Cairn Homes profits rise amid ‘strong’ demand
Irish housebuilder Cairn Homes posted a rise in annual profit on Tuesday as sales and average selling prices increased amid "strong" demand.
In the year to 31 December 2019, operating profit pushed up 28% to €68m on revenue of €435.3m, up 29% on the year. The dividend per share was maintained at 5.25 cents.
The company highlighted 1,080 closed sales for the year, with an average selling price of €372,000. This compared to 804 closed sales in 2018 and an average selling price of €366,000.
Cairn said it had seen a "positive" start to the Spring 2020 selling season, with strong levels of demand across its selling sites. It expects to achieve 1,250 to 1,300 sales completions in 2020 and is targeting a gross margin of around 20%
Co-founder and chief executive officer Michael Stanley said: "As Ireland's most active homebuilder, 2019 has proved to be another very successful year for Cairn with strong growth in revenues. In just over four years, 3,250 customers have chosen a Cairn home reflecting the strong demand for high-quality, competitively priced new homes in places where communities can prosper.
"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."