Cairn Homes, the Dublin-listed housebuilder, said favourable market conditions coupled with strong demand for its energy-efficient homes have contributed to its strongest year ever after reporting a 67 per cent jump in revenues to €366.1 million in the first half of the year.
The group reaffirmed its full-year profit guidance on Tuesday, with Cairn expected to deliver some 2,200 units and operating profits forecast to come in around €145 million for the full year.
“The company has delivered a stellar half-year performance across all key metrics, most importantly in housing delivery with our turnover increasing by 67 per cent year on year,” said group chief executive Michael Stanley. “By the end of this year Cairn will have delivered over 9,500 energy-efficient new homes to our customers across Ireland. We have a scaled, sustainable and mature business platform, positioning us for continued growth as we enter into our 10th year of business in 2005.”
Cairn said it sold 894 units in the first six months of 2024, up 67 per cent from 535 last year, a record first-half performance for the group. Its closed and forward order book increased to 3,450 new homes over the period with a net sales value of €1.32 billion.
Operating profits climbed by 107 per cent to €61.4 million while Cairn’s gross margin widened by 80 basis points to 22 per cent. The group also returned some €70 million to shareholders between 2023 and the end of June 2024 through its share buyback programme and began a new €45 million buyback scheme, announced in July.
In an update on its full-year guidance, Cairn said the group remains in a “significant period of operational and volume growth” against a favourable macroeconomic backdrop. “Ireland’s economy continues to be one of the strongest performing economies in the EU,” it said, underpinned by “strong population growth” as well as record employment and “a continued moderation of consumer price inflation” this year.
Cairn expects to deliver return on equity of 15 per cent this year, in line with expectations. The group said it also expects 2025 to be “another year of strong volume, revenue and profit growth as Cairn continues to leverage [its] exceptional scaled operating platform”.
In an investor note on Wednesday morning, analysts from Davy Stockbrokers said it sees some “modest upside” potential for Cairn in 2025 and 2026 despite its forecasts for 2024 being likely to remain unchanged.
Meanwhile, the group confirmed that Bernard Byrne will replace chairman John Reynolds upon the latter’s retirement at the end of April next year. Mr Byrne, who was appointed to the board in August as an independent non-executive director, stepped down as chief executive of Davy at the end of June.
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