Cairn reaffirms outlook on strong first half

Updating on trading, the Irish housebuilder said market conditions had been "very favourable" during the first half, with "exceptional" demand for its homes.

In the six months to 30 June, it sold 894 units, generating revenues of €365m, compared to 535 closed sales a year previously and revenues of €220m.

The closed and forward order book also rose, to 3,100 new homes with a net sales value of around €1.2bn.

Looking ahead, Cairn said it was now poised to deliver "exceptional" output and financial performance in the full year, with year-on-year output growth of around 30% and a total of 2,200 units.

Annual operating profits are expected to come in around €145m.

Michael Stanley, chief executive, said: "Cairn experienced a very strong spring sales season for first-time buyer homes, which has added to our order book.

"We will grow our output by 30% this year, and invest heavily in 10 new site commencements, including eight in the second half.

"Recent data on increased mortgage approvals for first time buyers is positive news, and the broader homebuilding industry is also responding to improved realisable demand by increasing the supply of new family homes."

Cairn also announced plans to return €40m to shareholders through a new share buyback programme, starting on Wednesday.

As at 0915 BST, Cairn’s London-listed shares were up nearly 6% at 140.6p.