Pictured: Michael Stanley, CEO, Cairn Homes Plc
Demand for Cairn Homes’ housing will continue to rise into 2023, according to the the Irish house-builder and developer who enjoyed a jump in revenue at the half-year mark. Cairn Homes is our Company of the Month for September 2022, in association with KPMG.
Half-year revenues at Cairn Homes PLC rose by 84% last year — from €130.6m to €240.4m — at a time when COVD restrictions were still in place and affecting the building industry.
The firm stated that its operating profits at this time were its strongest ever reported. It was up by 200% and amounted to €36.2m in comparison with last year’s total of €11.7m from the same time. Cairn completed the sale of 547 homes across 13 developments during this time period.
The company completed the sale of 275 houses and 272 apartments with reports that apartments were more expensive than houses. Houses sold for an average selling price of €406,000 while the average selling price for apartments was €472,000.
The company is projecting more growth for 2023 and has set out an ambitious plan to realise that growth. Cairn are active on 22 sites across the country and currently have construction projects totaling €346m in progress.
Cairn Homes stated the company is guiding 1,500 closed sales and in excess of €600m in revenues by year end. The firm said they have succesfully maintained their average starter home sales price at €330,000. This was in spite of the rise in costs on a per-unit basis.
“Our business is now operating at scale and providing new homes across all tenures – first time buyers, trade-up/down, institutional, and State,” Cairn Homes Plc said.
“This ability to address the full spectrum of end customer, supported by our supply chain and subcontractors, enables Cairn’s growth trajectory despite these headwinds. In the three years to 2024, we expect to deliver between 5,000 and 5,500 new homes and generate in excess of €500m in operating cashflow.”
“The business has experienced our best ever performance through the first half of 2022 and as anticipated, demand has continued to be exceptionally strong over the summer and autumn selling season,” said Michael Stanley, CEO, Cairn Homes Plc.
“With 22 active sites nationwide, involving an investment of nearly €350m in work in progress, we are guiding 1,500 closed sales and in excess of €600 million revenue by year-end,” he added.
Mr Stanley said Cairn’s output includes a larger portion of social, affordable rental and affordable ownership homes this year. The company also plans to deliver more than 500 new homes for or through State agencies.
“Recent sales also include homes across five of our developments to first time buyers who have been able to avail of the Government’s new First Home shared equity scheme. This and other supports are absolutely crucial, particularly at a time when building costs continue to increase and mortgage costs are rising,” he stated.
Mr Stanley also said that providing housing for people is vital. Demand levels for housing are growing as 35,000 homes are expected to be needed a year into the medium-term. Housing supply is currently falling below demand with new housing supply projected to reach 25,000 homes in 2022.
“Providing new homes for these working people to own or rent is societally vital and increasing supply across all private and state delivery platforms in parallel is the only effective response,” said Mr Stanley.
Read more about outstanding Irish companies operating in 2022:
Business & Finance, Company of the Month
Business & Finance, in association with KPMG, recognises excellence in business through the ‘Company of the Month’ award. The Company of the Month award recognises the company which best demonstrates outstanding business leadership, sustainable growth, innovative strategy, strong financial returns and employee development.