Cairn Homes sees revenue increases by over €100m in 2017
Cairn Homes has seen its 2017 revenues increase to around €149m from €40.9m in 2016, according to its trading update released today.
The substantial increase in revenue was driven by the sale 418 residential units, which generated around €131m in revenue. In 2016 the stock exchange-listed builder sold 105 residential units.
Estimated earnings before interest, taxation, depreciation, and amortisation at the company, which was established in 2014, is expected to be between €14.5m and €15m, up massively from its 2016 earnings of €3.8m.
Last year the company, which is behind new residential estates such as Parkside in the north Dublin suburb of Balgriffin, and Churchfields in Ashbourne, saw its average selling price increase to €314,000 (excluding VAT), up from €295,000 in the previous year.
"Achieving 418 home sales is a very strong outcome in our second full trading year. Our practice of acquiring and building on larger scale developments, on average in excess of 400 units, allowed us to respond quickly to increased demand during 2017," Michael Stanley, CEO of Cairn, said.
Sales completions at Elsmore, Naas are expected from mid-2018, while Cairn’s Dublin city centre apartment development at Hanover Quay has a planned sales launch this summer.
The company has also recently commenced work on a new apartment development at Greenfield Park, Donnybrook.
Further apartment commencements in Dublin city locations are expected during 2018.
Added to this, Cairn now also has a student apartment pipeline of 1,700 beds at five locations close to major universities here.
Looking forward, the company expects the supply of residential homes in the Irish market to continue to be significantly less than demand for homes in 2018 and 2019.
"This, allied with strong demographics, strengthening mortgage market fundamentals and a growing economy are all supportive of Cairn's business model," the company said.
The company is starting 2018 with net sales of €134.3m in the pipeline, comprising of 348 residential units at an average selling price of €386,000 excluding VAT.
Cairn will issue its full year results for 2017 in March.