Cairn Homes FY revenues jump amid positive market conditions

Irish housebuilder Cairn Homes reported a big jump in full-year revenues on Friday amid positive market conditions.

In a trading statement for the year to the end of December, the company said revenues rose to €149m from €40.9m in 2016, with the average selling price up at €314,000 versus €295,000. Full year earnings before interest, taxes, depreciation and amortisation are expected to come in between €14.5m and €15m, compared to €3.8m the year before.

Cairn said market conditions "remain positive", with continued strong demand for new starter homes, trade-up/mover new homes and premium apartments witnessed in the Autumn 2017 selling season. The group said the supply of new residential homes in the Irish market is likely to continue to significantly undershoot demand in 2018 and 2019, which along with strong demographics, strengthening mortgage market fundamentals and a growing economy, is supportive for Cairn's business model.

Cairn said it starts the year with a strong forward sales pipeline with a net sales value of €134.3m, at a higher average selling price of €386,000.

Chief executive officer Michael Stanley said: "Our practice of acquiring and building on larger scale developments, on average in excess of 400 units, allowed us to respond quickly to increased demand during 2017. Given the quality and historical cost of our land bank, our dual focus on competitively priced houses and premium apartments and our increasing operational capability, we continue to look forward with confidence."