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Profits jump 28pc at Cairn Homes as average selling price increases


Stock photo: Bloomberg

Stock photo: Bloomberg


Stock photo: Bloomberg

One of the country's largest developers, Cairn Homes, has seen its operating profit increase by 28pc to €68m last year.

Revenue increased by a similar margin – 29pc – to €435.3m, according to annual results from the group.

Last year Cairn closed 1,080 home sales, with an average selling price of €372,000, this is up from the prior year when it closed 804 sales at an average price of €366,000.

The average selling price in the first-time buyer starter home was €314,000, up slightly on the 2018 price of €312,000.

Elsewhere, the company said it continues to see “significant demand” from institutional investors.

Michael Stanley, co-founder and CEO of Cairn, said: "As Ireland's most active homebuilder, 2019 has proved to be another very successful year for Cairn with strong growth in revenues.

This momentum has carried through to 2020. We confidently expect to continue our growth trajectory and this is reflected in the increased medium term guidance indicated today."

Looking forward, it expects to complete 1,250 to 1,300 sales of homes this year.

The company said this guidance is underpinned by the strength of its year-to-date closed sales and contracted forward order book.

It expects to continue to increase annual production and is targeting 1,500 to 1,600 sales completions next year and 1,700 to 1,800 sales completions in 2022.

Cairn is proposing a final dividend of 2.75 cent per share, bringing its total dividend for the full year of 5.25 cent.

Online Editors