition towards modular build
and off-site construction.
Impact
Severe
Likelihood rating
Likely
Change
Emerging factors
>
Demand and supply chains trending towards
pre-pandemic levels.
>
The general slowdown of the construction
industry across Europe.
>
Industry transitioning to modular build and
off-site construction.
>
Long term on-site labour availability as the
industry continues to experience skill shortages.
Risk appetite
Low to moderate
Relevant KPI
>
Gross margin.
>
Profit before tax.
>
Operating margin.
>
ROE.
>
EPS.
Link to Strategy
READ MORE
PG 35 & 42
59
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
07
Attracting, retaining and
developing people
The success of the Group is dependent on
recruiting, retaining and developing highly skilled,
diverse and competent people. The Group is aware
that we need to have an inclusive and equitable
working environment and ensure that we engage
and challenge our employees so that they can
positively impact the business. The loss of key
personnel and/or the inability to attract/retain
adequately skilled and qualified people could
adversely impact business performance.
Risk owner
CSO
Risk impact
>
Increased cost of construction.
>
Reduced profitability.
Mitigation
>
We have a dedicated learning and development
team with a focus on developing and deploying
continuous professional development and
upskilling of staff.
>
We have a corporate affairs team that is
responsible for enhancing internal and external
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.
>
We are committed to the Great Place to Work
credentials to further improve our internal and
external culture and reputation.
>
We have a graduate programme across all
departments to develop and ensure progression
within the business.
Impact
Severe
Likelihood rating
Likely
Change
Emerging factors
>
Continued on-site skill shortages in the industry.
>
Investment in learning and development
required to nurture graduates and retain
key personnel.
Risk appetite
Moderate
Relevant KPI
>
H&S audit score.
>
Gross margin.
>
Profit before tax.
>
Operating margin.
Link to strategy
READ MORE
PG 37
RISK MANAGEMENT REPORT
CONTINUED
08
Failure to obtain expected
planning permission
Risk description
Failure to obtain expected planning permission
on sites delivering in our one to three year sales
pipeline or renew existing planning permission
without significant changes could result in failure to
meet unit delivery and return on investment targets.
The Planning and Development Bill (2023) is not as
yet enacted or implemented creating further delays
in the planning process and prolonged periods
of litigation.
Risk owner
Managing Director of Planning, Design,
Manufacturing, and Operations (‘PDMO’).
Risk Impact
>
Reduced profitability.
>
Reduced % of landbank planned.
>
Reduced unit sales.
Mitigation
>
We have planning permission for all our
expected deliveries in 2024.
>
Approximately 60% of our entire land portfolio
is planned and approximately 2,900 planning
lodgements completed in FY 2023.
>
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 de-risk our medium to long
-term unit delivery targets and building flexibility
into our landbank is a key strategic objective.
Impact
Severe
Likelihood rating
Likely
Change
Emerging factors
>
Appropriate implementation of the new
Planning and Development Act is required
in order to obtain medium to long term
planning permissions.
>
Continued pressures from groups opposed to
the current draft of the bill creates the potential
for further uncertainty in the planning process
and prolonged litigation.
Risk Appetite
Low
Relevant KPI
>
Profit before tax.
>
Operating margin.
>
ROE.
>
EPS.
>
% of landbank planned.
>
Forward order book.
Link to Strategy
READ MORE
PG 35
60
Glenveagh Properties plc
Annual Report and Accounts 2023
10
Information Security
and Cyber Risk
Risk description
We use information technology to perform
operational and marketing activities and to
maintain business records. A cyber attack could
lead to potential breaches or disruption to our
systems and operations, which in turn could lead
to damage to our reputation and potential loss of
customers and profitability. Any security breach
of the information technology systems may also
expose us to liability and regulatory scrutiny.
Risk owner
IT Director.
Risk impact
>
Reputational damage.
>
Reduced profitability.
>
Loss of data.
Mitigation
>
Information security and IT risks are managed
within an information security framework
aligned to established standards.
>
We engage a third party to assist and ensure
that best practices are implemented to identify
and remediate any potential weaknesses or
control gaps.
>
We introduced a Security Information and Event
Management (‘SIEM’) service to proactively
monitor our endpoints and servers.
>
Deployment of the Glenveagh App store for all
permitted application downloads.
>
Mandated cyber and information security
training for all staff.
>
Multi-factor authentication for all users.
Impact
Severe
Likelihood rating
Highly Likely
Change
Emerging Factors
>
Globally, information and cyber security threat
levels remain high.
>
Constant requirement to continuously improve
and enhance our IT security.
Risk Appetite
Low
Relevant KPI
>
Profit before tax.
>
Operating margin.
>
ROE.
>
EPS.
Link to Strategy
READ MORE
PG 35 & 37
09
Insufficient health and
safety procedures
Risk Description
We are focused on the wellbeing of our 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.
Risk Owner
Head of Health and Safety.
Risk Impact
>
Reputational damage.
>
Reduced profitability.
>
Increased cost of construction.
Mitigation
>
We have an experienced health and safety
team in place with a specific health and safety
plan for each site.
>
We have developed an accredited health and
safety management system and is certified to
ISO 45001 by the National Standards Authority
of Ireland.
>
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.
>
There is adequate insurance cover in place
to deal with any claims that may arise due
to injury.
Impact
Severe
Likelihood rating
Likely
Change
Emerging factors
>
Constant requirement to continuously improve
and enhance our health and safety system.
>
Ensuring our response to health & safety risks
remains robust and effective in the context of
scaling operations.
Risk appetite
Low
Relevant KPI
>
H&S audit score.
>
Profit before tax.
>
Operating margin.
>
ROE.
>
EPS.
Link to Strategy
READ MORE
PG 35, 37 & 42
RISK MANAGEMENT REPORT
CONTINUED
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
11
Decline in product quality
Risk description
Our 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.
Risk owner
Head of Construction.
Risk Impact
>
Increased cost of construction.
>
Reduced profitability.
>
Reputational damage.
Mitigation
>
We have 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.
>
We have an ISO 9001 certified quality
management system to monitor product quality
and drive continuous improvement.
>
We have a dedicated environmental officer
to advise on the business challenges, from an
environmental perspective, on a daily basis.
>
We have a dedicated customer care team
in place.
Impact
Severe
Likelihood rating
Likely
Change
Emerging factors
>
A better understand the needs of
our customers.
>
Industry leader in quality standards.
>
Continued improvement and development
of our processes and systems for identifying,
managing and preventing quality issues.
Risk appetite
Low
Relevant KPI
>
Profit before tax.
>
Operating margin.
>
ROE.
>
EPS.
>
Customer satisfaction.
Link to strategy
READ MORE
PG 29, 35 & 42
RISK MANAGEMENT REPORT
CONTINUED
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62
2023 has been a year of further
progression for Glenveagh with
some significant highlights, which
delivered additional short-term
benefits but also positioned the
business for long-term growth
while prioritising both operational
and capital efficiencies.
Some of these highlights included the start of our
two Partnerships sites, which delivered revenue and
profits for the first time, the significant progress
in our gross margin and the continuation of our
capital efficiency initiative with the completion of
our fourth share buyback programme, which brings
our total shares bought back since May 2021 to
approximately 300 million (€316 million).
Group performance
Total group revenue was €608 million (FY 2022:
€645 million) from our three business segments:
>
€471 million in our suburban business, which
predominantly relates to our 1,328 suburban
units closed in the year.
>
€120 million from our urban business, which
includes the completion of our forward fund
on the Premier Inn hotel in Castleforbes and
our apartment development in Marina Village,
Greystones along with the continuation of the
development phase in our apartment schemes
in Citywest and Castleknock.
>
€17m million from our partnerships business,
which is the first time this division has
contributed revenue, and reflects significant
progress made on both Partnership sites during
the year.
FINANCIAL REVIEW
Continued
our strong
growth
in 2023
Michael Rice
Chief Financial Officer
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Financial Statements
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Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
In the Suburban business segment, revenue of
€471 million represents steady growth and equates
to a 4% increase in revenue versus 2022. The Group
delivered 1,328 core units in the year at an Average
Selling Price (‘ASP’) of approximately €336k
(FY 2022: €330k) reflecting the Group’s strong
operational performance. ASP increased by 2%
as a result of portfolio mix and house price inflation
in the period.
The Group’s gross profit for the year increased
modestly to €112.7 million (FY 2022: €108.1 million)
with an overall gross margin of 18.5% (FY 2022:
16.8%).
The most significant margin improvement came
in the Suburban business with a gross margin of
20.2% (FY 2022: 18.4%) and an underlying suburban
housing margin of 19.3% (FY 2022: 18.4%). The
business benefitted from a number of operational
improvements including but not limited to increased
product standardisation, our pricing power in the
market and the early signs of cost benefits from
our manufacturing capabilities. The margin was
also augmented by the impact of land sales. We
would expect further progression in the underlying
suburban margin in FY 2024 as we deliver a higher
percentage of our product from our standardised
house types and our manufacturing facilities.
Our Urban business segment generated revenue
of €120 million. This includes the completion of
our forward fund on the Premier Inn hotel in
the Docklands and our apartment development
in Marina Village, Greystones along with the
continuation of the development phase in our
apartment schemes in Citywest and Castleknock.
Urban gross margin was 12.8% in FY 2023, broadly
consistent with the 2022 margin of 12.9%.
We generated €17 million of revenue from our
Partnerships business segment, the first time
this segment has contributed revenue, reflecting
significant progress made on both Partnership
sites during the year. Given the structure of the
Partnership transactions, we recognise revenue and
profits on a percentage of completion basis and
therefore the revenue and profits recognised in FY
2023 reflect the early stages of construction rather
than any units being completed. The Partnership
gross margin was 12.9%, reflecting very low activity
levels and the early stage of development on both
sites. For FY 2024 and future years, the margin on
both sites will be consistent with our 15% guidance
for that business segment.
Group operating profit was €70.9 million (FY 2022:
€70.1 million). The Group’s central costs for the
year were €39.4 million (FY 2022: €36.0 million),
which along with €2.4 million (FY 2022: €1.9 million)
of depreciation and amortisation gives total
administrative expenses of €41.8 million (FY 2022:
€38.0 million).
Net finance costs for the year increased
significantly to €15.8 million (FY 2022: €7.1 million),
primarily impacted by the increased European
Central Bank interest rates which have impacted
the overall market and a higher level of average
debt during the year to support the growth
trajectory of the business.
Overall, the Group delivered an improved Earnings
Per Share of 8.0 cent (FY 2022: 7.6 cent), which was
at the higher end of the range management had
provided as market guidance.
Balance sheet
The business has continued to improve our balance
sheet efficiency during FY 2023 and has reduced
the Group’s net assets modestly to €678.2 million at
31 December 2023 (FY 2022: €693.1 million). There
are a number of elements within this net reduction,
some of which relate to increased investment for
future efficiencies and benefits while some relate
to capital reductions in the year.
In line with our manufacturing strategy, we
continued to invest in our off-site facilities and
equipment, totalling €18.1 million in the year.
This is included in our increased Property,
Plant & Equipment balance of €64.2 million
(FY 2022: €51.8 million).
The business has again seen significant progress
in the reduction of our land portfolio, with a
year-end balance of €403.8 million (2022: €455.3
million), excluding development rights. We believe
that further reductions can be made in our land
portfolio, with the carrying value of land reducing
below €400 million in FY 2024.
To facilitate the significant growth trajectory into FY
2024, the business has invested in work-in progress
with an overall year end balance of €274.6 million
(FY 2022: €227.4 million), an increase of nearly €50
million. This increase is primarily attributable to
the increase in our urban business and two sites
in particular, the Docklands office development
and our apartment scheme in Cluain Mhuire which
has been forward sold and will deliver in FY 2024.
Combined these two assets have approximately
€70 million of work in progress at year end, an
increase of €40 million year on year.
The reduced equity figure at 31 December 2023
reflects the reduced number of shares in the
business following the successful completion of
the Group’s fourth share buyback programme.
In FY 2023, a total of 63.8 million shares were
repurchased at a total cost of €62.9 million. The
Group has now returned over €300 million to
shareholders since the beginning of our first
share buyback programme in May 2021.
Cash flow
The business continued to generate substantial
operating cash inflow, albeit not at the same levels
as in previous years. We generated €50.9 million (FY
2022: €140.9 million) cash from operating activities,
the reduction reflecting our investment in inventory.
This cash generation allowed the business to
invest in line with our capital allocation priorities,
predominantly focussed on our manufacturing
capabilities of €17.9 million and our fourth share
buyback programme of €62.9 million.
Reflecting the investment in work in progress, which
will deliver in FY 2024, the Group had an increased
net debt position at year end of €48.8 million (2022:
€13.8 million). This remains a prudently managed
debt level in the context of the overall scale of the
business, the investments that have been made
in FY 2023 and the opportunities available to the
business in FY 2024.
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 four capital market conferences and
conducted 142 one-on-one and group meetings
with investors and analysts.
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 €0.846
and €1.232 during the year (FY 2022: €0.843 to
€1.268). The share price at 31 December 2023
was €1.22 (31 December 2022: €0.846) giving
a market capitalisation of €705.2 million
(2022: €539.9 million).
Outlook
The long-term demand outlook for the Irish
residential housing market remains very positive
across all tenures and is reinforced by a resilient
domestic economy, a fast-growing population
and supportive state initiatives.
We expect to generate strong revenue and profit
growth across each of our Suburban, Urban
and Partnerships business segments in FY 2024.
This growth is underpinned by our efficient land
portfolio, our investment in working capital and our
forward order book and strong operational and
manufacturing capabilities.
Michael Rice
Chief Financial Officer
FINANCIAL REVIEW
CONTINUED
Ratings
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SUSTAINABILITY
INTRODUCTION
A future where great quality, sustainable homes
are accessible to all. Where social, financial and
environmental performance are in balance. And
where everyone has access to a career with impact.
2023 continued to provide a challenging
environmental, social and political context. It was
the hottest year on record with severe weather
events once again catching our attention at home
and abroad, while biodiversity continued its global
decline. Global conflicts and their impacts on
Building sustainable futures
Sustainability is fundamental to the way we do business. As one of the
largest homebuilders in Ireland, it’s our great responsibility. By creating
strong strategic foundations, we believe we can address our shared
societal challenges and create a better future.
migration, the price of energy and materials, and
the cost of living are driving or exacerbating many
of the social issues that we are facing.
At the same time, the policy and regulatory
framework around sustainability is rapidly evolving
at international, European Union (‘EU’) and national
levels. The approval of the Corporate Sustainability
Reporting Directive (‘CSRD’) and its associated
European Sustainability Reporting Standards
(‘ESRS’) paves the way for a significant shift in the
way companies, including Glenveagh, will report
sustainability information going forward.
In Glenveagh, we are responding to these
sustainability challenges and opportunities by
integrating action on environmental and social
issues into our business model and our Building
Better Strategy, so that sustainability is a core part
of our business. Each of our five strategic priorities
address sustainability matters which are materially
important to us.
Areas such as climate change and circular
economy are incorporated into our priorities
around innovation and operational excellence, in
particular, and are also considered in terms of how
we develop our colleagues, the product and the
information we provide our customers as part of
‘placing the customer first’.
Our approach to valuing and developing our
colleagues addresses many of the material IROs
related to our workforce including safety, Equity,
Diversity & Inclusion (‘ED&I’) and training and
skills development. Both social and environmental
matters are dealt with through our strategic priority
on ‘creating sustainable and thriving places’
including biodiversity and affected communities.
Arguably, the most important of these social
issues is what we do at our core – deliver housing,
addressing the key social issue affecting Ireland at
the moment.
We have also identified some areas that require a
more in-depth approach and we have developed
specific plans and strategies to drive action in
these areas including climate change, biodiversity
circularity and ED&I. Each of these support some
or all of our strategic priorities and are activated
internally by action plans, building ownership and
accountability throughout the business.
Our governance processes ensure that our
strategies and plans are monitored and
challenged, while the ESG rating process together
with external commitments, accreditations and
recognition mean that we are always striving to
improve our approach and learn from others.
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Financial Statements
Strategic Report
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SUSTAINABILITY
CONTINUED
Sustainability governance
We have a robust sustainability governance structure in place at Board and management-level.
We will review and evolve this as requirements grow and change. This structure ensures that sustainability
is embedded throughout the organisation, and receives the appropriate oversight and direction.
Board Level
Environmental and Social Responsibility Committee (‘ESR’)
Board of Directors
Audit and Risk Committee
>
Responsible for overseeing the Group’s approach to sustainability and
its integration into the Group’s business strategy ensuring it addresses
its most material impact, risks and opportunities (‘IROs’).
>
Terms of Reference of this Committee were updated in
December 2023.
>
Meets four times per year and provides reports to the main Board
after every meeting (see page 134 for full report).
>
Ultimate responsibility and oversight of sustainability in Glenveagh.
>
Receives regular reports throughout the year on this agenda including
progress against targets.
>
Participates in education sessions to increase their understanding of
this evolving area.
>
Oversees sustainability risks and opportunities as part of its wider
responsibility for the risk management of the business.
>
Ensures that our controls and mitigants are adequate and effective.
Management Level
Executive Committee
Environmental Sustainability Working Group
>
Overall Executive responsibility for sustainability.
>
Sustainability issues are a regular agenda item: including reviewing performance and progress against targets,
approving internal action plans and discussing the sustainability aspects of business decisions.
>
Chief Strategy Officer (‘CSO’) has specific Executive responsibility for sustainability.
>
Oversees and coordinates the implementation of environmental sustainability actions and action plans
across the Group.
>
Identifies and helps remove barriers to action.
>
Facilitates the sharing of information on current projects and actions to ensure coordination across
the business.
>
Evaluates and validates environmental sustainability policies, targets and procedures.
Group Level
Operational Level
Sustainability Team
Departmental Leads
>
Responsible for the day-to-day management of sustainability.
>
Provides a framework within which all parts of the business can work.
>
The team reports to the CSO.
>
Accountable for the implementation of
sustainability through operations, activities
and projects.
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INSIDE ENVIRONMENT
67
Climate
78
Biodiversity
80
Resource use and circular economy
82
Water
83
Pollution
SUSTAINABILITY
CONTINUED
Environment
At Glenveagh, we are acutely aware of the potential impact that
we have on the environment and also the risks that these impacts
may pose. We also see many opportunities to improve our operational
efficiency and create ways for our customers and communities to
also lead more environmentally sustainable lives.
We have been incorporating action on the
environment into our operations since the
Group was founded in 2017. 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.
To manage our environmental performance and
minimise ecological impacts during construction
we maintain and continually improve our ISO
14001:2015 Environmental Management System
(‘EMS’). 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.
In the context of evolving stakeholder expectations
and new and emerging legislation, we are looking
at the environment in a broader context. This
includes understanding how we have the potential
to impact and influence our entire value chain,
rather than just in our own operations. This opens
up interesting challenges and opportunities. The
following pages detail our work in this area across
climate, biodiversity, water, pollution, and circular
economy and resource use. Some of these areas
are more mature than others, and priority has been
given to the areas we deem most material.
Accreditations
ISO 14001:2015
ENVIRONMENT
NSAI Certified
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Near-term carbon target
46.2%
reduction in absolute Scope 1 and 2 emissions
by 2031 from a 2021 base year.
Long-term carbon target
90%
reduction in absolute Scope 1 and 2 emissions
by 2050 from a 2021 base year.
Near-term carbon target
55.0%
reduction in Scope 3 emissions intensity
(tCO
2
e/100sqm of completed floor area)
by 2031 from a 2021 base year.
Long-term carbon target
97%
reduction in for Scope 3 emissions intensity
(tCO
2
e/100sqm of completed floor area)
by 2050 from a 2021 base year.
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Climate
2023 was a significant year
for climate action in Glenveagh.
In March, we published our first
Net Zero Transition Plan, which
sets out our ambitions and
actions on our journey towards
decarbonisation.
At Glenveagh, we have integrated climate change
into our Building Better Strategy and our Net
Zero Transition Plan supports this, allowing us to
respond effectively to climate-related risks and
opportunities (‘CROs’) through our five strategic
priorities, ensuring action on climate change is
at the heart of how we innovate, the places we
create and the skills we nurture in our people. As
a housebuilder we are acutely aware that we have
a significant impact on climate change through
the product we deliver; however we also have a
tremendous opportunity to drive change in how
our customers impact on climate change and in
our supply chain. To access a copy of our plan
see page 99.
Our science-based targets (‘SBTs’)
As part of our Net Zero Transition Plan, we set
ambitious near-term and long-term SBTs and
submitted these to the Science Based Targets
initiative (‘SBTi’). These were formally validated
by the SBTi in January 2024. Our overall net
zero target states that ‘Glenveagh Properties plc
commits to reach net-zero greenhouse gas (‘GHG’)
emissions across the value chain by 2050 from
a 2021 base year’. Our near-term and long-term
targets are set out below as well as information
on how we are progressing against them.
Progress against our targets
Following the publication of our Net Zero Transition
Plan, we developed an internal action plan which
sets out metrics to measure progress and assigns
accountability. Responsibility for implementing the
plan rests with the Environmental Sustainability
Working Group.
Throughout 2023, we placed significant emphasis
on reducing the emissions that we are directly
responsible for. During the year, we reduced
our absolute Scope 1 and 2 emissions by 11% in
comparison with 2022, despite an increase in
activity. While this is still a 15% increase against our
2021 baseline, we are confident that work we have
completed has set a firm foundation and that we
are on the right track to see a significant reduction
in our Scope 1 and 2 emissions in 2024.
One of the first actions under our Net Zero
Transition Plan was the transitioning of sites to
renewable fuel. Most of our Scope 1 emissions
(85%) come from fossil fuels used on our sites to run
generators, plant and non-road mobile machinery.
We set our ambition to switch our onsite power
generators and plant machinery to renewable fuel,
namely Hydrotreated Vegetable Oil (‘HVO’). We
introduced HVO at the beginning of July following
a period of due diligence during which we
published a position paper (available online) to set
out our position with regard to HVO and engaged
with suppliers to set out the standards we require
from them.
HVO was rolled out on the majority of our sites in
the second half of the year however, a number of
sites that were in their final phase of construction
remained with diesel for operational reasons and
there was a challenge in securing a supply of HVO
for another site due to its location. In 2024 the
limited use of diesel is being phased out, as we
seek to address any of the challenges that remain
with securing HVO.
The other primary contributor to Scope 1 emissions
is our fleet. We remain committed to transitioning
our fleet to electric vehicles (‘EVs’); however, this has
proved challenging in 2023. As the requirement for
additional fleet vehicles increased throughout the
year due to increased activity, the availability of
suitable EVs within the timeframe proved difficult.
Our Scope 3 emissions have now reduced by 7%
against our 2021 baseline. This is primarily due to
our focus on the energy efficiency of our homes.
In 2023, we saw the proportion of A1-rated homes
increase from 55% to 85% which has a positive
impact on the carbon emissions associated with
the occupant energy of the home. While we
continue to constantly seek improved energy
efficiency, our focus is now primarily on innovating
and working with our suppliers to reduce the
embodied carbon of our homes.
Ratings
Accreditations
ISO 14001:2015
ENVIRONMENT
NSAI Certified
External Partnerships and Commitments
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Progress in 2023
We took a number of steps in 2023 to reduce our GHG emissions across Scopes 1, 2 and 3. This progress is set out under
each of the action areas identified as part of our Net Zero Transition Plan.
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Scopes 1 and 2
01. Transition sites to renewable fuel
Following a successful pilot in 2022, we rolled out HVO across
our sites in July 2023. HVO is a low-carbon liquid drop-in biofuel
that works as a direct replacement for conventional diesel. The
introduction of HVO to power our generators, plant and non-road
mobile machinery on-site has contributed to the reduction in our
Scope 1 emissions in comparison to 2022.
02. Transition fleet to EV
In 2023 we added an additonal two EVs to our fleet and the
proportion of EVs is now 19%. We acknowledge that this is not a
huge increase; however challenges in procuring EVs have been
persistent with availability not able to match our requirements.
Range reliability for vans also remains a challenge.
03. Renewable electricity
We completed studies of our NUA manufacturing factories to
assess the feasibility of installing PVs to generate electricity.
04. Electrification
As part of the set up of our NUA manufacturing facility in Carlow,
all of our machinery procured, such as fork-lifts and pallet-lifting
trucks, is electric. These were also rolled out at our other facilities
as part of equipment upgrades.
05. Increase efficiency across sites, factories and offices
In line with our ISO 14001-accredited EMS, we continue to
implement efficiencies across our sites, manufacturing facilities
and offices to reduce the fuel and electricity required.
01. Supplier engagement and 02. Subcontractor engagement
In 2023, we commenced work on a formal supply chain
engagement programme around environmental and social issues,
which includes both materials suppliers and subcontractors.
The programme features four key areas:
1.
Evaluate and identify – this will allow us to evaluate and identify
where in our value chain the biggest impacts and risks with
respect to the climate are and prioritise action accordingly.
2. Collect and understand – under this pillar we will collect
information on supplier and subcontractor climate targets, plans,
data, etc. which will help us further understand how action in the
supply chain can contribute to our Scope 3 target.
3. Engage and influence – we will engage with our supply
chain to set out our expectations with respect to action on
climate change.
4. Educate and train – We will support our suppliers and
subcontractors through appropriate training and education
regarding climate change.
In 2023, we also became a founding member of the Supply Chain
Sustainability School (‘SCSS’) Ireland along with 14 other construction
and utility companies. The school launched in January 2024,
and will form a key element of the ‘educate and train’ pillar of
our programme.
03. Innovation
Throughout 2023, our innovation team has been researching
and testing alternative materials and designs that reduce the
embodied carbon at each stage of the project life cycle. This aligns
with the work that is being carried out in relation to increasing
standardisation, the proportion of off-site construction and the
premanufactured build value of our products. The benefits in
relation to embodied carbon are assessed in the context of cost
ensuring that viability and affordability are also key considerations.
04. Raising awareness with customers and colleagues
We continue to raise awareness about energy efficiency and the
proper use of heating and lighting systems within our homes with
our customers through our homeowners’ guides. We have also
now included a question about this on our customer survey so
that we can continue to evolve and improve the information
that they receive.
We also continued to raise awareness of our net zero journey with
our colleagues. We initiated a sustainability training programme,
which includes a module on climate change. This will be rolled out
in 2024.
05. Improving data quality and calculation methodology
We are continuously exploring how we can improve the quality of
our data to improve the calculation of our GHG emissions. We have
commenced a project with our IT department which will enable us
to begin to automate the capture of certain ESG data points. We
have also commenced the development of a whole-life carbon tool,
which will be applied to our standardised houses. Both of these will
be further developed throughout 2024.
Scope 3
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Strategic Report
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SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Governance
Board oversight of climate-related risks
and opportunities
The Board sets the strategic direction for
Glenveagh taking consideration of a wide array
of relevant issues including climate change. In
approving the evolved business strategy ‘Building
Better’ during 2022, the Board took account
of the materiality of climate change risks and
opportunities as defined through the materiality
assessment. Action on climate change has
therefore been integrated throughout the
business strategy.
The Board’s approach to climate is informed by
dedicated training sessions with external specialists,
presentations from internal experts and the
outputs from the Group’s materiality assessment
and stakeholder engagement. The Board receives
regular updates on sustainability, and in particular
climate change, throughout the year.
The Board’s appraisal of climate risk is indicated
through its strategic decision making. In 2023,
it approved the Net Zero Transition Plan which
sets out the Group’s SBTs and approach to
achieving them.
The Board is supported on climate change by two
Board Committees.
>
The ESR Committee is responsible for overseeing
the Group’s approach to sustainability (including
climate change) and its integration into the
business strategy ensuring it addresses its most
material IROs. Throughout 2023, the Committee
oversaw and monitored progress against our
internal net zero action plan. This Committee
also reviewed and considered the output of the
climate risk and opportunity assessment and the
climate scenario analysis. The ESR Committee’s
Report can be found on page 134.
>
The Audit and Risk Committee is responsible
for reviewing our CROs and ensuring that
our controls and mitigants are adequate and
effective. The output of the Group’s CROs and
the climate scenario analysis were considered
by this Committee during 2023 and climate
change continues to be a principal risk for the
Group. Climate risks are also included in our risk
register which is a standing item at Committee
meetings. The Audit and Risk Committee’s
Report can be found on page 116.
Management’s role in assessing and managing
climate-related risks and opportunities
The Executive Committee has overall responsibility
for implementing the business strategy as agreed
by the Board, which includes our approach to
climate change. Climate change, as part of
sustainability, is a regular agenda item for this
Committee. Following the approval and publication
of the Net Zero Transition Plan, the Executive
Committee approved an internal net zero action
plan for 2023 which set out key actions, metrics
and accountability. Members also considered the
outcome of the climate scenario analysis and the
implications for the business. A ‘deep-dive’ on this
analysis was also held with the CFO.
As the most Senior Executive, the CEO has
responsibility for the management of climate-
related initiatives under our agreed business
strategy. The CEO also agrees the annual
objectives for the CSO who has specific Executive
responsibility for climate. Management is
supported by the sustainability team, led by the
Head of Sustainability. The team is responsible for
day-to-day management of sustainability, providing
a framework within which all parts of the business
can work.
In 2023, an Environmental Sustainability
Working Group was established comprising
senior leadership representatives from across
the business. The key focus of this group is the
implementation of the internal action plan that
supports the Net Zero Transition Plan.
ADDITIONAL INFORMATION WITH REGARD TO GOVERNANCE
OF SUSTAINABILITY IN GLENVEAGH CAN BE FOUND ON
PAGE 65.
Task Force on Climate-related Financial Disclosures (‘TCFD’) recommendations
This is the fourth year that
Glenveagh is reporting against
the TCFD recommendations. Over
that time we have comprehensively
evolved our disclosures and we
state that we are now compliant
with the Financial Conduct
Authority (‘FCA’) listing rule LR
9.8.6 R(8). However, we intend to
continue to further improve all
of the TCFD disclosures as we
become increasingly mature in our
approach and incorporate these
into the disclosure requirements of
ESRS E1 in future years.
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Strategy
In 2023, we published our Net Zero Transition Plan
and set SBTs which were validated by the SBTi in
early 2024. Pages 67-68 outline the key elements
of our Transition Plan and how we are progressing
against our targets and committed actions. While
taking action to decarbonise across our value
chain, we are also aware that climate change
presents risks and opportunities that we need to
ensure our plan addresses.
Climate risks and opportunities
Glenveagh assesses climate-related risks and
opportunities as part of our ongoing enterprise risk
assessment and climate risk has been identified
once again as a principal risk in 2023. As part
of our supplementary process to identify specific
CROs, 32 individual CROs were identified. An
overview of these can be found mapped against
the TCFD risk and opportunity categories and
the value chain activity impacted in the table
to the right.
There is a high concentration of these risks in the
policy and legal category due to our exposure to
environmental regulation and policy. The majority
of transition risks occur in the upstream (primarily
procurement of construction materials) and
operations (construction activities) elements of our
value chain. Physicial risks, on the other hand have
the potential to arise downstream in our value
chain (product use by customer) as well as our
operations. This is similar for opportunities. This is
largely in line with the decarbonisation actions we
have set out in our Net Zero Transition Plan, which
can also mitigate our exposure to transition risks
and take advantage of the opportunities.
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Climate risks and opportunities (CROs) identified
Value chain activity
TCFD category
Upstream
Operations
Downstream
Other
Number
of CROs
Summary of root causes of risks and opportunities
Transition risk
Policy and legal
2
4
1
7
>
Carbon prices/Carbon Border Adjustment Mechanism (‘CBAM’).
>
Environmental requirements in development plans, land use, reporting.
Technology
1
1
2
>
Late adoption of low-carbon production methods.
>
Customer demand for smart home technology.
Market
2
2
>
Carbon prices on logistics.
>
Scarcity of ‘green’ suppliers.
Reputation
2
2
>
Failure to reach net zero targets.
Physical risk
Acute
1
3
1
5
>
Extreme weather at suppliers, construction sites, developed sites.
Chronic
1
1
3
5
>
Changing weather impacts communities.
>
Requirement to retrofit homes.
>
Land scarcity.
Opportunities
Resource efficiency
2
2
>
Circular redesign of products.
>
Off-site and digital practices.
Energy source
2
2
>
On-site electricity generation.
>
Procurement of low-carbon fuels.
Products
1
3
4
>
Offering low-carbon homes.
>
Procuring low-carbon raw materials.
Markets
1
1
>
Attracting sustainable investment.
Total CROs
7
13
10
2
32
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Climate scenario analysis
To better understand how these risks and
opportunities may potentially impact our
business financially, and in response to the
TCFD recommendations and the forthcoming
ESRS requirements, we assessed the six
prioritised risks and opportunities under
different climate scenarios in 2023. We
assessed risks and opportunities in relation to
a transition to a net zero world and in relation
to the physical impacts of climate change. We
worked with the Carbon Trust, a global climate
consultancy, to support us in identifying the
relevant scenarios and to carry out the analysis.
Scenario used
Description
NGFS Current
Policies
This scenario assumes that only currently implemented climate policies are
maintained, with no further strengthening, leading to high physical risks. Global
GHG emissions grow until 2080, leading to about 3°C of warming and irreversible
changes like higher sea level rise. It was developed for the NGFS and is considered
a ‘hot house’ scenario, characterised by high physical risks, but low transition
risks. This scenario was applied to both transition and physical risks as well
as opportunities.
NGFS Net Zero
2050
Net Zero 2050 is an ambitious scenario that limits global warming to 1.5°C through
stringent climate policies and innovation, reaching net zero CO₂ emissions around
2050. Some jurisdictions such as the US, EU and Japan reach net zero for all GHG
emissions by this point. This scenario assumes that ambitious climate policies are
introduced immediately. Carbon Dioxide Removal (‘CDR’) is used to accelerate
the decarbonisation but is kept to the minimum possible and broadly in line with
sustainable levels of bioenergy production. Net CO₂ emissions reach zero around
2050, giving at least a 50% chance of limiting global warming to below 1.5°C by the
end of the century with no or low overshoot (<0.1°C) of 1.5°C in earlier years. Physical
risks are relatively low but transition risks are high. This scenario was used to stress
test transition risks and opportunities.
RCP 8.5
The Representative Concentration Pathway (‘RCP’) 8.5 data, extracted from the
NGFS, assumes that global emissions continue to rise throughout the 21st century,
leading to a global mean temperature rise of close to 4°C in 2100. This scenario was
used to stress test physical risks.
>
Four CROs were
prioritised
and modelled quantitatively (see pages 72-73). These relate to
energy use and carbon prices, due to the availability of relevant scenario data.
>
Seven CROs were
reviewed
, some of which through a site-level physical risk assessment.
As flooding risk was of high relevance, two risks relating to this were prioritised and
quantitatively modelled (see pages 72-73).
>
13 CROs will be
monitored
. They relate to non-carbon price ESG regulation, reputational
impacts, and suppliers’ physical risks, which are difficult to model. The opportunities could be
modelled in the future as available information evolves and improves.
>
Eight CROs will be
watched
to review changes in exposure.
Time horizons
We assessed the risks across a number of time
horizons as follows:
Short-term
0-2 years
Medium-term
2-7 years
Long-term
7+ years
These timeframes were selected based on the data
availability of the selected scenario source (‘NGFS’)
which reports data every five years (2020, 2025,
2030, etc.).
Scenarios
We have selected publicly available scenarios from
the Network for Greening the Financial System
(‘NGFS’). The table below outlines the scenarios
used and how they were applied.
Each of the CROs were assessed in terms of a) their materiality – a quantitative assessment of the
potential financial impact of each CRO and b) feasibility of modelling – an assessment of whether
scenario analysis can be carried out for each CRO, based on availability of scenario data and robust
underlying assumptions. These were then mapped into four categories:
LOW
HIGH
HIGH
Review
>
Weather impacts on construction sites
>
Weather impacts at developed sites
>
Weather impacts on logistics
>
Carbon prices on logistics
>
Drought impact on planning
>
Rising sea level at coastal sites
>
Green Mortgages
Prioritise
>
Direct carbon prices
>
Carbon prices on suppliers
>
Procurement of less carbon
intensive fuels
>
On-site solar panels
Watch
>
Increased reporting
>
Smart homes
>
Weather – communities; biodiversity (2)
>
Building design for higher temp
>
Sustainable investment
>
Increased off-site & digital solutions
>
Sustainable suppliers
Monitor
>
Reputational impacts from failure to meet
expectations (4 risks)
>
Increased ESG regulation (4 risks)
>
CBAM
>
Weather impacts on suppliers
>
Sustainable construction (2 opportunities)
>
Technologies
MATERIALITY SCORE
FEASIBILITY OF MODELLING
7
4
8
13
Prioritisation matrix
(
Risk,
Opportunity
)
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Potential financial impacts of prioritised risks and opportunities
Risk/ opportunity
Timeframe
Assumptions and mitigants/strategy to realise opportunities
Financial impact
(Cumulative 2023-2050)
Current
Policies
Net Zero
2050
RCP
8.5
Transition risk
Direct carbon prices increase
tax payable
More stringent EU and Irish climate
policy on carbon taxation may take the
form of higher carbon prices over the
coming years. Rising carbon prices can
result in an increase in the tax payable
on Glenveagh’s Scope 1 emissions.
Short
term
Assumptions
The financial impact is calculated by multiplying Glenveagh’s projected unmitigated scope 1 emissions by projected
carbon price. Carbon prices are projected by growing 2022 Irish carbon taxes on fuel by carbon prices growth rates
under the NGFS Current Policies and Net Zero 2050 scenarios. There is a high potential gross loss, especially under
the net zero scenario.
N/A
Gross VaS*: €10-49 million
potential impact
Mitigants
Potential losses are very effectively mitigated by phasing out diesel usage from generators and plant machinery on
construction sites and replacing with HVO fuel and converting the Company fleet from internal combustion engine (‘ICE’)
fleet vehicles to EVs. This would reduce Scope 1 emissions and therefore reduce carbon price payable. As part of our Net
Zero Transition Plan, we have identified and listed these as actions required to deliver on our near-term and long-term
SBTs. In July 2023, we commenced rolling out HVO across our sites. We continue to add vehicles in line with lease renewals
to achieve an electric fleet.
N/A
Net VaS*: Less than €0.4 million
potential impact after mitigants
Higher carbon prices on suppliers are
passed on to Glenveagh, increasing
construction costs
Rising carbon prices can result in an
increase in the tax payable on the
Scope 1 emissions of Glenveagh’s key
suppliers. These increased costs may
then be passed on to Glenveagh
as higher procurement costs for
construction materials.
Short
term
Assumptions
The financial impact is calculated by multiplying projected unmitigated Scope 3 emissions from construction materials
by projected carbon price. Carbon prices are projected by growing the 2022 Irish carbon taxes on fuel by carbon prices
growth rates under the NGFS Current Policies and Net Zero 2050 scenario. It assumes that all tax increases will be passed
on. There is a very high level of uncertainty inherent in this calculation and it will require ongoing evaluation as more
information becomes available. There is a very high potential gross loss, especially under the Net Zero 2050 scenario.
N/A
Gross VaS*: €200 million+ potential
impact (requires further modelling
due to high level of uncertainty).
Mitigants
Only minor mitigation potential has been identified through the modelling exercise using a simplistic switch to timber
frame. However, significant work is ongoing in this area, in line with our Scope 3 SBT. This includes our work on innovation
to reduce the embodied carbon of the homes we build, together with our supply chain engagement programme, which has
the potential to see significant reductions in Scope 3 emissions and consequently reduced financial impact associated with
this risk.
N/A
Net VaS*: €200 million+ potential
impact (requires further modelling
when additional supplier
information is available.
Physical risk
Extreme weather events at
development sites result in increased
construction costs
Floods on sites under development can
lead to increased construction costs
from construction stoppages.
Medium
term
Assumptions
The potential losses for this risk were calculated through considering daily construction costs, number of days of flooding,
number of sites at risk and the chance of very high flood risk. There are low potential gross losses across all scenarios for
this risk.
N/A
Gross VaS*: €3.5-8 million
potential impact
Mitigants
Losses are effectively mitigated by existing due diligence practices and current off-site construction strategy. There are
no implementation costs as due diligence is already common practice and the use of timber frame is in embedded in the
current strategy.
N/A
Net VaS*: Less than €2 million
potential impact
*
VaS = Value at Stake
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Very low
impact
Low
impact
Medium
impact
High
impact
Very high
impact
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Potential financial impacts of prioritised risks and opportunities
Risk/ opportunity
Timeframe
Assumptions and mitigants/strategy to realise opportunities
Financial impact
(Cumulative 2023-2050)
Current
Policies
Net Zero
2050
RCP
8.5
Physical risk
continued
Extreme weather events at developed
sites result in increased post-
construction costs
Floods on developed sites can lead to
increased post-construction costs.
Medium
term
Assumptions
The potential losses for this risk were calculated through considering daily post-construction costs, number of days of
flooding, number of sites at risk and the chance of very high flood risk. For the purposes of modelling this risk, it was
assumed that the number of developed sites remains constant from 2022 to 2050. Post-construction costs refer to the costs
incurred in the two-year period after construction for which Glenveagh has partial liability. There are low potential gross
losses across all scenarios.
N/A
Gross VaS*: Less than €0.2 million
potential impact
Mitigants
Losses are effectively mitigated by existing due diligence practices. There are no implementation costs as due diligence is
already common practice.
N/A
Net VaS*: Less than €0.2 million
potential impact
Opportunity
Procurement of less carbon intensive
fuels reduces the impact of energy
price increases
There are potential cost savings
achieved by switching from diesel to
HVO for the generators on Glenveagh’s
construction sites. Savings are realised
in the years in which HVO is cheaper
than diesel.
Medium
term
Assumptions
The potential savings are calculated by considering the HVO – diesel price differential and Glenveagh projected fuel
energy consumption needs (where HVO price < diesel price). There are high potential gains in the Net Zero 2050 scenario.
Gross savings are realised in the years in which HVO is cheaper than diesel (under Net Zero 2050 scenario) while net
savings are gains including years when HVO is more expensive than diesel (under Current Policies scenario).
N/A
Gross savings: €0.5-€33 million
Strategy to realise opportunity
In Current Policies scenario costs outweigh the gains, but this opportunity also mitigates the risk of direct carbon prices
increasing tax payable. In our Net Zero Transition Plan, one of the key actions to deliver our Scope 1 and 2 carbon
emissions is to transition sites to renewable fuels. In 2023, we commenced the roll-out of HVO across our sites, replacing
the need for diesel or gas oil.
N/A
Net savings -€5.5-€32 million
Installation of on-site solar panels
at factories reduces exposure to
electricity price fluctuations
There are potential cost savings
achieved by switching energy sources
from procured electricity to on-site
electricity generation from solar panels.
By installing on-site solar panels,
Glenveagh can reduce its exposure to
energy price fluctuations.
Short
term
Assumptions
The projected savings are equal to the avoided financial spend on procured electricity from 2022 to 2050, as Glenveagh
would no longer need to procure electricity externally. This is calculated by considering projected electricity prices and
Glenveagh’s projected electricity consumption. Note: gross savings are gains excluding PV installation costs, and net
savings are gains including PV installation costs. There are high potential gains in both scenarios, but it relies on optimistic
assumptions. Upfront costs cause a dip in gains in the short term but overall savings remain significant.
N/A
Gross savings: Greater than
€25 million
Strategy to realise opportunity
In our Net Zero Transition Plan, we committed to assessing the potential for the use of on-site renewables at our off-site
manufacturing facilities. In 2023, we completed these feasibility studies, which will now progress to the planning stage of
the project with implementation due in 2024.
N/A
Net savings: Greater than
€22 million
*
VaS = Value at Stake
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Very low
impact
Low
impact
Medium
impact
High
impact
Very high
impact
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Risk management
Identifying and assessing climate-related risks
and opportunities
Glenveagh’s risk management framework is
supplemented by a specific process to identify
and assess climate-related risks and opportunities.
This includes viewing risks and opportunities over
a longer timeframe than normal. This process is
outlined below.
Managing climate-related risks
and opportunities
Glenveagh has developed a number of actions
which support the realisation of the opportunities
identified and the mitigation of the risks. These
actions are outlined on the previous pages
alongside each of the risks and opportunities.
Additional information can be found in our Net
Zero Transition Plan and in our 2023 CDP response.
Integrating climate-related risks into the
organisation’s overall risk management
Our risk management framework provides a
common risk management process to identify,
assess, mitigate, monitor and report risks which
impact the business, including climate. In 2022,
climate change was identified for the first time as
a principal risk for the Group and this remains the
case in 2023. This indicates its priority within our
overall strategy. In addition, other principal risks are
reviewed to ensure that climate-related elements
are integrated where appropriate, e.g. availability
and increased cost of materials and labour.
Outcome
Long list of CROs classified
according to TCFD categories
and value chain activity
affected. See the Climate
risks and opportunities CROs
identified table on page 70.
Outcome
Prioritised short-list of CROs.
See the Prioritisation matrix
on page 71.
Increased understanding of
potential financial impacts and
where further data is required.
Outcome
Understanding of potential
financial effects under
different climate scenarios.
See the Potential financial
impacts of prioritised risks and
opportunities table on page
72 to 73.
Step 4
Appraised
business impact
>
Appraised the potential
impacts on our strategy
and financial position.
>
Evaluated resilience of the
business based on current
and planned actions
to mitigate risks and
implement opportunities.
Outcome
Improved understanding of
how resilient our business
model and strategy is and
how well we are mitigating
risks and taking advantage
of opportunities.
Step 2
Assessed materiality
and prioritised
>
Assessed materiality of
CROs using our standard
risk scoring approach i.e.
assessing impact and
likelihood.
>
Applied a proprietary tool
developed and owned
by the Carbon Trust to
assess the exposure of
our individual sites to a
selection of physical risks.
Step 1
Identified climate-related
risks and opportunities
>
Identified CROs in-house
based on literature review,
peer review and assessment
of forthcoming regulatory
requirements.
>
This was reviewed and
validated by climate
risk experts.
Step 3
Identified and applied
climate scenarios
>
Selected scenario
parameters from externally
available sources.
>
Reviewed shortlisted CROs
against selected scenarios
to calculate ‘value-at-stake’.
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Metrics
Glenveagh monitors a number of metrics in the area of climate to measure progress against our targets and to assess our performance in relation to our risks and opportunities.
In particular, progress against our SBTs are tracked. They are as follows:
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Scope 3 near-term target
(tCO
2
e/100sq m of completed floor area)
0
20
40
60
80
100
120
140
160
180
2031
Near-term
target
2023*
Actual
2022
Actual
2021
Baseline
46.2%
reduction in absolute Scopes 1 and 2
by 2031 from a 2021 base year.
90%
reduction in absolute Scopes 1 and 2
by 2050 from a 2021 base year.
55.0%
reduction in Scope 3 emissions intensity
(tCO
2
e/100sqm of completed floor area)
by 2031 from a 2021 base year.
97%
reduction in Scope 3 emissions intensity
(tCO
2
e/100sqm of completed floor area)
by 2050 from a 2021 base year.
The primary metrics which we measure, including which risks and opportunities they address, are outlined below:
Metric
Risk/ Opportunity addressed
> Absolute Scope 1 and 2 GHG emissions tCO
2
e (SBT).
>
Direct carbon prices increase tax payable.
>
Procurement of less carbon-intensive fuels reduces the impact of energy price increases.
> Scope 3 GHG emissions tCO
2
e/100sqm completed floor area (SBT).
>
Higher carbon prices on suppliers are passed on to Glenveagh, increasing procurement costs.
> Proportion of total homes with BER of A1 and A2.
>
Attracting sustainable investment.
>
Green mortgages.
> Average kilowatt hours per completed floor area.
>
Attracting sustainable investment.
>
Green mortgages.
> Percentage of electricity generated on-site from renewable sources (future measurement).
>
Direct carbon prices increase tax payable.
>
Installation of on-site solar panels at factories reduces exposure to electricity price fluctuations.
Our detailed Scope 1, 2 and 3 emissions information can be found on page 76. Our verification statement and methodology document can be found at https://glenveagh. ie/corporate/sustainability.
Scopes 1 and 2 near-term target (tCO
2
e)
0
1000
2000
3000
4000
5000
2031
Near-term
target
2023*
Actual
2022
Actual
2021
Baseline
*
Initial rise in emissions expected due to business growth.
Year on year we have seen an 11% decrease in
Scope 1 and 2 emissions between 2022 and 2023
indicating that we have commenced our trajectory
towards a reduction in absolute emissions. Our
Scope 1 and 2 emissions are currently tracking at
15% above our 2021 baseline. This is in line with
expectations of an initial rise in emissions due to
business growth, while we put emissions reduction
initiatives in place.
We expect a full years’ use of HVO in 2024 to
result in significant reductions by year end. On
an intensity basis, Scope 1 and 2 emissions have
reduced by 4%.
Our Scope 3 emissions intensity is now tracking at
7% below our 2021 baseline, a further improvement
on 2022 when emissions were 5% below the
baseline. These are measured on an intensity basis.
Scope 3 emissions reductions are primarily as a
result of our continuous focus on improving the
energy efficiency of our homes with 85% of homes
now having a BER rating of A1 compared with 55%
in 2022 and none in 2021. We will continue to focus
on increasing energy efficiency where possible; and
will now focus on reducing the embodied carbon
associated with the homes and to working with our
subcontractors to reduce the emissions associated
with their fuel use.
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Link to strategy
UN SDGs
Measure
Unit
2023
2022
2
2021
Scope 1 and 2 GHG emissions
1
Scope 1 – combustion of fuel
tCO
2
e
3,234
3,803
3,048
Scope 2 – location-based
tCO
2
e
873
813
518
Scope 2 – market-based
tCO
2
e
350
248
189
Scope 3 GHG emissions
1, 3
Category 1: Purchased goods and services – construction materials
4
Purchased goods and services – groundworks, crane and subcontractor fuel
Purchased goods and services – other
tCO
2
e
102,926
50,636
182
102,083
55,502
139
80,526
42,250
122
Category 2: Capital goods – assets
tCO
2
e
827
678
769
Category 3: Other fuel and energy
tCO
2
e
1,114
1,128
894
Category 4: Upstream transportation and distribution
tCO
2
e
8,394
7,143
6,442
Category 5: Waste
tCO
2
e
281
195
120
Category 6: Business travel
tCO
2
e
65
43
18
Category 7: Employee commuting
tCO
2
e
1,303
1,093
908
Category 11: Use of sold products – Occupant energy use over 50 years – regulated
Occupant energy use over 50 years – unregulated
Occupant emissions – refrigerants
tCO
2
e
10,781
26,720
943
17,637
30,888
1,388
24,855
26,770
1,085
Category 12: End-of-life treatment of product
tCO
2
e
5,191
5,423
3,857
Total GHG emissions
Total Scopes 1 and 2 – location-based
tCO
2
e
4,108
4,616
3,566
Total Scope 3
tCO
2
e
209,364
223,341
188,618
Total Scopes 1, 2 and 3 – location-based
tCO
2
e
213,471
227,957
192,184
Total Scopes 1, 2 and 3 – market-based
tCO
2
e
212,949
227,391
191,854
GHG emissions intensity
100sqm of completed floor area
100sqm
1,505
1,563
1,255
Total Scope 1 and 2 emissions (location-based) per 100sqm of completed floor area
tCO
2
e/100sqm
2.7
3.0
2.8
Total Scope 3 emissions (location-based) per 100sqm of completed floor area
tCO
2
e/100sqm
139.1
142.9
150.3
Total Scope 1, 2 and 3 emissions (location-based) per 100sqm of completed floor area
tCO
2
e/100sqm
141.8
145.9
153.1
1
The assessment of our 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 (CO
2
), methane (CH₄), nitrous oxide (N₂O), sulphur hexafluoride (SF₆), perfluorocarbons (PFCs) and hydrofluorocarbons (HFCs). The total footprint is expressed as carbon dioxide equivalent (CO
2
e) applying the Global
Warming Potential values provided by IPCC (2007). A third-party verification (ISO 14064-3:2019) was completed for reported emissions. This was carried out for FY2023 GHG emissions by Goodbody Clearstream. A copy of their GHG verification statement
and more details on our methodology is available at https://glenveagh.ie/corporate/sustainability.
2
Data has been restated to improve the accuracy of reporting. This data was not subject to third-party verification.
3
Glenveagh does not have emissions to report under Categories 8-10 and 13-15.
4
Under the methodology for setting our Scope 3 SBTs, we are required to included “Construction materials” in Category 1 – Purchased goods and services. In previous years “Constuction materials” was included in Category 2: Capital goods.
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Carbon Emissions
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Priorities for 2024
To date we have made good progress in gathering
data on our Scope 1, 2 and 3 emissions and
reporting on same. With our ambitious science-
based near-and long-term targets, there is more
to do.
Scope 3
Our most significant GHG emissions are in our Scope 3 emissions,
particularly in the Purchased goods and services and Use of sold
products categories.
To progress against our Scope 3 targets, our priorities are focused on the
following areas:
>
Supply chain engagement
An action plan to support the implementation of our formal
engagement programme with our materials suppliers and
subcontractors will be developed in 2024. Engagement with priority
suppliers/subcontractors will take precedence. Our Vendor Code of
Conduct, Sustainable Procurement Policy and our Human Rights, Anti-
Slavery and Human Trafficking Policy are all enablers of this work and
will be updated accordingly. We will support the set-up and roll-out of
the SCSS in Ireland.
>
Innovation
Our innovation team will continue its work researching and testing
alternative materials and designs that reduce the embodied carbon
at each stage of the project lifecycle.
Scopes 1 and 2
To progress against our Scope 1 and 2 targets we intend to focus on
specific key initiatives, including:
>
Continue to use HVO on our sites
The introduction of HVO to power our plant, machinery and generators
on-site has contributed to the reduction we have seen in our Scope 1
emissions. In 2024 we will continue to utilise HVO across our sites.
>
Continue the transition of fleet to EVs and electrification of
machinery
We will continue the transition of our fleet to EVs, thereby increasing
the EV proportion of our fleet throughout 2024. In addition, as part of
our established process, we intend to replace machinery that becomes
obsolete with electric machinery, in line with the replacement cycle.
>
Progress on-site renewable electricity and increase efficiency
In our NUA manufacturing factories, we intend to apply for planning
permission to install PVs to generate electricity. We continue to
implement efficiencies across our sites, manufacturing facilities and
offices to reduce the fuel and electricity required.
Energy Efficiency
Link to strategy
UN SDGs
Measure
Unit
2023
2022
2021
Proportion of total homes with BER of A1
%
85%
55%
–
Proportion of total homes with BER of A2
%
14%
44%
82%
Proportion of total homes with BER of A3
%
1%
0.2%
18%
Average kilowatt hours per completed floor area
kWh/sqm
22
30
45
Homes incorporating renewable energy
%
99.7%
99.7%
94%
Proportion of off-site manufactured houses as a share of all houses sold
%
85%
71%
77%
Off-site manufactured timberframe houses
%
72%
70%
76%
Other house types
%
28%
30%
24%
Low carbon homes
Link to strategy
UN SDGs
Measure
Unit
2023
2022
1
2021
Fuel and electricity consumption from sites and offices
MWh
19,447
17,218
13,779
Operational energy intensity – MWh per 100sqm completed floor area
MWh/100sqm
12.9
11
11
1
Data has been restated to improve the accuracy of reporting.
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We have already dedicated considerable effort to
improving our baseline knowledge of our impact
on biodiversity and will continue to refine this
understanding with more accurate data.
Our commitment to biodiversity is a strategic
business decision as well as an environmental
responsibility. This strategy is a step towards
better understanding of how we as a business
impact on and depend upon biodiversity. Our
strategy will ensure we are investing in the long-
term sustainability of our operations, effectively
managing risks and ensuring a robust foundation
for our business’s future.
Our impacts and dependencies
In 2023, Glenveagh began identifying its material
impacts and dependencies on biodiversity using
the double materiality assessment methodology
(see page 26). Most of our material biodiversity
impacts and risks occur in our upstream activities
and direct operations. In our upstream activities,
this is related to the extraction, processing,
manufacturing and transportation of our
construction raw materials. Land use change
associated with mining and extraction of raw
materials for concrete and aggregates as well as
demand for timber has the potential to cause either
habitat destruction and/or habitat degradation.
Water use within this part of our value chain can
have a detrimental impact on water basins, water
scarcity, and deplete the availability and quality of
water in areas of high stress. Furthermore, GHG
emissions, soil, water, air and noise pollutants in our
upstream activities can lead to biodiversity loss and
a decline in quality of nature.
Within the operations part of our value chain,
our material biodiversity impacts are associated,
primarily, with our on-site construction activities.
Land clearing and conversion can lead to habitat
loss and soil degradation. Furthermore, water
pollution could arise if poor site practices exist,
such as pollutant discharges from washed concrete
and fuels into local water courses, so it is critical
that controls are in place to avoid this scenario (see
page 83 on pollution).
In our downstream activities, the number of
material biodiversity impacts are less compared
with other parts of our value chain and they
include the reduction of species diversity that could
arise due to intensive mowing regimes and use
of pesticides in green areas as well as increased
fragmentation of habitats and dispersal routes if
interconnectivity is not considered as part of
the design.
Consideration was given to the dependency of
Glenveagh’s business model and strategy on
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Biodiversity
Throughout 2023, we developed
our first biodiversity strategy
‘Building a Better Habitat’ which
was published in January 2024.
We had stated our intention to
publish a Biodiversity Transition
Plan including targets in 2023;
however, due to the absence of
a national framework around
Biodiversity Net Gain (‘BNG’)
and the evolving nature of
international initiatives in this
space, we have published this
strategy, which lays out the initial
steps we are taking, based
on our current understanding
and commitments.
natural resources such as water, timber, sand
and stone across the value chain. These types
of dependencies can present financial risks and
opportunities where Glenveagh is dependent on
the continued availability of such resources at
appropriate prices and quality, or on relationships
needed in its business processes. In addition, we
have also analysed dependencies on ecosystem
services, such as climate regulation: if we do not
have this, impacts like extreme climate events such
as storms (wind and rain) can disrupt construction
operations for periods of time.
External partnerships
Accreditations
ISO 14001:2015
ENVIRONMENT
NSAI Certified
Integrating
environmental
considerations into
site selection, design,
development and
construction
As part of the due diligence of our land
acquisition process all potential 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 also 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 minimise ecological
impacts during construction we maintain and
continually improve our ISO 14001:2015 EMS.
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.
The use of redevelopment sites reduce land
disturbance and tree clearing. In 2023 143
of the 1,359 homes delivered were built on
redevelopment sites.
Within our developments, as well as providing
open spaces for playing areas, we dedicate
areas for enhancing biodiversity.
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Policy
Protection of the natural environment is currently
addressed under our Environment Policy as part
of our ISO 14001 accredited EMS. A stand-alone
Biodiversity Policy will be developed in 2024.
Actions
Our Biodiversity Strategy sets out the key actions
we have committed to implementing to address our
IROs. We have developed our framework under
three key pillars with an additional overarching
commitment to embed biodiversity throughout
our organisation. This is supported by robust
governance and transparent reporting.
Workstream
Actions taken in 2023
Actions planned for 2024
Protect and
enhance
biodiversity
on our sites
>
Developed a series of templates for use at each stage of the site
development process, which will help us to assess the biodiversity
of a site.
>
Continued to incorporate biodiversity into developments including
detailed ecological studies, retaining wildlife corridors, incorporating
Sustainable Drainage Systems (‘SuDS’) and encouraging pollinators.
>
Commence the implementation of the series of templates developed for each
stage of the site development process, from pre-acquisition to post-completion,
which will help us to assess and enhance the biodiversity of a site.
>
Develop/adopt a biodiversity design guidance manual to be used by all
design teams.
Protect and
enhance
biodiversity in
our supply chain
>
Commenced the development of our supply chain
engagement programme.
>
Became one of 15 founding partners of the Supply Chain
Sustainability School Ireland.
>
Commence engagement with suppliers/subcontractors regarding biodiversity as
part of the roll-out of our supply chain engagement programme.
>
Encourage active participation by our suppliers in the biodiversity modules of
the Supply Chain Sustainability School Ireland.
Collaborate for
biodiversity
>
Information on biodiversity, including how to create a pollinator-
friendly garden, included in homeowner’s guide.
>
Rolled out Nature Hero Awards, a national campaign to support
schools with their biodiversity goals.
>
Participated in the Business for Biodiversity and Irish Green Building
Council Communities of Practice to share knowledge and learn from
others.
>
Review our customer and community activities to evolve our approach to
biodiversity as our overall approach develops.
>
Participate actively with industry and expert groups to grow our knowledge
and understanding of biodiversity.
Embedding
biodiversity
throughout the
organisation
>
Developed and communicated Biodiversity Strategy internally with
input from teams across the organisation.
>
Publish a biodiversity policy.
>
Roll out biodiversity training for all Glenveagh staff.
>
Identify roles/teams where more in-depth/specific training is required and
develop plan to address.
Metrics
We measure the following metric in relation to this area:
Link to strategy
UN SDGs
Measure
Unit
2023
2022
2021
2
Homes delivered on redevelopment sites
Homes
143
186
248
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In 2023, we commenced the development of
a Circular Economy Strategy for the business,
which was published in February 2024. This sets
out our approach to managing resources in a
more efficient way by including the principles
of circularity within our business model. The
development of this strategy supports our
ambitions in relation to our net zero transition
as well as the commitments that we have made
as part of our Biodiversity Strategy.
Our impacts
As part of our materiality assessment (see pages
26 and 27), we have identified at a high level our
most material impacts in relation to resource use
and circular economy across our value chain. In this
context, the most significant impacts occur in our
upstream value chain covering activities around
raw material extraction, processing, manufacturing
and transportation of our construction products
and services. Our demand for these products
could contribute to the depletion of non-renewable
resources and materials that currently rely on
natural resource inputs like minerals, metals and
fossil fuels. These processes also have the potential
to lead to the creation of large volumes of solid
waste and possible pollution issues.
Within the operations section of our value chain,
our resource use material impacts relate to our
on-site construction activities. These primarily relate
to the use of both renewable and fossil fuels, as
well as the production of waste associated with on-
site construction activities. Downstream, the main
impacts relate to the waste associated with the
end-of-life treatment of our constructed homes and
how they are treated, disassembled, reused and
recycled at the end-of-life.
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Resource use and
circular economy
The construction industry is
considered not only one of
the largest consumers of raw
materials globally, and the largest
consumer of high-emission
raw materials such as concrete
and steel, it is also known as
one of the largest producers
of waste and is responsible for
over 35% of EU’s total waste
generation. At a local level, the
construction industry produced
half of all waste, generating nine
million tonnes of construction
and demolition waste in 2021.
Glenveagh recognises the part
that we play in the consumption
of these resources and the
waste generated.
Resource efficiency by design
Sustainable design practices and choice of
materials used in construction can improve
resource efficiency in the homes we build.
Energy-saving products and techniques such
as designing homes for efficient heating and
cooling may reduce energy dependence.
Glenveagh homes are more energy efficient
than the average, with 85% of our homes
rated A1 BER in 2023. 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, higher quality materials used, and the
use of renewable technologies in our homes,
such as heat pumps and PVs.
The use of water-saving features can reduce
water dependence. See page 82 for more
information on how we incorporate water-
saving features in the homes we build.
Customer education is key to unlocking the
long-term benefits of resource efficiency in
homes. 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.
Policy
Our waste and resources policy sets out our
commitments in this area. This will be updated in
2024 to better reflect our new resource use and
Circular Economy Strategy.
Actions
Throughout 2023, we continued to manage our
waste on-site and in our factories to reduce its
environmental impact. However, we know that
we must improve in terms of the amount of waste
we generate, our segregation on site and the
end-treatment of our various waste streams.
Our waste generation grew in the last year
as our business grew.
Our Circular Economy Strategy sets out the actions
that we are going to take over the coming years in
terms of incorporating circular principles into our
design, procurement and operations.
Objectives and targets are set out under four pillars
that address various aspects of our value chain.
An overview of the strategy can be seen on the
next page.
To access a copy of our plan see page 81.
Accreditations
ISO 14001:2015
ENVIRONMENT
NSAI Certified
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Metrics
We measure the following metrics in relation to resource use and circular economy:
Link to strategy
UN SDGs
Measure
Unit
2023
2022
1
2021
1
Total waste
Tonnes
14,343
10,381
6,191
Total waste recycled
%
7.7%
8.9%
10.2%
Total waste recovered
%
92.3%
91.1%
89.8%
Plan on a page
The following is a summary of the key objectives, targets and actions of our Circular Economy Strategy.
Circular design
Supply chain
engagement
Waste reduction
Measurement
Objectives
Cut our material footprint by
incorporating circular design principles
into our design activities.
Improve site practices and infrastructure
to reduce waste and manage resources
efficiently.
Work with our suppliers to source
materials responsibly and develop new
circular business models through supply
chain collaboration.
Track our material inflows and outflows
as well as product composition and
sustainablilty criteria to measure and
calculate our circular improvement.
Targets
By 2026, a circular design metric will be
set to measure circularity improvement.
Prepare 70% of construction and
demolition (non-hazardous) waste
for reuse, recycling and other
material recovery.
By 2025, engage 50% of our suppliers
by spend to increase circular sourcing.
By 2026, material inflows and
outflows by weight will be logged
and tracked digitally.
Actions
>
Incorporating circular
design principles
>
Standardisation
>
Low-impact materials
>
Waste management
>
Behavioural change
>
Supplier and subcontractor
engagement
>
Contract management
>
Data collection
>
Tracking system development
Supported by Governance Reporting and Stakeholder Engagement
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
1
We have enhanced our reporting to include waste from our offices and manufacturing sites which were not included in previous years.
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SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Our impacts
Our materiality assessment indicated to us that
our key impacts occur mainly upstream, in the
extraction, processing and transportation of
construction materials, and downstream in the use
of our houses by our customers during their lifetime.
There is smaller impact associated with the use of
water for on-site activities. In all cases the potential
impact relates to contribution towards negatively
affecting the availability or quality of water either
through withdrawal, consumption or discharge.
Further iterations of our double materiality
assessment as well as engagement with our
suppliers will provide a clearer understanding
of the IROs in relation to water.
Furthermore, due to our use of water in the various
stages throughout the value chain, it is clear that
water is a key natural resource dependency for us.
Policy
Water, as a natural resource, is currently addressed
under our Environment Policy as part of our ISO
14001 accredited EMS. We will explore whether
a standalone Water Policy should be developed
in 2024.
Action
While we do not have a specific strategy or action
plan in place to address water, it is addressed as
part of our EMS with water consumption routinely
included on our site aspects and impacts register
with appropriate mitigants in place to manage it.
When determining the viability of sites we assess
proposed land acquisitions to determine whether
they are exposed to 1 in 100-year storm flood risk.
In 2024, we plan to start measuring water on-site
and will engage with key suppliers to further
understand water use in our upstream value chain
and encourage action where necessary. We also
strive to deliver water efficient homes for our
customers and end-users. Read more below.
Water
Operationally, Glenveagh is not
an intensive consumer of water
either on our sites or in our
factories, nor do we operate
in regions of high or extremely
high baseline water stress.
However, when we take a
value chain approach to the
issue of water, it is evident that
considerations around water
consumption are important.
Water efficient homes
While Glenveagh is not an intensive consumer
of water, we recognise the importance of
understanding the water use that is associated
with how we operate our business. Our sites are
developed in regions of low/low-medium water
stress and we strive to ensure that the homes
we deliver maximise water efficiency for the
homeowners downstream in our value chain.
Currently in Ireland, installed water fixtures are
not certified to any water efficiency standard.
However we are actively working towards
complying with the Dwelling Energy Assessment
Procedure (‘DEAP’) low water usage target of 125
litres per person per day. DEAP is a procedure
used for calculating and assessing the energy
performance of homes in Ireland, and considers
the energy associated with heating water.
We understand the use of water in homes is
driven by the behaviour of the occupants and
endeavour to use our influence to encourage
our customers to make good decisions on their
water use. To support this, we are actively
implementing two key initiatives:
>
installing flow restrictors in new homes;
>
providing useful insights to homeowners on
how they can make ‘water smart’ decisions in
their new homes.
In 2023, flow restrictors were installed in 100% of
the homes we sold and our Homeowner’s Guides
were made available to the homeowners in the
developments we sold.
Metrics
We monitor the following metrics in relation to water:
Link to strategy
UN SDGs
Measure
Unit
2023
2022
2021
Number of lots delivered in regions with High or Extremely
High Baseline Stress
lots
0
0
0
Number of lots located in 100-year flood zones
lots
0
0
0
Accreditations
ISO 14001:2015
ENVIRONMENT
NSAI Certified
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
SUSTAINABILITY
CONTINUED
ENVIRONMENT
CONTINUED
Pollution
Construction activities, including
the extraction, processing and
transportation of raw materials,
have the potential to cause
pollution to water, air and soil
unless carefully managed.
Our impacts
As with other environmental matters, the majority
of our impacts or potential impacts in relation to
pollution arise in the upstream and operations
sections of our value chain. The mining, extraction
and processing of raw materials for the construction
industry has the potential to emit air, soil and water
pollutants, which can have a negative impact on
people and/or local biodiversity. Understanding
exactly where these might arise and how severe an
impact could be, will require further information from
our supply chain. Operationally, pollution to water
and soil has the potential to cause the biggest impact
and lead to the greatest risk. Downstream, impacts
in relation to pollution are focused on air quality.
Policy
Pollution prevention and management in relation to
our operations is addressed under our Environment
Policy as part of our EMS.
Action
The potential impact of pollution on our sites is
actively managed within the framework of our EMS
which is accredited to ISO 14001. Specific conditions
may also be outlined in the planning permission
granted, which may require us to put certain
controls in place to prevent pollutions. A variety of
control measures are in place with respect to our
construction sites including, but not limited to,
the following:
>
Site Environmental Management Procedures.
>
Environmental emergency response plans.
>
Site Environmental Health & Safety (EHS)
Induction Training.
>
Subcontractor controls.
>
Dry materials stored in a designated area to
prevent them from damage, deterioration and loss.
>
Concrete trucks not permitted to wash out
on-site.
>
Suitable areas for the storage of fuels and
chemicals. on-site. Fuels including contractor
fuels stored in bunded/certified fuel tanks/
bowsers or small amounts of fuel stored in
Metal Jeri cans with lockable lids.
>
Chemicals are stored in accordance with their
safety data sheets and assessments.
>
All liquid materials are stored in an upright
position with lids securely in place in a bunded
area or drip tray.
In 2024, as part of our supply chain engagement
programme, we will engage with our suppliers,
to further understand the potential pollution
impacts associated with the upstream stage of
our value chain.
Metrics
We monitor the following metric in relation to pollution:
Link to strategy
UN SDGs
Measure
Unit
2023
2022
2021
Homes incorporating renewable energy
%
99.7%
99.7%
94%
Contributing to better air quality
Published in September 2023, the Environmental
Protection Agency‘s most recent annual Air
Quality Report ‘Air Quality in Ireland 2022’ shows
that, while air quality in Ireland is generally good
and Ireland met EU legal air quality limits in 2022,
it did not meet the more stringent health-based
World Health Organization (‘WHO’) air quality
guidelines for a number of air pollutants due
mainly to the burning of solid fuel in our towns
and villages and traffic in our cities. Poor air
quality has a proven negative impact on
people’s health.
The EPA Report identifies that using less solid fuel
and cleaner fuels to heat homes – and reducing
the use of cars to go to school, work and play –
are actions that will contribute towards Ireland
achieving the WHO air quality guidelines.
Downstream in our value chain, the use of the
homes we build impacts the quality of air in
the towns and villages where we situate our
developments. To minimise potential negative
impacts, access to sustainable transport
infrastructure – including public transport, cycle
lanes and walking routes – is central to the
development process for every scheme, and
enables those using our homes to make more
sustainable decisions for travelling to school,
work and play. How homes are heated also
has an impact. 99.7% of the homes we sold in
2023 do not rely on the burning of solid fuel for
heat. Instead, they are heated using renewable
energy sources – air (via heat pumps) and the
sun (via PVs).
Accreditations
ISO 14001:2015
ENVIRONMENT
NSAI Certified
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SUSTAINABILITY
CONTINUED
INSIDE SOCIAL
85
Our workforce
89
Affected communities
90
Consumers and end-users
Social
Through delivering high-quality affordable homes, Glenveagh
contributes to alleviating the biggest social priority in Ireland at the
current time – the availability of housing. We also impact on the
society in which we operate by providing jobs, paying taxes
and supporting the communities in which we operate.
In addition, the design of residential developments
creates wider social impacts for our customers and
the broader community. Energy-efficient homes
enable our customers to minimise their energy bills,
which is particularly important with the current cost-
of-living challenges. Ensuring access to amenities
and sustainable public transport infrastructure from
our developments means our customers can access
important supports such as crèches, and can
minimise their carbon footprints as they travel to
and from their homes. Well-designed developments
provide communities with safe and vibrant
neighbourhoods that benefit not just our customers
but also the wider surrounding community.
A skilled and engaged workforce is essential to
enable us to deliver on our strategic priorities.
It is a key priority to be able to attract, develop
and retain employees, and ensure their work
environment is safe. We are also keenly focused
on diversity and inclusion in our own workforce
and in using our influence to drive positive impacts
through our suppliers.
Fostering a sense of community from the outset
is critical for developing a community that can
flourish. Prior to commencing our developments we
collaborate with our partners locally to understand
their needs. For building works on-site, we source
local apprentices and subcontractors wherever
possible. We maintain close relationships with the
businesses in each of the communities we develop,
and implement initiatives to bring small local
businesses and new local families together.
Accreditations
ISO 9001:2015
QUALITY
NSAI Certified
ISO 45001:2018
& SAFETY
NSAI Certified
HEALTH
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
SUSTAINABILITY
CONTINUED
SOCIAL
CONTINUED
Our workforce
We are dependent on a skilled
workforce to ensure Glenveagh’s
success into the future. In
recognition of this, valuing and
developing our colleagues is one
of our strategic priorities.
As a business that is growing at pace, as well
as diversifying its business model through
the integration of manufacturing, we place
significant emphasis on growing talent and
developing our people. As we do this, ensuring
we provide a safe and inclusive workplace is
also vital to attract and retain the talent that
we require.
Our impacts
We can impact the people who make up our
workforce both positively and negatively. The
main areas where these impacts can occur include
through the employment and working conditions
we provide, how fairly we treat people, how
inclusive we are and how we support people in
their development. A key risk for us in this area is
attracting, retaining and developing people we
need and depend on.
Equity, Diversity and Inclusion
Our Equity, Diversity and Inclusion (ED&I) Strategy,
which was published in December 2022, outlines
our overall commitment to ED&I, the targets that
we have set and the actions we are taking to
achieve these targets. To access a copy of our plan
see page 99.
Policies
Our ED&I Policy sets out the overall policy
framework in relation to this topic. A range of
additional policies are also in place to manage
specific areas relating to ED&I. These include
maternity and paternity leave, parental leave,
flexible working and carer’s leave. In 2024, we will
also introduce a fertility leave and menopause
policy to provide direction around entitlements with
respect to these issues.
Actions
Our ED&I strategy sets out our commitments
under three overarching objectives:
1. Better representation
2. An inclusive environment
3. Using our influence
To date we have set ambitious targets for better
representation and an inclusive environment.
Awards and recognition
External commitments
Better representation
40%
women on our Board by 2026
0
20%
40%
60%
2026
2023
2022
2021
In 2023, we exceeded our target of 40% of women
on the Board by 2026. We will continue to ensure
that we take into account gender and other
aspects of diversity as the Board goes through its
natural evolution in the coming years.
28%
women in Senior Management by 2025
In 2023, we maintained the level of women in
senior management at the same level as for
2022 (14%) as there were no changes to our
Executive Committee.
We continued to ensure that gender diversity
is considered at all levels of the organisations
to develop talent and ultimately drive towards
the achievement of this target. In 2023, we
participated in a number of initiatives to support
the growth and development of women within our
business including the CIF ‘Return with Confidence
for Women’ programme, the sponsorship of
two scholarships for women with the South East
Technological University (‘SETU’) Carlow and the
sponsorship of high profile initiatives.
We recognise we have more to do in this area
to get us to our ambitious target, and we will
continue to review how we best support the
development of female leaders in 2024.
30%
women in Graduate intake (annual)
In 2023, we met our ongoing target of 30%
women in our graduate intake. This focus is
important in driving the overall proportion of
women within our business and we work closely
with universities and colleges to achieve this.
An inclusive environment
Under our inclusive environment objective, we
intend to deliver ED&I training to all employees
in the Group by 2025 – one of the key initiatives
which help us to deliver improvements in the
Diversity & Inclusion and Culture statements
in the Great Place To Work (GPTW) survey
and in achieving Gold Investors in Diversity
Mark by 2024. In 2023, we continued to obtain
an improved score in our GPTW “Diversity &
Inclusion” in comparison to our 2021 baseline
(see metrics on page 86).
Using our influence
In 2023, we commended work on our supply
chain engagement programme which will
address a wide variety of sustainability matters
including ED&I. This supports our objective to
use our influence to drive ED&I within our supply
chain and through our communications and
sponsorship. In 2024 we intend to begin engaging
with our suppliers to develop a baseline of those
with an ED&I policy and training and to explore
how community funding can be targeted at
initiatives that have an ED&I commitment.
Accreditations
ISO 45001:2018
& SAFETY
NSAI Certified
HEALTH
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SUSTAINABILITY
CONTINUED
SOCIAL
CONTINUED
In support of these objectives, we have developed eight workstreams to drive action across all areas.
Workstream
Action taken in 2023
Actions planned for 2024
Governance
>
An ED&I Steering Group was established and met once per quarter.
>
The ESR Committee received a ‘deep-dive’ analysis on ED&I once during the year.
>
Five Employee Network Groups (‘ENGs’) were set up each with an executive sponsor, covering ethnicity, women, disability, parents/carers
and LGBTIQ+.
>
Continue to ensure robust governance processes through ESR Committee,
Executive Committee and ED&I Steering Group.
>
Increase membership of ENGs and support groups to roll-out plans and actions
to support their objectives.
Training &
development
>
ED&I and unconscious bias training was rolled out across the Group.
>
Dignity & Respect Training Content was developed.
>
Business Mentorship took place with IMI 30% club.
>
Launch Dignity & Respect training.
>
Roll-out mental health training to male construction workers which was designed
by Mens Health Forum Cairde project.
Communications
>
ED&I policies, initiatives and events communicated to all staff via emails, newsletters, sharepoint.
>
Female-focused editorial pieces in IMAGE magazine.
>
ED&I was a key focus at Townhall and embedded in graduate programme.
>
Communicate update on ED&I Strategy including plans for 2024.
>
Developed integrated communications plan to support ED&I strategy including
aim to increase membership of ENGs from those on-site.
Data, Monitoring &
Reporting
>
Reviewed various options for collecting demographic data from staff.
>
New HR software incorporating the ability to report on key metrics and data was put in place.
>
Roll-out tool to collect demographic data from staff supported by
communications plan.
HR operations
>
Review of all HR policies took place.
>
Launch new policies around menopause, fertility and domestic abuse.
Special projects
>
Took part in CIF- Return with Confidence for Women programme.
>
Through CIF Schools Partnership, provided work placements to students who have barriers to accessing employment and education.
External partnerships &
accreditations
>
Signatory to Business in the Community Ireland’s Elevate Pledge and participation in workplace programmes.
>
Partnered with Carlow SETU for three scholarships – two for women in QS/CS sponsored by Construction, one for an individual in
Architectural Technology.
>
Actively engaged with Irish Centre for Diversity and retained Silver Mark.
>
Platinum Sponsors of Image Business Women of the Year Awards.
>
Silver Sponsor of CIF International Women’s Day Event.
>
Submit application for Investors in Diversity Gold mark.
>
Work with BITCI’s employment programmes to increase diversity of our
candidate pool.
Using our influence
>
Commenced work on supplier engagement programme to engage with suppliers across a range of sustainability issues including ED&I.
>
Became founding member of Supply Chain Sustainability School in Ireland.
>
Commence using SCSS learning pathways with suppliers and subcontractors.
>
Finalise supply chain engagement programme.
Metrics
We measure the following metrics, which include metrics that assess our progress against our strategy and our targets for ED&I:
Link to strategy
UN SDGs
Measure
Unit
2023
2022
2021
Average number of employees
Headcount
502
411
329
Graduate programme participants
Headcount
35
33
24
Women on the Board
%
43%
29%
25%
Women in Senior Management/Executive Committee¹
%
14%
14%
–
Women amongst new graduates
%
31%
33%
30%
Women in workforce – all employees
%
28%
30%
27%
Great Place To Work survey – D&I Statements
%
88%
90%
84%
Great Place To Work survey – Culture Statements
%
80%
81
%
75%
1
Senior Management is defined as the Executive Committee or the first layer of management below Board level, including the Company Secretary. Our target was set in 2022.
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Policy
Our Health and Safety Policy sets out our overall
direction and our key commitments with respect to
this area. This is available on our website. Health
and safety is managed through our Health and
Safety Management System which is accredited
to ISO 45001. This system currently covers our
office and construction activities. In 2024, NUA will
commence preparation for ISO 45001 accreditation
in 2025. We also have a Wellbeing Policy in place.
SUSTAINABILITY
CONTINUED
SOCIAL
CONTINUED
Health, safety and wellbeing
Safety First is one of our core values denoting
its importance. In addition, safety is a key pillar
under our strategic objective of ‘valuing and
developing our colleagues’ as part of our
Building Better Strategy.
Focused on safety
Safety in the construction industry is critical,
and we are working to keep our employees
and subcontractors safe. In 2023, we began
implementing our Safety Leadership Skills
programme to strengthen accountability
and local safety ownership. Phase one,
implemented in 2023, involved training the
first 80 participants which included Executive
Committee, SLT, Site Managers, EHS and
Contracts Managers. As a result, health
and safety training hours per employees
increased to 13 hours per employee (2022:
11 hours). Improving our safety leadership
skills, continuing to embed day-to-day safety
behaviours and systemic management
of health and safety processes are key
contributors to reducing our TRIR, which
in 2023 improved to 2.97 (2022: 3.54).
Actions
The following table sets out the key actions taken in this area in 2023 and those planned for 2024.
Workstream
Action taken in 2023
Actions planned for 2024
Ongoing
health & safety
management
>
Ongoing management of health and safety in accordance with our management system including
training and awareness, internal and external audits, engagement with subcontractors.
>
Maintained our ISO 45001 Occupational Health and Safety accreditation and Safe-T-Cert Grade A.
>
Continual improvement in line with our management system.
>
Recertification to ISO 45001 Occupational Health and Safety
and commence preparation for accreditation in NUA.
>
Maintain Safe T Cert.
Safety culture
>
The Glenveagh Safety Commitment was signed by the Executive Committee and officially launched
through ‘Safety Culture Awareness & The Glenveagh Safety Commitment’ e-training. To raise safety
awareness among our employees and subcontractors., Safety Commitment White Boards and
posters were put up on our sites.
>
Launched and implemented our new tailor-made ‘Safety Leadership Skills’ programme.
>
Employees completed online assessment, measuring attitudes and behaviours across eight factors.
>
Safety Leadership Skills programme will continue, targeting
people managers, site foremen and site administrators.
>
The in-person safety culture footprint workshops will be
repeated measuring culture across 14 factors.
>
The online assessment will be repeated to understand how
our safety culture is changing.
Wellbeing
>
Workplace wellbeing week, promoting healthier workplace and physical and mental wellbeing.
>
New head office, with ergonomically designed workspaces, standing desks, collaboration areas, and
subsidised canteen facilities, as well as a dedicated Wellbeing Area comprising a Mother’s Room, a
Multi-Faith Room, a Quiet Room and an All Hands Space.
>
Achieved the Ibec “KeepWell” accreditation which benchmarked our wellbeing strategy.
>
Mental Health and Wellbeing 24/7 Support service for staff and families continued.
>
Continued access to our team of Mental Health First Aiders, equipped to deliver immediate care to a
person who might be experiencing a personal crisis or distress in the workplace.
>
Review and implement recommendations from
‘KeepWell’ assessment.
>
Create a Wellbeing Committee.
>
Offer mental health awareness training to all colleagues.
>
Publish new policies under ED&I e.g. fertility leave and
menopause, which will also support wellbeing.
Metrics
We also monitor the following metrics with respect to Health and Safety:
Link to strategy
UN SDGs
Measure
Unit
2023
2022
2021
Total Recordable Incident Rate
TRIR
2.97
3.54
2.38
Health and Safety total training hours
Hours
7,406
5,205
3,644
Health and Safety training hours per all employees
Hours/Employee
13
11
11
Average monthly Health and Safety audit compliance score
across all sites
%
90%
88%
89%
Proportion of independent audits
%
22%
20%
30%
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SUSTAINABILITY
CONTINUED
SOCIAL
CONTINUED
Policy
Our Education Support Policy is the key policy to support this area.
Actions
Actions in relation to training and skills developed are grouped under three workstreams:
Workstream
Action taken in 2023
Actions planned for 2024
Drive culture
>
A cultural assessment was conducted with the Executive Committee to identify
current and aspirational culture. A cultural framework was then developed to
house all developments and monitor culture initiatives allowing us to assess and
drive cultural shifts in a more intentional and meaningful way.
>
Our performance development process ‘G.R.I.T’ was launched and focused this
year on how we do things such as the behaviours sought after to deliver on
our commitments. The Executive Committee set cascading goals through the
organisation aligned to strategic priorities and values. Setting clear expectations
allowed for clarity and further accountability for individuals as well as meaningful
conversations supported by a performance rating scale for the end of year
talent review.
>
We focused training on giving and receiving feedback to further integrate a
learning culture as part of ‘G.R.I.T’ and Safety Culture Leadership training. GPTW
results showed responses from employees receiving feedback from their manager
increased from 75% to 79%.
>
Build awareness for leaders and emerging talent on how they
interact with others to continuously improve team dynamics and
psychological safety.
>
Further develop the ‘Talent Review’ element of G.R.I.T to not only
evaluate performance but assess potential and possible opportunities,
further develop career paths and succession plans, focusing on the
quality of SMART cascading goals.
>
Develop succession planning for critical roles.
>
Further drive the learning culture, using internal experts to deliver
on-the-job training through coaching and mentoring.
Grow leaders
>
We set up a coaching panel to support the embedding of talent development
programmes which delivered 60 hours of coaching. We also introduced an online
platform Coach HUB.
>
Senior Leaders participated in the IMI 30% club mentorship programme.
>
We delivered the PACE + leadership programme to 16 leaders across the
business. This five-day course offered blended training on situational leadership,
including relationship management, decision-making, and influencing.
>
Continue with coaching panel while upskilling leaders to use a coaching
and mentoring approach with their direct reports.
>
Refine our training for newly appointed managers and further develop
stretch programme for middle and senior managers.
Grow talent
>
We identified training needs across the organisation. This informed a
bespoke and targeted training calendar, focused on key skills aligned with
strategic priorities.
>
We launched a digital learning hub and an app, which enables colleagues to self-
select and engage in training.
>
We launched our Construction academy, a two-year bespoke programme, for
future site leaders.
>
We introduced scholarship framework for construction management, Quantity
surveying and architectural technician talent.
>
Develop quarterly themed pathways using a blended approach
including podcasts, learning hub, job shadowing, mentoring, and
coaching and workshops.
>
Create learning content and pathways to broaden offerings for key skills.
>
Empower leaders to support the talent development programmes.
Complete a suite of leadership assessments to drive development.
>
Develop further academies to support broader talent pool.
Metrics
We measure the following metrics with respect to this area:
Link to strategy
UN SDGs
Measure
Unit
2023
2022
2021
Great Place to Work Survey Score
%
78%
78%
72%
Annual employee turnover
¹
%
19%
14%
10%
Glenveagh’s graduate programme participants
Headcount
35
33
24
Total training hours (ex. Health and Safety training)
Hours
8,784
6,522
3,919
1
Turnover in 2023 reflects the evolution of our business model and integration of the manufacturing arm into the Group.
Training and skills
development
We place significant emphasis on people,
skills and work practices to ensure that they
are consistent with our business strategy
and objectives. The importance of this is
demonstrated through the key pillars of ‘talent’
and ‘culture’ under our strategic priority of
valuing and developing our colleagues. Our
Learning and Development Strategy supports
this and is focused on three key priorities:
driving culture, growing leaders and
growing talent.
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
SUSTAINABILITY
CONTINUED
SOCIAL
CONTINUED
External partnerships
Affected communities
At Glenveagh, we consider
where the homes we build
are located 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 the development
and its infrastructure, understanding the needs
and requirements specific to each development,
with respect to the surrounding environment,
public infrastructure, and amenities. 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
authorities to ensure we consider all aspects
of infrastructure provision, current and future.
Our community engagement team develop and
deliver community engagement strategies to
take account of the various issues that affect
communities. This work supports our strategic
priority of creating sustainable and thriving
places (see page 32).
Our impacts
The key IROs in this area relate to noise and
disruption from construction-related works, health
and safety risks for local communities living in or
around developments, potential pollution impacts
on local communities if not managed appropriately,
local employment and the opportunity to positively
impact on the communities in which we build and
operate.
Policies
The aim of our Community Engagement policy is
to ensure a positive legacy in areas where we build.
Actions
The following actions were taken during 2023 and are planned for 2024 in relation to affected communities.
Workstream
Action taken in 2023
Actions planned for 2024
Stakeholder
engagement
>
Carried out stakeholder mapping for all new developments. Developed a pilot online community
hub which keeps the local community update to date with key progress of the developments and
operational updates e.g. traffic management.
>
Held community and stakeholder events at various stages of the development to inform communities
of plans and understand how we can best support them.
>
Roll-out community hubs across key developments and align
with new the customer portal.
>
Continue stakeholder mapping, stakeholder and
community events.
Local employment
and education
>
Held a number of community career days, in partnership with our subcontractors, to support local
employment around a number of our bigger sites and our Nua manufacturing site in Carlow.
>
Engaged with schools and colleges in proximity to our developments to promote careers in
construction. This involved colleagues delivering talks about their career journey as well as
sponsorship of construction-related courses.
>
Roll-out targeted plan around local employment in key
areas including career days, where appropriate.
>
Continue to engage with schools and colleges to grow
local talent in the construction sector.
Sustainable
communities
>
Rolled out Nature Heros Awards, Ireland’s outdoor learning award, in partnership with Biodiversity in
Schools. Over 200 primary schools participated from across the country.
>
Delivered biodiversity initiatives and planting days with new residents in our developments.
>
Worked with community groups e.g. Tidy Towns in key areas to support their sustainability ambitions.
>
Increase participation in Nature Hero Awards to
300 schools nationally.
>
Continue to work with local community groups to support
them to achieve their ambitions.
Supporting
charitable
partnerships
>
Continued our national partnerships with Jack and Jill Children’s Foundation, Early Learning Initiative
and Alone.
>
Increased our employee volunteering hours with a focus on supporting national partners.
>
Launched our community fund to support local initiatives.
>
Expand our “North Portal” Christmas fundraising appeal.
>
Continue to support and grow national partnerships.
>
Further develop employee volunteering opportunities with
charity partners.
Metrics
We measure the following metrics to monitor progress to this area:
Link to strategy
UN SDGs
Measure
Unit
2023
2022
2021
Donations to charities/local communities
€’k
415
394
129
Employee fundraising
€’k
13
18
19
Homes delivered on infill sites
Homes
139
83
248
Homes delivered in compact developments
Homes
1,145
1,186
672
Average density
1
Units/hectare
66
–
–
1
In 2023 we updated our methodology for calculating average density, to improve the accuracy of our reporting.
Better communities for all
At Glenveagh, we strive to ensure our
developments maximise positive social impacts
for the wider community. We aim to proactively
build lasting partnerships with key stakeholders
in the community to fully understand and
address local needs. Compact developments
and increased density enable us to provide
more units maximising the use of land, and
proximity to sustainable transport provides
wider social and environmental benefits. Access
to childcare can also be a significant challenge
for young families in Ireland and in 2023 four
of the communities we developed included an
on-site crèche. We also support and promote
awareness among our communities of national-
level partnerships including ALONE, the Jack
and Jill Children’s Foundation and LGFA
Gaelic4Girls.
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SUSTAINABILITY
CONTINUED
SOCIAL
CONTINUED
Consumers and end-users
The quality of the homes
we deliver to our customers
is central to the long term
sustainability of our business.
At Glenveagh, we do not compromise on
quality. Our NSAI certified quality management
system ensures that the homes we build
consistently meet our customer’s expectations
and comply with all relevant regulatory
requirements.
Our Home Buyer’s Guide provides our
customers with a practical guide to help them
get settled in their new homes, and a dedicated
Customer Care is on hand to help home buyers
with any queries or issues they might encounter.
They also relay this information back to our
Quality Team, who in turn use these insight to
help ensure we are continuously improving.
We are committed to having clear, honest, and
truthful advertising and to protecting the data
we gather operating our business.
Our impacts
We can impact our consumers and end-users
through data protection, product design and
access to our products.
Policies
Our Customer Service Policy and our Quality
Policy outlines our commitment to meeting the
requirements of our clients by endeavouring to
ensure the customer journey is as seamless as
possible, and that our build quality and customer
service are second to none. Our Data Protection
Policy helps to manage data protection impacts.
Actions
Actions in relation to consumers and end-users are grouped under three workstreams:
Workstream
Action taken in 2023
Actions planned for 2024
Quality
>
Completion of annual surveillance audit with the NSAI, and maintenance of ISO 9001:2015
Quality Management System.
>
Completed Site audits every two months and internal quality audits every six months.
>
Annual surveillance audit of ISO 9001:2015.
>
Implementing a First Time Right Approach.
>
Improving our inspection and benchmarking processes.
Customer care
>
Continued measurement and monitoring of customer satisfaction through an externally
managed surveys, to ensure we are meeting and exceeding our customer’s expectations.
From our 2023 survey, 94% of customers would recommend us to a friend.
>
Providing consistent customer service for the home buyers who purchased a home from
us in 2023.
>
Continue to measure and monitor customer satisfaction in line
with the externally managed survey process.
>
Establishing our customer care principles: Deliver excellence at
every interaction; Be authentically different; Resonate with our
customers; Build trusting communities and Commit to fairness.
Data protection
>
Rolled out refresher training on our GDPR policy.
>
Ongoing management of customer data in line with GDPR.
>
Ongoing management of customer data in line with GDPR.
Metrics
We measure the following metrics with respect to consumers and end users:
Link to strategy
UN SDGs
Measure
Unit
2023
2022
2021
Suburban Average Selling Price
1
€’k
336
330
308
First-time buyers (% of private sales)
%
97%
88%
87%
Proportion of customers who would recommend us to a friend
%
94%
91%
89%
1
Formerly referred to as our Core Average Selling Price.
Delivering quality affordable homes
In Glenveagh, our suburban business segment
is focused is on delivering affordable, starter,
high-quality homes at €450,000 or below,
mainly in the Greater Dublin Area (‘GDA’) and
Cork. Our customers comprise private buyers
and institutions. Buying a home is a significant
milestone in the lives of our private buyers, 97%
of whom were First Time Buyers in 2023, and
for whom affordability is a key consideration.
In 2023 we delivered 1,359 homes, 70% of which
were sold at prices below the national mean
price for new homes.
We actively promote the government
sponsored affordability schemes – the Help to
Buy scheme, the First Home Scheme and the
Affordable Purchase Scheme.
Accreditations
ISO 9001:2015
QUALITY
NSAI Certified
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Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
SUSTAINABILITY
CONTINUED
INSIDE GOVERNANCE
92
Business Conduct
Governance
Strong governance is the key stone for ensuring our stakeholders
have confidence in our ability to deliver on our strategic objectives.
Robust policies and ongoing training are fundamental to helping
raise awareness of the importance of good corporate behaviour and
embedding ethical practices that support the long-term sustainability
of our business. We expect all the vendors that we engage with to
meet or exceed the level of rigour we apply to our open operations.
As a public company, we are subject to scrutiny
and regulation by our stakeholders, be they
investors, customers, trading partners, employees
or the wider community. We aim to control and
manage our business responsibly and sustainably,
and to minimise operational risk. A key area
of focus is anti-bribery and corruption, as this
has been an area of concern in the past for the
Irish construction industry. Our whistleblowing
process provides a mechanism for employees and
contractors to identify, report and investigate any
concerns that may arise in relation to unlawful or
unethical conduct.
We rely on skilled contractors to help us to build
homes, many of whom are small businesses. Fair,
transparent and prompt payment practices are
important because how we manage our payment
practices can impact the sustainability of both
our business and our suppliers. For our business
it enables us to attract suppliers, maintain good
relationships with them and ensure a smooth and
efficient working environment. For our suppliers it
ensures they have a clear understanding of when
they will be paid – knowledge which is critical to
help them to manage their cash flows and the
solvency of their own businesses.
Lobbying plays an important role in our society by
providing government with valuable insights and
data and enabling stakeholders to participate
in the development and implementation of
public policies. When it is misused, it can lead
to negative impacts including undue influence
and unfair competition. A professional, open and
transparent approach is essential to the integrity
of lobbying activities.
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Our impacts, risks and opportunities
The main potential IROs in this area include the
potential for bribery and corruption, negative
impacts for whistleblowers without the appropriate
protections in place, our reputation and negative
or positive outcomes for suppliers depending on
payment practices and relationships.
Business conduct and corporate culture
In Glenveagh, business conduct is addressed by
the following company-wide policies:
>
Anti-Bribery and Corruption Policy
>
Conflict of Interest Policy
>
Group Securities Dealing Code
>
Whistleblowing Policy
These governance policies apply to all staff.
They are included in the employee handbook,
form part of staff induction training, and they
are communicated to all staff through the
Group’s intranet.
To support the management of the Group’s
Anti-Bribery and Corruption Policy, a gift and
hospitality register is maintained by the Company
Secretary. Employees are required to record gifts
and hospitality provided in excess of certain
values. Approval from a manager is also required
in advance of providing gifts or hospitality outside
the normal course of business. Due diligence is
also carried out on any potential new third parties,
contractors or other agents to check any history of
involvement in bribery, corruption or other illegal or
improper practices.
Our Whisteblowing Policy sets out our approach to
whistleblower protection which, at its core, refers to
the reporting of wrongdoing related to EU law, such
as tax fraud, money laundering or offences related
to public procurement, product and transport
safety, environmental protection, public health and
consumer and data protection. We are committed to
conducting our business with honesty and integrity
and in a transparent, accountable and ethical
manner. We expect all workers to maintain these
same high standards.
Political influence and lobbying activities
Glenveagh’s External Engagement Protocol covers
our approach in relation to lobbying. Glenveagh
does not make political contributions in line with
our Anti-Bribery and Corruption Policy.
Glenveagh registers all of its lobbying through the
Irish lobbying register on www.lobbying.ie.
The main topics covered by our lobbying activities
in 2023 were:
>
Planning reform.
>
“Housing for All” – the government’s
housing plan.
>
Compact and sustainable growth.
>
Development plans.
SUSTAINABILITY
CONTINUED
GOVERNANCE
CONTINUED
Business conduct
There is a robust governance
framework around the area of
business conduct and corporate
culture. In addition, under the
strategic priority of ‘valuing
and developing our colleagues’,
culture is one of our key pillars
(see page 37 for more detail
on this). This is an area which
is constantly under review and
evolving as necessary.
>
Modern methods of construction.
>
Affordable housing.
>
Community engagement.
Raising a concern
Under our Whistleblowing Policy we encourage
our workers to raise concerns on an non-
anonymous basis, as it makes it easier to fully
assess them, however concerns can also be
raised anonymously.
Workers who wish to make a protected disclosure
can do so either orally or in writing, via the
Group’s protected disclosure reporting channels,
which are managed by an independent third
party, BDO Ireland. A concern can be raised
through the following channels:
>
By accessing Whistlelink, our new
confidential and independent
reporting platform.
>
By phoning a confidential number and
leaving a message.
>
By requesting a meeting with our Company
Secretary (requests must be submitted
by post).
The launch of Whistlelink, and the channels
to raise a concern, were communicated
to workers through our internal corporate
communications channel.
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Non-financial information statement
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
>
Sustainability Policy.
>
Waste and Resources Policy.
>
Climate Change Policy.
>
Environmental Policy.
>
Sustainable Procurement Policy.
>
Embracing innovation
READ MORE
PG 42-43.
>
Driving operational excellence
READ MORE
PG 35-36.
>
Environment
READ MORE
PG 66-83.
>
Risk Management Report
READ MORE
PG 53-61.
Social and employee matters
>
Community Engagement Policy.
>
Health and Safety Policy.
>
Diversity and Inclusion Policy.
>
Charitable Giving Policy.
>
Customer Service Policy.
>
Placing the customer first
READ MORE
PG 29-31.
>
Valuing and developing our colleagues
READ MORE
PG 37-41.
>
Creating sustainable and thriving places
READ MORE
PG 32-34.
>
Social
READ MORE
PG 84-90.
>
Risk Management Report
READ MORE
PG 53-61.
Respect for human rights
>
Human Rights, Anti-Slavery, and Human Trafficking Policy.
>
Whistleblowing Policy.
>
Diversity and Inclusion Policy.
>
Vendor Code of Conduct.
>
Valuing and developing our colleagues
READ MORE
PG 37-41.
>
Corporate governance
READ MORE
PG 100-139.
>
Our stakeholders
READ MORE
PG 46-50.
>
Risk Management Report
READ MORE
PG 53-61.
Anti-corruption and bribery matters
>
Whistleblowing Policy.
>
Anti-bribery Policy.
>
Audit and Risk Committee Report
READ MORE
PG 116-119.
Business model
Information on our business model can be found on
READ MORE
PG 18-25.
Non-financial KPIs
Our non-financial KPIs can be found in the Environmental and Social sections of this report
READ MORE
PG 66-90.
Principal risks
Our principal risks and uncertainties can be found on
READ MORE
PG 55-61.
SUSTAINABILITY
CONTINUED
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SUSTAINABILITY
CONTINUED
DNSH Climate Change Adaptation
Glenveagh assesses physical risks as part of its
climate-related risks assessments and scenario
analysis (see pages 70-74). We are exploring how
this can be further integrated at project level.
DNSH Water
We have installed flow restrictors in our homes
and we are currently assessing the alignment with
technical specifications. Environmental Impact
Assessments (EIA) are carried out on a significant
proportion of our projects.
DNSH Circular Economy
Glenveagh published its circular economy strategy
in February 2024, which aims to address the EU
Taxonomy requirements.
DNSH Pollution Prevention
Pollution prevention on site is managed through
our EMS, which is accredited to ISO14001. Through
our supply chain engagement programme, we are
working with our suppliers to ensure compliance
with criteria set out in relation to building
components and materials.
DNSH Biodiversity
Glenveagh carries our EIA or Ecological
assessments on sites. The recent publication of
our Biodiversity Strategy will also contribute to
addressing the requirements with respect to
EU Taxonomy.
Minimum Safeguards
Glenveagh is committed to high standards in
relation to human and labour rights, bribery,
taxation and fair competition. Throughout 2024, we
will focus on developing due diligence processes
through our supplier engagement programme.
Taxonomy-eligible revenue
96.4% of our revenue is eligible for 2023. 96.0% of
eligible revenue is related to Construction of new
buildings and 0.4% related to the manufacture of
energy efficiency equipment for buildings.
For Taxonomy report, the revenue derived from
sales of completed homes, development services
and rental income are included under Activity 7.1
Construction of new buildings. Sales of timber
frames sold to third parties are included under
Activity 3.5 Manufacture of energy efficiency
equipment for buildings.
Revenue not Taxonomy-eligible
3.6% of our revenue is not eligible for 2023.
Based on our assessment, we have concluded
that land sales where no development work has
been completed is not eligible under Activity 7.1
Construction of new buildings.
Accounting policy – revenue
Glenveagh recognises revenue in compliance with
IFRS 15 Revenue from contracts with customers.
Please see note 8.2 to the financial statements for
more information on our revenue recognition policy.
Additionally, the split of revenue between activities
and segments is outlined in note 9 Segmental
Information and note 10 Revenue.
Numerator:
Included in the numerator for
taxonomy eligible activities are activities under 3.5
Manufacture of energy efficiency equipment for
buildings and 7.1 Construction of new buildings.
Denominator:
Glenveagh’s total revenue as
disclosed in note 9 of our 2023 Annual Report.
Taxonomy-eligible capital expenditure
99.3% of our capital expenditure is eligible for 2023.
99.2% of eligible capital expenditure is related to
Construction of new buildings and 0.1% related to
the manufacture of energy efficiency equipment
for buildings.
For Taxonomy report, capital expenditure related
to manufacturing facilities and construction
equipment plant and machinery are included
under Activity 7.1 Construction of new buildings.
Capital expenditure related to our head office was
split between activities under 3.5 Manufacture of
energy efficiency equipment for buildings and 7.1
Construction of new buildings on the same basis
as revenue.
Capital expenditure not Taxonomy-eligible
0.7% of our capital expenditure is not eligible
for 2023. Based on our assessment, we have
concluded that capital expenditure split on the
basis of revenue related to our head office split
between activities under 3.5 Manufacture of
energy efficiency equipment for buildings and 7.1
Construction of new buildings is not eligible under
Activity 3.5 Manufacture of energy efficiency
equipment for buildings and 7.1 Construction of
new buildings.
Accounting policy – capital expenditure
The relevant accounting policies for Glenveagh’s
capital expenditure are outlined at note 8.7
Property, plant and equipment and 8.8 Intangible
assets. Glenveagh presents property, plant and
equipment and intangible assets in note 17 an 18 in
the Annual Report. Any additions to these as set
categories are considered capital expenditure.
Numerator:
Included in the numerator for
taxonomy eligible activities are activities under 3.5
Manufacture of energy efficiency equipment for
buildings and 7.1 Construction of new buildings.
Denominator:
Glenveagh’s total additions in
2023 for property, plant and equipment and
intangible assets.
Taxonomy-eligible operational expenditure
100% of our operational expenditure is eligible
for 2023 with all expenditure being related to
the Construction of new buildings. The eligible
expenditure relates to research and development,
building renovation measures, short term leases and
maintenance, repair and other direct expenditures
relating to the day-to-day servicing of assets of
property, plant and equipment.
For Taxonomy report, the operational expenditure
derived from sales of completed homes,
development services and rental income are
included under Activity 7.1 Construction of new
buildings. Sales of timber frames sold to third
parties are included under Activity 3.5 Manufacture
of energy efficiency equipment for buildings.
EU Taxonomy
The EU Taxonomy for sustainability activities (“EU
Taxonomy) is a classification system of economic
activities to determine which are environmentally
sustainable. As Glenveagh is now required to
publish non-financial information under the
Non-Financial Reporting Directive (NFRD), it is
also required to disclose information on how and
to what extent its activities are associated with
environmentally sustainable economic activities
as per Article 8 of the Taxonomy regulation
(2020/852/EU).
This is our first disclosure on EU Taxonomy
as we have come into scope for FY2023 and
these disclosures are based up on reasonable
interpretations and assumptions, in the absence
of an established approach for reporting under
The Taxonomy Regulation. Glenveagh will keep
this under review and will evolve and update its
approach over time.
Through screening our business activities, we have
identified that our construction activities are eligible
under Activity 7.1 the construction of new buildings,
while our manufacturing activities are eligible
under activity 3.5 manufacture of energy efficiency
equipment for buildings. We have no exposure to
nuclear energy or fossil fuel-related activities.
Our construction activities substantially contribute
to climate change mitigation through the provision
of energy efficient homes that we build. Improving
our energy efficiency year on year has been a key
focus of our business with 85% of homes having a
BER of A1 in 2023 compared to none in 2021. Our
manufacturing activities substantially contribute
through the manufacture of energy efficient roof
components.
Work is underway to align with the various “Do No
significant Harm” (DNSH) criteria and to comply
with the Minimum Safeguards, as set out below,
however, at this we have taken the decision to
declare zero percent EU Taxonomy alignment for
Glenveagh for Financial Year 2023.
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
Turnover disclosure
Substantial Contribution Criteria
DNSH criteria (‘Does Not Significantly Harm’)
Economic Activities (1)
Code
(2)
Absolute
turnover
(3)
Proportion
of Turnover
(4)
Climate
Change
Mitigation
(5)*
Climate
Change
Adaptation
(6)
Water
(7)
Pollution
(8)
Circular
Economy
(9)
Biodiversity
and
ecosystems
(10)
Climate
Change
Mitigation
(11)
Climate
Change
Adaptation
(12)
Water
(13)
Pollution
(14)
Circular
Economy
(15)
Biodiversity
(16)
Minimum
Safeguards
(17)
Taxonomy
aligned
proportion
of total
turnover,
year N
(18)**
Category
(enabling
activity)
(20)
Category
(transitional
activity)
(21)
A. Taxonomy-eligible activities
96.41%
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Construction of new buildings
7.1
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0
Manufacture of energy efficiency
equipment for buildings
3.5
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0
Turnover of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Construction of new buildings
7.1
583,765.64
96.02%
100.00%
0.00%
0.00%
0.00%
0.00%
0.00%
N/A
N
N
N
N
N
N
0
Manufacture of energy efficiency
equipment for buildings
3.5
2,376.12
0.39%
100.00%
0.00%
0.00%
0.00%
0.00%
0.00%
N/A
N
N
N
N
N
N
0
Turnover of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
586,141.76
96.41%
Total (A.1+A.2)
586,141.76
96.41%
B. Taxonomy-non-eligible activities
Turnover of Taxonomy-non-eligible
activities
21,795.98
3.59%
Total (A+B)
607,937.74
100.00%
*
For the purposes of this illustrative template, this figure shows the: Taxonomy-aligned turnover of the activity/Total Taxonomy eligible turnover of the activity.
** Taxonomy-aligned turnover of the activity/Total turnover of undertaking.
Accounting policy – operational expenditure
The relevant accounting policies for Glenveagh’s
operational expenditure are outlined at note 8.3
Expenditure, 8.7 Property, plant and equipment, 8.8
Intangible assets and 8.13 Leases.
The definition of operational expenditure in
the Taxonomy is different from the one used at
Glenveagh. Following the definition of operational
expenditure in Article 8(2) of the Delegated Act,
we have included all expenditures relating to
research and development not capitalised, building
renovation measures, short term leases and
maintenance, repair and other direct expenditures
relating to the day-to-day servicing of assets of
property, plant and equipment in our calculation of
operational expenditure.
Numerator:
Included in the numerator for
taxonomy eligible activities are activities under 3.5
Manufacture of energy efficiency equipment for
buildings and 7.1 Construction of new buildings.
Denominator:
Glenveagh’s total operational
expenditure relating to eligible activities as per the
per the definition of operational expenditure in
Article 8(2) of the Delegated Act.
SUSTAINABILITY
CONTINUED
EU TAXONOMY
CONTINUED
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CapEx disclosure
Substantial Contribution Criteria
DNSH criteria (‘Does Not Significantly Harm’)
Economic Activities (1)
Code
(2)
Absolute
CapEx
(3)
Proportion
of CapEx
(4)
Climate
Change
Mitigation
(5)*
Climate
Change
Adaptation
(6)
Water
(7)
Pollution
(8)
Circular
Economy
(9)
Biodiversity
and
ecosystems
(10)
Climate
Change
Mitigation
(11)
Climate
Change
Adaptation
(12)
Water
(13)
Pollution
(14)
Circular
Economy
(15)
Biodiversity
(16)
Minimum
Safeguards
(17)
Taxonomy
aligned
proportion
of total
CapEx,
year N
(18)**
Category
(enabling
activity)
(20)
Category
(transitional
activity)
(21)
A. Taxonomy-eligible activities
99.28%
A.1. CapEx of environmentally sustainable activities (Taxonomy-aligned)
Construction of new buildings
7.1
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0
Manufacture of energy efficiency
equipment for buildings
3.5
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0
CapEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Construction of new buildings
7.1
19,537.64
99.20%
100.00%
0.00%
0.00%
0.00%
0.00%
0.00%
N/A
N
N
N
N
N
N
0
Manufacture of energy efficiency
equipment for buildings
3.5
15.40
0.08%
100.00%
0.00%
0.00%
0.00%
0.00%
0.00%
N/A
N
N
N
N
N
N
0
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
19,553.04
99.28%
Total (A.1+A.2)
19,553.04
99.28%
B. Taxonomy-non-eligible activities
CapEx of Taxonomy-non-eligible
activities
141.27
0.72%
Total (A+B)
19,694.31
100.00%
*
For the purposes of this illustrative template, this figure shows the: Taxonomy-aligned turnover of the activity/ Total Taxonomy eligible turnover of the activity.
** Taxonomy-aligned CapEx of the activity/Total CapEx of undertaking.
SUSTAINABILITY
CONTINUED
EU TAXONOMY
CONTINUED
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
SUSTAINABILITY
CONTINUED
EU TAXONOMY
CONTINUED
OpEx disclosure
Substantial Contribution Criteria
DNSH criteria (‘Does Not Significantly Harm’)
Economic Activities (1)
Code
(2)
Absolute
OpEx
(3)
Proportion
of OpEx
(4)
Climate
Change
Mitigation
(5)*
Climate
Change
Adaptation
(6)
Water
(7)
Pollution
(8)
Circular
Economy
(9)
Biodiversity
and
ecosystems
(10)
Climate
Change
Mitigation
(11)
Climate
Change
Adaptation
(12)
Water
(13)
Pollution
(14)
Circular
Economy
(15)
Biodiversity
(16)
Minimum
Safeguards
(17)
Taxonomy
aligned
proportion
of total
OpEx,
year N
(18)**
Category
(enabling
activity)
(20)
Category
(transitional
activity)
(21)
A. Taxonomy-eligible activities
100.00%
A.1. OpEx of environmentally sustainable activities (Taxonomy-aligned)
Construction of new buildings
7.1
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0
Manufacture of energy efficiency
equipment for buildings
3.5
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0
OpEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Construction of new buildings
7.1
1,309.14
100.00%
100.00%
0.00%
0.00%
0.00%
0.00%
0.00%
N/A
N
N
N
N
N
N
0
Manufacture of energy efficiency
equipment for buildings
3.5
0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
N/A
N
N
N
N
N
N
0
OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
1,309.14
100.00%
Total (A.1+A.2)
1,309.14
100.00%
B. Taxonomy-non-eligible activities
OpEx of Taxonomy-non-eligible
activities
0.00
0.00%
Total (A+B)
1,309.14
100.00%
*
For the purposes of this illustrative template, this figure shows the: Taxonomy-aligned turnover of the activity/Total Taxonomy eligible turnover of the activity.
** Taxonomy-aligned OpEx of the activity/Total OpEx of undertaking.
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SUSTAINABILITY
CONTINUED
Sustainability Accounting Standards Board (SASB) disclosures
We have chosen to disclose sustainability topics and accounting methods in line with the Home Builders Sustainability Accounting Standard version 2023-12. According to the SASB industry level materiality map, the
following categories are ‘the most likely material issues for companies in the homebuilders’ industry. The below table references accounting metrics within this report and other sources.
Topic
Code
Accounting metric
2023
2022
2021
Activity metric
IF-HB-000.A
Number of controlled lots
1
13,100
15,198
17,014
IF-HB-000.B
Number of homes delivered
1,359
1,358
1,150
IF-HB-000.C
Number of active selling communities
2
9
12
15
Land use and
ecological impacts
IF-HB-160a.1
Number of (1) lots and (2) homes delivered on redevelopment sites
(1)
(2)
1,451
143
2,103
186
3,611
248
IF-HB-160a.2
Number of (1) lots and (2) homes delivered in regions with High or Extremely High Baseline Water Stress
(1)
(2)
0
0
0
0
0
0
IF-HB-160a.3
Total amount of monetary losses as a result of legal proceedings associated with environmental regulations
1
€nil
€nil
€nil
IF-HB-160a.4
Discussion of process to integrate environmental considerations into site selection, site design, and site
development and construction
See Integrating environmental considerations
into site selection, design, development and
construction on page 78.
Workforce health
and safety
F-HB-320a.1
(1) Total recordable incident rate (‘TRIR’) and (2) fatality rate for (a) direct employees and
(b) contract employees
3,4
(1)
(2)
2.97
0
3.54
0
2.38
0
Design for resource
efficiency
IF-HB-410a.1
(1) Number of homes that obtained a certified a certified residential energy efficiency rating and
(2) average score
5
(1)
(2)
1,359
A1
1,358
NR
1,150
NR
IF-HB-410a.2
Percentage of installed water fixtures certified to a water efficiency standard
n/a
n/a
n/a
IF-HB-410a.3
Number of homes delivered certified to a third-party multi-attribute green building standard
n/a
n/a
n/a
IF-HB-410a.4
Description of risks and opportunities related to incorporating resource efficiency into home design, and how
benefits are communicated to customers
Refer to Resource efficiency by design on page 80.
Community impacts
of new developments
F-HB-410b.1
Description of how proximity and access to infrastructure, services, and economic centres affect site selection
and development decisions
Refer to Better communities for all on page 89.
F-HB-410b.2
Number of (1) lots and (2) homes delivered on infill sites
6
(1)
(2)
3,859
139
1,668
83
4,196
248
F-HB-410b.2
(1) Number of homes delivered in compact developments and (2) average density
7
(1)
(2)
1,145
66
1,186
–
672
–
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
Refer to Strategy and Risk management on pages
70 to 72.
1
For ‘Controlled lots’ we report the approximate number of units in our landbank.
2
The scope of active selling communities includes those communities or developments open for sales with at least five homes or lots remaining to sell as of the last day of the reporting period.
3
Reportable Incidents in Ireland are where a person is absent for more than 3 days not including the day of injury.
4
Accident data includes Glenveagh employees, contractors, suppliers, and public. Our data collection process does not segregate employees from contractors.
5
A1 is the highest building energy efficiency rating for homes in Ireland. In 2022 and 2023 we did not report the average score, but reported the percentage of our homes in each of the top three BER (Building Energy Rating) categories.
6
Infill is defined in the Sustainable Residential Development and Compact Developments Guidelines for Planning Authorities (Appendices) as “serviced lands that are located within the existing built up footprint of settlements. May consist of Brownfield Sites
or Greenfield Sites.”
7
Compact developments are defined as those sites with 30 or more units per hectare. In 2023 we updated our methodology for calculating average density, to improve the accuracy of our reporting.
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Financial Statements
Strategic Report
Corporate Governance
Financial Statements
Strategic Report
Corporate Governance
SUSTAINABILITY
CONTINUED
Further insights
More information on our approach is set out
in our biodiversity, circular economy, net zero
transition and equity, diversity and inclusion
strategy documents. Additional information is
also available on the sustainability section of
our Group website www.glenveagh.ie
FIND OUT MORE HERE
FIND OUT MORE HERE
NET ZERO TRANSITION PLAN 2023
Building for a
Better Climate
Building a Better
Workplace
EQUITY, DIVERSITY
AND INCLUSION STRATEGY 2023
FIND OUT MORE HERE
FIND OUT MORE HERE
Better
Building a
Habitat
BIODIVERSITY STRATEGY 2024
100
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Annual Report and Accounts 2023
Financial Qualifications
Property
PLC NED Experience
Manufacturing/Large projects
Construction
Capital Markets
7
5
3
4
6
3
John Mulcahy
Stephen Garvey
Michael Rice
Cara Ryan
Pat McCann
Camilla Hughes
Emer Finnan
0.7
2.7
4.5
4.5
4.3
6.6
6.6
57%
43%
57%
29%
14%
CORPORATE GOVERNANCE AT A GLANCE
The Board is committed to the highest
standards of corporate governance and
for the year ended 31 December 2023, the
Corporate Governance Report, in conjunction
with the Audit and Risk Committee Report,
the Remuneration Committee Report, the
Nomination Committee Report and the
Environmental and Social Responsibility
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
(the ‘Annex’) and details any departures
from the specific provisions.
During 2023, we complied with the Code and the Annex with
the following exceptions:
>
Provision 9, in relation to the appointment of an Executive
Chairman at IPO; and
>
Provision 41, workforce engagement on executive pay.
Further details in relation to these matters are provided on pages
111 and 122, respectively, and the Board will keep them under
review during 2024.
>
The Code can be found at www.frc.org.uk
>
The Annex can be found at www.euronext.com
Glenveagh corporate website
The Glenveagh website www.glenveagh.ie
contains additional information about our
corporate governance:
>
composition of principal Board
and Board committees;
>
terms of reference for the Board committees; and
>
details of AGM, proxy voting by shareholders,
including votes withheld.
CORPORATE GOVERNANCE REPORTING
102 and 103
Board leadership
104 to 107
Board leadership and company purpose
108 to 111
Division of responsibilities
112 to 115
Composition, succession and evaluation
116 to 119
Audit, risk and internal control
120 to 133
Remuneration
134 to 136
Environmental and social responsibility
137 to 138
Directors’ Report
Male
Female
Balance of male
and female directors
Balance of executive and
non-executive directors
Independent non-executive
Executive
Chair
UK Corporate
Governance Code
Board composition
Skills and experience
Tenure
Corporate Governance
Financial Statements
Glenveagh Properties plc
Annual Report and Accounts 2023
101
Strategic Report
Glenveagh Properties plc
Annual Report and Accounts 2023
Glenveagh Properties plc
Annual Report and Accounts 2023
INTRODUCTION FROM THE CHAIRMAN
Dear shareholders,
On behalf of the Board, I am pleased to
present the Corporate Governance Report
for the year ended 31 December 2023.
Board evaluation
The Board and each of its committees evaluate their performance on
an annual basis and 2023 marked our second externally facilitated
evaluation process.
An external Board effectiveness review was undertaken in late 2023,
facilitated by Deloitte. Following completion of their review process,
Deloitte analysed the results, extracted key findings and presented
a full report to the Board.
As Chairman, I was pleased to see that the results clearly
demonstrated that the Board is operating effectively and has
continued to evolve and mature in the period since our first external
review post-IPO. The report recognised the breadth and depth of
experience on the Board and the committed engagement from our
members in challenging and holding management to account.
You can read more about the evaluation process on page 115.
Looking ahead
2023 was another strong year for operational and financial performance
at Glenveagh, demonstrating our collective commitment and continuing
enthusiasm to drive the business forward, even in a challenging market
environment. As a Board, we are looking to the year ahead with
confidence and believe that the business is well positioned to continue
on its growth trajectory in 2024 and beyond.
The 2024 AGM will be held on 2 May 2024 and the Board looks
forward to the opportunity to engage with our shareholders in
person. Further details will be published in the Notice of Annual
General Meeting, which will be sent or made available to
shareholders with this Annual Report, and is also available on
the Company’s website, www.glenveagh.ie
John Mulcahy
Chairman
Board composition
Following a search led by the Nomination Committee, the Board
oversaw the Non-executive Director appointment process which resulted
in the appointment of Emer Finnan on 1 July 2023. Emer also joined the
Audit and Risk Committee on appointment, and her skills and experience
have proven to be an excellent addition to the Board and its committees.
Robert Dix retired from the Board during 2023, having served as Senior
Independent Director for the six years since the Company’s IPO in 2017,
and we thank him for his contribution to Glenveagh during his tenure.
Pat McCann succeeded Robert Dix as Senior Independent Director.
Following the financial year-end, the Board was pleased to announce
the appointment of two further Non-executive Directors, Lorna Conn and
Max Steinebach, with effect from 1 February 2024. We look forward to
working with Lorna and Max in 2024.
Further details in relation to the Board’s nomination activity in 2023 can
be found on page 113.
Stakeholder engagement
As a Board, the interests of our key stakeholders remain at the forefront
of our decision making.
Throughout 2023 we continued to proactively engage with our
shareholders on key themes including remuneration and Board
succession. In addition to our engagement with institutional
investors during the year, we enjoyed meeting with a number of our
shareholders in person at the 2023 AGM.
A key focus for our Board training day in 2023 was Glenveagh’s
wider stakeholder map. We received detailed presentations from
departments within the business dedicated to supporting our
employees, customers, suppliers and communities.
The Board remains cognisant of the wide range of our stakeholders’
interests and an overview of our engagement with key stakeholder
groups is provided on pages 109 and 110.
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Name
John Mulcahy (74)
Stephen Garvey (44)
Michael Rice (41)
Cara Ryan (51)
Job title
Chairman
Chief Executive Officer
Chief Financial Officer
Independent Non-executive Director
Nationality
Irish
Irish
Irish
Irish
Date of
appointment
Appointed to the Board on 11 August 2017 and as Chair
of the Nomination Committee on 28 April 2022.
Appointed to the Board on 9 August 2017.
Appointed to the Board on 1 November 2019.
Appointed to the Board on 1 September 2019 and as Chair of
the Audit and Risk Committee on 3 September 2020. Cara is
also Glenveagh’s Workforce Engagement Director.
Skills and
experience
John is a chartered surveyor with over 40 years’ experience
in the Irish real estate sector. 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.
Stephen was appointed Chief Executive Officer in August
2019. Stephen is responsible for delivering on Glenveagh’s
vision that everyone should have the opportunity to access
great-value, high-quality homes in flourishing communities
across Ireland. 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 has led the growth and
development of Glenveagh since IPO.
Michael 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, corporate governance, IT, corporate affairs
and investor relations. He is a qualified chartered accountant
with significant experience of finance management in both
domestic and international environments.
Cara is a 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 was the director of finance of Manor Park
Homebuilders, an Irish housebuilding company, and she was
formerly a non-executive director of IFG Group plc, a listed
financial services group in Dublin and London and was the
managing director of IFG Investment Managers until 2006.
Cara holds a BA in Economics from University College
Dublin and a MSc in Investment & Treasury from
Dublin City University.
Other
appointments
John is the chairman of IPUT plc and a board member
of Targeted Investment Opportunities ICAV, and Quinta do
Lago S.A., a Portuguese resort developer.
Cara is the chair of Mercer Ireland Limited and a member
of its board risk committee and remuneration committee, a
non-executive director of Stonebond Properties and a non-
executive director and chair of the audit committee of BNP
Fund Administration Services in Ireland.
Committee
memberships
C
C
Board of Directors
KEY
Audit and Risk Committee
Environmental and Social Responsibility Committee
Remuneration Committee
Nomination Committee
C
Chair of Committee
CODE PRINCIPLE: BOARD LEADERSHIP
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Financial Statements
Corporate Governance
Strategic Report
Pat McCann (72)
Camilla Hughes (54)
Emer Finnan (55)
Chloe McCarthy (39)
Senior Independent Director
Independent Non-executive Director
Independent Non-executive Director
Company Secretary
Irish
British
Irish
Irish
Appointed to the Board on 1 September 2019 and as Chair of the
Remuneration Committee on 28 April 2022.
Appointed to the Board and as Chair of the Environmental and
Social Responsibility Committee on 1 July 2021.
Appointed to the Board on 1 July 2023.
Pat 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. Pat founded Dalata Hotel Group plc in 2007
and acted as CEO until 31 October 2021.
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.
Camilla is a highly experienced ESG and capital markets adviser,
having spent over 25 years in financial services, and investment
banking. She currently provides independent ESG advisory
services to corporates and banking teams in M&A, capital raisings
and shareholder engagement. Her work focuses on helping
publicly listed and privately owned companies around climate
and sustainability strategies, including governance issues, and
connecting them to ESG capital at all stages of corporate life
cycle. Prior to expanding her executive career, Camilla worked at
Credit Suisse, UBS and Market Pipe, an early-stage Fintech SaaS
business included in the Techtrak 100.
She holds a Bachelor of Arts degree and MA (Hons) in Philosophy,
Politics and Economics from Oxford University and is an alumna
of the Cambridge Institute for Sustainability Leadership and its
Centre for Sustainable Finance.
Emer is a qualified accountant who has worked both as an
investment banker and a group CFO. She is currently President,
Europe of Kildare Partners, a private equity firm based in London
and Dublin, where she is responsible for investment origination in
Europe. After qualifying as a chartered accountant with KPMG,
she worked in investment banking at Citibank and ABN AMRO in
London and then NCB Stockbrokers in Dublin.
In 2005 she joined EBS Building Society in Ireland, becoming
its finance director in early 2010. In 2012, Emer re-joined NCB
Stockbrokers to lead a financial services team in Ireland. She was
previously a non-executive director for C&C Group plc.
Chloe 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.
Pat is the deputy chairman at The National Maternity Hospital
and a non-executive director of Ibec and Quinn Property Group.
Emer is a non-executive director of Britvic plc.
C
C
CODE PRINCIPLE: BOARD LEADERSHIP
CONTINUED
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CODE PRINCIPLE: BOARD LEADERSHIP AND COMPANY PURPOSE
Details of the activities of the Board during the year can be found on
the next page.
Board meetings
The Board convenes with sufficient frequency to ensure the effective
discharge of its duties during the year and holds additional meetings
when required. The Board met for seven meetings during the year.
In addition to formal Board meetings, the Board also convened
for site and factory tours as well as strategy and training sessions
in 2023.
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, 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.
Attendance at Board and committee meetings
Board
Nomination
Committee
Remuneration
Committee
Audit and Risk
Committee
ESR
Committee
Current Directors
John Mulcahy
7/7
5/5
n/a
n/a
n/a
Stephen Garvey
7/7
n/a
n/a
n/a
4/4
Michael Rice
7/7
n/a
n/a
n/a
n/a
Cara Ryan
7/7
n/a
5/5
5/5
n/a
Pat McCann
7/7
5/5
5/5
5/5
4/4
Camilla Hughes
7/7
5/5
5/5
n/a
4/4
Emer Finnan
3/3
n/a
n/a
3/3
n/a
Past Directors
Robert Dix
4/4
2/2
n/a
2/2
2/2
Role of the Board
The Board is responsible for setting the Company’s purpose, strategy
and values, promoting the long-term sustainable success of the
Group while generating shareholder value and contributing to the
society in which it operates. The Board provides effective leadership
by developing 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 are in place.
The Board has overall responsibility for the management of the
Group’s activities and has put in place a framework of controls and
delegated authorities, which enables the Group to appraise and
manage risk effectively. 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 (‘ESR’) Committee.
A high-level overview of the delegated authority flow from the Board
is shown in the diagram on page 107.
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 on pages 112 to 136.
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.
AGM
Board meeting
Committee meeting
Training days
Meetings during the year
January
February
March
April
May
June
September
October
December
Board meeting
Remuneration
Committee meeting
Board meeting
Audit and Risk, ESR and
Remuneration Committee
meetings
Remuneration
Committee meeting
Board meeting
Board meeting
Nomination and ESR
Committee meetings
2023 AGM
Audit and Risk and
Nomination Committee
meetings
Site & factory visits
Board meeting
Audit and Risk,
Remuneration, Nomination
and ESR Committee
meetings
Board training day
(including strategy session)
Board meeting
Audit and Risk and
Nomination Committee
meetings
Board meeting
Audit and Risk, ESR,
Nomination and Remuneration
Committee meetings
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Financial Statements
Corporate Governance
Strategic Report
CODE PRINCIPLE: BOARD LEADERSHIP AND COMPANY PURPOSE
CONTINUED
What the Board did
Activity
Description
Strategy & management
>
Engaged with senior management in detailed strategic planning sessions and received reporting on strategy implementation throughout the year, as part of the annual strategic planning cycle.
>
Reviewed and challenged operational and financial reporting from the Chief Executive Officer and the Chief Financial Officer.
>
Received monthly management reporting including analysis of the Group’s performance against KPIs and updates in relation to health and safety, planning, construction, sales, customer satisfaction,
investment, operations, finance, HR and investor relations.
>
Considered and approved debt refinancing for the Group.
>
Reviewed the implementation of the Group’s manufacturing strategy and the launch of NUA, the Group’s off-site manufacturing business.
>
Continued to assess the capital allocation priorities of the Group and identified excess capital for return to shareholders through the initiation of a fourth buyback programme.
Environmental and social
>
Reviewed quarterly management reporting in relation to the Group’s environmental and social responsibilities.
>
Considered and approved the Net Zero Transition Plan and Biodiversity Strategy.
>
Considered updates on the Corporate Sustainability Reporting Directive (‘CSRD’) and EU Taxonomy requirements and progress.
Financial reporting
>
Reviewed and approved Budget 2024.
>
Reviewed and approved the 2023 Annual Report and Audited Financial Statements, on the recommendation of the Audit and Risk Committee.
>
Reviewed and approved the 2023 Interim Financial Statements, on the recommendation of the Audit and Risk Committee.
>
Reviewed and approved the Group’s full-year and half-year financial results announcements.
Governance
>
Undertook an externally facilitated evaluation of Board performance and effectiveness.
>
Considered Board members’ potential conflicts of interests.
>
Received updates from the chairs of the Board committees at each scheduled Board meeting.
>
Reviewed and approved the 2023 Notice of Annual General Meeting for circulation to shareholders.
>
Reviewed and approved the schedule of matters reserved for the Board and the terms of reference for each of the Board committees.
>
Received and considered legal and regulatory updates from the Company Secretary and the Group’s external legal advisors, A&L Goodbody.
Investments/acquisitions
>
Reviewed all site acquisitions approved by the Executive Committee under its delegated authority from the Board.
>
Reviewed management updates in relation to pipeline sites and the progression of existing landbank assets.
>
Reviewed and challenged post-acquisition investment performance against management models.
Culture and values
The Board assesses and monitors culture, and ensures that workforce
policies, practices and behaviours are aligned with Glenveagh’s
purpose, values and strategy.
Glenveagh’s vision is that everyone should have the opportunity to
access great-value, high-quality homes in flourishing communities
across Ireland. The Board believes that building homes and
communities is a worthy cause and will positively impact Irish society.
The Board continues to support management in forging a new path,
innovating at every stage of the homebuilding process. To do this,
the Board fosters a culture of fresh thinking, teamwork and trust
to challenge the status quo. 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 assesses and monitors Glenveagh’s culture through a
number of employee engagement measures including the workforce
engagement forum, which is attended by Cara Ryan as the Board’s
Workforce Engagement Director, regular employee engagement
surveys and the Group’s whistleblowing reporting channels. The
Board promotes open dialogue and transparency to create a culture
of trust and mutual respect.
The Board recognises the significant role the people of Glenveagh
have played in delivering our success to date and strives to continue
to be a great place to work for every single employee.
Further details in relation to the role of the Workforce Engagement
Director can be found on page 111.
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Examples of ways that the Board and its committees monitor and assess culture
Who
What
The Board
>
The Board receives updates from management in relation to culture, both existing and aspirational, and the ways in which the business measures it.
>
The operational and financial reporting presented at every scheduled Board meeting contains detailed people updates covering health and safety, recruitment and retention, and learning and development.
>
The Board reviews customer satisfaction survey scores on a monthly basis.
Board members
>
The Workforce Engagement Director meets with employee representatives every six months in order to facilitate direct feedback to the Board on culture and the working environment.
>
Board training days and site and factory visits provide opportunities for the Non-executive Directors to engage with employees of all levels across the Group’s operations.
ESR Committee
>
The committee receives regular updates on equity, diversity and inclusion, health and safety and culture within the Group, with progress in these areas measured and assessed through employee survey results.
>
The committee reviewed the progress on the Group’s Equity, Diversity and Inclusion (‘ED&I’) Strategy implementation.
>
The committee received updates on the Group’s ESG ratings, awards, certifications, and memberships.
Audit and Risk Committee
>
The committee receives and considers regular internal audit reports, covering a wide range of the Group’s operations and providing insight into the operational culture of the business.
>
The committee reviewed and approved an updated Whistleblowing Policy, including the establishment of reporting channels operated by an independent third-party provider.
>
The committee undertakes annual reviews of policies governing business conduct, including the Anti-bribery and Corruption Policy, the Conflict of Interest Policy and the Securities Dealing Code.
Remuneration Committee
>
The committee evaluates the Group’s non-financial performance against defined safety and customer satisfaction measures, assessed through externally managed customer surveys and site audits. These non-financial KPIs account for
30% of the annual bonus.
>
In addition to setting the pay for the Executive Directors and members of the Executive Committee (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.
Nomination Committee
>
The committee recognises that succession planning is key to maintaining the Group’s culture. It focuses on developing people internally and having a promising pipeline of talent to fill key senior management positions.
>
The Board is committed to achieving diversity and inclusion across the Group and, through the committee, continues to progress towards meeting the targets and goals set both internally and externally.
CODE PRINCIPLE: BOARD LEADERSHIP AND COMPANY PURPOSE
CONTINUED
Safety first
Collaborative
Innovative
Customer-centred
Can-do
Our values
Our values encompass the culture and conduct we expect from all our employees in the day-to-day operations of our business.
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Financial Statements
Corporate Governance
Strategic Report
Governance framework
Operating business
Executive management
Board
Executive Committee
The Executive Committee is comprised of the Executive Directors,
Stephen Garvey and Michael Rice, Wesley Rothwell (Chief
Commercial Officer), Conor Murtagh (Chief Strategy Officer),
Barney O’Reilly (Head of Construction) and Tony McLoughlin
(Managing Director – Planning, Design, Manufacturing and
Operations). The Company Secretary, Chloe McCarthy,
also attends Executive Committee meetings. The Executive
Committee has responsibility for day-to-day running of the
Group’s operations, as delegated by the Board in the Executive
Committee’s Terms of Reference.
Senior Leadership Team (‘SLT’)
The SLT is comprised of over 30 senior members of management
and is aimed at keeping the senior leaders in the business
informed of the day-to-day operations and performance of
the Company. Members of the SLT present at the meetings,
providing insight into various parts of the business. The SLT
is also utilised by the Executive Committee to update senior
leaders on strategy, people, performance and culture.
Nomination Committee
READ MORE
PG 112
ESR Committee
READ MORE
PG 134
Remuneration Committee
READ MORE
PG 120
Audit and Risk Committee
READ MORE
PG 116
General Data Protection Regulation
(‘GDPR’) Committee
The GDPR Committee is responsible for providing oversight and
high-level support for data privacy and implementation of GDPR
across the Group’s operations. The committee is comprised
of the CFO, the Chief Commercial Officer, the Chief Strategy
Officer and the Company Secretary.
Construction Committee
The Construction Committee is comprised of senior members
of the business with specific responsibility for areas of
construction operations.
The Construction Committee meetings are held monthly to
review all construction projects.
CODE PRINCIPLE: BOARD LEADERSHIP AND COMPANY PURPOSE
CONTINUED
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CODE OF PRINCIPLE: DIVISION OF RESPONSIBILITIES
Position
Description
Chair
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.
Chief Executive Officer
(‘CEO’)
The CEO, 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 CEO 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. The CEO also
chairs the Executive Committee.
Chief Financial Officer
(‘CFO’)
The CFO, Michael Rice, is responsible for managing the financial affairs of the Group. His areas of responsibility include finance, treasury, corporate governance, IT, corporate affairs and
investor relations and he works closely with the CEO to manage the Group’s operations. The CFO is a member of the Executive Committee and GDPR Committee.
Senior Independent
Director
The Senior Independent Director, Pat McCann, is available to shareholders who have concerns that cannot be addressed through the Chairman or CEO 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.
Non-executive Directors
Of the seven Board members, four 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 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 obligations.
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 reserving to itself a formal schedule of matters over which it retains control.
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 table below
summarises how there is a clear division of responsibilities between the leadership of the Board and the Executive leadership of the business.
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Financial Statements
Corporate Governance
Strategic Report
CODE OF PRINCIPLE: DIVISION OF RESPONSIBILITIES
CONTINUED
Shareholder and stakeholder engagement
The Code provides that the Board should ensure effective
engagement with, and encourage participation from shareholders
and stakeholders. Further details regarding the Board’s engagement
with key stakeholders can be found below and on page 110.
Shareholders
The Board recognises the importance of engaging with shareholders
and values regular dialogue. The Group prioritises effective dialogue
with shareholders to ensure that we capture and embrace feedback
relating to areas of interest and areas of concern. This commitment
is formalised through the Group’s comprehensive investor relations
programme. 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 regularly
engage with major shareholders in order to understand their views
and they remain available should they have any issues or concerns
that cannot be resolved through the usual investor relations channels.
Up-to-date contact details are available to shareholders on the
Group’s website, www.glenveagh.ie.
Investors and analysts
In addition to the detailed presentations and roadshows conducted
after the announcement of interim and full-year results, the Group
runs an active investor relations programme that includes all financial
announcements, presentations and regular ongoing dialogue with
the investment community, apart from when the Group is in a closed
period. The CEO, CFO and Head of Investor Relations regularly meet
with institutional investors and analysts throughout the year and
participate in a number of industry conferences. This year, the investor
relations team attended in-person conferences, roadshows and
investor meetings as outlined below.
Further details in relation to the Group’s investor engagement during
2023 is provided in the stakeholder engagement section on page 48.
Annual General Meeting
The AGM gives shareholders an opportunity to receive 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 the Board encourages all
shareholders to attend the meeting each year and to put forward any
questions they may have to the Directors at the conclusion of
the formal business of the meeting.
The Board was delighted to once again meet with shareholders in
person at the 2023 AGM. Shareholders who were unable to attend
the AGM in person were invited to lodge questions in advance of
the meeting.
The 2024 AGM will be held on 2 May 2024 at the Herbert Park Hotel,
Ballsbridge, Dublin 4.
Private shareholders
The Company Secretary oversees communication with private
shareholders, and ensures direct responses as appropriate in
respect of any matters raised by shareholders.
Website
Glenveagh’s website is an important channel for interacting with all
stakeholders, including shareholders, and it provides a library of all
relevant shareholder communications, financial results and updates,
and a history of our share price performance.
All material information reported to the Regulatory News Service is
published at www.glenveagh.ie/corporate/investor-centre.
Timeline of shareholder engagement
1-10 March 2023
(Dublin, London,
EU/North America
Virtual)
18 April 2023 (Dublin)
8 June 2023 (Dublin)
15 June 2023 (London)
11 May 2023 (Paris)
14-19 September 2023
(Dublin, London,
EU/North America
Virtual)
14-18 November 2023 (Chicago,
San Francisco, Dallas, Toronto)
28-30 November 2023
(London, Edinburgh)
23 November 2023 (Dublin)
Roadshow
Conference
AGM
January
March
April
May
June
September
November
5-6 January 2023
(Virtual)
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CODE OF PRINCIPLE DIVISION OF RESPONSIBILITIES
CONTINUED
Other stakeholders
It is critical for the success of the Group that it engages with all of its key stakeholders, seeks their views and takes into consideration their interests as part of its decision-making process.
Board engagement with other key stakeholders during 2023 is summarised in the table below.
Further detail in relation to the wider Group’s engagement with key stakeholders is provided on pages 47 to 49.
Stakeholder
How the Board engages
Activity during 2023
Customers
>
Externally facilitated customer satisfaction surveys.
>
Customer Care department reporting and metrics.
>
Monthly reporting of customer satisfaction survey results.
>
Regular review of customer care data and issue tracking.
>
Continued recognition of the importance of customer satisfaction, maintaining it as one of the Group’s two non-financial
annual bonus metrics.
Employees
>
Monthly in-house and externally facilitated health
and safety audits of all Group sites.
>
Board visits to sites, manufacturing facilities and
head office.
>
Employee engagement surveys.
>
Designated Non-executive Director with
responsibility for workforce engagement.
>
Monthly reporting of health and safety audit results.
>
Continued recognition of the importance of health and safety, maintaining it as one of the Group’s two non-financial
annual bonus metrics.
>
Considered the progress made on the Group’s ED&I Strategy.
>
Received and considered feedback from the 2023 Great Place to Work (‘GPTW’) employee engagement survey.
>
Visits by Cara Ryan, in her capacity as Workforce Engagement Director, to meet with employee representatives on-site
every six months.
>
Ongoing review of leading employee satisfaction indicators, including turnover rates, training and development levels,
and benefits available to staff.
Communities
>
Consultation with communities throughout the site
planning process.
>
Support of local community initiatives and Group
charity partners.
>
Regular review of housing need in the communities in which the Group operates.
>
Considered the impact of the new Government guidelines on compact growth.
Suppliers
and subcontractors
>
Board visits to manufacturing facilities and
development sites.
>
Surveys of subcontractors and supply-chain
partners.
>
Monthly reporting from construction operations and procurement departments.
>
Received updates on the implementation of the Group’s manufacturing strategy and oversaw the launch of off-site
manufacturing business, NUA.
>
Established a supplier engagement programme as part of the Net Zero Transition Plan.
Government
and regulators
>
Regular communication with industry bodies,
planning authorities and Government
representatives.
>
Communication with regulators including the LSE,
Euronext Dublin, the Financial Conduct Authority
(‘FCA’) and the Central Bank of Ireland.
>
Direct engagement through the Executive Directors with housebuilding bodies and local and national planning authorities
and government representatives.
>
Engagement with regulatory authorities through the Company Secretary.
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Financial Statements
Corporate Governance
Strategic Report
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.
Cara Ryan is designated as the Non-executive Director with
responsibility for employee engagement on behalf of the Board. In
her position as the Workforce Engagement Director, Cara worked
with the Company Secretary and the Head of Human Resources to
develop meaningful two-way dialogue between employees across
the Group’s operations and the wider Board. During the year, Cara
held two meetings with representatives from each department in
the business and provided an opportunity for them to ask questions
directly of the Board.
Feedback from the 2023 meetings was very positive, with employees
expressing support for the new performance management
programme rolled out during the year. Staff reported increased
communication and collaboration between departments and
improved feedback on performance from management. Site-based
employees in particular relayed their increased sense of support
from office-based colleagues and appreciation for extra resourcing
provided when requested.
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.
Board information
Each month, the Directors receive financial and operational reporting
to help them discharge their duties. In order to allow sufficient time
to review, Board papers are circulated digitally at least one week
before each Board meeting. Directors have access to independent
professional advice at the Company’s expense, if they consider
it appropriate.
Independence
As required by the Code, Provision 9 prescribes that the Chairman
should be independent on appointment. The Board is of the collective
belief that John Mulcahy’s role as Chairman during the period
since IPO has enabled him to bring his extensive knowledge and
experience of the Irish residential housing market to his leadership
of the Board.
While John previously served as an Executive Director, 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 CEO. 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 management in meetings of the Board.
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.
Conflicts of interest
The Board considers potential conflicts of interest as a standing
agenda item at each meeting and a Group Register of Interests is
maintained by the Company Secretary, setting out any conflicts of
interest that 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 Group
Register of Interests and provides an updated declaration of interests
form to the Company Secretary on an annual basis.
CODE OF PRINCIPLE: DIVISION OF RESPONSIBILITIES
CONTINUED
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Committee members and attendance
Name
Position
Attendance (100%)
John Mulcahy
Chair
Pat McCann
Member
Camilla Hughes
Member
Robert Dix*
Member
*
Robert Dix retired in June 2023 and attended all meetings for the duration of
his membership of the committee.
Quick facts
>
John Mulcahy has chaired the Nomination Committee since
April 2022.
>
A majority of committee members are Independent Non-executive
Directors, in line with the Code.
>
The committee met five times during the year ended
31 December 2023.
Link to terms of reference
nomination-committee-terms-of-reference (glenveagh.ie)
“...a focus for committee
activity in 2024 will
be the review and
refreshment of the
composition of the
Board’s key committees.”
CODE PRINCIPLE: COMPOSITION, SUCCESSION AND EVALUATION
NOMINATION COMMITTEE REPORT
John Mulcahy
Chair, Nomination Committee
Nomination
Committee Report
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Financial Statements
Corporate Governance
Strategic Report
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Financial Statements
Corporate Governance
Strategic Report
CODE PRINCIPLE: COMPOSITION, SUCCESSION AND EVALUATION
CONTINUED
NOMINATION COMMITTEE REPORT
CONTINUED
On behalf of the committee, I am pleased to present the Nomination
Committee Report for the financial year ended 31 December 2023.
Following a search conducted with our external advisor, Odgers
Berndtson, the committee oversaw an appointment process that
resulted in the appointment of Emer Finnan as an Independent
Non-executive Director on 1 July 2023. Emer also joined the Audit and
Risk Committee on appointment to the Board. We were delighted
to welcome Emer to Glenveagh during the year, and her significant
experience across both executive and non-executive roles has been
an excellent addition to the Board.
During 2023, Robert Dix informed the Board of his decision not to seek
re-election at the AGM, having served as a Non-executive Director for
the six years since the Company’s IPO in 2017, and we thank him for
his service to the Board during our formative years. Following Robert’s
retirement from the Board, Pat McCann assumed the position of
Senior Independent Director.
Following the end of the financial year, the committee continued
its nomination activities into early 2024 and we were delighted to
announce the appointment of two new Non-executive Directors to the
Board, Lorna Conn and Max Steinebach, with effect from 1 February
2024. We are looking forward to working with Lorna and Max in
the year ahead, as the Board continues to lead the Company on its
ambitious growth trajectory.
With the addition of new Board members, a focus for committee
activity in 2024 will be the review and refreshment of the composition
of the Board’s key committees.
In addition to overseeing succession and nomination activities for
Non-executive Directors during 2023, the committee was also
engaged in strategic succession planning for key members of senior
management. The committee will continue its work with senior
management on Executive succession planning throughout 2024.
Committee’s key roles and responsibilities
As a committee our responsibilities include:
>
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;
>
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;
>
promoting the development of greater diversity at Board level and
reviewing the Board Diversity Policy on an annual basis; and
>
reviewing 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.
Step 01
The committee appoints a search agent and reviews and
approves an outline brief and role specification.
Step 02
The agent prepares an initial longlist of candidates.
Step 03
The committee then selects a shortlist and hold interviews.
Step 04
The committee makes a recommendation to the
Board for its consideration.
Step 05
Following Board approval, the appointment is announced in line
with the requirements of the FCA and Euronext Dublin listing rules.
Committee activities in 2023
May 2023
June 2023
September 2023
October 2023
December 2023
>
Reviewed and considered
the longlist of potential
Non-executive Director
candidates identified
during the search process.
>
Discussed and assessed
the performance of the
shortlisted Non-executive
Director candidates at the
interview stage.
>
Reviewed and assessed
the size, structure and
composition of the Board
and its committees following
Robert Dix’s retirement in
June and the appointment
of Emer Finnan in July.
>
Discussed the potential
appointment of additional
Non-executive Directors
to the Board.
>
Considered the potential
recommendation of two
Non-executive Directors
to the Board.
>
Identified and agreed
the final shortlist of
Non-executive Director
candidates to progress to
the interview stage.
>
Agreed to progress a
final recommendation
to the Board.
>
Considered the succession
planning for the Board,
its committees, and the
Executive Directors.
>
Reviewed the shortlisted
candidates that had been
selected during the 2023
search process for a future
potential appointment.
>
Discussed the progression
of succession planning for
the Executive Directors.
Process for Board Appointments
The process for Board appointments involves the committee
first appointing a search agent for the assignment,
following which it reviews and approves an outline of the
role specification for the new appointee. The committee
meets the search agent to discuss the specification and
the search, following which the agent prepares an initial
longlist of candidates. The committee defines a shortlist
and holds interviews and ultimately, the committee makes a
recommendation to the Board for its consideration. Following
Board approval, and in line with the requirements of the
FCA and Euronext Dublin listing rules, the appointment is
announced to the market.
During 2023, the committee worked closely with Odgers
Berndtson (an executive search firm with no other connections
to the Company or its Directors) to lead a non-executive search
process which resulted in the appointment of Emer Finnan on
1 July 2023 and, in the period following financial year-end, the
appointment of Lorna Conn on 1 February 2024.
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CODE PRINCIPLE: COMPOSITION, SUCCESSION AND EVALUATION
CONTINUED
NOMINATION COMMITTEE REPORT
CONTINUED
Board composition
As at 31 December 2023, the Board comprised of seven Directors:
the Non-executive Chairman, two Executive Directors and four
Independent Non-executive Directors.
In January 2024, the Board announced the appointment of two new
Non-executive Directors, one of whom is independent, with effect
from 1 February 2024.
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, financial services and
people management 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.
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. During 2023, the committee oversaw an
appointment process that resulted in the appointment of Emer Finnan
as an Independent Non-executive Director on 1 July 2023.
The committee continued its nomination activities in late 2023
and into early 2024 and the Company recently announced the
appointment of two additional Non-executive Directors to the Board,
Lorna Conn and Max Steinebach, with effect from 1 February 2024.
Re-election
All Directors submit themselves for re-election at the
Company’s AGM.
Board diversity
The Board has adopted a Board Diversity Policy, intended to assist
it, through the Nomination Committee, in achieving optimum Board
and committee composition. The Board recognises the clear benefits
of a diverse Board including diversity of experience, skills, background
and gender and agrees that these differences should be considered
in determining the optimum board composition. 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.
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. Through the ESR Committee, the Board
has approved targets for diversity. As at 31 December 2023,
female Directors accounted for 43% of the Board. With the new
appointments to the Board in early 2024, female representation
increased to 44%. The Board aims to reach at least one Director from
a minority ethnic group. There are currently no Directors who self-
disclose as being from minority ethnic groups.
Below Board level, female employees accounted for 14% of the
senior management, as defined by the Code, and 28% of senior
management direct reports.
Sex/Gender representation
Number of
Board members
Percentage of
the Board
Number of senior
positions on
the Board
(CEO, CFO, SID
and Chair)
Number in
Executive
Management
1
Percentage
of Executive
Management
1
Men
4
57%
4
6
86%
Women
3
43%
0
1
14%
Not specified/prefer not to say
–
–
–
–
–
Ethnicity representation
Number of
Board members
Percentage of
the Board
Number of senior
positions on
the Board
(CEO, CFO, SID
and Chair)
Number in
Executive
Management
1
Percentage
of Executive
Management
1
White British or other White (including minority white groups)
7
100%
4
7
100%
Mixed/Multiple Ethnic Groups
–
–
–
–
–
Asian/Asian British
–
–
–
–
–
Black/African/Caribbean/Black British
–
–
–
–
–
Other ethnic group including Arab
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
1
Defined as the Executive Committee and the Company Secretary in accordance with Listing Rule 9.8.6R(10).
Numerical diversity data, in the format required by UK Listing Rule
9.8.6R(10), is outlined below as at 31 December 2023.
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 and manufacturing
facilities. Newly appointed Directors have access to the Company
Secretary’s assistance and guidance around the workings of the
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Financial Statements
Corporate Governance
Strategic Report
CODE PRINCIPLE: COMPOSITION, SUCCESSION AND EVALUATION
CONTINUED
NOMINATION COMMITTEE REPORT
CONTINUED
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 and facility
tours facilitated by the Executive Directors. Directors also receive
updates from the Company Secretary on legal and regulatory matters.
Annual Board evaluation
The Code specifies that the Board should undertake a formal and
rigorous annual evaluation of its own performance and that of its
committees and individual Directors, and that the Board should also
have an externally facilitated evaluation at least once, every three years.
2023 marked the first year of the Board’s second three-year
review cycle. As such, an external Board effectiveness review was
undertaken, facilitated by Deloitte. This external review comprised
of an initial documentation review of the Board’s key governance
documents, followed by a confidential Board effectiveness survey
and individual interviews with all Board members and the Group
Company Secretary. Following completion of their fieldwork, Deloitte
analysed the survey results, extracted key findings from interviews
and the documentation review, and presented a report to the Board.
The results of the external review demonstrated the continued
evolution and maturity of the Board. It was noted that the
improvements recommended by the external reviewer related mainly
to supporting processes and documentation enhancements. The key
strengths of the Board and some areas for improvement identified in
the external review are summarised in the adjacent tables.
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 2023 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.
John Mulcahy
Chair, Nomination Committee
Year 1 – 2023
Evaluation by external facilitator.
Year 2 – 2024
Internal review against detailed
Year 1 evaluation.
Year 3 – 2025
Questionnaire-based internal
evaluation.
Board evaluation
Key strengths of the Board identified in 2023 evaluation
>
Board composition
– the size of the Board is appropriate for a company of Glenveagh’s scale and complexity. There is a good balance of skills, experience
and gender diversity on the Board.
>
Board dynamics
– the relationship across the Board is positive, featuring openness and respect amongst the members.
>
Board challenge
– there was clear engagement by the Board with management presentations and good levels of both challenge and debate.
>
Board engagement
– the Board demonstrates awareness of a wide range of stakeholder interests, both internal and external, including workforce,
customers, suppliers and investors.
>
Chairman’s leadership
– the Chairman’s leadership style was noted as being inclusive, supporting open discussion while guiding the Board towards clear
decision-making and managing meeting times.
Areas identified for improvement in 2024
>
Succession planning
– additional documentation was recommended to be put in place covering individual Board positions and key senior management roles.
>
Board agenda
– a standard agenda template was recommended to be put in place across all Board and committee meetings.
>
Board reporting
– a standard document format was recommended to be put in place for all reports across the Board and all committees.
>
Process documents
– documented Board and committee forward plans were recommended to be put in place, with additional formal documentation also
suggested in relation to the Non-executive Director induction plan.
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“This committee continues
to fulfil a vital role
in the Company’s
governance framework...”
CODE PRINCIPLE: AUDIT, RISK AND INTERNAL CONTROL
AUDIT AND RISK COMMITTEE REPORT
Audit and Risk
Committee Report
Cara Ryan
Chair, Audit and Risk Committee
Committee members and attendance
Name
Position
Attendance (100%)
Cara Ryan
Chair
Emer Finnan*
Member
Pat McCann
Member
Robert Dix**
Member
*
Emer Finnan was appointed in July 2023 and attended all meetings for the
duration of her membership of the committee.
**
Robert Dix retired in June 2023 and attended all meetings for the duration of
his membership of the committee.
Quick facts
>
Cara Ryan has chaired the Audit and Risk Committee since
September 2020 and is an Independent Non-executive Director and
Chair of the Audit Committee of Marsh Ireland Brokers Limited.
>
All committee members are Independent Non-executive Directors
in line with the Code.
>
The Board is satisfied that at least one committee member has
recent and relevant financial experience, as required by the Code.
Director biographies can be found on pages 102 to 103.
>
The committee met five times during the year ended
31 December 2023.
>
Regular attendees at committee meetings include the Executive
Directors, the Head of Finance and representatives from KPMG
(the ‘External Auditor’) and Deloitte (the ‘Internal Auditor’).
>
The committee meets with the Internal and External Auditors
without management being present, on an annual basis in
order to discuss any issues which may have arisen during the
financial year.
Link to terms of reference
audit-and-risk-committee-terms-of-reference (glenveagh.ie)
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Financial Statements
Corporate Governance
Strategic Report
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Financial Statements
Corporate Governance
Strategic Report
CODE PRINCIPLE: AUDIT, RISK AND INTERNAL CONTROL
CONTINUED
AUDIT AND RISK COMMITTEE REPORT
CONTINUED
On behalf of the committee, I am pleased to present the Audit and Risk
Committee Report for the financial year ended 31 December 2023. This
committee continues to fulfil a vital role in the Company’s governance
framework, providing independent challenge and oversight across the
Company’s financial reporting, risk management and internal controls
and cyber security. The composition of the committee is outlined in
the table to the left; all committee members are Independent Non-
executive Directors in line with the Code.
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 are outlined in detail on pages 117 and 118 and
summarised in the table below.
Committee’s key roles and responsibilities
The Board believes the Audit and Risk Committee to be a central
pillar for effective corporate governance by providing independent
and impartial oversight of the Company’s relevant functions. As a
committee, our responsibilities include:
>
monitoring the integrity of the Group’s Financial Statements
including reviewing significant financial reporting issues, judgements
and other supplementary financial information contained in formal
announcements and communications;
>
providing advice on whether the Annual Report and Financial
Statements, taken as a whole, is fair, balanced and understandable
and provides the necessary information for shareholders to assess
the Group’s position and performance, business model and strategy;
>
reviewing internal financial controls and the Group’s internal control
and risk management systems;
Committee activities in 2023
February 2023
June 2023
September 2023
October 2023
December 2023
>
Received and considered the internal audit update.
>
Reviewed the Annual Report to ensure it was fair, balanced and understandable
and provided information enabling an assessment.
>
Received and considered
the internal audit update.
>
Reviewed and considered
the internal audit update.
>
Received and considered
a review of the risk
management process.
>
Reviewed and considered the internal audit update
and plan for 2024-2026.
>
Reviewed the External Auditor’s year-end report, including independence
considerations.
>
Received and considered
the risk register update:
scoring changes of
principal risks.
>
Received and considered
the KPMG interim review
findings report.
>
Received and considered
the principal risks to the
business which included
external and operational
risks.
>
Received and considered KPMG’s audit plan and
strategy 2023.
>
Considered the net realisable value (‘NRV’) of inventories.
>
Considered the NRV
of inventories.
>
Received and considered
the climate risk and
opportunity assessment.
>
Reviewed and considered the plc
obligations register.
>
Reviewed the full-year financial report announcement, the Annual Report; and papers
in relation to:
–
Year-end accounting matters.
–
The preparation of the Financial Statements on the going-concern basis
(see also Note 7 to the Group Financial Statements).
–
The making of a going concern and viability statement recommendation
to the Board.
–
The making of the Director’s Compliance Statement recommendation to the Board.
–
The making of management representations.
>
Discussed in detail the
2023 interim financial
results.
>
Considered and approved
the 2023 interim Financial
Statements and letter of
representation.
>
Received and considered
the risk register update.
>
Undertook the annual review of Company policies
which included the approval of an updated
Whistleblowing Policy and the appointment of
an independent third-party provider to manage
reporting channels for protected disclosures.
>
Received and considered
a draft update to the
existing Whistleblowing
Policy.
>
Undertook the annual review of the committee’s
terms of reference.
>
reviewing the effectiveness of the audit process and the
independence and objectivity of the External Auditor;
>
monitoring and reviewing the effectiveness of the Group’s Internal
and External Auditors;
>
developing and implementing policy on engaging the External
Auditor to supply non-audit services, taking into account
relevant guidance;
>
approving the External Auditor’s remuneration and terms
of engagement, and making recommendations about
its reappointment;
>
receiving updates on the work undertaken to improve the Group IT
and cyber security capabilities; and
>
reporting to the Board on how the committee has discharged
its responsibilities.
Each scheduled meeting considered Directors’ interests and reviewed risk register updates.
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CODE PRINCIPLE: AUDIT, RISK AND INTERNAL CONTROL
CONTINUED
AUDIT AND RISK COMMITTEE REPORT
CONTINUED
Significant issue considered
Committee activity
Carrying value of inventory
The carrying value of the Group’s inventory was €707.6 million at 31 December 2023 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 NRV.
At 30 June and 31 December 2023, management undertook an exercise to assess the NRV 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 the exercises
determined that no net adjustment to the carrying value was required at 30 June 2023 and 31 December 2023.
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.
The committee robustly challenged management on the additional work completed in respect of the carrying value of
inventory both at 30 June 2023 and 31 December 2023, to seek to assess the impact of the macro-economic environment
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 no net impairment charge or reversal was required at 30 June 2023 and 31 December 2023.
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 2023.
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.
The primary issue considered by the committee in relation to the
Financial Statements for the financial year ended 31 December 2023
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 against the macro-economic 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 2023 Annual Report and the condensed Financial
Statements for the half-year ended 30 June 2023 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 provided 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 2023 Annual Report and Financial
Statements and is set out on pages 53 to 61 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 inclusive of our climate risks and opportunities. 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; and
>
determining scoring thresholds and risk ratings.
The risk register and the principal risks and uncertainties faced by the
Group are outlined on pages 55 to 61 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 cyber security, emerging
environmental and sustainability considerations related to IRO
disclosures and the Group’s double materiality assessment and
ensuring recommendations from Group internal audit reviews are
implemented on time, and giving effect to the actions from the
reviews of the Group internal audit function.
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Corporate Governance
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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 considers 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 made
by management.
The committee met representatives from the Internal Auditor on
four occasions during the financial year and considered the findings
from their reviews of health and safety, governance, sustainability,
management of contractors, internal financial controls and IT
general controls.
External auditor
Audit effectiveness
KPMG were appointed as the Group’s External Auditors in 2017.
During 2023, the committee reviewed KPMG’s reports on its 2022
audit and interim review for the six months ended 30 June 2023. It
also reviewed and approved KPMG’s audit plan in respect of the
audit for the year ended 31 December 2023.
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, reappointment or removal of the External Auditor.
KPMG attended four committee meetings in 2023.
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:
€’000
Audit fees
280
Non-audit fees
Interim review fees
20
Tax services fees
103
Other non-audit services
25
Total
428
At the end of the financial year, non-audit fees paid to KPMG
represented 53% 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, anti-bribery and corruption
The Group has whistleblowing and anti-bribery and corruption
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, bribery or corruption or any alleged breach of these
policies are appropriately investigated, with the results reported to
the committee.
During 2023, the Group introduced an updated Whistleblowing
Policy which provides for secure and confidential reporting channels,
operated externally by an independent third-party provider.
Communication was issued to all employees to advise them of the
new reporting channels available for making protected disclosures,
and a direct link to the reporting platform has been published on the
Group website, www.glenveagh.ie.
I am pleased to conclude that the committee has met its obligations
for 2023 and is looking forward to further adapting the Group’s
risk management framework to respond to the opportunities and
challenges that 2024 will bring as the Group continues to deliver on
its strategic objectives.
Cara Ryan
Chair, Audit and Risk Committee
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Pat McCann
Chair, Remuneration Committee
Committee members and attendance
Name
Position
Attendance (100%)
Pat McCann
Chair
Cara Ryan
Member
Camilla Hughes
Member
Quick facts
>
Pat McCann has chaired the Remuneration Committee
since April 2022.
>
All committee members are Independent Non-executive
Directors, in line with the Code.
>
The committee met five times during the year ended
31 December 2023.
Link to terms of reference
remuneration-committee-terms-of-reference (glenveagh.ie)
“The committee
recognises the
importance of rewarding
our employees fairly and
competitively...”
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Remuneration
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Financial Statements
On behalf of the committee, I am pleased to present our
Remuneration Committee Report for the financial year ended
31 December 2023, which contains:
>
the current Directors’ Remuneration Policy, which was approved at
the AGM on 28 April 2022; and
>
the annual Remuneration Report, describing how the policy has
been put into practice in 2023 and how it will be implemented
in 2024.
Committee’s key roles and responsibilities
The principal responsibilities and duties of the Remuneration
Committee include:
>
setting the Remuneration Policy for the 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 members of senior
management including any bonuses, incentive payments and
share options or other share awards; and
>
overseeing any major changes in employee benefits structures
throughout the Group.
Performance during 2023 and remuneration outcomes
2023 was another strong year for the business, delivering revenue of
€608 million, profit after tax of €47 million and EPS of 8 cent. There
were some considerable highlights during the year, including the start
of our two Partnerships sites, which delivered revenue and profits for
the first time, the significant progress in our gross margin and the
launch of NUA, our off-site manufacturing business with the capacity
to deliver over 2,000 units across three separate facilities.
2023 annual bonus outcome
As a result of this strong business performance during the year,
bonuses for 2023 were payable to the Executive Directors at 95%
of maximum. The level of payout is reflective of the Company’s
achievement against its full range of financial and non-financial
performance measures. Full details of the specific bonus targets, the
outcomes achieved and the resulting level of bonus payments are
provided on page 129 of this report. In line with the Remuneration
Policy requirements introduced in 2022, the 2023 annual bonus
payments to the Executive Directors were subject to one-third deferral
into shares, which must be held for a minimum of two years.
2021 LTIP outcome
The performance period for the 2021 LTIP, in which the CFO was a
participant, ended on 31 December 2023. Following assessment of
performance against the 2021 LTIP targets, the vesting outcome for
the awards granted to the CFO was 48%.
Full details in relation to this vesting outcome are set out on page 131.
Committee activities in 2023
January 2023
February 2023
March 2023
September 2023
December 2023
>
Progressed the shareholder consultation on
the 2020 LTIP vesting outcome.
>
Approved 2023 Bonus metrics.
>
Reviewed the appropriateness of the
proposed 2023 LTIP performance measures.
>
Approved the final 2022 Bonus payout level.
>
Finalised the 2020 LTIP vesting outcome.
>
Oversaw the ‘clogging’ of the share awards
vesting to the CFO under the 2020 LTIP in
the Company’s Restricted Share Trust.
>
Authorised the issue and allotment of shares
to satisfy the exercise of vested LTIP option
awards and approved the related block
listing applications.
>
Approved the 2023 LTIP award grants.
>
Oversaw the ‘clogging’ of the deferred
share element of the Executive Directors’
2022 Bonus in the Company’s Restricted
Share Trust.
>
Reviewed the design and implementation
of employee reward structures for the wider
workforce, including benchmarking and
structures in place for salary, bonus and
benefits across all employee groups.
>
Reviewed the results of the 2022 Gender
Pay Gap report.
>
Authorised the issue and allotment of
shares to satisfy the exercise of vested
SAYE option awards and approved the
related block listing applications.
>
Received an annual remuneration trends
update from Ellason.
>
Reviewed current progress of 2023
Bonus metrics.
>
Considered the projected vesting outcome
of the 2021 LTIP based on the performance
period ending 31 December 2023.
>
Annual review of committee terms
of reference.
2024 remuneration
Base salaries
The Executive Directors will receive base salary increases of 3%
in 2024, which is below general workforce increases of 5%. The
committee considers that the 3% increase awarded to the Executive
Directors is appropriate in the ongoing inflationary environment, and
with regard to the fact that base salary levels remained unchanged
in 2023.
Annual bonus
The CEO and CFO will continue to participate in the annual bonus
scheme. For 2024 the financial measures remain unchanged from
2023, consisting of profit before tax (‘PBT’) (50%) and operating
margin (20%). Non-financial performance will continue to be assessed
based on health and 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 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 2024 Remuneration Report.
For 2024 the annual bonus opportunity will remain unchanged
from 2023, at 150% and 125% of base salary for the CEO and the
CFO respectively, in line with the Remuneration Policy approved by
shareholders in 2022. Two-thirds of the annual bonus will continue
to be paid in cash, the remainder will be deferred into shares for a
minimum of two years.
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LTIP
The CEO and CFO will continue to participate in the LTIP, with award
levels for 2024 unchanged from 2023 at 200% and 175% of salary for
the CEO and CFO respectively.
Pension contributions
Pension contributions for the Executive Directors reduced from 15%
to 5% of salary with effect from 1 January 2023, to align to the wider
workforce level.
Wider workforce
The committee recognises the importance of rewarding our
employees fairly and competitively to ensure the incentivisation of
the people we need to attract and to retain across our business
segments. During 2023, the committee reviewed the reward and
career framework in place for the wider workforce, which is comprised
of remuneration packages, career paths, training and development,
performance management, succession planning and recognition
initiatives. The committee is confident that the business has aligned
compensation and benefits packages with performance, while
promoting diversity and inclusion and preparing for the future needs
of the Company.
The committee remains cognisant of the impact of the ongoing
inflationary environment on our workforce and measures taken to
address this have resulted in an average increase of 5% in workforce
salaries for 2024.
The committee continues to monitor the Company’s gender pay gap,
in conjunction with the work of the ESR Committee, and receives
updates on future legislative changes including to pensions and the
national minimum wage.
Non-executive Director remuneration
Following review of the structure and fee levels for the Non-executive
Directors, base fee levels will increase by €5,000 in 2024.
UK Corporate Governance Code
Glenveagh continues to support the principles and provisions of
the Code, though the committee and the Board acknowledge
Glenveagh’s departure from Provision 41 of the Code concerning
engagement with the workforce in relation to executive remuneration.
As recommended by the Code, Glenveagh’s Remuneration Policy
and its implementation are designed to support the strategy of the
business and promote long-term sustainable success. This 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.
External advisers
The committee obtained advice during the year from independent
remuneration consultants Ellason. Ellason are members of the
Remuneration Consultants Group and signatories to its code of
conduct, and all advice is provided in accordance with this code. The
committee is satisfied that the advice provided by Ellason was robust
and independent.
2023 AGM voting
The Remuneration Report for 2022 was the subject of an advisory
shareholder vote at the AGM in 2023 and was passed with the
support of approximately 59% of those voting. Acknowledging that
the resolution received opposition from a significant minority of
shareholders, the committee set out its response through the voting
results disclosure, the six-month update to shareholders and through
the enclosed 2023 Remuneration Report.
In late 2022 and early 2023, the committee engaged extensively
with major shareholders in relation to the decision taken to
exercise discretion in respect of one of the performance metrics for
participants in the 2020 LTIP, the performance period for which ended
on 31 December 2022. The committee was greatly encouraged by the
level of responsiveness and support expressed by major shareholders
during this consultation process.
While pleased that the majority of shareholders supported the vote
on the 2022 report at the 2023 AGM, based on further engagement
it was clear that some shareholders did not support the committee’s
exercise of discretion in relation to the vesting outcome of the
2020 LTIP.
Having reflected on the support of the majority of our shareholders
and also the feedback received from the significant minority of
shareholders that voted against the resolution, the committee remains
satisfied that it acted fairly and appropriately and in the best interests
of the Company and all stakeholders.
Engagement with shareholders continued throughout 2023 in relation
to remuneration and we are committed to maintaining open and
transparent engagement with all shareholders into 2024.
2024 AGM
Shareholder approval will be sought at the 2024 AGM for the usual
advisory vote on this Remuneration Report. I hope you will support
this resolution and, ahead of the AGM, I welcome any comments or
feedback you may have on the committee’s activities in 2023, our
plans for 2024, or any other relevant matters.
Pat McCann
Chair, Remuneration Committee
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Directors’ Remuneration Policy
The following table outlines the key elements of Glenveagh’s Remuneration Policy, as approved by shareholders at the 2022 AGM.
Fixed remuneration
Element/purpose
Operation
Maximum opportunity
Base salary
To attract and retain high-calibre individuals.
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.
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.
There are no prescribed maximum salaries or maximum increases.
Increases normally reflect increases across the Group and in the
market generally.
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.
Benefits
To be competitive with the market.
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 relate to each
individual’s circumstances.
Retirement benefits
To attract and retain high-calibre individuals
as part of competitive package.
The Group operates a defined contribution pension scheme for
Executive Directors. Pension contributions are calculated on base
salary only.
Maximum contribution rate is set in line with the rate attributable to a
majority of the wider workforce (currently 5%).
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Variable remuneration
Element/purpose
Operation
Maximum opportunity
Annual bonus
To reward the achievement of
annual performance targets.
Individuals 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 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 2024, the committee intends to apply the following maximum opportunities
as a percentage of base salary:
CEO
150%
CFO
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
delivered in shares deferred for at least two years. No further performance
targets apply to the deferred shares but malus and clawback will apply to the
shares during the deferral period.
Long-term incentive plan (‘LTIP’)
To incentivise long-term sustainable
performance by granting shares which vest subject
to the achievement of targets that 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.
Executive Directors 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.
LTIP awards vest subject to the satisfaction of performance conditions over a
three-year period. The committee selects the performance conditions ahead of
each grant, taking into account Glenveagh’s strategic priorities and business
circumstances. A majority of the metrics chosen will be financial metrics.
Details of the chosen metrics and specific targets for recent awards and for
awards to be granted in 2024 are set out on page 130.
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.
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 2024
(as a percentage of base salary):
CEO
200%
CFO
175%
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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
Salary
Pension
Bonus
LTIP
0
10
20
30
40
50
60
70
80
90
100
CFO
Max variable pay
Target variable pay
No variable pay
Salary
Pension
Bonus
LTIP
0
10
20
30
40
50
60
70
80
90
100
NOTES:
1
Max variable pay assumes a full annual bonus payout 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 that everyone should have the opportunity to
access great-value, high-quality homes in flourishing communities
across Ireland.
The performance conditions which apply to the annual bonus scheme
to operate in 2024 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.
>
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.
The performance conditions for the LTIP awards to be granted in
2024 will be announced at the time of granting awards. Further
details in relation to the LTIP awards to be granted in 2024 are
provided on page 130.
The 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); or
>
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 his 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 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).
In line with the Remuneration Policy approved at the 2022 AGM,
there is a requirement for shares to be held by Executive Directors 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 are required to hold shares at a level of the lower
of (i) the in-employment shareholding requirement in place at the
time and (ii) their actual shareholding at the time of departure. These
requirements 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.
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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 12 month notice period, in line with
standard market practice.
Service agreements
The current Executive Directors 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.
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
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.
Further detail in relation to the Board’s engagement with, and
consideration of, its employees is set out on page 110 of the
Corporate Governance Report.
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, including in late 2021
and early 2022 to discuss the new Remuneration Policy and its
implementation, and in late 2022 and early 2023 in relation to
the 2020 LTIP vesting outcome.
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 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.
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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 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 Non-executive Directors each receive a fee which is set by the
Board on advice from the independent professional advisers. The
Non-executive Directors are paid a base fee of €70,000 per annum
with additional fees payable to the Senior Independent Director of
€30,000 per annum and to the Workforce Engagement Director of
€15,000 per annum. Non-executive Directors receive an additional
€15,000 for chairing the Audit and Risk, Remuneration, Nomination
and ESR Committees. The Non-executive Chairman receives a total
fee of €205,000.
Accordingly, the Non-executive Directors letters of appointment detail
the following annual fees for 2024:
Role
€
John Mulcahy
Company Chairman, and Chair of the
Nomination Committee
205,000
Pat McCann
Senior Independent Director and Chair
of the Remuneration Committee
115,000
Cara Ryan
Workforce Engagement Director and
Chair of the Audit and Risk Committee
100,000
Camilla Hughes
Chair of the ESR Committee
85,000
Emer Finnan
Non-executive Director
70,000
Lorna Conn
Non-executive Director
70,000
Max Steinebach
Non-executive Director
70,000
Non-executive Directors 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. Non-executive Directors may receive benefits if considered
appropriate. All remuneration received by the Non-executive Directors
is fixed remuneration.
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Annual Remuneration Report for 2023
The following table illustrates remuneration awarded to Directors for the financial year ended 31 December 2023:
Name
Salary/fees (€)
1
Benefits (€)
2
Employer pension
contribution (€)
3
Total fixed (€)
Annual bonuses (€)
LTIP
8
Total variable (€)
Total (€)
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
7
2023
2022
2023
2022
Executive Directors
Stephen Garvey
600,000
600,000
24,595
24,801
30,000
90,000
654,595
714,801
855,000
900,000
–
–
855,000
900,000
1,509,595
1,614,801
Michael Rice
400,000
400,000
17,301
16,121
20,000
60,000
437,301
476,121
475,000
500,000
228,191
545,643
703,191
1,045,643
1,140,492
1,521,764
Non-executive Directors
John Mulcahy
200,000
200,000
–
–
–
–
200,000
200,000
–
–
–
–
–
–
200,000
200,000
Robert Dix
4
41,694
95,000
–
–
–
–
41,694
95,000
–
–
–
–
–
–
41,694
95,000
Pat McCann
5
96,333
80,000
–
–
–
–
96,333
80,000
–
–
–
–
–
–
96,333
80,000
Cara Ryan
95,000
95,000
–
–
–
–
95,000
95,000
–
–
–
–
–
–
95,000
95,000
Camilla Hughes
80,000
80,000
–
–
–
–
80,000
80,000
–
–
–
–
–
–
80,000
80,000
Emer Finnan
6
32,500
–
–
–
–
–
32,500
–
–
–
–
–
–
–
32,500
–
Total
1,545,527
1,576,667
41,896
40,922
50,000
150,000
1,637,423
1,767,589
1,330,000
1,400,000
228,191
545,643
1,558,191
1,945,643
3,195,614
3,713,232
1
Amounts reflect salaries in respect of Executive Directors and Directors’ fees in respect of Chairman and other 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
Robert Dix retired from the Board on 8 June 2023.
5
Pat McCann was appointed Senior Independent Director on 15 June 2023.
6
Emer Finnan was appointed to the Board on 1 July 2023.
7
Amount reflects the combined total of 2019 and 2020 LTIP awards. The performance periods for the 2019 and 2020 LTIP awards ended on 16 April 2022 and 31 December 2022, respectively.
8
Amounts reflect the gain on options exercised.
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Total remuneration received for 2023
All elements of the remuneration received by the Directors for 2023
were consistent with the Directors’ Remuneration Policy as approved
by shareholders at the AGM in 2022. The salaries received by the
Executive Directors and the fees received by the Non-executive
Directors were as disclosed in the 2022 Remuneration Report. The
bonus payments received by the Executive Directors in respect of
2023 reflected the achievement of the performance targets, as
explained further below.
During the financial year ended 31 December 2023:
>
there were no deviations from the procedure for implementing
the Remuneration Policy;
>
there were no derogations from the Remuneration Policy; and
>
no use was made of the possibility to reclaim variable
remuneration using the malus and clawback mechanisms
described in the Remuneration Policy.
Base salary
The actual salaries paid to the Executive Directors for the financial
year ended 31 December 2023 are set out in the table on page 128.
The base salaries for the CEO and CFO will be subject to a 3%
increase for the 2024 financial year.
Annual bonus
2023 bonus outcome
The Executive Directors participated in an annual bonus scheme for
2023 with performance measured against a mix of financial (70%)
and non-financial (30%) performance conditions.
The specific targets that were set for the bonus scheme in 2023
are set out in the table below:
Metric
Weight
% Payable
Target
Performance achieved
Profit before tax
50%
Threshold 25%
€44,884,000
€55.1m
Target 50%
€49,871,000
Max 100%
€59,845,000
Operating margin
20%
Threshold 25%
9.8%
11.7%
Target 50%
10.4%
Max 100%
11%
Health and safety
15%
Threshold 25%
70% audit score
90%
Target 50%
75% audit score
Max 100%
85%+ audit score
Customer satisfaction
15%
Threshold 25%
75% survey score
94%
Target 50%
80% survey score
Max 100%
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 €1,330,000, being 143% of base salary for the CEO and 119% of base salary for the CFO.
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2024 bonus arrangements
For 2024, the annual bonus scheme will continue to operate in the
same manner as in 2023, with a 70%/30% split between financial
and non-financial metrics. The performance metrics and associated
weightings will remain as follows:
Financial metrics
Weighting
Profit before tax
50%
Operating margin
20%
Non-Financial metrics
Weighting
Health and safety
15%
Customer satisfaction
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 2024 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 Directors’ Remuneration Policy, two-thirds of the
annual bonus will be paid in cash while one-third will be delivered
in shares deferred for at least two years.
The performance conditions for this award are set out below:
EPS performance
(applies to 50% of the award) – adjusted
EPS to be achieved in FY2025
Level of
vesting
22.0 cent
100%
14.0 cent
25%
Less than 14.0 cent
Nil
Awards vest on a straight-line basis for performance between 14.0c
and 22.0 cent
ROE performance
(applies to 50% of the award) –
ROE to be achieved in FY 2025
Level of
vesting
16.2%
100%
11%
25%
Less than 11%
Nil
Awards vest on a straight-line basis for performance between 11%
and 16.2%
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.
Awards to be granted in 2024
The CEO and CFO will continue to participate in the LTIP, with award
levels for 2024 unchanged from 2023 at 200% and 175% of salary for
the CEO and CFO respectively.
The performance measures and targets applying to the 2024
LTIP awards will be disclosed at the time of grant. The committee
confirms that it will ensure the appropriateness and challenge of the
performance measures and targets set for the 2024 grant. In addition,
the vesting of the 2024 awards will be 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 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.
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Long-term incentive plan (LTIP)
Awards granted in 2023
The table below provides details of the LTIP awards made during the year to the Executive Directors.
Director
Award date
% of salary
award
Grant date
share price
Face value
of award
Number of
shares
Performance
period
Date of
vesting
Stephen Garvey
23 Mar 2023
200%
€1.02
€1,200,000
1,174,168
1 Jan 2023 to
31 Dec 2025
22 Mar 2026
Michael Rice
23 Mar 2023
175%
€1.02
€700,000
684,932
1 Jan 2023 to
31 Dec 2025
22 Mar 2026
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The 2021 LTIP award was granted in April 2021 and has a three-year
vesting period. The award was subject to two equally weighted
performance conditions: 50% of the award was based on absolute
TSR and the other 50% of the award was based on EPS. The absolute
TSR condition required growth of 6.25% to 12.5% per annum and
the EPS performance condition required EPS of 9.5 to 12.5 cents
for FY 2023.
The committee reviewed the extent to which the vesting targets in
respect of the 2021 LTIP had been met by reference to the TSR and
EPS performance over the three-year period to 31 December 2023.
TSR performance over the period was 12.2% per annum, resulting
in 96% of this element of the award becoming due to vest. EPS
performance over the period was 8.0 cent, and as a result the
EPS portion of the 2021 LTIP award is not due to vest.
Overall, 48% of the 2021 LTIP award will vest based on the
assessment of the TSR and EPS performance targets.
LTIP awards held by Directors
Details of all LTIP awards held by Directors are set out in the table below:
Director
Award date*
Share price used
Share
awards held
at 1 Jan 2023
Awarded
during the year
Vested during the year
Lapsed
during the year
Share
awards held
at 31 Dec 2023
Vesting
date
Stephen Garvey
29 Apr 2022
€1.16
1,034,483
–
–
–
1,034,483
28 Apr 2025
23 Mar 2023
€1.02
–
1,174,168
–
–
1,174,168
22 Mar 2026
Michael Rice
28 Feb 2020
€0.75
420,000
–
310,800
109,200
–
27 Feb 2023
1 Apr 2021
€0.91
399,493
–
–
–
399,493
31 Mar 2024
29 Apr 2022
€1.16
603,448
–
–
–
603,448
28 April 2025
23 Mar 2023
€1.02
–
684,932
–
–
684,932
22 Mar 2026
* The awards are granted as options with an exercise price of nil.
The vesting of the award granted in April 2021 was subject to performance conditions based on absolute total shareholder return (‘TSR’) and earnings per share (‘EPS’) performance (equally weighted on a 50/50 basis)
detailed in the table below:
LTIP award
Performance condition
Performance Period
Threshold
(25% vesting)
Maximum
(100% vesting)
Actual
% Vesting
April 2021
TSR
1 Jan 2021 – 31 Dec 2023
6.25%
12.5%
12.2%
96%
EPS
1 Jan 2021 – 31 Dec 2023
9.5c
12.5c
8.0c
0%
The vesting of the award granted in April 2022 is subject to
performance conditions based on EPS and ROE performance
(equally weighted on a 50/50 basis) over the three years to the end
of December 2024. The specific targets were disclosed in the 2022
Remuneration Report. The performance outcome and subsequent
level of vesting will be disclosed in next year’s Remuneration 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 123), 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.
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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.
2023
2022
2021
2020
2019
% Change
2023 v 2022
Executive Directors
Stephen Garvey
€ 1,509,595
€1,614,801
€988,213
€541,821
€750,439
-6.5%
Michael Rice
€1,140,492
€1,521,764
€690,370
€378,176
€99,918
-25.1%
Non-executive Directors
John Mulcahy
€200,000
€200,000
€541,250
€318,500
€480,596
-%
Robert Dix
1
€41,694
€95,000
€90,000
€79,875
€75,000
-56.1%
Pat McCann
2
€96,333
€80,000
€75,000
€63,427
€20,000
20.4%
Cara Ryan
€95,000
€95,000
€78,750
€64,875
€20,000
-%
Camilla Hughes
€80,000
€80,000
€37,500
–
–
-%
Emer Finnan
3
€32,500
–
–
–
–
100%
Company performance
Adjusted EBITDA
€73.3m
€72.2m
€48.8m
€9.6m
€31.9m
1.5%
Health and safety
90%
88%
89%
88.0%
75.0%
2.3%
Customer satisfaction
94%
91%
89%
83.0%
82.0%
3.3%
1
Robert Dix retired from the Board on 8 June 2023.
2
Pat McCann was appointed Senior Independent Director on 15 June 2023.
3
Emer Finnan was appointed to the Board on 1 July 2023.
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
2023
2022
2021
2020
2019
% Change
2023 vs 2022
Average remuneration for employees of the Group*
€86,705
€92,745
€98,350
€73,610
€84,286
-6.5%
*The decrease year on year is as a result of manufacturing being a greater proportion of the employee mix in 2023.
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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 102
and 103 of the Corporate Governance Report. The table below
sets out the interests of the Directors and Company Secretary in
ordinary shares of the Company as at 31 December 2023. Under the
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).
Ordinary shares
Ordinary shares under option †
Name
2023
2022
2023
2022
Stephen Garvey
9,803,558
9,411,319
2,208,651
*
1,034,483*
Michael Rice
579,684
169,333
1,687,873
*
1,452,941*
John Mulcahy
3,092,766
2,882,766
–
–
Cara Ryan
53,681
28,000
–
–
Pat McCann
70,000
70,000
–
–
Camilla Hughes
–
–
–
–
Emer Finnan
–
–
–
–
Chloe McCarthy
–
–
380,710
*
420,606*
*
The exercise price of the ordinary shares under options detailed above is €nil. The expiry date for options granted during 2022 and 2023 is the seventh anniversary of
the award date.
†
Shares under option include options from both LTIP and SAYE schemes.
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Committee members and attendance
Name
Position
Attendance (100%)
Camilla Hughes
Chair
Pat McCann
Member
Stephen Garvey
Member
Robert Dix*
Member
*
Robert Dix retired in June 2023 and attended all meetings for the duration of
his membership of the committee.
Quick facts
>
The Environmental and Social Responsibility (‘ESR’)
Committee was established in July 2021.
>
Camilla Hughes has chaired the committee since
it was established.
>
All committee members but one are Independent
Non-executive Directors.
>
The committee met four times during the year ended
31 December 2023.
>
The Chief Strategy Officer (CSO) and Head of Sustainability
were invited to all meetings.
Link to terms of reference
environmental-and-social-responsibility-committee-terms-of- reference
(glenveagh.ie)
“The beginning of 2023
saw a key milestone
with the approval by
the committee of the
Group’s Net Zero
Transition Plan.”
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY COMMITTEE REPORT
Environmental
and Social
Responsibility
Committee Report
Camilla Hughes
Chair, Environmental and
Social Responsibility Committee
135
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Annual Report and Accounts 2023
Financial Statements
Corporate Governance
Strategic Report
On behalf of the committee, I am pleased to present the ESR
Committee Report for the financial year ended 31 December 2023.
The committee focuses its efforts on assisting the Board by
proactively managing its core areas of responsibility: overseeing
the Group’s approach to sustainability.
The principal duties and responsibilities of the committee
together with an overview of its activities for the year have
been outlined below.
Committee’s key roles and responsibilities
Sustainability is integral to our business strategy. As a Group, we are
committed to playing a leading role in achieving a sustainable future.
As a committee, our responsibilities include:
>
overseeing the Group’s approach to sustainability and its
integration into the business strategy ensuring it addresses
its most material impacts, risks and opportunities (‘IROs’);
>
approving policies set out by management to prevent, mitigate
and remediate actual and potential material impacts, to address
material risks and opportunities;
>
ensuring appropriate action plans are in place and resources
allocated to manage material sustainability matters; and
>
monitoring the performance and effectiveness of policies and
actions, with regard to material sustainability matters, through
agreed metrics.
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY COMMITTEE REPORT
CONTINUED
Committee activities in 2023
February 2023
May 2023
September 2023
December 2023
>
Approved the Net Zero Transition Plan which sets
out the Group’s science-based targets (SBTs) and
approach to achieving them.
>
Received update on the net zero action plan
and reviewed progress against the sustainability
dashboard.
>
Received update on the net zero action plan
and reviewed progress against the sustainability
dashboard.
>
Received update on the net zero action plan and reviewed
progress against the sustainability dashboard.
>
Received an update on the Group’s ESG ratings,
awards, certifications, and memberships FY 2022.
>
Received an update and reviewed progress of
environmental workplan.
>
Received an update and reviewed progress of
environmental workplan.
>
Received an update and reviewed progress of
environmental workplan.
>
Discussed the results of the GPTW Survey FY 2022.
>
Discussed implementation of sustainability training for
the Board.
>
Reviewed progress of ED&I strategy implementation.
>
Received an overview of the climate-related scenario
analysis which has been completed for the Group.
>
Received an overview of the key priorities FY 2023.
>
Discussed updates required to the committee terms
of reference.
>
Received an in-depth safety culture workstream
update and review of key statistics.
>
Reviewed and approved the Biodiversity Strategy.
>
Received an update on external developments such as
sustainability-related policy, legislation, and important
reports in Ireland and worldwide.
>
Received a review of ongoing and future industry
engagement and communications.
>
Received update on CSRD and EU Taxonomy requirements
and progress.
>
Received an update on external developments such as
sustainability-related policy, legislation, and important
reports in Ireland and worldwide.
>
Received an overview of the Supply Chain Engagement
Plan with respect to sustainability.
>
Reviewed 2024 proposed workplan.
>
Approved update to committee terms of reference.
>
Received an update on external developments such as
sustainability-related policy, legislation, and important
reports in Ireland and worldwide.
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Annual Report and Accounts 2023
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY COMMITTEE REPORT
CONTINUED
Areas of focus for the committee in 2023.
The committee continued to oversee the Group’s approach to
sustainability, its environmental and social responsibility targets and
the progress being made against these. The main areas of focus in
2023 were as follows:
>
approval of the Group’s Net Zero Transition Plan;
>
approval of the Biodiversity Strategy;
>
preparation for the CSRD;
>
environmental workplan including biodiversity and circular
economy strategies; and
>
social workplan including ED&I and Health and Safety.
The beginning of 2023 saw a key milestone with the approval by
the committee of the Group’s Net Zero Transition Plan. Progress on
the implementation of the action plan supporting this was monitored
throughout the year through the sustainability dashboard and
ongoing updates from management.
The committee also received updates on other aspects of the
Group’s environmental workplan. The particular focus this year was
the development of a biodiversity strategy and a circular economy
strategy. The former was approved at the end of the year.
Social aspects of sustainability continued to form a key part of our
agenda in 2023. This included understanding staff priorities through
our GPTW survey results, our evolving approach to Health and Safety
culture as well as an ongoing focus on the implementation of our
ED&I strategy.
The Group’s approach to supply chain engagement will support both
our environmental and social workplans and the committee reviewed
our proposed approach to this and will monitor progress in this
respect as it progresses throughout 2024.
The ESR Committee and the Audit and Risk Committee work
collaboratively to assess and strategically mitigate against the climate
change risks identified in the climate risk and opportunity assessment.
As a standing item, the committee reviewed future obligations
and recent external developments with respect to standards
and legislation and assessed the Group’s preparedness for these.
In particular, these included the CSRD and EU Taxonomy.
Finally, in light of the evolving sustainability agenda, including
new and emerging legislation, the committee updated its terms
of reference.
I am pleased to conclude that the ESR Committee has made
continued progress in its third year and is looking forward to evolving
and developing the Group’s sustainability approach to respond to the
needs of our stakeholders and regulatory requirements.
Camilla Hughes
Chair, Environmental and Social Responsibility Committee
137
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Corporate Governance
Strategic Report
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 2023.
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. The landbank that Glenveagh has assembled can deliver
housing that is both in demand and affordable.
Shareholders are referred to the Chair’s Letter, the CEO’s Review
and the CFO’s Review on pages 10, 12 and 62, respectively, which set
out management’s review of the Group’s operations and financial
performance in 2023 and the outlook for 2024.
These are deemed to be incorporated into the Directors’ Report.
Results and dividends
Group revenue for the year ended 31 December 2023 was €607.9
million (2022: €644.7 million), gross profit was €112.7 million (2022:
€108.1 million), profit after tax was €47.1 million (2022: €52.6 million)
and basic EPS was 8.0 cent (2022: 7.6 cent).
The Company did not pay a dividend during the financial year ended
31 December 2023 (2022: €nil).
Key performance indicators
Group performance against 2023 key performance indicators is
outlined in the table below. The key performance indicators upon
which particular emphasis is placed are as follows:
2023
2022
% change
KPIs financial
Profit before tax
€55.1m
€63.0m
-12.5%
Operating margin
11.7%
10.9%
+7.3%
KPIs non-financial
Customer satisfaction
94%
91%
+3.3%
Health and safety
90%
88%
+2.3%
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 on
pages 55 to 61 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 102 and 103.
In accordance with the provisions contained in the Code, all Directors
will voluntarily retire and be subject to election by shareholders at the
2024 AGM.
Directors’ and 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 133.
Share capital
The issued share capital of the Company as at 27 February 2024
consists of 578,049,118 ordinary 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 deferred shares.
Further information on the Company’s share capital and the rights
attaching to the different classes of shares is set out in Note 26 to
the Consolidated Financial Statements.
31 December 2023
27 February 2024
Shareholders
Ordinary
shares held
%
Ordinary
shares held
%
Teleios Capital Partners
127,867,234
22.12
127,867,234
22.12
FIL Investment International
77,116,519
13.34
75,618,371
13.08
Helikon Investments
42,400,000
7.34
42,400,000
7.34
Notz, Stucki Europe
24,745,000
4.28
24,412,996
4.22
PM Capital
22,019,779
3.81
22,019,779
3.81
Man GLG
18,874,238
3.27
19,990,843
3.46
Schooner Investment Group
19,382,095
3.35
19,382,095
3.35
The Group has a has a long-term incentive plan in place, the details
of which are set out at page 124 of the Remuneration Committee
Report and in Note 14 to the Consolidated Financial Statements.
Significant shareholdings
As at 31 December 2023 and 27 February 2024, the Company has
been notified of interests of 3% or more in its ordinary share capital
as detailed in the table below.
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 C, Maynooth Business Campus, Straffan
Road, 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 herein, and the disclosures in relation
to Directors’ remuneration and interests in the Remuneration
Committee Report are deemed to be incorporated in this section
of the Directors’ Report.
Long-term incentive plan
The Remuneration Committee will determine the level at which
any outstanding awards will vest with regard to the extent that the
applicable performance condition has been satisfied up to the date
of the change of control event.
138
Glenveagh Properties plc
Annual Report and Accounts 2023
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 Chair’s Letter on pages 10
and 11, the CEO’s Review on pages 12 to 14, the Financial Review on
pages 62 and 63 and the principal risks and uncertainties detailed in
the Risk Management Report on pages 53 to 61 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 100 to 138 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 Code and the 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 ‘Relevant Obligations’).
In accordance with Section 225 (2) (b) of the Companies Act 2014,
the Directors confirm that they have:
>
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;
>
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
>
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. A number of
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 12
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 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.
The Directors assessed the prospects of the Group over the three-
year period to February 2027. 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.
>
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 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 53 to 61
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.
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 25
to the Financial Statements. The Group does not have any branches
outside of Ireland.
Subsequent events
Information in respect of events since the year end is contained in
Note 31 to the Consolidated Financial Statements.
Audit and Risk Committee
The Company has an established Audit and Risk Committee
comprising three independent Non-executive Directors. Details of the
committee and its activities are set out on pages 116 to 119.
Auditor
KPMG, chartered accountants, were appointed statutory auditor
on 21 August 2017 and have been reappointed 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 AGM.
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
27 February 2024.
On behalf of the Board
Michael Rice
Stephen Garvey
Director
Director
DIRECTORS’ REPORT
CONTINUED
139
Glenveagh Properties plc
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Financial Statements
Strategic Report
Corporate Governance
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
IN RESPECT OF THE ANNUAL REPORT AND THE FINANCIAL STATEMENTS
The Directors are responsible for preparing the Annual Report and the 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 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 responsibility
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 102 to 103 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 2023 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 risk 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
Stephen Garvey
Director
Director
27 February 2024
140
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Annual Report and Accounts 2023
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF GLENVEAGH PROPERTIES PLC
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 December 31, 2023, contained within the reporting package
635400QUQ2YYGMOAK834-2023-12-31-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,
including the material accounting policies set out in Note 8.
The financial reporting framework that has been applied in the preparation of the Group financial
statements is Irish Law, including the Commission Delegated Regulation 2019/815 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 December 31, 2023 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 committee.
We were appointed as auditor by the directors on August 17, 2017. The period of total uninterrupted
engagement is the seven years ended December 31, 2023. 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 risk that the Group’s and Company’s available financial resources was adversely affected 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 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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
In relation to the Group 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.
Detecting irregularities including fraud
We identified the areas of laws and regulations that could reasonably be expected to have a material effect
on the financial statements and risks of material misstatement due to fraud, using our understanding of the
entity’s industry, regulatory environment and other external factors and inquiry with the directors. In addition,
our risk assessment procedures included:
>
Inquiring with the directors as to the Group’s policies and procedures regarding compliance with laws and
regulations, identifying, evaluating and accounting for litigation and claims, as well as whether they have
knowledge of non-compliance or instances of litigation or claims.
>
Inquiring of directors, the audit committee and internal audit as to the Group’s policies and procedures
to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged
fraud.
>
Inquiring of directors, the audit committee and internal audit regarding their assessment of the risk that
the financial statements may be materially misstated due to irregularities, including fraud.
>
Inspecting the Group’s regulatory and legal correspondence.
>
Reading Board minutes.
>
Considering remuneration incentive schemes and performance targets including the EPS target for
management remuneration.
>
Performing planning analytical procedures to identify any usual or unexpected relationships.
We discussed identified laws and regulations, fraud risk factors and the need to remain alert among the
audit team.
141
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Financial Statements
Strategic Report
Corporate Governance
Firstly, the Group is subject to laws and regulations that directly affect the financial statements including
companies and financial reporting legislation. We assessed the extent of compliance with these laws and
regulations as part of our procedures on the related financial statement items, including assessing the
financial statement disclosures and agreeing them to supporting documentation when necessary.
Secondly, the Group is subject to many other laws and regulations where the consequences of non-
compliance could have a material effect on amounts or disclosures in the financial statements, for instance
through the imposition of fines or litigation. We identified the following areas as those most likely to have
such an effect: health and safety, anti-bribery, employment law, environmental law, regulatory capital and
liquidity and certain aspects of company legislation recognising the financial and regulated nature of the
Group’s activities and its legal form.
Auditing standards limit the required audit procedures to identify non-compliance with these non-direct laws
and regulations to inquiry of the directors and inspection of regulatory and legal correspondence, if any.
These limited procedures did not identify actual or suspected non-compliance.
We assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an
opportunity to commit fraud. As required by auditing standards, we performed procedures to address the risk
of management override of controls and the risk of fraudulent revenue recognition. We identified a fraud risk
in relation to the Group revenue. We did not identify any additional fraud risks.
In response to the fraud risks, we also performed procedures including:
>
Identifying journal entries and other adjustments to test based on risk criteria and comparing the
identified entries to supporting documentation.
>
Assessing significant accounting estimates for bias.
>
Assessing the disclosures in the financial statements.
As the Group is regulated, our assessment of risks involved obtaining an understanding of the legal and
regulatory framework that the Group operates and gaining an understanding of the control environment
including the entity’s procedures for complying with regulatory requirements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected
some material misstatements in the financial statements, even though we have properly planned and
performed our audit in accordance with auditing standards. For example, the further removed non-
compliance with laws and regulations (irregularities) is from the events and transactions reflected in the
financial statements, the less likely the inherently limited procedures required by auditing standards would
identify it.
In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as these may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are
not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all
laws and regulations.
Key audit matters: our assessment of risks of material misstatement
Key audit matters are those matters that, in our professional judgement, 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.
INDEPENDENT AUDITOR’S REPORT
CONTINUED
TO THE MEMBERS OF GLENVEAGH PROPERTIES PLC
142
Glenveagh Properties plc
Annual Report and Accounts 2023
INDEPENDENT AUDITOR’S REPORT
CONTINUED
TO THE MEMBERS OF GLENVEAGH PROPERTIES PLC
In arriving at our audit opinion above, the key audit matter was as follows (unchanged from 2022):
Group key audit matter
Carrying value of inventory €707.6m (2022 – €685.8m) and profit recognition
Refer to page 151 (accounting policy) and pages 157 to 174 (financial disclosures)
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. As the profit margin realised is
dependent on the forecasts contained within the NRV models,
which can be subject to estimation error, there is a risk that
the amount of profit recognised in a reporting period may be
inaccurate.
For the reasons outlined above the engagement team determine
this matter to be a key audit matter.
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:
–
We agreed a sample of forecast costs to purchase contracts, supplier agreements or tenders and other relevant documentation.
–
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.
–
We enquired as to whether there were any site-specific factors which may indicate that an individual site could be impaired.
–
We evaluated the sensitivity of the certain forecast development margin to a change in sales prices and costs and considered 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 accurately reflected the attributable costs of the units sold.
>
Based on evidence obtained, 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 2023, 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).
143
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
INDEPENDENT AUDITOR’S REPORT
CONTINUED
TO THE MEMBERS OF GLENVEAGH PROPERTIES PLC
Our application of materiality and an overview of the scope of our audit
Materiality for the Group financial statements and Company financial statements as a whole was set at
€3.1m (
2022: €3.3m
) and €2.7m (
2022: €3.0m
) respectively, determined with reference to benchmarks of total
revenues and total assets (of which it represents 0.5% (
2022: 0.5%
) and 0.5% (
2022: 0.5%
) respectively.
Performance materiality for the Group financial statements and Company financial statements as a whole
was set at €2.3m (
2022: €2.7m
) and €2.0m (
2022: €2.3m
) respectively, determined with reference to
benchmarks of total revenues and total assets.
We applied materiality to assist us determine what risks were significant risks and the procedures to be
performed. We applied materiality to assist us planning and performing the audit, determining what risks
were significant risks and the procedures to be, in evaluating the effect of identified misstatements on the
audit and in forming our audit opinion.
We consider total revenues as we consider to be one of the principal considerations for members of the
Group in assessing its financial performance for the year.
We reported to the Audit and Risk Committee any corrected or uncorrected identified misstatements
exceeding €0.2m (
2022: €0.2m
), in addition to other identified misstatements that warranted reporting on
qualitative grounds.
In applying our judgement in determining performance materiality, we considered a number of factors
including; the low number and value of misstatements detected and the low number and severity of
deficiencies in control activities identified in the prior year financial statement audit.
Our audit of the Group and Company was undertaken to the materiality and performance materiality level
specified above and was all performed by a single engagement team in Dublin.
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 and the non-financial statement included on the company’s website at www.glenveagh.ie
and Directors’ Report, Chair’s Letter, Chief Executive Officer’s Review, Financial Review, Strategic Report, Risk
Management Report, Sustainability Accounting Standards Board disclosures, Corporate Governance Report,
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.
Corporate governance statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability, that part of
the Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK
Corporate Governance Code and the Irish Corporate Governance Annex.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements
of the Corporate Governance Statement is materially consistent with the financial statements and our
knowledge obtained during the audit:
Directors’ statement with regards the appropriateness of adopting the going concern basis of accounting
and any material uncertainties identified;
>
Directors’ explanation as to their assessment of the Group’s prospects, the period this assessment covers
and why the period is appropriate;
>
Director’s statement on whether it has a reasonable expectation that the Group will be able to continue
in operation and meets its liabilities;
>
Directors’ statement on fair, balanced and understandable and the information necessary for
shareholders to assess the Group’s position and performance, business model and strategy;
>
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks
and the disclosures in the annual report that describe the principal risks and the procedures in place to
identify emerging risks and explain how they are being managed or mitigated;
>
Section of the annual report that describes the review of effectiveness of risk management and internal
control systems; and
>
Section describing the work of the audit committee.
The Listing Rules of Euronext Dublin also requires us to review certain elements of disclosures in the report to
shareholders by the Board of Directors’ remuneration committee.
We have nothing to report in this regard.
In addition as required by the Companies Act 2014, we report, in relation to information given in the
Corporate Governance Statement on pages 100 to 111, 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.
144
Glenveagh Properties plc
Annual Report and Accounts 2023
We also report that, based on work undertaken for our audit, the information required by the Act is
contained in the Corporate Governance Statement.
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 purposes 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 December 31, 2022;
>
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 December 31, 2022 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.
Respective responsibilities and restrictions on use
Responsibilities of directors for the financial statements
As explained more fully in the directors’ responsibilities statement set out on page 139, 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
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 for the audit of the financial statements
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 an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
A fuller description of our responsibilities is provided on IAASA’s website at https://iaasa.ie/publications/
description-of-the-auditors-responsibilities-for-the-audit-of-the-financial-statements/.
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 this report, or for the opinions we
have formed.
Mike Gibbons
28 February 2024
for and on behalf of
KPMG
Chartered Accountants, Statutory Audit Firm
1 Stokes Place
St. Stephen’s Green
Dublin 2
D02 DE03
INDEPENDENT AUDITOR’S REPORT
CONTINUED
TO THE MEMBERS OF GLENVEAGH PROPERTIES PLC
145
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
Note
2023
€’000
2022
€’000
Revenue
10
Cost of sales
(495,207 )
(536,655 )
Gross profit
Administrative expenses
(41,782 )
(37,956 )
Operating profit
Finance expense
11
(15,839 )
(7,094 )
Profit before tax
12
Income tax
16
(8,002 )
(10,434 )
Profit after tax attributable to the owners of the Company
Items that are or may be reclassified subsequently to profit or loss:
Fair value movement on cashflow hedges
(1,240 )
Cashflow hedges reclassified to profit or loss
(383 )
Total other comprehensive loss
(1,623 )
Total comprehensive profit for the year attributable of the owners of the Company
Basic earnings per share (cent)
15
Diluted earnings per share (cent)
15
146
Glenveagh Properties plc
Annual Report and Accounts 2023
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
Note
2023
€’000
2022
€’000
Assets
Non-current assets
Goodwill
18
Property, plant and equipment
17
Intangible assets
18
Deferred tax asset
16
Current assets
Inventory
19
Trade and other receivables
20
Income tax receivable
Restricted cash
23
Cash and cash equivalents
27
Total assets
Equity
Share capital
26
Share premium
26
Undenominated capital
26
Retained earnings
Cashflow hedge reserve
24
(1,623 )
Share-based payment reserve
Total equity
Liabilities
Non-current liabilities
Loans and borrowings
22
Lease liabilities
22
Derivative contracts
24
Trade and other payables
21
Current liabilities
Trade and other payables
21
Income tax payable
Loans and borrowings
22
Lease liabilities
22
Total liabilities
Total liabilities and equity
Michael Rice
Stephen Garvey
Director
Director
27 February 2024
147
Glenveagh Properties plc
Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
Share Capital
Ordinary
shares
€’000
Deferred
Shares
€’000
Undenominated
capital
€’000
Share
premium
€’000
Share-based
payment reserve
€’000
Cashflow
hedge reserve
€’000
Retained
earnings
€’000
Total
equity
€’000
Balance as at 1 January 2023
Total comprehensive profit for the year
Income for the year
Fair value movement on cashflow hedges
(1,240 )
(1,240 )
Cashflow hedges reclassified to profit and loss
(383 )
(383 )
(1,623 )
Transactions with owners of the Company
Equity-settled share-based payments
Lapsed share options (Note 14)
(206 )
Cancellation of deferred shares (Note 26)
Exercise of options
Purchase of own shares (Note 26)
(64 )
(62,891 )
(62,891 )
(60 )
(62,685 )
(60,447 )
Balance as at 31 December 2023
(1,623 )
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Annual Report and Accounts 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022
Share Capital
Ordinary
shares
€’000
Founder
Shares
€’000
Deferred
Shares
€’000
Undenominated
capital
€’000
Share
premium
€’000
Share-based
payment reserve
€’000
Retained
earnings
€’000
Total
equity
€’000
Balance as at 1 January 2022
Total comprehensive profit for the year
Income for the year
Transactions with owners of the Company
Equity-settled share-based payments
Lapsed share options (Note 14)
Conversion of founder shares to deferred shares
(Note 26)
(181 )
Cancellation of deferred shares (Note 26)
(100 )
Exercise of options
Purchase of own shares (Note 26)
(135 )
(145,355 )
(145,355 )
(133 )
(181 )
(145,355 )
(143,530 )
Balance as at 31 December 2022
149
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Annual Report and Accounts 2023
Financial Statements
Strategic Report
Corporate Governance
Note
2023
€’000
2022
€’000
Cash flows from operating activities
Profit for the financial year
Adjustments for:
Depreciation and amortisation
Finance costs
11
Equity-settled share-based payment expense
14
Tax expense
16
Profit on disposal of property, plant and equipment
12
(214 )
(1,501 )
Changes in:
Inventories
(18,529 )
Trade and other receivables
(19,217 )
(26,290 )
Trade and other payables
Cash from operating activities
Interest paid
(12,009 )
(6,490 )
Tax paid
(12,732 )
(17,778 )
Net cash from operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment
17
(16,361 )
(19,278 )
Acquisition of intangible assets
18
(1,477 )
(1,055 )
Acquisition of subsidiary undertakings
(6,875 )
Cash acquired on acquisition
Proceeds from the sale of property, plant and equipment
Net cash used in investing activities
(16,879 )
(24,325 )
Cash flows from financing activities
Proceeds from loans and borrowings
22
Repayment of loans and borrowings
22
(347,500 )
(150,000 )
Transaction costs related to loans and borrowings
22
(4,318 )
Purchase of own shares
26
(62,891 )
(146,260 )
Proceeds from exercise of share options
26
Proceeds from derivative settlements
24
Payment of lease liabilities
28
(761 )
(470 )
Net cash used in financing activities
(33,201 )
(186,622 )
Net increase/(decrease) in cash and cash equivalents
(70,091 )
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
Glenveagh Properties plc
Annual Report and Accounts 2023
150
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
office is Block C, 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 2023 . The Group’s principal activities are the construction and sale of
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, 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
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
These consolidated financial statements are presented in Euro which is the Company’s functional currency.
The preparation of the Group’s financial statements under International Financial Reporting Standards
(‘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.
Critical accounting judgements
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.
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
sustainability and other macroeconomic factors have been considered in the Group’s assessment of the
carrying value of its inventories at 31 December 2023, particularly with regard to the potential implications for
future selling prices, development expenditure and construction programming. Management has considered
a number of 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.
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 determined that the net impairment charge or reversal required for the
period was €Nil (
2022: Nil
).
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%-4% increase in estimated costs recognised
in the year, which is considered to be reasonably possible, would reduce the Group’s gross margin by
approximately 118-333bps (
2022: 58-174bps
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:
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
151
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
5 Measurement of fair values
(continued)
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;
>
Note 21 Trade and other payables;
>
Note 24 Derivatives and cashflow hedge reserve; and
>
Amendments to standard IAS 12 Income taxes: International Tax Reform – Pillar Two Model Rules; Deferred
Tax Related to Assets and Liabilities Arising From a Single Transaction, IFRS 17 Insurance Contracts:
amendments to IFRS 17 insurance contracts; Initial Application of IFRS 17 and IFRS 9 – Comparative
Information and IAS 8 Accounting policies, Changes In Accounting Estimates And Errors: Definition of
accounting estimates and errors, are effective from 1 January 2023 but they do not have a material effect on
the Group’s financial statements.
(i) New material accounting policies
(a) Derivative contracts and hedge accounting
The Group has transacted derivatives relating to an interest rate swap to manage the interest rate risk
arising from floating rate borrowings. Derivatives are initially recognised at fair value on the date a derivative
contract is entered into, and they are subsequently remeasured to their fair value at the end of each
reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is
designated as a hedging instrument and, if so, the nature of the item being hedged. The group designates
certain derivatives as hedges of a particular risk associated with the cash flows of recognised assets and
liabilities and highly probable forecast transactions (cash flow hedges).
Changes in the fair value of derivative hedging instruments designated as cash flow hedges are recognised
in other comprehensive income to the extent that the hedge is effective. The gain or loss relating to the
ineffective portion is recognised immediately in profit or loss.
Amounts accumulated in other comprehensive income are reclassified to profit or loss in the same periods
that the hedged items affect profit or loss. The reclassified gain or loss relating to the effective portion of
interest rate swaps hedging variable rate borrowings is recognised in profit or loss within finance income or
costs respectively.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated
or exercised, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously
recognised in other comprehensive income remains there until the forecast transaction occurs, unless the
hedged transaction is no longer expected to occur, in which case the cumulative gain or loss that was
previously recognised in other comprehensive income is transferred to profit and loss.
At inception of the hedge relationship, the group documents the economic relationship between hedging
instruments and hedged items, including whether changes in the cash flows of the hedging instruments are
expected to offset changes in the cash flows of hedged items. The group documents its risk management
objective and strategy for undertaking its hedge transactions.
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining
maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the
remaining maturity of the hedged item is less than 12 months.
Expenditure on research activities is recognised in profit or loss as incurred.
Development expenditure is capitalised only if the expenditure can be measured reliably, the product or
process is technically and commercially feasible, future economic benefits are probable and the Group
intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise,
it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is
(c) Disclosure of accounting policies (amendments to IAS 1 and IFRS Practice Statement 2)
The Group adopted Disclosure of Accounting Policies (amendments to IAS 1 and IFRS Practice Statement 2)
from 1 January 2023. The amendments did not result in any material changes to the accounting policies and
accounting policy information disclosed in the financial statements.
The amendments require the disclosure of material rather than significant accounting policies. The
amendments also provide guidance on the application of materiality to disclosure of accounting policies,
assisting entities to provide useful, entity specific accounting policy information that users need to understand
other information in the financial statements.
There have been no other changes to material accounting policies during the financial year ended to
31 December 2023.
(ii) Other standards
The Group has not adopted the following new and amended standards early, and instead intends to apply
them from their effective date as determined by the date of EU endorsement. The potential impact of these
amendments to standards on the Group is under review:
>
IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance
Arrangements (amendment) (effective 01/01/2024)
>
IAS 1 Presentation of Financial Statements:
–
Classification of Liabilities as Current or Non-current Date (amendment) (effective 01/01/2024)
–
Classification of Liabilities as Current or Non-current – Deferral of Effective Date (amendment) (not yet
effective)
–
Non-current Liabilities with Covenants (amendment) (effective 01/01/2024)
>
IFRS 16 Leases: Lease Liability in a Sale and Leaseback (amendment) (not yet effective)
>
IAS 21 The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability (amendment)
Glenveagh Properties plc
Annual Report and Accounts 2023
152
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
The Group has recorded a profit before tax of €55.1 million (
2022: €63.0 million
). The Group has an
unrestricted cash balance of €46.9 million (
31 December 2022: €46.1 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 €233.3 million (
31 December 2022: €150.0 million
).
Management has prepared a detailed cash flow forecast 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 55
to 61 of the Risk Management Report. The Group’s business activities, together with the factors likely to affect
its future development are outlined in our strategic report pages 5 to 52. Further disclosures regarding the
Group’s loans and borrowings are provided in Note 22.
The Group is forecasting compliance with all covenant requirements under the current facilities including
the interest cover covenant which is based on earnings before interest, tax, depreciation and amortisation
(EBITDA) excluding any non-cash impairment charges or reversals. Total debt must not exceed adjusted
EBITDA by a minimum of 4 times, this is calculated on both a forward and trailing twelve-month basis. 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 programmes.
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
The Group has consistently applied the following accounting policies to all periods presented in these
consolidated financial statements, except if mentioned otherwise.
The Group adopted Disclosure of accounting policies (amendments to IAS 1 and IFRS Practice Statement 2)
from 1 January 2023. The amendments require the disclosure of material rather than significant accounting
policies. Although the amendments did not result in any material changes to the accounting policies
themselves, they impacted the accounting policy information disclosed in the financial statements in
certain instances.
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
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
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
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
The Group develops and sells residential properties and non-core land in addition to developing land under
development agreements with third parties.
(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.
(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
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
153
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
8 Material accounting policies
(continued)
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.
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.
The Group has determined that the global minimum top-up tax is an income tax in the scope of IAS 12.
(i) Current tax
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.
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 and does not give rise
to equal taxable and deductible temporary differences;
>
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.
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. Once changes
to the tax laws in any jurisdiction in which the Group operates are enacted or substantively enacted, the
Group may be subject to the top-up tax. Currently, the Group operates solely in the Republic of Ireland,
based on current criteria there is no current tax impact.
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 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
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 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.
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 | 2.5% |
> | Plant and machinery | 14-20% |
> | Fixtures and fittings | 20% |
> | Computer Equipment | 33% |
The assets’ residual values, carrying values and useful lives are reviewed on an annual basis and adjusted if
appropriate at each reporting date.
Glenveagh Properties plc
Annual Report and Accounts 2023
154
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
8 Material accounting policies
(continued)
8.7 Property, plant and equipment
(continued)
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
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses.
Goodwill impairments are not reversed. Goodwill is not amortised but is subject to impairment testing on an
annual basis and at any time during the year if an indicator of impairment is considered to exist. The annual
goodwill impairment tests are undertaken at a consistent time in each annual period.
process is technically and commercially feasible, future economic benefits are probable and the Group
intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise,
it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is
measured at cost less accumulated amortisation and any accumulated impairment losses. Capitalised
Indefinite life intangible assets are those for which there is no foreseeable limit to their expected useful life.
The classification of intangible assets as indefinite is assessed annually.
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with
the expenditure will flow to the Group.
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.
Licence costs are capitalised as intangible assets as acquired and amortised on a straight-line basis over
their estimated useful life in line with the period over which economic benefit from the software is expected
to be derived.
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.
Raw material and finished good stock are valued at the lower of cost and net realisable value. Stocks are
determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business
in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving
items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further
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:
Type | IFRS 9 Classification |
Financial assets | |
Cash and cash equivalents | Amortised cost |
Trade receivables | Amortised cost |
Other receivables | Amortised cost |
Contract assets | Amortised cost |
Amounts recoverable on construction contracts | Amortised cost |
Restricted cash | Amortised cost |
Deposits for sites | Amortised cost |
Construction bonds | Amortised cost |
Financial liabilities | |
Lease liabilities | Amortised cost |
Trade payables | Amortised cost |
Inventory accruals | Amortised cost |
Other accruals | Amortised cost |
Loans and borrowings | Amortised cost |
Derivative contracts | Fair value (cash flow hedge accounting) |
Contingent consideration through profit or loss | Fair value through profit or loss |
Cash and cash equivalents include cash, short-term investments with an original maturity of three months or
less and minimum cash balances required under the terms of the debt facilities. Interest earned or accrued
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
155
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
8 Material accounting policies
(continued)
8.10 Financial instruments
(continued)
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
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
Contract assets
Contract assets are amounts recoverable on long-term contracts where revenue is recognised over time.
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 includes cash amounts which are classified as current assets and held in escrow until the
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 sheets and are
accounted for at amortised cost.
Derivative contracts
Derivative contracts are contracts for interest rate swaps to manage the interest rate risk arising from floating
rate borrowings. Derivatives are initially recognised at fair value on the date a derivative contract is entered
into, and they are subsequently remeasured to their fair value at the end of each reporting period.
Financial liabilities such as inventory and other accruals are recorded at amortised cost and include
Loans and borrowings include debt facilities, interest accrued and borrowing costs classified as current and
Contingent consideration
Contingent consideration includes amounts payable if conditions pertaining to the business combination are
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.
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
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
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.
Glenveagh Properties plc
Annual Report and Accounts 2023
156
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
8 Material accounting policies
(continued)
8.13 Leases
(continued)
(i) As a lessee
(continued)
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.
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 fixed payments, including in-
substance fixed payments;
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.
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
(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
The Group’s finance income and finance costs include:
>
Interest income
>
Finance income
>
Interest expense
>
Lease interest
Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and they
are subsequently remeasured to their fair value at the end of each reporting period. The accounting for
subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument
and, if so, the nature of the item being hedged.
The group designates certain derivatives as hedges of a particular risk associated with the cash flows of
recognised assets and liabilities and highly probable forecast transactions (cash flow hedges).
Changes in the fair value of derivative hedging instruments designated as cash flow hedges are recognised
in other comprehensive income to the extent that the hedge is effective. The gain or loss relating to the
ineffective portion is recognised immediately in profit or loss.
Amounts accumulated in other comprehensive income are reclassified to profit or loss in the same periods
that the hedged items affect profit or loss. The reclassified gain or loss relating to the effective portion of
interest rate swaps hedging variable rate borrowings is recognised in profit or loss within finance income or
costs respectively.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated
or exercised, then hedge accounting is discontinued prospectively. The cumulative gain or loss previously
recognised in other comprehensive income remains there until the forecast transaction occurs, unless the
hedged transaction is no longer expected to occur, in which case the cumulative gain or loss that was
previously recognised in other comprehensive income is transferred to profit and loss.
At inception of the hedge relationship, the group documents the economic relationship between hedging
instruments and hedged items, including whether changes in the cash flows of the hedging instruments are
expected to offset changes in the cash flows of hedged items. The group documents its risk management
objective and strategy for undertaking its hedge transactions.
The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining
maturity of the hedged item is more than 12 months; it is classified as a current asset or liability when the
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
157
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
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 focused 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. Approximately 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 unit deliveries for the business and provides financial incentive
by reducing risk from a sales perspective.
Segmental financial results
2023 | 2022 | |
€’000 | €’000 | |
Revenue | ||
Suburban | 470,820 | 454,540 |
Urban | 120,122 | 190,166 |
Partnerships | 16,996 | – |
Revenue for reportable segments | 607,938 | 644,706 |
2023 | 2022 | |
€’000 | €’000 | |
Operating profit/(loss) | ||
Suburban | 79,872 | 70,353 |
Urban | 12,367 | 21,532 |
Partnerships | 513 | (1,565) |
Operating profit for reportable segments | 92,752 | 90,320 |
Reconciliation to results for the financial year | ||
Segment results – operating profit | 92,752 | 90,320 |
Finance expense | (15,839) | (7,094) |
Directors’ remuneration | (3,488) | (3,402) |
Corporate function payroll costs | (5,871) | (6,081) |
Depreciation and amortisation | (2,449) | (2,081) |
Professional fees | (3,075) | (4,992) |
IT costs | (2,060) | (1,673) |
Share-based payment expense | (2,137) | (1,717) |
Profit on sale of property, plant and equipment | 214 | 1,501 |
Other corporate costs | (2,937) | (1,780) |
Profit before tax | 55,110 | 63,001 |
Excluding profit on the sale of property, plant and equipment, there are no individual costs included within
other corporate costs that is greater than the amounts listed in the above table.
Glenveagh Properties plc
Annual Report and Accounts 2023
158
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
9 Segmental information
(continued)
Segment assets and liabilities
| 31 December 2023 | 31 December 2022 | |||||||
Suburban | Urban | Partnerships | Total | Suburban | Urban | Partnerships | Total | |
€’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | |
Segment assets | 555,329 | 185,525 | 49,865 | 790,719 | 590,321 | 153,018 | 6,452 | 749,791 |
Reconciliation to Consolidated Balance Sheet | ||||||||
Deferred tax asset | – | – | – | 884 | – | – | – | 620 |
Trade and other receivables | – | – | – | 1,010 | – | – | – | 785 |
Cash and cash equivalents | – | – | – | 71,863 | – | – | – | 71,085 |
Property, plant and equipment | – | – | – | 64,184 | – | – | – | 51,750 |
Income tax receivable | – | – | – | 3,901 | – | – | – | – |
Intangible assets | – | – | – | 2,781 | – | – | – | 1,770 |
– | – | – | 935,342 | – | – | – | 875,801 | |
Segment liabilities | 92,520 | 15,191 | 19,395 | 127,106 | 69,138 | 9,876 | 159 | 79,173 |
Reconciliation to Consolidated Balance Sheet | ||||||||
Trade and other payables | – | – | – | 7,363 | – | – | – | 17,561 |
Loans and Borrowings | – | – | – | 115,645 | – | – | – | 80,640 |
Derivative contracts | – | – | – | 1,623 | – | – | – | – |
Lease liabilities | – | – | – | 5,449 | – | – | – | 4,744 |
Income tax payable | – | – | – | – | – | – | – | 565 |
– | – | – | 257,186 | – | – | – | 182,683 | |
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
159
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2023 |
2022 |
|
€’000 |
€’000 |
|
Suburban |
||
Core |
470,820 |
451,930 |
Non-core |
– |
2,610 |
470,820 |
454,540 |
|
Urban |
||
Core |
95,561 |
176,570 |
Non-core |
24,561 |
13,596 |
120,122 |
190,166 |
|
Partnerships |
||
Core |
16,996 |
– |
Total Revenue |
607,938 |
644,706 |
The Group has presented revenue as a split between core and non-core by business segment. This split is
consistent with internal reporting to the Chief Operating Decision Maker (‘CODM’).
Core suburban product 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. Core and non-core suburban and urban revenue is recognised at
a point in time. Non-core suburban and urban cost of sales is mostly attributable to land and development
expenditure costs for high end, private developments and sites.
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
sites at Barn Oaks Apartments, Castleforbes and Carpenterstown and amounted to €95.6 million (
2022:
€82.1 million
) with €25.5 million (
2022: €32.1 million
) outstanding in contract receivables (Note 20) at the year
end. The payment terms for these contracts are between 30 and 90 days.
Partnerships revenue includes income from the sale of units recognised at a point in time 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 sites at Ballymastone and Oscar Traynor Road and amounted to €17.0 million (
2022:
€Nil
) with the full amount (
2022: €Nil
) outstanding in contract assets (Note 20) at the year end. No units
were sold during the current year.
2023 |
2022 |
|
€’000 |
€’000 |
|
Interest on secured bank loans |
16,084 |
7,049 |
Cashflow hedges – reclassified from other comprehensive income |
(383) |
– |
Finance cost on lease liabilities |
138 |
45 |
15,839 |
7,094 |
12 Statutory and other information
2023 |
2022 |
|
€’000 |
€’000 |
|
Amortisation of intangible assets (Note 18) |
534 |
487 |
Depreciation of property, plant and equipment (Note 17)* |
5,159 |
3,509 |
Employment costs (Note 13) |
46,264 |
40,337 |
Profit on disposal of property, plant and equipment |
(214) |
(1,501) |
Audit of Group, Company and subsidiary financial statements** |
280 |
255 |
Other assurance services |
20 |
20 |
Tax advisory services |
67 |
30 |
Tax compliance services |
36 |
43 |
Other non-audit services |
25 |
20 |
428 |
368 |
|
Directors’ remuneration |
||
Salaries, fees and other emoluments |
3,438 |
3,252 |
Pension contributions |
50 |
150 |
3,488 |
3,402 |
*
Includes €3.3 million (2022: €2.1 million) capitalised in inventory during the year ended 31 December 2023
Included in the auditor’s remuneration for the Group is an amount of €0.025 million (2022: €0.020 million) that relates to the
Glenveagh Properties plc
Annual Report and Accounts 2023
160
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
year was 513 (Executive Committee: 6; Non-executive Directors: 5; Construction: 301; and Other: 201). (
2022:
423 (Executive Committee: 6; Non-executive Directors: 5; Construction: 227; and Other: 185
)
The aggregate payroll costs of these employees for the financial year were:
2023 | 2022 | |
Total | Total | |
€’000 | €’000 | |
Wages and salaries | 38,550 | 33,734 |
Social welfare costs | 4,126 | 3,540 |
Pension costs – defined contribution | 1,451 | 1,346 |
Share-based payment expense (Note 14) | 2,137 | 1,717 |
46,264 | 40,337 |
€18.9 million (
2022: €15.4 million
The Group operates two equity-settled share-based payment arrangements being 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) LTIP
In February 2023, the Remuneration Committee approved the grant of 5,515,311 options to certain members
of the management team 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 Return on Equity (ROE) and Earnings per Share (EPS) across
the vesting period. 50% of the awards will vest based on the Group’s ROE for the financial year ended
31 December 2025. The EPS based options will vest based on the Group’s EPS* for the financial year
ended 31 December 2025. 25% of ROE based options vest should the Group achieve ROE of 11.0% with the
remaining options vesting on a pro rata basis up to 100% if ROE of 16.2% is achieved. 25% of EPS based
options will vest should the Group achieve Group EPS* of 14.0 cents per share with the remaining options
vesting on a pro rata basis up to 100% if Group EPS* of 22.0 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.
Number of | Number of | |
Options | Options | |
2023 | 2022 | |
LTIP options in issue at 1 January | 13,022,830 | 10,583,497 |
Granted during the financial year | 5,515,311 | 4,568,698 |
Forfeited during the financial year | (284,403) | (264,729) |
Lapsed during the financial year | (1,067,076) | – |
Exercised during the financial year | (3,226,235) | (1,864,636) |
LTIP options in issue at 31 December | 13,960,427 | 13,022,830 |
Exercisable at 31 December | 388,859 | 461,395 |
LTIP options were exercised during the financial year with the average share price being €1.00 (
2022:
€1.00
). The options outstanding at 31 December 2023 had an exercise price of €0.001 (
2022: €0.001
) and a
weighted-average contractual life of 7 years (
2022: 7 years
).
The EPS and ROE related performance conditions are non-market conditions and do not impact the fair
value of the EPS or ROE based awards at grant date which is equivalent to the share price at grant date.
The fair value of LTIP options granted in the prior periods which were based on market conditions were
measured using a Monte Carlo simulation. There is no Total Shareholder Return (TSR) linked performance
condition for options granted in the period and therefore no fair value exercise was performed related to this
performance condition. 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:
2023 | 2022 | |
Fair value at grant date | €1.12 | €1.16 |
Share price at grant date | €1.12 | €1.16 |
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 Group recognised an expense of €2.1 million
(2022: €1.7million)
in the consolidated statement of profit or
loss in respect of options granted under the LTIP.
*
Group EPS is defined as Basic Earnings Per Share as calculated in accordance with IAS 33 Earnings Per Share 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.
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
161
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
14 Share-based payment arrangements
(continued)
(b) 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 or prior period and
therefore no fair value exercise was performed.
Details of options outstanding and grant date fair value assumptions
2023 | 2022 | |||
Number of | Number of | Number of | Number of | |
Options | Options | Options | Options | |
3 Year | 5 Year | 3 Year | 5 Year | |
SAYE options in issue at 1 January | 590,220 | 165,000 | 799,740 | 165,000 |
Granted during the financial year | – | – | – | – |
Forfeited during the financial year | (19,167) | – | (32,520) | – |
Lapsed during the financial year | (720) | – | – | – |
Exercised during the financial year | (504,333) | – | (177,000) | – |
SAYE options in issue at 31 December | 66,000 | 165,000 | 590,220 | 165,000 |
The weighted average exercise price of all options granted under the SAYE to date is €0.99 (
2022: €0.97
).
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.
The Group recognised an expense of €0.03 million (
2022: €0.06 million
) in the consolidated statement of
(a) Basic earnings per share
The calculation of basic earnings 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
578,049,118 ordinary shares in issue at 31 December 2023 (
2022: 638,131,722
).
2023 | 2022 | |
Profit for the financial year attributable to ordinary shareholders (€’000) | 47,108 | 52,567 |
Weighted average number of shares for the financial year | 588,951,593 | 693,872,004 |
Basic earnings per share (cent) | 8.0 | 7.6 |
2023 | 2022* | |
No. of shares | No. of shares | |
Reconciliation of weighted average number of shares | ||
Number of ordinary shares at beginning of financial year | 638,131,722 | 771,770,694 |
Effect of share buyback | (52,032,676) | (78,865,173) |
Effect of SAYE maturity | 255,980 | 29,487 |
Effect of LTIP maturity | 2,596,567 | 936,996 |
588,951,593 | 693,872,004 |
(b) Dilutive earnings per share
Diluted earnings per share
2023 | 2022 | |
Profit for the financial year attributable to ordinary shareholders (€’000) | 47,108 | 52,567 |
Weighted average number of shares for the financial year | 590,114,076 | 695,970,940 |
Diluted earnings per share (cent) | 8.0 | 7.6 |
2023 | 2022 | |
No. of shares | No. of shares | |
Reconciliation of weighted average number of shares (diluted) | ||
Weighted average number of ordinary shares (basic) | 588,951,593 | 693,872,004 |
Effect of potentially dilutive shares | 1,162,483 | 2,098,936 |
590,114,076 | 695,970,940 |
*
The number of potentially issuable shares in the Group held under option arrangements at 31 December 2023 is 13,960,427
(2022: 13,022,830).
**
Under IAS 33, LTIP arrangements have an assumed test period ending on 31 December 2023. 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. SAYE options matured in the year with ordinary shares related to this
being issued through the conversion of the SAYE options.
Glenveagh Properties plc
Annual Report and Accounts 2023
162
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
15 Earnings per share
(continued)
b) Dilutive earnings per share
(continued)
At 31 December 2023 Nil options (
2022: Nil options
) were excluded from the diluted weighted average
2023 | 2022 | |
€’000 | €’000 | |
Current tax charge for the financial year | 8,148 | 10,650 |
Deferred tax credit for the financial year | (146) | (216) |
Total income tax charge | 8,002 | 10,434 |
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.
2023 | 2022 | |
€’000 | €’000 | |
Profit before tax for the financial year | 55,110 | 63,001 |
Tax charge at standard Irish income tax rate of 12.5% | 6,889 | 7,875 |
Tax effect of: | ||
Income taxed at the higher rate of corporation tax | 949 | 2,424 |
Non-deductible expenses – other | 30 | 97 |
Adjustment in respect of prior year under accrual | 134 | 38 |
Total income tax charge | 8,002 | 10,434 |
Movement in deferred tax balances
Balance at | Balance at | ||
1 January | Recognised in | 31 December | |
2023 | profit or loss | 2023 | |
€’000 | €’000 | €’000 | |
Expenses deductible in future periods | 619 | 265 | 884 |
619 | 265 | 884 |
The expenses deductible in future periods arise in Ireland and have no expiry date. Based on profitability
achieved in the period, 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 tax expenses can be recovered and, therefore, the related deferred tax asset can
Global minimum tax
To address concerns about uneven profit distribution and tax contributions of large multinational
corporations, various agreements have been reached at a global level, including an agreement by over
135 jurisdictions to introduce a global minimum tax rate of 15%. In December 2022, the Organisation for
Economic Co-operation and Development (“OCED”) released a draft legislative framework that is expected
to be used by individual jurisdictions that signed the agreement to amend their local tax laws. The Republic
of Ireland has enacted the new legislation, however, based on the current criteria there is no current tax
impact in the financial year as the Group is not in scope of the legislation
(2022: €Nil)
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
163
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
| 2023 |
2022 |
|||||||||
Land & |
Fixtures & |
Plant & |
Computer |
Land & |
Fixtures |
Plant & |
Computer |
|||
buildings |
fittings |
machinery |
equipment |
Total |
buildings |
& fittings |
machinery |
equipment |
Total |
|
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
|
Cost |
||||||||||
At 1 January |
36,322 |
2,096 |
22,495 |
950 |
61,863 |
18,239 |
945 |
14,699 |
717 |
34,600 |
Acquisitions through business combinations |
– |
– |
– |
– |
– |
3,313 |
56 |
714 |
– |
4,083 |
Additions |
12,584 |
– |
5,015 |
550 |
18,149 |
15,315 |
1,095 |
7,874 |
308 |
24,592 |
Disposals |
(2,351) |
– |
(1,850) |
– |
(4,201) |
(545) |
– |
(792) |
(75) |
(1,412) |
At 31 December |
46,555 |
2,096 |
25,660 |
1,500 |
75,811 |
36,322 |
2,096 |
22,495 |
950 |
61,863 |
Accumulated depreciation |
||||||||||
At 1 January |
(2,964) |
(654) |
(5,868) |
(627) |
(10,113) |
(2,216) |
(438) |
(4,121) |
(595) |
(7,370) |
Charge for the financial year |
(1,592) |
(242) |
(3,127) |
(198) |
(5,159) |
(748) |
(216) |
(2,447) |
(98) |
(3,509) |
Disposals |
2,351 |
– |
1,294 |
– |
3,645 |
– |
– |
700 |
66 |
766 |
At 31 December |
(2,205) |
(896) |
(7,701) |
(825) |
(11,627) |
(2,964) |
(654) |
(5,868) |
(627) |
(10,113) |
Net book value |
||||||||||
At 31 December |
44,350 |
1,200 |
17,959 |
675 |
64,184 |
33,358 |
1,442 |
16,627 |
323 |
51,750 |
The depreciation charge for the year includes €3.3 million (
2022: €2.1 million
Property plant and equipment includes right of use assets of €4.9 million (
2022: €4.5 million
) related to leased properties and motor vehicles.
In the prior financial year, the Group entered into new lease agreements for the use of land and buildings as its head office facility in Maynooth, Co. Kildare. The land and buildings
Glenveagh Properties plc
Annual Report and Accounts 2023
164
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
| 2023 |
2022 |
||||||||
Capitalised |
|||||||||
development |
Computer |
Computer |
|||||||
Goodwill |
expenditure |
Licence |
software |
Total |
Goodwill |
Licence |
software |
Total |
|
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
€’000 |
|
Cost |
|||||||||
At 1 January |
5,697 |
– |
300 |
3,133 |
9,130 |
– |
– |
2,390 |
2,390 |
Additions |
– |
719 |
500 |
326 |
1,545 |
5,697 |
300 |
743 |
6,740 |
At 31 December |
5,697 |
719 |
800 |
3,459 |
10,675 |
5,697 |
300 |
3,133 |
9,130 |
Accumulated amortisation |
|||||||||
At 1 January |
– |
– |
– |
(1,663) |
(1,663) |
– |
– |
(1,176) |
(1,176) |
Charge for the year |
– |
– |
(40) |
(494) |
(534) |
– |
– |
(487) |
(487) |
At 31 December |
– |
– |
(40) |
(2,157) |
(2,197) |
– |
– |
(1,663) |
(1,663) |
Net book value |
|||||||||
At 31 December |
5,697 |
719 |
760 |
1,302 |
8,478 |
5,697 |
300 |
1,470 |
7,467 |
Goodwill acquired in business combinations are allocated to the Group’s cash generating units (“CGUs”) that are expected to benefit from the business acquisition, rather than where
the assets are owned. The CGUs represent the lowest level within the Group at which the associated goodwill is monitored for internal management purposes and are not larger than
the operating segments determined in accordance with IFRS 8 ‘Operating Segments’. CGUs are kept under review to ensure that they reflect changing interdependencies of cash inflows
within the Group and how management monitors operations.
The goodwill carrying amount is allocated to the suburban segment with the recoverable amount of this CGU being based on value in use. The value in use was determined by the
cash flows to be generated from the continuing use of the CGU over a three year period.
(a) Key assumptions
The Group has established internal controls designed to effectively assess and centrally review future cash flows generated from CGUs. The key assumptions on which management has
based its cash flows are revenue and construction costs. Revenue assumptions relate to unit sales prices for sites delivering over the period based on prices achieved to date, current
market prices, historic prices, and sales agent reports. Construction cost assumptions are based on contracted/procured package pricing or where packages are not procured, historic
pricing achieved, or pricing achieved on similar packages in reference to other sites.
The impact of sustainability and other macroeconomic factors have been considered in the Group’s assessment of these cash flows, 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 impairment analysis.
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
165
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
18 Intangible assets
(continued)
(a) Key assumptions
(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 determined that the no impairment was required at the reporting date.
flows from the Group’s Strategic Plan.
A discount rate based on the Group’s incremental borrowing rate and a growth rate into perpetuity was
A sensitivity analysis has been conducted in respect of the value in use of the CGU. There were no CGU
2023 | 2022 | |
€’000 | €’000 | |
Land | 403,756 | 455,280 |
Development expenditure work in progress | 274,592 | 227,240 |
Development rights | 29,252 | 3,231 |
707,600 | 685,751 |
€488.4 million (
2022: €530.4 million
) of inventory was recognised in ‘cost of sales’ during the year ended
31 December 2023. Sustainable materials such as heat pumps, PV panels, timber frames, light gauge steel
frames and building expenditure necessary to deliver A1/A2 Building Energy Rating (‘BER’) homes are
included within development expenditure work in progress.
During the financial year the Group carried out a net realisable value assessment of its inventories at the
reporting date. This assessment determined that the net impairment charge or reversal required for the
period was €Nil (
2022: €Nil
(ii) Employment cost capitalised
€18.9 million of employment costs incurred in the financial year have been capitalised in inventory (
2022:
€15.4 million
).
iii) Development right
Oscar Traynor Road, Coolock, Dublin 5
In December 2022, the Group entered into a Development Agreement (“DA”) with Dublin City Council
(“DCC”). Under the terms of the DA and following planning permission being granted in February 2023, the
Group acquired certain development rights in respect of the site at Oscar Traynor Road, Coolock, Dublin 5
for consideration of approximately €14.0m exclusive of stamp duty and acquisition costs. Under the granted
planning permission for the site, the development rights will entitle the Group to develop approximately 850
residential units alongside commercial elements in accordance with the terms of the DA.
Ballymastone, Donabate, Dublin
In December 2021, the Group entered into a Development Agreement (“DA”) with Fingal County Council
(“FCC”). Under the terms of the DA and following planning permission being granted in March 2023, the
Group acquired certain development rights in respect of the site at Ballymastone, Donabate, Dublin for
consideration of approximately €11.0m exclusive of stamp duty and acquisition costs. The development rights
will (subject to planning permission) entitle the Group to develop approximately 1,200 residential units in
accordance with the terms of the DA.
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 the site at Gateway
Retail Park, Knocknacarra, Co. Galway for consideration of approximately €3.2 million (including stamp duty
and acquisition costs). The development rights will (subject to planning) entitle the Group to develop at least
250 residential units under a joint business plan 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 the site. The Directors
have determined that joint control of the site exists and the arrangement has been accounted for as a joint
operation in accordance with IFRS 11 Joint Arrangements. For further information regarding the APSA, see
2023 | 2022 | |
€’000 | €’000 | |
Trade receivables | 9,765 | 9,224 |
Contract receivables | 25,540 | 32,113 |
Contract assets | 16,996 | – |
Other receivables | 3,475 | 2,283 |
Prepayments | 1,106 | 862 |
Construction bonds | 15,924 | 12,140 |
Deposits for sites | 5,168 | 2,049 |
77,974 | 58,671 |
The carrying value of all financial assets and trade and other receivables is approximate to their fair value
Glenveagh Properties plc
Annual Report and Accounts 2023
166
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
2023 |
2022 |
|
€’000 |
€’000 |
|
Current |
||
Trade payables |
7,875 |
7,132 |
Payroll and other taxes |
5,741 |
4,897 |
Inventory accruals |
64,921 |
33,600 |
Contingent consideration |
1,750 |
1,500 |
Other accruals |
26,651 |
16,372 |
VAT payable |
25,781 |
29,733 |
132,719 |
93,234 |
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.
2023 |
2022 |
|
€’000 |
€’000 |
|
Non-current |
||
Contingent consideration |
1,750 |
3,500 |
Non-current |
1,750 |
3,500 |
Current |
132,719 |
93,234 |
134,469 |
96,734 |
(a) Loans and borrowings
In February 2023, the Group entered into a new five-year sustainability linked finance facility of €350.0 million
(Term loan: €116.7m, Revolving Credit Facility: €233.3m), with a syndicate of domestic and international
financial institutions, at an interest rate of one-month EURIBOR (subject to a floor of 0 per cent) plus a
margin of 2.7-2.8%. The debt facility interest rates are linked to the Group meeting certain sustainability
performance targets aligned to its sustainability strategy. The term loan is repayable in full at the end of the
five years. The sustainability performance targets are in respect of decarbonisation and the Group’s Equity,
Diversity and Inclusion strategy. The prior period debt facilities were fully repaid by the Group during the
year and at 31 December 2023, €116.7 million has been drawn on the term loan element of the new debt
facility (
31 December 2022: €82.5 million
). Pursuant to the debt facility agreement, there is fixed and floating
charges and assignments in place over all the assets of the Group as continuing security for the discharge
of any amounts drawn down. The assets carrying value at 31 December 2023 is €935.3 million (
31 December
2022: €875.8 million
).
31 December |
31 December |
|
2023 |
2022 |
|
€’000 |
€’000 |
|
Debt facilities |
116,667 |
82,500 |
Unamortised borrowing costs |
(3,697) |
(1,877) |
Interest accrued |
2,675 |
17 |
Total loans and borrowings |
115,645 |
80,640 |
Loans and borrowings are payable as follows:
31 December |
31 December |
|
2023 |
2022 |
|
€’000 |
€’000 |
|
Less than one year |
3,562 |
9,419 |
Between one and two years |
888 |
9,401 |
More than two years |
111,195 |
61,820 |
Total loans and borrowings |
115,645 |
80,640 |
The Group’s debt facilities were entered into with AIB, Bank of Ireland, Barclays and Home Building Ireland
Finance and are subject to primary financial covenants calculated on a bi-annual basis:
>
A maximum total debt to gross asset value ratio of 40%;
>
Loans to eligible assets value does not equal or exceed 65%;
>
The Group is required to maintain a minimum cash balance of €25.0 million throughout the term of the
debt facility;
>
EBITDA must exceed net interest costs by a minimum of 3 times and is calculated on a trailing twelve-
month basis;
>
Total debt must not exceed adjusted EBITDA by a minimum of 4 times, this is calculated on a trailing
twelve-month basis, and;
>
Total debt must not exceed projected adjusted EBITDA by a minimum of 4 times, this is calculated on a
forward twelve-month basis.
All covenants have been complied with in 2023 and 2022.
Debt facilities are secured by a debenture incorporating fixed and floating charges and assignments over
all the assets of the Group. The carrying value of the total assets of the Group as at 31 December 2023 is
€935.3 million (
31 December 2022: €875.8 million
).
Glenveagh Properties plc
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Strategic Report
Corporate Governance
Financial Statements
167
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
| Cash flows | Non-cash changes | ||||||||||||
Transaction | Proceeds | ||||||||||||
Credit | Credit | costs related | Share | from share | Payment | Interest | Amortisation | New | |||||
Opening | facility | facility | to loans and | buyback | option | of lease | received/ | of transaction | hedging | Closing | |||
2023 | drawdown | repayment | borrowings | payments | exercise | liability | (paid) | costs | Interest | instrument | New leases | 2023 | |
2023 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 |
Liabilities: | |||||||||||||
Loans and borrowings | 82,500 | 381,667 | (347,500) | – | – | – | – | – | – | – | – | – | 116,667 |
Unamortised transaction costs | (1,877) | – | – | (4,318) | – | – | – | – | 2,498 | – | – | – | (3,697) |
Derivative contracts | – | – | – | – | – | – | – | – | – | – | 1,623 | – | 1,623 |
Lease liability | 4,744 | – | – | – | – | – | (761) | – | – | 138 | – | 1,328 | 5,449 |
Interest accrual | 17 | – | – | – | – | – | (12,009) | – | 14,667 | – | – | 2,675 | |
Equity: | |||||||||||||
Share buyback | (253,726) | – | – | – | (62,891) | – | – | – | – | – | – | – | (316,617) |
Share option exercise | 137 | – | – | – | – | 307 | – | – | – | – | – | – | 444 |
(168,205) | 381,667 | (347,500) | (4,318) | (62,891) | 307 | (761) | (12,009) | 2,498 | 14,805 | 1,623 | 1,328 | (193,456) | |
| Cash flows | Non-cash changes | ||||||||||||
Transaction | Proceeds | ||||||||||||
Credit | Credit | costs related | Share | from share | Payment | Amortisation | Interest | Interest | |||||
facility | facility | to loans and | buyback | option | of lease | Interest | of transaction | on debt | on lease | Closing | |||
Opening | drawdown | repayment | borrowings | payments | exercise | liability | Paid | costs | facilities | liability | New leases | 2022 | |
2022 | 2022 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 |
Liabilities: | |||||||||||||
Loans and borrowings | 122,500 | 110,000 | (150,000) | – | – | – | – | – | – | – | – | – | 82,500 |
Unamortised transaction costs | (2,476) | – | – | – | – | – | – | – | 599 | – | – | – | (1,877) |
Lease liability | 547 | – | – | – | – | – | (470) | – | – | – | 45 | 4,622 | 4,744 |
Interest accrual | 223 | – | – | – | – | – | – | (6,490) | – | 6,284 | – | – | 17 |
Equity: | |||||||||||||
Share Buyback | (107,466) | – | – | – | (146,260) | – | – | – | – | – | – | – | (253,726) |
Share option exercise | 29 | – | – | – | – | 108 | – | – | – | – | – | – | 137 |
13,357 | 110,000 | (150,000) | – | (146,260) | 108 | (470) | (6,490) | 599 | 6,284 | 45 | 4,622 | (168,205) | |
Glenveagh Properties plc
Annual Report and Accounts 2023
168
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
(c) Net debt reconciliation
2023 | 2022 | |
€’000 | €’000 | |
Restricted Cash | 458 | 458 |
Cash and cash equivalents | 71,863 | 71,085 |
Loans and borrowings | (115,645) | (80,640) |
Lease liabilities | (5,449) | (4,744) |
Total net debt | (48,773) | (13,841) |
(d) Lease Liabilities
Lease liabilities are payable as follows:
| 31 December 2023 | |||
Present value | Future value | ||
of minimum | of minimum | ||
lease | lease | ||
payments | Interest | payments | |
€’000 | €’000 | €’000 | |
Less than one year | 1,219 | 96 | 1,315 |
Between one and two years | 1,205 | 98 | 1,303 |
More than two years | 3,025 | 362 | 3,387 |
5,449 | 556 | 6,005 | |
2023 | 2022 | |
€’000 | €’000 | |
Current | 458 | 458 |
458 | 458 |
The restricted cash balance relates to €0.5 million held in escrow for the completion of certain infrastructural
a) Interest rate swap
On 28 February 2023, the Group entered into an interest rate swap to hedge the interest rate risk associated
with €100.0 million of the term loan element of our new debt facilities. The interest rate swap is in place for
the 5-year period of the facility agreement. The nominal amount hedged for years one and two is €100.0
million with this stepping down to €50.0 million for the remaining three years of the facility agreement. The
interest rate swap has a fixed interest rate of 3.035%.
Derivative Financial Instruments
2023 | 2022 | |
€’000 | €’000 | |
Interest rate swaps – cash flow hedges | (1,623) | – |
Included in other comprehensive income
2023 | 2022 | |
€’000 | €’000 | |
Fair value movement on cashflow hedges | (1,240) | – |
Cashflow hedges reclassified to profit or loss | (383) | – |
(1,623) | – |
b) Cashflow hedge reserve
The cashflow hedge reserve reflects the effective portion of the cumulative net change in the fair value of
derivatives that are designated and qualify as cash flow hedges. Amounts accumulated in the hedging
reserve are recycled to the income statement in the periods when the hedged item affects income or
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
169
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
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 2023 are as
follows:
Company | Principal activity | % | Reg. office |
Glenveagh Properties (Holdings) Limited | Holding company | 100% | 1 |
Glenveagh Treasury DAC | Financing activities | 100% | 1 |
Glenveagh Contracting Limited | Property development | 100% | 1 |
Glenveagh Homes Limited | Property development | 100% | 1 |
Greystones Devco Limited | Property development | 100% | 1 |
Marina Quarter Limited | Property development | 100% | 1 |
GLV Bay Lane Limited | Property development | 100% | 1 |
Glenveagh Living Limited | Property development | 100% | 1 |
GL Partnership Opportunities DAC | Property development | 100% | 1 |
Castleforbes Development Company DAC | Property development | 100% | 1 |
Nua Manufacturing Limited | Manufacturing operations | 100% | 1 |
GMP Developments Limited | Holding company | 100% | 1 |
1
Block C, Maynooth Business Campus, Maynooth, Co. Kildare.
Pursuant to section 316 of the Companies Act 2014, a full list of subsidiaries will be annexed to the
(a) Authorised share capital
2023 | 2022 | |||
Number of | Number of | |||
shares | €’000 | shares | €’000 | |
Ordinary Shares of €0.001 each | 1,000,000,000 | 1,000 | 1,000,000,000 | 1,000 |
Deferred Shares of €0.001 each | 200,000,000 | 200 | 200,000,000 | 200 |
1,200,000,000 | 1,200 | 1,200,000,000 | 1,200 | |
(b) Issued and fully paid share capital and share premium
Share | Share | ||
Number of | capital | premium | |
At 31 December 2023 | shares | €‘000 | €’000 |
Ordinary Shares of €0.001 each | 578,049,119 | 578 | 179,719 |
Founder Shares of €0.001 each | – | – | – |
Deferred Shares of €0.001 each | 81,453,077 | 81 | – |
659,502,196 | 659 | 179,719 |
Share | Share | ||
Number of | Capital | premium | |
At 31 December 2022 | shares | €‘000 | €’000 |
Ordinary Shares of €0.001 each | 638,131,722 | 638 | 179,416 |
Founder Shares of €0.001 each | – | – | – |
Deferred Shares of €0.001 each | 81,453,077 | 81 | – |
719,584,799 | 719 | 179,416 |
(c) Reconciliation of shares in issue
Ordinary | Founder | Deferred | Undenominated | Share | Share | |
shares | shares | shares | capital | capital | premium | |
In respect of current year | ‘000 | ‘000 | ‘000 | €000 | €‘000 | €’000 |
In issue at 1 January 2023 | 638,132 | – | 81,453 | 335 | 719 | 179,416 |
Purchase of own shares | (63,813) | – | – | 64 | (64) | – |
Conversion of founder shares | ||||||
to deferred shares | – | – | – | – | – | – |
Cancellation of deferred | ||||||
shares | – | – | – | – | – | – |
Exercise of options | 3,730 | – | – | – | 4 | 303 |
578,049 | – | 81,453 | 399 | 659 | 179,719 |
Ordinary | Founder | Deferred | Undenominated | Share | Share | |
shares | shares | shares | capital | capital | premium | |
In respect of current year | ‘000 | ‘000 | ‘000 | €000 | €‘000 | €’000 |
In issue at 1 January 2022 | 771,771 | 181,007 | – | 100 | 952 | 179,310 |
Purchase of own shares | (135,680) | – | – | 135 | (135) | – |
Conversion of founder shares | ||||||
to deferred shares | – | (181,007) | 181,007 | – | – | – |
Cancellation of deferred | ||||||
shares | – | – | (99,554) | 100 | (100) | – |
Exercise of options | 2,041 | – | – | – | 2 | 106 |
638,132 | – | 81,453 | 335 | 719 | 179,416 |
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Annual Report and Accounts 2023
170
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
(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.
(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 Long Term Incentive
Plan and the SAYE scheme. Details of the share awards, in addition to awards which lapsed in the year, are
disclosed in Note 14.
On 16 November 2021, the Group announced a second share buyback programme, which completed on
28 April 2022. The total number of shares purchased was 92,950,510 at a total cost of €111.0 million. The total
number of shares purchased in the period 1 January to 28 April 2022 was 64,929,549 at a total cost of €77.9m.
All repurchased shares were cancelled in accordance with the share buyback programme in the year ended
31 December 2022.
On 1 June 2022, a third share buyback programme commenced up to a further €75.0 million, which
completed on 1 November 2022. As at 31 December 2022 the total number of shares purchased under
the third buyback programme was 70,750,810 at a total cost of €67.5 million. All repurchased shares were
cancelled in the year ended 31 December 2022.
On 6 January 2023, a fourth share buyback programme commenced to repurchase up to 10% of the Group’s
issued share capital such that the maximum number of shares which can be repurchased under this buyback
is 63,813,172. On 2 August 2023, the Group completed the fourth share buyback programme repurchasing
The Group classifies and discloses the fair value for each class of financial instrument based on the fair
value hierarchy in accordance with IFRS 13. The fair value hierarchy distinguishes between market value data
obtained from independent sources and the Group’s own assumptions about market value. The hierarchy
levels are defined below:
>
Level 1 – Inputs based on quoted prices in active markets for identical assets or liabilities;
>
Level 2 – Inputs based on factors other than quoted prices included in Level 1 and may include quoted
prices for similar assets and liabilities in active markets, as well as inputs that are observable for the
asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at
commonly quoted intervals; and
>
Level 3 – Inputs which are unobservable for the asset or liability and are typically based on the
Group’s own assumptions as there is little, if any, related market activity. The Group’s assessment of the
significance of a particular input to the fair value measurement in its entirety requires judgement and
considers factors specific to the asset or liability.
The Group’s assessment of the significance of a particular input to the fair value measurement in its entirety
requires judgement and considers factors specific to the asset or liability.
The following table presents the Group’s estimates of fair value on a recurring basis based on information
available at 31 December 2023, aggregated by the level in the fair value hierarchy within which those
measurements fall.
Level 1 | ||||
Quoted prices | ||||
in active | Level 2 | Level 3 | ||
markets for | Significant other | Significant | ||
identical assets | observable | unobservable | ||
& liabilities | inputs | inputs | Total | |
31 December 2023* | €’000 | €’000 | €’000 | €’000 |
Recurring Measurement Liabilities | ||||
Contingent consideration | – | – | 3,500 | 3,500 |
Derivative contracts | – | 1,623 | – | 1,623 |
Total | – | 1,623 | 3,500 | 5,123 |
*
The period ended 31 December 2023 is the first period the Group has transacted in derivative contracts, see Note 6.
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).
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
171
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
Financial instruments: financial assets
The consolidated financial assets can be summarised as follows:
2023 | 2022 | |
€’000 | €’000 | |
Trade receivables | 9,765 | 9,224 |
Amounts recoverable on construction contracts | 25,540 | 32,113 |
Contract assets | 16,996 | – |
Other receivables | 3,475 | 2,282 |
Construction bonds | 15,924 | 12,140 |
Deposits for sites | 5,168 | 2,049 |
Cash and cash equivalents | 71,863 | 71,085 |
Restricted cash (current) | 458 | 458 |
Total financial assets | 149,189 | 129,351 |
Financial instruments: financial liabilities
2023 | 2022 | |
€’000 | €’000 | |
Trade payables | 7,875 | 7,132 |
Lease liabilities | 5,449 | 4,744 |
Inventory accruals | 64,921 | 33,600 |
Other accruals | 26,651 | 16,372 |
Contingent consideration | 3,500 | 5,000 |
Loans & borrowings | 119,617 | 80,640 |
Total financial liabilities | 228,013 | 147,488 |
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;
>
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; and
>
interest rate risk – the risk that changes in interest rates 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.
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.
In February 2023, the Group entered into a new five-year sustainability linked finance facility of
€350.0 million, with a syndicate of domestic and international financial institutions, at an interest rate of
one-month EURIBOR (subject to a floor of 0 per cent) plus a margin of 2.7%-2.8%. The debt facility interest
rates are linked to the Group meeting certain sustainability performance targets aligned to its sustainability
strategy. The sustainability performance targets are in respect of decarbonisation and the Group’s Equity,
Diversity and Inclusion strategy. The prior period debt facilities were fully repaid by the Group during the year
ended 31 December 2023. €116.7 million has been drawn on the new debt facility (
2022: €82.5 million
). The
Group has an exposure to cash flow interest rate risk where there are changes in the EURIBOR rates.
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.
Glenveagh Properties plc
Annual Report and Accounts 2023
172
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
| 31 December 2023 | |||||
Carrying | Contractual | Less than | 1 year | More than | |
amount | cash flows | 1 year | to 2 years | 2 years | |
€’000 | €’000 | €’000 | €’000 | €’000 | |
Lease liabilities | 5,499 | 6,005 | 1,314 | 1,303 | 3,388 |
Trade payables | 7,875 | 7,875 | 7,875 | – | – |
Inventory accruals | 64,921 | 64,921 | 64,921 | – | – |
Other accruals | 26,651 | 26,651 | 26,651 | – | – |
Contingent consideration | 3,500 | 3,500 | 1,750 | 1,750 | – |
Derivative contracts | 1,623 | 1,623 | (362) | 569 | 1,416 |
Loans and borrowings | 115,645 | 134,725 | 13,018 | 10,343 | 111,364 |
225,714 | 245,300 | 115,167 | 13,965 | 116,168 | |
| 31 December 2022 | |||||
Carrying | Contractual | Less than | 1 year | More than | |
amount | cash flows | 1 year | to 2 years | 2 years | |
€’000 | €’000 | €’000 | €’000 | €’000 | |
Lease liabilities | 4,744 | 5,057 | 84 | 16 | 4,957 |
Trade payables | 7,132 | 7,132 | 7,132 | – | – |
Inventory accruals | 33,600 | 33,600 | 33,600 | – | – |
Other accruals | 16,372 | 16,372 | 16,372 | – | – |
Contingent consideration | 5,000 | 5,000 | 1,500 | 1,750 | 1,750 |
Loans and borrowings | 80,640 | 89,488 | 11,563 | 11,546 | 66,379 |
147,488 | 156,649 | 70,251 | 13,312 | 73,086 | |
Funds available
2023 | 2022 | |
€’000 | €’000 | |
Debt facilities* (undrawn committed) | 233,333 | 150,000 |
Cash and cash equivalents | 71,863 | 71,085 |
Restricted cash | 458 | 458 |
305,654 | 221,543 |
*
Includes €25 million (2022: €25 million) of restricted cash
The Group’s RCF is subject to primary financial covenants calculated on a bi-annual basis:
>
A maximum total debt to gross asset value ratio of 40%;
>
Loans to eligible assets value does not equal or exceed 65%;
>
The Group is required to maintain a minimum cash balance of €25.0 million throughout the term of the
debt facility;
>
EBITDA must exceed net interest costs by a minimum of 3 times and is calculated on a trailing twelve-
month basis;
>
Total debt must not exceed adjusted EBITDA by a minimum of 4 times, this is calculated on a trailing
twelve-month basis; and
>
Total debt must not exceed projected adjusted EBITDA by a minimum of 4 times, this is calculated on a
The Group’s exposure to credit risk encompasses the financial assets being: trade and receivables, contract
assets 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, contract assets, 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 Group’s exposure to market risk relates to changes to interest rates and stems predominately from its
debt obligations. 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 2023 it is estimated that an increase of 100 basis
points to EURIBOR would have decreased the Group’s profit before tax by €2.9 million (
2022: €2.5 million
)
assuming all other variables remain constant, and the rate change is only applied to the loans that are
exposed to movements in EURIBOR.
As part of the Group’s strategy to manage our interest rate risk, the Group entered into an interest rate swap
on 28 February 2023 to hedge the interest rate risk associated with €100.0 million of the term loan element
of our new debt facilities. The interest rate swap is in place for the 5-year period of the facility agreement.
The nominal amount hedged for years one and two is €100.0 million with this stepping down to €50.0 million
for the remaining three years of the facility agreement.
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 IBOR reform.
The amounts relating to items designated as hedging instruments and hedge ineffectiveness were as follows:
Glenveagh Properties plc
Annual Report and Accounts 2023
Strategic Report
Corporate Governance
Financial Statements
173
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
As at 31 December 2023 | For the year ended 31 December 2023 | |||||||
Carrying amount | ||||||||
Amount | ||||||||
Changes in | reclassed | |||||||
the value | Line items in | from | ||||||
of hedging | Hedge | profit or loss | hedging | |||||
instruments | ineffectiveness | that includes | reserve to | |||||
Nominal | recognised | recognised in | hedge | profit or | ||||
amount | Assets | Liability | in OCI | profit or loss | ineffectiveness | loss | ||
(€’000) | (€’000) | (€’000) | (€’000) | (€’000) | (€’000) | (€’000) | (€’000) | |
Loss on | ||||||||
derivative | ||||||||
Interest rate | financial | Financing | ||||||
swap | 100,000 | – | (1,623) | (1,240) | – | instruments | (383) | costs |
The Group held the following instruments to hedge exposures to changes in interest rates:
Interest rate swaps | 2023 | 2022 |
Net exposure (€’000) | 1,535 | – |
Average fixed interest rate | 3.035% | – |
The amounts at the reporting date relating to items designated as hedged items were as follows:
As at 31 December 2023
Change in | ||
value used for | ||
calculating hedge | Cashflow | |
ineffectiveness | hedge reserve | |
€’000 | €’000 | |
Interest rate swap | – | (1,623) |
– | (1,623) |
The Group finances its operations through a combination of shareholders’ funds, long term borrowings 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
(a) Leases as lessee (IFRS 16)
The Group leases a property and motor vehicles. Motor vehicle leases typically run for a period of 1-3 years,
with an option to renew the lease after that date. Lease payments are renegotiated every 1-3 years to reflect
market rentals. The property lease is for 15 years with a break clause after 7 years.
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.
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).
Motor | |||
Property | Vehicles | Total | |
2023 | €’000 | €’000 | €’000 |
Balance at 1 January | 4,385 | 86 | 4,471 |
Additions to right-of-use assets | – | 1,328 | 1,328 |
Depreciation charge for the year | (658) | (224) | (882) |
Balance at 31 December | 3,727 | 1,190 | 4,917 |
Motor | |||
Property | Vehicles | Total | |
2022 | €’000 | €’000 | €’000 |
Balance at 1 January | 286 | 261 | 547 |
Additions to right-of-use assets | 4,605 | – | 4,605 |
Depreciation charge for the year | (506) | (175) | (681) |
Balance at 31 December | 4,385 | 86 | 4,471 |
(ii) Amounts recognised in profit or loss
2023 | 2022 | |
€’000 | €’000 | |
2023 – Leases under IFRS 16 | ||
Interest on lease liabilities | 138 | 45 |
Expenses relating to short-term leases | 151 | 97 |
Glenveagh Properties plc
Annual Report and Accounts 2023
174
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
(iii) Amounts recognised in statement of cash flows
2023 | 2022 | |
€’000 | €’000 | |
Total cash outflow on leases | 761 | 470 |
(b) Leases as lessor
In certain instances, the Group acts as a lessor in relation to certain property assets. These arrangements are
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:
2023 | 2022 | |
€’000 | €’000 | |
Short-term employee benefits | 4,746 | 4,864 |
Post-employment benefits | 214 | 294 |
LTIP and SAYE share-based payment expense | 996 | 670 |
5,956 | 5,828 |
Compensation of the Group’s key management personnel includes salaries, non-cash benefits and
(ii) Other related party transactions
Acquisition of development rights
The Group entered into the 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. (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 to the site at
Gateway Retail Park, Knocknacarra, Co. Galway for consideration of approximately €3.2 million (including
stamp duty and transaction costs). The development rights will (subject to planning) entitle the Group to
develop at least 250 residential units under the joint business plan 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
the site.
The Directors have determined that joint control over the site 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 Gateway Retail Park,
Knocknacarra, Co. Galway and 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
(a) Commitments arising from development land acquisitions
The Group had no contingent liabilities at 31 December 2023. The Group had the following commitments at
31 December 2023 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 2023, the Group had contracted to acquire 5 development sites; two in County Dublin,
one in Co. Kildare, one in County Meath and one in County Galway for aggregate consideration of
approximately €24 million (excluding stamp duty and legal fees). Deposits totalling €5.2 million were
The parent company 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 loss after tax for the financial year was €0.001 million (
for the year ended
31 December 2022: profit of €7.7million
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Financial Statements
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Corporate Governance
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
Note
2023
€’000
2022
€’000
Assets
Non-current assets
Investments in subsidiaries
3
10,996
8,860
Deferred tax asset
216
–
11,212
8,860
Current assets
Trade and other receivables
4
477
171
Amounts owed by subsidiaries
5
536,880
599,854
Cash and cash equivalents
156
191
537,513
600,216
Total assets
548,725
609,076
Equity
Share capital
7
659
719
Share premium
179,719
179,416
Retained earnings
317,169
379,855
Share-based payment reserve
48,899
46,968
Undenominated capital
399
335
546,845
607,293
Liabilities
Current liabilities
Trade and other payables
6
1,880
1,783
Total liabilities
1,880
1,783
Total liabilities and equity
548,725
609,076
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
Share Capital
Ordinary
shares
€’000
Deferred
Shares
€’000
Undenominated
capital
€’000
Share
premium
€’000
Share-based
payment
reserve
€’000
Retained
earnings
€’000
Total
equity
€’000
Balance as at 1 January 2023
638
81
335
179,416
46,968
379,855
607,293
Total comprehensive income for the
financial year
Loss for the financial year
–
–
–
–
–
(1)
(1)
Other comprehensive income
–
–
–
–
–
–
–
638
81
335
179,416
46,968
379,854
607,292
Transactions with owners of the Company
Equity-settled share-based payments
–
–
–
–
2,137
–
2,137
Lapsed share options (Note 14)
–
–
–
–
(206)
206
–
Conversion of founder shares to deferred shares
(Note 27)
–
–
–
–
–
–
–
Cancellation of deferred shares (Note 26)
–
–
–
–
–
–
Exercise of options
4
–
–
303
–
–
307
Purchase of own shares (Note 26)
(64)
–
64
–
–
(62,891)
(62,891)
(60)
–
64
303
1,931
(62,685)
(60,447)
Balance as at 31 December 2023
578
81
399
179,719
48,899
317,169
546,845
*
The note reference is to the Consolidated financial statements as the information is not disclosed in the notes to the Company financial statements.
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Corporate Governance
COMPANY STATEMENT OF CHANGES IN EQUITY
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022
Share Capital
Ordinary
shares
€’000
Founder
Shares
€’000
Deferred
Shares
€’000
Undenominated
capital
€’000
Share
premium
€’000
Share-based
payment
reserve
€’000
Retained
earnings
€’000
Total
equity
€’000
Balance as at 1 January 2022
771
181
–
100
179,310
45,251
517,528
743,141
Total comprehensive income for the
financial year
Profit for the financial year
–
–
–
–
–
–
7,682
7,682
Other comprehensive income
–
–
–
–
–
–
–
–
771
181
–
100
179,310
45,251
525,210
750,823
Transactions with owners of the Company
Equity-settled share-based payments
–
–
–
–
–
1,717
–
1,717
Lapsed share options (Note 14)
–
–
–
–
–
–
–
–
Conversion of founder shares to deferred shares
(Note 26)
–
(181)
181
–
–
–
–
–
Cancellation of deferred shares (Note 26)
–
–
(100)
100
–
–
–
–
Exercise of options
2
–
–
–
106
–
–
108
Purchase of own shares (Note 26)
(135)
–
–
135
–
–
(145,355)
(145,355)
(133)
(181)
81
235
106
1,717
(145,355)
(143,530)
Balance as at 31 December 2022
638
–
81
335
179,416
46,968
379,855
607,293
*
The note reference is to the Consolidated financial statements as the information is not disclosed in the notes to the Company financial statements
178
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1 Basis of preparation
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:
>
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; and
>
Disclosures in respect capital management
As noted in Note 32 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 loss for the financial year was €0.001 million. (
2022: Profit of €7.7 million
).
2 Material accounting policies
Material 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.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
3 Investment in subsidiaries
2023
€’000
2022
€’000
Investment in subsidiaries
4,025
4,025
Accumulated cost of share-based payments in respect of subsidiaries
6,971
4,835
10,996
8,860
Details of subsidiary undertakings are given in Note 25 of the consolidated financial statements. The
Company has considered triggers for impairment, including market capitalisation and determined there was
no trigger.
4 Trade and other receivables
2023
€’000
2022
€’000
VAT receivable
112
48
Prepayments and other receivables
365
123
477
171
5 Amounts due from subsidiaries
2023
€’000
2022
€’000
Amounts due from subsidiaries
536,880
599,854
536,880
599,854
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.
6 Trade and other payables
2023
€’000
2022
€’000
Trade payables
368
75
Accruals
1,451
1,649
Payroll and other taxes
61
59
1,880
1,783
7 Share capital and share premium
For further information on share capital and share premium, refer to Note 26 of the consolidated financial
statements.
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Corporate Governance
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 27 of the
consolidated financial statements.
9 Share-based payments
For information in relation to share-based payment arrangements impacting the Company, refer to Note 14
of the consolidated financial statements.
10 Related party disclosures
See Note 29 of the consolidated financial statements for information in relation to related party transactions.
Remuneration of key management
Key management of the Company is defined as the directors of the Company. The compensation of key
management personnel is set out in Note 29 of the consolidated financial statements.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
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SUPPLEMENTARY INFORMATION
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022
Alternative Performance Measures (APMs)
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:
1 Gross margin percentage
Financial statements reference
2023
€’000
2022
€’000
Gross profit
Statement of profit or loss
112,731
108,051
Revenue
Note 10
607,938
644,706
Gross margin percentage
18.5%
16.8%
2 Core gross margin percentage
2023
€’000
2022
€’000
Suburban
Core revenue
470,820
451,930
Non-core revenue
–
2,610
Total revenue
Note 10
470,820
454,540
2023
€’000
2022
€’000
Urban
Core revenue
95,562
176,570
Non-core revenue
24,560
13,596
Total revenue
Note 10
120,122
190,166
2023
€’000
2022
€’000
Partnerships
Core revenue
16,996
–
Non-core revenue
–
–
Total revenue
Note 10
16,996
–
2023
€’000
2022
€’000
Core cost of sales
(472,977)
(521,292)
Non-core cost of sales
(22,231)
(15,363)
Total cost of sales
Statement of profit or loss
(495,208)
(536,655)
2023
€’000
2022
€’000
Core gross profit
110,401
107,208
Core revenue
583,378
628,500
Core gross margin percentage
18.9%
17.1%
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, Urban and Partnerships core revenue representing
unit sales and rental income less the equivalent cost of sales. Non-core revenue is mostly attributable to the
Urban segment. Non-core cost of sales is mostly attributable to land and development expenditure costs for
high end, private developments and sites.
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Corporate Governance
SUPPLEMENTARY INFORMATION
CONTINUED
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023
3 Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) pre-exceptional items,
pre-impairment and related margin
This is 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
2023
€’000
2022
€’000
Depreciation – capitalised
3,320
1,978
Depreciation – expensed
1,839
1,616
Total depreciation
Note 17
5,159
3,594
2023
€’000
2022
€’000
Adjusted operating profit
Statement of profit or loss
70,949
70,095
Depreciation – expensed
As above
1,839
1,616
Amortisation
Note 18
534
487
Adjusted EBITDA pre-exceptional items
73,332
72,198
Adjusted EBITDA margin pre-exceptional
items*
12.1%
11.2%
There is no exceptional items in the current or prior year and as such adjusted EBITDA pre-exceptional items
is equivalent to EBITDA in current and prior year.
4 Return on capital employed (ROCE)
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 of the Group’s efficiency
of returns generated from shareholder equity after taxation and is calculated as profit after tax attributable
to shareholders divided by the average of opening and closing shareholders’ funds.
Financial statements reference
2023
€’000
2022
€’000
Profit after tax
Statement of profit or loss
47,108
52,567
Total equity
Balance sheet
678,155
693,118
Average total equity
685,637
738,600
ROE
6.9%
7.1%
6 Net Development Value (NDV)
This is 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 Adjusted 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 Committee at its discretion, for items deemed not reflective of the Group’s
underlying performance for the period.
8 Adjusted operating profit
An APM representing a metric the Group uses to measure financial performance in a given financial period.
It is defined as operating profit before exceptional items and impairment reversals/charges.
Financial statements reference
2023
€’000
2022
€’000
Operating profit
Statement of profit or loss
70,949
70,095
Exceptional items
Statement of profit or loss
–
–
Adjusted operating profit
70,949
70,095
Revenue
Statement of profit or loss
607,938
644,706
Adjusted operating margin
11.7%
10.9%
There is no exceptional items in the current or prior year and as such adjusted operating margin is equivalent
to operating margin in current and prior year.
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COMPANY INFORMATION
Directors
Executive Directors
Stephen Garvey
Michael Rice
Non-executive Directors
John Mulcahy
Pat McCann
Cara Ryan
Camilla Hughes
Emer Finnan
Max Steinebach
Lorna Conn
Company Secretary
Chloe McCarthy
Registered Office
Glenveagh Properties plc
Block C, Maynooth Business Campus
Straffan Road,
Maynooth
Co. Kildare
Ireland
Registrars
Computershare Investor Services (Ireland) Limited
3100 Lake Drive
Citywest Business Campus
Dublin 24
D24 AK82
Auditor
KPMG
Chartered Accountants
1 Stokes Place
St. Stephen’s Green
Dublin 2
D02 DE03
Solicitors
A&L Goodbody
3 Dublin Landings
North Wall Quay
Dublin 1
D01 C4E0
RDJ
The Exchange,
George’s Dock,
IFSC, Dublin 1,
D01 P2V6
Mason Hayes and Curran
South Bank House
Barrow St
Dublin 4
D04 TR29
Bankers
Allied Irish Banks, p.l.c
10 Molesworth Street
Dublin 2
Bank of Ireland Group plc
40 Mespil Road
Dublin 4
D04 C2N4
Barclays Bank Ireland plc
One Molesworth Street
Dublin 2
D02 RF29
Home Building Finance Ireland (HBFI)
Treasury Dock
North Wall Quay
Dublin 1
D01 A9T8
Website
www.glenveagh.ie
Stockbrokers
Davy Group
Davy House
49 Dawson Street
Dublin 2
D02 PY05
183
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Financial Statements
Strategic Report
Corporate Governance
NOTES
184
Glenveagh Properties plc
Annual Report and Accounts 2023
NOTES
Glenveagh Properties plc
Block C, Maynooth Business Campus
Maynooth
Co. Kildare
W23 W5X7
Ireland
T: +353 (0)1 903 7100
glenveagh.ie