Cairn Homes builds itself a stronger revenue stream but falls short of profits

Cairn Homes said on Tuesday its revenues soared in the first six months of the year, but the Irish housebuilder was still unable to turn a profit.

Revenues rose 157% to €41.2m, taking gross profits 191% or €5.1m higher to €7.7m, thanks mainly to an increased level of sales progress during the summer months when the company posted an average of 13 unit sales per week.

Operating profit jumped up 43% as the company collected €2.5m in the half, but an increase in administrative and finance costs kept Cairn at a loss, albeit a narrowed one, down to €392,000 from €701,000 in the prior year.

Losses per share came to €0.0004.

"We've made very good progress against our strategic objectives during the first half of 2017. We've invested well and the fruits of this are all the more apparent as we deliver enhanced value from our land bank. We're currently building on nine sites which will deliver 3,250 new homes. We're actively selling on seven sites, soon to be eight, with a very strong and growing forward sales pipeline of €188 million," said chief executive Michael Stanley.

As of 1600 BST, shares held steady, up 0.58% to 1.74p.