Glenveagh Properties PLC

So, hello and welcome to the Glenvee full-year results 2025 results conference call. Please note, this conference is being recorded, and for the duration of the call, your lines will be on listen-only mode. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing pound key 5 on your telephone keypad to enter the queue. I will now hand you over to your host, Stephen Garvey, CEO of Glenvee, to begin today's conference. Please go ahead.

Good morning, everyone, and thank you, Zach. I'm Stephen Garvey, CEO of Glenvale Properties. I'm joined today by my colleagues, Conor Merkter, our CFO, and Kate Halliday in Investor Relations. Thank you for joining our full year 2025 results call. This morning, firstly, I'll walk you through our full year's strategic and operational highlights, the market, the policy context, and how our strategy is performing in home building, partnerships, land, and innovation. After that, Conor will take you through the financials and capital allocation, and I'll return to the outlook on closing remarks. As always, we'll leave plenty of time for any of your questions at the end. To begin, let's turn to slide four with the headline numbers for the full year. 2025 was another strong year for Glenveig, with record revenue of €926 million, strong completions growth at 2,568 units, which was delivered, which was up 11% year on year, and earnings per share ahead of guidance at 20 cents, an increase of 18%. We completed our €105 million share buyback programme and continue to expand our margins across the business. What gives us real satisfaction is not just the numbers, it's what they reflect. The investments we have made over the past number of years in our land bank, in our manufacturing, in our partnerships are all coming true in the results now. The strategy we set out is working and the business is performing at a level that we can sustain and further growth opportunities we can build on this. Turning to slide five, before we get into the detail, it's worth taking a moment to frame the opportunity in front of us. Glenveig is in a strong position. Ireland has a genuine long-run housing shortage, and we've built a platform that is designed to address this at scale. Our land bank, our manufacturing capability, our partnership relationships, these give us an opportunity that isn't easily replicated. We're not just benefiting from favourable conditions, we're actively shaping how homes get built in this country. Glenveigh is uniquely positioned to deliver on the compelling market opportunity in front of us, with a sector-leading platform and a track record of delivering strong outcomes, reliable cash generation, effective capital management, balance sheet strength, all focusing on delivering long-term value creation and returns for our shareholders. Slide 6 sets out the underlying fundamentals, and the picture remains a positive one. All of the drivers remain for the demand of new homes, such as population growth, employment levels, and wage growth continues to strengthen. Ireland's population is growing faster than anywhere else in Europe, and the employment is at all-time highs. That's the environment we're operating in. Notwithstanding potential global economic risks, it underpins the confidence we have in the business at this very moment. At the same time, national completions, while at the highest level in over a decade, remain well below what is needed each year to meet demand. The structural shortfall is real, but government policy changes have set out a clear roadmap to meet the required demand. Moving to slide 7, the policy backdrop has continued to improve and is now meaningfully supportive of housing delivery, with government targeting over 300,000 new homes by the end of this decade. the National Development Plan, which provides long-term infrastructure visibility of over €275 billion. This is Ireland's largest ever capital programme, which will sustain infrastructure investment through to the year 2040. Help to buy has been extended. VAT on apartments has been reduced from 13.5% to 9%. Planning reform is beginning to deliver greater certainty. These are real practical changes that make it easier to build homes in Ireland today. We welcome all of this. There is more to do on zoning, infrastructure and enabling capacity, but the direction of travel is clearly right, and we continue to engage closely with government and state agency to help turn policy intent into homes on the ground. The large government presence at Mipham this week reaffirmed its commitment to attracting new institutional and capital investment into the sector to deliver much-needed homes in Ireland. On slide 8, I want to highlight what perhaps is the most important structural asset, our land bank. We've now completed the current phase of our land assembly strategy. The result is a large, fully invested land bank with no further material land investments now required. The vast majority is in the Greater Dublin area and focus on owned or product, which is the deepest segment and most resilient demand segment in the market. This land bank supports strong delivery capacity all the way through to 2030. It was secured at an attractive cost with embedded spot margins that gives us confidence in the return profile within our portfolio. We've also completed a meaningful level of land disposals in 2025 and remain well on track to deliver the stated sales across 2026. In a market where deliverable zone land is constrained, we have assembled probably the best land bank in the country today. Turning to slide 9, planning is one of the areas where our in-house capability gives us a real edge. Our planning's approval rate over the last five years is well above the national average, with only one refusal across a large number of applications, demonstrating our strong relationships with local authorities and the planning and product quality of what we deliver. All 2026 deliveries have already commenced, and the 2027 programme is either planned or progressing through active planning applications. The recent planning reforms, the most significant in a generation, are improving timelines, removing delay mechanisms and increasing certainty for applicants. These changes are good for the sector, good for buyers and practically good for well-resourced operations like Glenveig. Let's now move to the home building on slide 10. This was another strong year for the segment. We delivered just shy of 1,500 units, with margins expanding and the forward order book material ahead of where it was this time last year, now standing at over 1,250 units. The pace of sales was strong across the year, with multiple phases selling out quickly, including Hereford Park, Kilmarnock and Grove, Rathrua, Greville Park and Ifrnock. The performance reflects the choices we've made in standardization, scalable sites, and vertical integration. These aren't just teams showing up in our results today. And with a strong order book and four new launches in Q1 and more planned across existing developments, the pipeline is well positioned going into the year ahead. Turning to partnerships on slide 11, this was another strong year for this segment, which is now operating at a scale and maturity that really sets Glenveig apart. Revenue was up significantly year on year at 60%. Margins were ahead of target at 18.2%. And we continue to build the pipeline, closing out the year strongly with a new mandate for 350 units secured in H2 2025. And in advanced discussions across three further opportunities, totaling approximately 500 units. Construction also advanced well at Ballymastone and Oscar Trenner Road, while we closed the transaction at Marina Depot with the Land Development Agency in Cork. Glenfeig is firmly established as the state's partner of choice for large-scale affordable delivery, and that's a position built on consistent, reliable execution over a number of years. It's a hard-won reputation, and one we are very proud of. On slide 12, we give you more detail on the partnership pipeline, which continues to deepen. The pipeline now stands at approximately 8,000 units, with a total estimated net development value of about €3 billion. It's substantial and well-balanced across commenced timing, contract status, and land source, giving us strong visibility on future delivery. We don't need to convert the full pipeline to deliver our targets, and this gives us an ability to be selective and to progress schemes where our platform and scale add the greatest value for both the authorities and Glenveig. Moving now to slide 14 and our home of the future section. There are six principles that guide our innovation programme, and it's worth spending a moment on these because they explain why investing in the area and what we expect to get. The first principle is time. We are targeting a significant shift, evolving less on-site labour and maximising efficiency, which will bring homes to customers faster and allow us to cycle our capital quicker through the business as we move through each phase. The second principle is quality. Over 95% customer satisfaction score reflects the higher standards and the more controlled manufacturing approach can support. Greater precision and less variability give customers more confidence in the product and in the quality on what we deliver. The third and fourth principles are labour and value. Moving more actively into offsite manufacturing reduces the reliance on skilled trades onsite and creates a more resilient, scalable delivery model. That in turn supports value by improving delivery certainty and strengthening the proposition for our customers and our apartments. The fifth and sixth principles are standardisation and infrastructure resilience. Standardization helps simplify the delivery and support scale, while infrastructure resilience is about reducing resilience on public infrastructure and increasing energy independence together. Together, they give us greater control over program delivery and strengthen the long-term resilience of our model. Then moving to slide 15, where we present the challenge and how our response. Ireland needs over 50,000 new homes a year. Traditional construction is slow, fragmented and labour intensive. It cannot get us there. That's the gap that Glenveig has built its model to close. Our response is vertically integrated housing system. Glenveig, combined with NUA, our in-house manufacturing arm, creates a platform that connects standardised design directly to off-site production. Our three factories in Carlow, Arclough and Dundalk have the capacity to produce 2,500 units per year based on one operating shift. The outcome is faster delivery, reduced programme risk, guaranteed supply and improved quality. And we're aligned with government policy. Our new facility in Carlow received ministerial endorsements as a milestone for housing delivery and we are well positioned to scale this to 4,000 units per year by the year 2030. Slide 16 shows the roadmap for what comes next. Workstream 1, timber frame and light gauge steel, is already fully embedded across the platform. And that is the foundation for everything else that is built on. We're now moving through to four further workstreams, each which increases the pre-manufactured value or the PMV. Workstream 2 is the external wall system. It replaces heavily wet trade dependent construction with an engineered wall system, taking PMV from our current base to 55%. Workstream 3 moves to insulated raft foundation system, reducing concrete usage and lowering embodied carbon on site and bringing PMV to 60%. Workstreams 4 and 5, roof cladding and energy water systems, are the final stages, each targeting 70% of PMV. Roof cladding substitutes heavier finishes with modular off-site friendly systems, while energy and water workstreams incorporates technologies that reduces peak consumption and reduces the reliance on public infrastructure connections that can delay site starts. We have 400,000 square foot of manufacturing capacity already in place to support this journey. The direction of travel is clear as more and more of the build process moves to more predictable and more resilient. Together, it all compounds over time. On slide 17, delivering at scale is only meaningful if you're delivering quality. Our customer satisfaction rating reached a new high in 2025, and repeat mandates from sector-state partners tell the same story. Our home buyer portal is now fully integrated across the customer journey, which is a reflection of the care we put into the experience on the other side of the transaction. With that, I'll hand you over to Conor to talk you through the financials.

Thanks, Stephen, and good morning, everyone. I'll start with the income statement for 2025 on slide 19. As Stephen outlined, 2025 was another year of strong financial progress for Glenveig, which delivered continued revenue growth, margin expansion across both operating segments and EPS ahead of guidance. The quality and sustainability of the earnings profile continue to improve, and the results reflect the compounding benefit of investments and strategic decisions made over the past number of years. In the year, group revenue increased to £926 million, up 7% year-on-year, with home building contributing £545 million from 1,490 closed units, with partnerships delivering £381 million in revenue, representing as the segment continued to scale. Gross profit increased to £198 million, with gross margin expanding by 20 basis points to 21.4%, despite changes in business mix. Home building gross margin was 23.6%, up 110 basis points, underpinned by standardisation, scale and vertical integration, alongside a continued contribution from land sets. Partnerships gross margin was 18.2%, which included a positive land contribution of approximately 190 basis points. Excluding land, the underlying partnerships margin was approximately 16.3%. ahead of expectations and reflecting continued strong on-site execution. Central costs were 50 million, including a non-cash share-based payment expense of approximately 8 million. Total administration expenses were 54 million, including depreciation and amortization. While absolute costs rose modestly as we continue to invest in systems, innovation and talent, overheads reduced as a proportion of revenue, evidencing the improving operational leverage as the business scales. This dynamic is expected to persist, with overhead growth expected to lag revenue over the medium term. Net finance costs increased marginally to 19 million, driven by higher average debt balances earlier in the year. Profit before tax was 125 million, up 114 million from 2024. Earnings per share increased to 20 cent, up 18%, and ahead of guidance, with a return on equity of 14.4%, up from 14.2% in 2024. Turning to the balance sheet on slide 20. The balance sheet reflects a robust and increasingly efficient financial position. Following the completion of the current phase of our land assembly strategy, the year-end land balance reduced to approximately £534 million, excluding development rights, down from £556 million at the end of 2024, driven by unit delivery and selective land disposals. Our focus remains on steadily reducing capital employed in land over time while maintaining output and protecting delivery certainty. Work in progress remained broadly stable at £284 million, reflecting discipline, production management and official capital deployment as output scaled. Contract assets increased during the year to £142 million, consistent with the phasing of revenue recognition across partnership projects. Net assets stood at £793 million at 31 December, up from £751 million at year-end 2024, representing continued balance sheet strengthening. Moving to cash flow on slide 21. Operating cash inflow was 100 million for the year, supported by disciplined management of WIP and land investment, with capital turnover improving as output scales and standardisation accelerates delivery. Net debt reduced to approximately 168 million at year end, down from 179 million at the end of 2024, despite increased production activity and continued capital returns to shareholders. Looking ahead, the unwind of the contract asset through 2026, as milestones are achieved, combined with a growing forward-funded component within partnerships, is expected to strengthen structural cash conversion as that platform scales. On slide 22, we provide a bridge on how the land bank is expected to evolve between 2025 and 2027. Land sales of 55 million were completed in 2025, with a further 45 million targeted for 2026. This will take total disposals across the two years to approximately 100 million. The year-end 2025 land balance of 554 million, inclusive of development rights, is expected to reduce to a range of approximately 400 million to 460 million by the end of 2027. driven by unit sale whip releases and land sales, balanced by a modest level of selective land acquisitions. This trajectory reflects a deliberate shift from a period of active land assembly to one of progressive capital release, optimising the portfolio towards larger, scalable developments while supporting improving returns and cash conversion over time. Moving to slide 23, our capital allocation priorities remain clear and consistent. On land, the current phase of our land assembly strategy is now complete and the land bank supports the delivery of between 2,750 and 3,600 units per annum through to 2030, with no further net land investment required. On WIP, we anticipate continued investment to support the 33% home building unit growth from 2025 to 2027, offset by the ongoing focus on expanding the partnerships platforms in a disciplined and sustainable manner, resulting in an unwind of the contract assets. Furthermore, our Grade A office block in Dublin Docklands is expected to deliver a material cash inflow in 2028, following the completion of our lease-up strategy. On supply chain, offsite investment is largely complete with 70 million invested to date and the capability in place to deliver 2,500 timber frame and light gauge steel units per annum on a single shift. A further 20 million investment is planned across 2026 and 2027 to expand timber frame capacity and importantly operationalise our innovative facade production. On returning excess cash, we completed a £105 million share buyback programme in December 2025 and commenced a further £25 million programme on 15 January 2026. On completion of the programme, over £445 million will have been returned to shareholders since 2021, reducing the issued share count by approximately 42%. The group targets an average net debt range of between 15% and 25% of gross assets, and we expect to be highly cash generative in H226, providing capacity for continued reinvestment and further capital returns subject to market conditions. So bringing it all together on slide 24, we're confident in our ability to deliver our guidance for 2026, growth and completions across both segments, continued margin delivery and further progress on land sales. We're guiding to EPS of up to 21 cent for the year, supported by a robust land portfolio, solid order book and ongoing standardisation. We expect approximately 1,600 home building unit deliveries in 2026 and partnerships is expected to deliver the targeted annual average gross profit of 60 million for that segment. The business enters the year with a strong order book, fully invested land bank and clear line of sight on delivery. We'll continue our disciplined and balanced approach to capital allocation, maintaining our focus on value creation and return to shareholders. Thanks again for joining this morning and I'll pass you back to Stephen for his concluding remarks.

Thank you, Conor. And to wrap things up, please turn to slide 26, where I want to leave you with three things. First, the market opportunity is real and sustained. Structural undersupply, strong employment, rising earnings and a more active policy environment are all driving demand. And that picture isn't going to change materially over the next five years. Second, our platform is built to capture the opportunity at scale. A fully invested land bank, a manufacturing-led delivery system, a scale partnership business, and a track record of discipline executed. These give us a competitive position that's difficult to replicate. And third, we're delivering record completions, record revenue, expanding margins, and significant capital return to shareholders since 2021. The strategy is working. We are confident in our ability to sustain this momentum. Thank you for taking the time to join us this morning. And I'll pass you over now to Zach for any questions you may have. Thank you. Thank you very much.

Before we get started with the Q&A session, this is a kind of reminder that if you would like to ask a question, please press pound key five on your telephone keypad. And the first question comes from the line of Colin Sheridan of Davey.

Good morning, guys, and thanks for the presentation. And for me, if that's A few for me, if that's okay. The first one's just on land. I'm just wondering if you could comment on, clearly you're not going to be buying as much land over the next couple of years, but how you're seeing the market at the moment and whether or not actually given the changes to MPF, there's any strategic land rezoning opportunities in the land bank as it sits today. Second one then, just you comment on the H1, H2 split and home building in the statement. I wanted to give us a bit of colour of what that looks like at a group level for the full year and what the level of confidence is in H2 delivery at this stage of the year. And then I guess we'll have to do one on build costs. I mean, how protected do you think you are at this point in time in terms of contracts? And how is vertical integration likely to help out on that side? And I guess how much can How much can price be a protection as you go through the year, notwithstanding that we don't know how things are going to play out at this stage? Thanks.

Sure, Colin, and good morning. Thanks for the questions. Yeah, I suppose that the land buying strategy that we had, obviously, we made a major investment in 2024. We clearly signalled that. We took down approximately 280 million euros worth of land that came in via 24 and 25, and some will come in, obviously, in 2026. And I suppose we made the right investment at that moment in time because from our standpoint was land was going to be constrained because of, I suppose, an underestimated national planning framework that estimated the country only needed 33,000 units. The majority of product that we purchased was on door in the business between vertical integration and I suppose the deepest segment of the market. We're not going to be active in the landmark for the foreseeable future, probably somewhere into maybe into 2028 at this stage. And I suppose our confidence is that the land portfolio that we've assembled allows us to comfortably support the delivery, as Conor outlined, between 2,750 and 3,600 all the way to 2030. So we've plenty of upside there. Our view is the national planning framework is going to zone somewhere between 800,000 and a million plots of land. And our view is that the capital to sustain that purchase won't be there. So there'll be plenty of opportunity when we go back into the market. And just from a business context, obviously, we have a large proportion of our portfolio, which is strategic land. So the 19,000 plus that we call out excludes strategic land. We're already starting to see some of our strategic land getting zoned in adoptions of local area plans and variations. So they will add further to the portfolio as it evolves. You know, we are seeing quite an active land market out there. There's plenty of demand, but a limited supply. That supply will come on. I suppose for us, we're timing our entry to 2028 because we think that's where the biggest opportunity will be. And tied into that will obviously be our own strategic land bank and where that goes. On bill cost inflation, look, it's a very volatile market at this very moment. I think we have the tools to navigate this better. I would describe us as because we have the vertical integration tied down the ways we have, we can probably sustain a higher element of inflation versus other competitors out there. So while we are monitoring and paying close attention to it, we probably have the best tools to navigate. But inevitably, there will be more bill cost inflation here. But that doesn't change our view on where guidance is at this moment in time. We're very comfortable where things are. I think, Conor, you might do on the H1, H2 split.

And I think a bit further on bill costs. We've taken all the actions we can ahead of time with good visibility on 2020. Six costs, over 80% of that, as locked in as it can be in the current environment. and then over 50% for 2027. So, we're not complacent on it. Inevitably, there will be some, but we're well placed there. When we come back to H1, H2 split, what you're going to see in the first half of the year is an outperformance in partnerships relative to prior year, and that's going to be balanced by a reduction in home building completions in H1 versus prior year. So, Stephen mentioned the land that we acquired at the end of 2024, that got into production in the early part to middle part of 2025 and that's going to materially deliver from H2 2026. So it's not huge in the context of the business. So last year we were mid-30s in terms of percentage of revenue delivered in H1. It'll be high 20s in 2026. And then very comfortable, like you only have to look at the order book there. So, you know, it's well underpinned by demand. And now it's about execution. And we've the benefit of having been on site on a lot of those schemes from 2025. So, yeah.

you know notwithstanding the h2 waiting and very confident in it coming true thank you we'll take our next question from the line of shane curry of good good buddy please go ahead and unmute your mic morning thanks steven and connor for the presentation and three for me if that's okay

Just one, Stephen, if I could get you to expand on the kind of broader partnerships pipeline, that'd be great. Just kind of the types of opportunities that are within that. And you kind of mentioned that you don't necessarily have to execute on all of them. So just a little bit more colour around how you're thinking about that, kind of be on the forecast horizon, be helpful. Second, just with regards to planning and just kind of expanding a little bit on kind of slide nine, it looks like you've been very active from a planning perspective and done very well over the last few years. There was an article in the Irish Times a couple of days ago kind of saying about a couple of delays potentially on a couple of sites. Is that just normal course of business or should we read anything into that? And then just on the back of last question, just on the back of kind of maybe slide seven and eight, just kind of trying to think, and I know it's only a small proportion of your portfolio that's kind of above the 450,000 sort of level. Just what kind of demand are you seeing above that sort of level, knowing that the supports are in place? There's quite a lot of support in place below that sort of level.

Yep, sure. Yeah, I've seen the article myself. I suppose what was a little frustrating about the journalist is he seemed to forget the ones that had all come through the system. We got, and I suppose it just shows the planning system is reforming. We got two judicial reviews that were stuck in the courts for a number of years. Both came through almost 600 units. In early January, we got a big development of 450 units in Moortown, which was granted by Fingal County Council within the eight weeks. The two in question, Balbriggan, the FI is being submitted today. So that shows how quick we could respond to that. And then I think the second one in Belcamp, obviously Belcamp is a much larger development, which incorporates Dublin City Council's land bank as well. And what I suppose Fingal and DCC wants to do is that bring the DCC lands in as well at this stage. So it's going to incorporate the whole thing, which they know is coming down the track. I have no issues on the planning. I suppose we've only seen one scheme fail and that scheme has now been regranted by the local authority. So across the board, a really positive planning environment. And I think we show best in class and in the quantum that we're now putting through the planning system. I just think by the end of 27, as we move into early 28, the quantum of land that we'll have planning granted on and the runway we'll have in front of us will dramatically change. So I'm really confident in that front. On the partnership pipeline, I suppose we break it into three buckets. Sub 200 million, we probably see a third of that there. Some of that is in within our own portfolio and we're already in discussions. with local authorities and approved housing bodies. The other third is somewhere between 200 and 400, and then another quantum above that, larger than that. What we're really seeing confidence in, and you're starting, I suppose, it's all hinged now on the National Development Plan. We've seen some local authorities already rezone their own land, and we know they're identifying these locations for development. So we have a real confidence in what's coming, And I suppose we've a real confidence and I've been very crystal clear about this is we're not going after everything. We're going after what works best for Glenveig in the sense of the product that we can deliver, the more efficiency that we can bring to the table and obviously the scale of those projects. So very confident, very comfortable where that thing is. And I suppose it really shows where partnerships is now maturing to. And I suppose the sustainability of that model going forward is in a really good place. The last one is on the 400 above 450,000.

Oh, yeah.

Sorry. Sorry. Yeah. I suppose the only thing I would say the majority of product and like it to be well into the high 90s is we have very little product above 500,000 euros. There's an element of what we acquired in the Gannon portfolio, and that's working its way through the system. They're not as fast as sales, but the conversion rate that we have isn't required. So look, I would say the majority of product that we have is sub 500,000. We're now doing a new launch of product in Dublin of at the 400,000 mark. So it just shows where we've moved as a business. So very comfortable in the spare side.

Yeah, I think part of what you're seeing in that 12%, Shane, is the partnerships piece. So a lot of those are contracted already. So we would have some apartment schemes where you're pushing over that 450,000. But as Stephen said, a key attraction of the home building land bank is that it's almost all of it's under that 500,000 capital. Not only under it, it has significant space below it, which is positive.

Thank you. So our next question comes from the line of Jonathan Copro of Deutsche Bank. Please go ahead.

Thanks. Morning, Stephen and Connor. In terms of newer, I know it's another timber frame manufacturing business in Ireland recently changed ownership. It would be interesting to hear just what you think the cost saving is of you doing this in-house at the moment versus if you were to buy those timber frames externally and also beyond cost savings. Can you point to the other benefits of having an in-house timber frame facility? Thanks very much.

Yeah, I might take the first part of that and tee it up for Stephen thereafter. I think the way to think about it, Johnny, is we've put about 70 million into NUA. It's more than covering its cost of capital. It competed for capital versus the home building business and the partnerships business. And but it still has significant room to sort of grow that further. But you're probably going to see that when phases two, three and four kick in. So it's covering its return. It's cost of capital at the moment. And but it'll materially outperform. And when we push the additional pre-manufactured value through the facility.

Yeah, no, that's 100%. I suppose, Johnny, we made the long-term investment like, you know, newer for us was a journey that started in 2020, but it only really comes to the four in 27, 28. We see an element of that in 24 and 25, but it really only starts when the vertical integration of the next phases are all incorporated. And I suppose that's where we have the real confidence in controlling build costs because We have to remember that, you know, this government are now investing nearly 20 billion euros in infrastructure per year. And that will tighten the labour market and the availability of labour. But that's where the vertical integration really outperforms for us. So obviously, we watch that trade. Obviously, our facility is twice the size of that and our facilities can expand dramatically over the next number of years. So, yeah, we feel that from an investment point of view, the returns will really benefit the business really into the future here.

Understood. Thanks very much. And just to follow up, you've been very clear that you're not in the land market now for a couple of years, but I just wonder whether when you do go back in, whether you'd be wanting to do things under option and if land options is something that you've been looking at.

Yeah, I'll surmise the land market this way. If you look at the average cost per plot in Glenveig, you're at 30-odd thousand a plot. As I said, I think somewhere between 800 and a million plots of land will become available. That's up to 30 billion euros in capital. That capital does not exist and will not exist on the ground. And I suppose our view is that the land market will really mature And I suppose for us is it will become more closer to the UK where you don't have to pay all up front for the land. You can do strategic deals. You know, the cost of capital that's waiting in the sites can reduce. And that's the trajectory on. So I think all that's positive upside for where we are at this moment in time. We made the right investment in 2024 to see us all the way to 2030. And now it's just about waiting for the opportunity and striking time. What I have to say is I know there's a lot of media coverage about this, that the local authorities aren't moving fast enough. They inevitably never will move fast enough. But it's a bit like an oil tanker. Once you start it turning, it'll keep going. And I suppose we've just seen one or two local authorities come out over the last number of days, and you're starting to see big swathes. And this is all before we put 10-year lifecycle plans in place as well. You know, there'll be loads of land. We'll be the best place operator to execute it. Our build cost is going to be key to that to produce a unit more efficient than anyone else. And then I suppose the land cost is going to be relevant for us in the business.

Very helpful. Thank you.

All right. Thank you. The next question comes from the line of Edward Prest of Berenberg. Please go ahead and unmute your mic.

Morning, guys. Thank you for the presentation. Morning. I've got three, I think, two. Firstly, in terms of volumes and your home building volume targets of 1600 and 2000, so 26 and 27, are you thinking of those as targets to hit or a minimum level that you would achieve? And therefore, how much capacity have you got to beat those? Secondly, in terms of partnerships, You're looking at about – FY25 is about 41% share of revenue. Is that the kind of level you expect to hold going forward, or are you thinking more in terms of absolute euro value there that you'll maintain? Yeah, that's the two for me. Thank you.

Thank you, and very good morning to you. I think, look, what we're being crystal clear is obviously the portfolio has the capability of doing 2.7% to 3.6%. We're giving guidance, obviously, to the 2000. No, it's not a target. It's kind of we see that as the floor for what we can do going forward. So pretty comfortable there. I think as the business matures, we'll see how that can expand. But I think we have plenty of capacity and capability to grow into that. And we'll see how things evolve over the next 12 months. But we have the land. We have the capability. We have the demand. I suppose for us it's just about execution and doing it the right way. I don't want to go through this like an elevator. I want to make sure it's the stairs and we move through each platform and we can set a stable base and move on to the next phase. So very comfortable in what we can do into the future. On the partnership side, yes, the 40%. I know I've always been of the view that I want to get this business to a 70%. 1800 unit a year business what that could represent can't give you clear numbers yet in the sense of the scale of that but you know we comfortably believe that this can be a 650 to 700 million euro business in the coming years we certainly think there's a pipeline there to do this um we certainly think we're the best counterparty to do it and i think we've proven in the partnerships that are now delivering Some of the most standout partnerships in Oscar Trainer Road, which you've seen the Minister out two weeks ago, ribbon-cutting as the first 40 units are now being handed over, and there's real momentum in that site. I think Ballymastone is a standout development, almost 1,400 units. I think the success of that has really shown that this really works, and I suppose the engagement with local authorities, it's a proven model. You are a good counterparty and we'd like to do more with you into the future. So I think this can be a very stable business. there's plenty of opportunity for us into the future.

I think in the near term, yourself and ConsenSys are in a really good shape. They're at 40%, so certainly for 26, 27, 40% is a sensible place to be, and we can see where we'll update you on the developments and the taking down of that pipeline that Stephen highlighted earlier for the impact in 28 and beyond. Okay, brilliant. Thank you.

There are no more questions, so this is a reminder that if you would like to ask a question or make a follow-up question, you can press pound key five on your telephone keypad.

Well done. Great. Look, thank you, everyone.

We have a follow-up question from Shane Carberry.

Hi, Shane. Sorry, guys. I thought I'd get in right at the end with just one follow-up. It's just one to expand a little bit more on the strategic land piece as well would be really helpful. just how much that could help things going forward as well would be useful to get a bit of a frame in terms of the scale of that and how quickly that could potentially flow through as well when we think about those land bank dynamics that you mentioned earlier.

Yeah, look, as the business units land, as it stands before any rezonings happening, we're starting to see rezonings happening. They're not in the numbers yet, but we'll see how they flow through. Variations are to be completed across the board. Realistically, the first variations will be completed by the end of Q2 of this year. I think likely now what's going to happen is there's going to be a second variation by local authorities to speed up process as well. And you're starting to hear the first rumblings of that across local authorities. They've done one, they're going to do another one. Look, we have quite a substantial quantum of land that can be converted. It is quite substantial. It's not a further euro investment. It's in the land bank. We just want to see how that plays through. But there is a decent quantum there.

I think where you're going to see a chain is in reduced expenditure in land in 27 and 28, that near-term horizon, and then you're going to see it in unit delivery and margin from 29 and beyond because clearly they're required at attractive rates. So it's less capital deployment in 27 and 28, and then it's margin and unit benefits in the years that follow.

Brilliant. That's really helpful.

Thanks, guys.

Thank you very much. There are no more questions. I will hand it back to speakers for any questions.