Monday 22 October 2018

Revenue increases by over €100m at Cairn Homes

A Cairns development at Elsmore, Naas
A Cairns development at Elsmore, Naas
Ellie Donnelly

Ellie Donnelly

Cairn Homes has reported revenue of €149.5m for 2017, an increase on the €40.9m recorded in 2016, according to preliminary results for the company released today.

The substantial increase in revenue was driven by the sale 418 residential units in 2017, which generated around €131m in revenue. In 2016 the stock exchange-listed builder sold 105 residential units.

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 €315,000, up from €295,000 in the previous year.

Operating profit at the company, which recently commenced work on a new apartment development at Greenfield Park, Donnybrook, was €15m, up from €3.6m in 2016, which the company said reflected “excellent underlying performance and progress in delivering Cairn's strategic objectives and maturing of the business."

"Last year we focused on delivering new homes of high quality and we are very pleased with the progress made on new site commencements, units constructed and new homes sold, all of which exceeded our expectations," Michael Stanley, CEO of Cairn, said.

"The Greater Dublin Area needs at least 20,000 new homes per annum for the next ten years and 2017 supply was 4,000 new homes. The Cairn team is very well placed to make a significant contribution to narrow this gap and we look forward with confidence."

Cairn is currently active on eleven developments, which it said will deliver in excess of 3,650 new homes. The company anticipates three further site commencements in 2018.

Net debt at the company is €159.4m, up from €76m in 2016, while the company has cash of €85.8m.

Looking forwards, the Stock Exchange listed company said it had a positive outlook, expecting continued significant growth in sales, profit and cash generation over the next three years.

Post year-end Cairn said it commenced the formal sales process on its Hanover Quay site, with a view to selling the entire development. The company acquired the site for €18m in 2016.

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