Cairn Homes expect €20m profit on the back of robust housing demand

Construction productivity back to 85% of pre-pandemic levels

Cairn Homes closed 207 new homes sales and generated revenues of €80.9 million in the first half of the year. File Picture.

Housebuilder Cairn Homes said pent-up demand for new homes in Ireland has increased as a consequence of the lockdown as the company remained in profit for the first six months of 2020.

The company recorded an operating profit of €5.8m for period, which is down from the €27.3m it earner in the same six months of 2019.

Cairn Homes said construction productivity was now back to 85% of pre-pandemic levels across 15 sites.

"The robust level of demand witnessed since lockdown was expected, particularly from first time buyers for our competitively priced starter homes, and our forward sales pipeline will be enhanced by the ongoing Autumn selling season, including three new sales launches scheduled in September and October 2020," the company said.

Michael Stanley, Co-Founder and CEO, said despite the lingering uncertainty surrounding Covid-19, they were looking forward with confidence.

"I am not surprised by our sales momentum over the summer months which has carried through into the autumn selling season, with our current forward sales pipeline valued at €237 million," he said.

"The underlying pent-up demand for home ownership in Ireland has increased as a consequence of the lockdown. This experience has definitely changed people’s priorities and owning their own space in a well-designed, energy-efficient A-rated new home has become paramount to many.”

Cairn Homes closed 207 new homes sales and generated revenues of €80.9 million in the first half of the year.  Sales have gathered momentum over the summer months and the company is guiding modestly in excess of 700 closed sales, a gross margin of 16.3% and an operating profit of €20 million for the full year.

We remain positive for the future prospects of our business and determined to successfully navigate any uncertainty and to deliver growth and increasing sustainable returns over the medium term.