Cairn Homes posts rise in profit, proposes first interim dividend
Irish housebuilder Cairn Homes posted a rise in first-half profits and revenues on Thursday amid "strong" demand, as it proposed its first interim dividend.
In the six months to the end of June, operating profit jumped 51% to €27.3m on revenue of €192.4m, up 48% on the year. The average selling price rose to €449,00 from €393,000 in the first half of last year, which the company said was largely down to the sale of 120 units at Six Hanover Quay.
Cairn proposed its first interim dividend of 2.5 cents share, which it said marked the start of a progressive biannual ordinary dividend. It also announced a €25m share buyback programme commencing on 13 September.
Co-founder and chief executive officer Michael Stanley said: "Our business has reached an important milestone today with the commencement of capital returns to shareholders by way of an interim dividend and a share buyback programme. We have executed the plan set out at our IPO. We are delivering high-quality and competitively-priced starter homes at affordable prices for hundreds of Irish families.
"We are availing of the substantial interest of long-term institutional capital in multifamily PRS apartments. We are realising value for non-core assets. As a consequence, Cairn has delivered good revenue and profit growth and strong cash generation in H1. Given market demand for our product and delivery pipeline, we look forward to the full year with confidence."
At 1530 BST, the shares were down 5% at €1.10.