Property Developer Cairn Homes marks 'strongest ever' performance as operating profits rise to €113m

Home builder said it delivered over 500 new starter homes at an average price of just under €400,000 last year.

Michael Stanley, CEO of Cairn Homes. Pic. Keith Arkins No Repro Fee

Property developer, Cairn Homes has posted a more than 10% rise in profits with high demand and record sales completions leading to the firm's "strongest ever financial and operational performance."

Releasing its annual results on Thursday, the house builder delivered over 1,740 homes in 2023, up from 1,526 in the previous year, generating an 8% rise in revenue totalling €666.8m.

Its operating profit for the year stood at €113.4m with an operating margin of 17%.

The developer said demand remained "exceptionally high" throughout the year, noting its pipeline of closed and forward sales of 2,473 new homes, an increase of nearly 1,000 new homes in twelve months. The company expects these forward sales to net at over €946m.

The Irish property developer also completed 1,206 sales in what was a record second half for Cairn, leading to revenue in the period of €447.3m.

“Our sustained positive momentum has carried through into 2024 and strong sales since the beginning of the year have seen our closed and forward order book growing further," said chief executive of Cairn Homes, Michael Stanley. 

"Cairn will deliver another year of strong growth in volumes, revenue and profitability."

Mr Stanley added that constructing homes for first-time buyers was a "core market" for the firm and that it delivered over 500 new starter homes at an average price of just under €400,000 last year.

During the year, the company commenced work on four new sites and new phases of six existing large-scale, multi-year, developments. It was active on 20 sites nationwide during 2023.

It added that over 80% of its starter homes are available to purchasers at prices below the State support pricing caps allowing for more people to qualify for the Help to Buy and the First Home shared equity scheme.

Dividends paid to shareholders during 2023 amounted to 6.2c per ordinary share.

Looking forward, the company said it was positioned to grow the business by a further 30% next year, reiterating its guidance for 2024.

The firm aims to grow its output to around 2,200 units next year, with an operating profit guidance of €145m and a return on equity of 15%.

"With this growing level of confidence in our business, 2024 is expected to be another year of continued momentum and significant growth," the company added.