Trading Update
for the Six Months Ended 30 June 2024
Record H1
Supports c.30% Growth in 2024
Dublin /
London, 3 July 2024: Cairn
Homes plc (“Cairn”, “the Company” or “the Group”) (Euronext Dublin:
C5H / LSE: CRN) today issues a Trading Update for the six months
ended 30 June 2024 in advance of interim results to be announced on
4 September 2024.
H1
2024 Highlights
The increase in housing output
and profitability that the Company has delivered in recent trading
periods has continued in the year-to-date, with strong first
half-year revenues generated. Market conditions remain very
favourable with exceptional demand for our energy-efficient new
homes across all buyer profiles, supported by impactful Government
initiatives and policies, an improving mortgage market, population
growth and record employment.
-
894 closed
units1
generating revenue of c.€365
million (H1 2023: 535 closed sales and €220 million revenue),
a 66% year-on-year increase in revenue.
-
Successful starter home launches
nationwide including at our landmark Seven Mills development and
our first developments in Kilkenny (Nyne Park) and Cork (Bayly)
respectively.
-
Closed and forward orderbook has
increased to c.3,100 new homes with a net sales value of nearly
€1.2 billion. This multi-year sales pipeline underpins our
medium-term growth targets.
-
Closed our first two forward fund
transactions at our mixed tenure developments in Parkside and Seven
Mills. These transactions enhance the scale, pace and delivery
certainty of apartments and enable us to materially increase the
supply of social, affordable and cost rental homes for our State
supported counterparties.
-
The Land Development Agency (LDA)
has included Cairn in its housebuilder partnership framework panel
for Project Tosaigh 2, a programme which is targeting the delivery
of 5,000 affordable homes in the near-term.
-
Significant ongoing investment in
our business will result in 10 new site commencements in
2024.
-
Retained our A- Carbon Disclosure
Project (CDP) score, with continued focus on our sustainability
strategy across a number of initiatives. We commenced our third
scaled Passive House apartment development and are currently
building c.1,500 apartments to this internationally recognised
building standard.
-
Added a fourth lender, Home
Building Finance Ireland (HBFI), to our increased €327.5 million
sustainability-linked syndicate facility (from €277.5
million).
-
Cairn is today announcing a €45
million share buyback programme, which represents €40 million in
respect of a new programme and the remaining €5 million of the FY23
programme. This new programme will commence today.
-
The Board intends to announce a
c.3.8 cent interim dividend per ordinary share at interim results
on 4 September 2024.
Reaffirming
FY24 Guidance
-
Cairn is poised to deliver an
exceptional output and financial performance in 2024, and expects
to deliver year-on-year growth of c. 30%. The Company reaffirms our
FY24 guidance:
-
c.2,200 units1;
-
operating profit of c. €145
million; and
-
ROE of 15%2.
Commenting on the H1 2024 trading
update, Michael Stanley, Chief Executive Officer, said:
“Cairn experienced a very strong
spring sales season for first time buyer homes, which
has added to our order book of over 3,000 homes.
We will grow our output by 30% this year and invest heavily in 10
new site commencements, including eight in the second half of 2024.
Recent data on increased mortgage approvals for first time buyers
is positive news and the broader homebuilding industry is also
responding to improved realisable demand by increasing the supply
of new family homes.
The current ill-health of the
rental market perhaps remains a greater challenge for our economy
and growing population. In recent years, more than 70,000 homes
previously for private rental are no longer available, the majority
having been purchased by homebuyers from smaller landlords exiting
the market. Privately funded replacement stock, particularly
apartments in urban areas has been very low and as
a result, many of
Ireland’s
young and fully employed population are faced with a shrinking and
illiquid rental market.
The Government has responded with
stronger support for AHBs and the LDA, through CREL funding,
resulting in increased commencements of new cost rental apartment
developments. A committed implementation of this initiative,
together with Croí Cónaithe and student accommodation
funding, can significantly boost the delivery of affordable and
private scaled apartment developments for both ownership and
rental.”
The Company will release our 2024
interim results on 4 September 2024.
For further information,
contact:
Cairn Homes
plc +353 1 696 4600
Michael Stanley, Chief Executive
Officer
Richard Ball, Chief Financial
Officer
Stephen Kane, Director of
Corporate Finance & Investor Relations
Ailbhe Molloy, Investor Relations
Manager
Drury
Communications +353 1 260 5000
Billy Murphy
Claire Fox
Morwenna Rice
Notes to
Editors
Cairn Homes plc (“Cairn”) is an
Irish homebuilder committed to building high-quality, competitively
priced, sustainable new homes and communities in great locations.
At Cairn, the homeowner is at the very centre of the design
process. We strive to provide unparalleled customer service
throughout each stage of the home-buying journey. A new Cairn home
is expertly designed, with a focus on creating shared spaces and
environments where communities thrive. Cairn owns a c.15,900 unit
landbank across 36 residential development sites, over 90% of which
are located in the Greater Dublin Area (“GDA”) with excellent
public transport and infrastructure links.