Cairn Homes report successful 2019 with double digit earnings rise

Cairn Homes PLC (LON:CRN) have seen a successful 2019, as the firm reported a double digit earnings rise on Tuesday.

Following the positive update, shares in Cairn Homes have been boosted.

Shares in Cairn Homes trade at €1.26 (+2.44%). 3/3/20 11:32BST.

The homebuilding firm told the market that revenues across 2019 had surged 29% year on year to €435.3 million from €337.0 million. Notably, pretax profit also rose 41% from €41.5 million to €58.6 million.

Across 2019, Cairn noted that there was a rise in closed sales and average selling price.

Breaking this down, closed sales rose 34% to 1,080 from 804 whilst average sales prices saw a 1.6% boost from €366,000 to €372,000.

Cairn added that its forward sales pipeline currently amounts to €266.1 million, which sees an increase from €201.4 million on an annualized basis.

Going forward, the homebuilder added that it expects completions to be between 1,250 and 1,300 across 2020 – with a gross margin of around 20%.

Cairn noted: ‘The Company has witnessed a positive start to the Spring 2020 selling season with strong levels of demand across our selling sites. The Company’s year to date closed sales and current forward sales pipeline has a sales value of €266.1 million (853 units) as at 2 March 2020. This compares to €201.4 million (471 units) as at 6 March 2019.’

‘With strong market demand for our product and delivery pipeline, the Company looks forward to the full year with confidence.’

The firm paid a full year dividend off 5.25 euro cents, following no payout in 2018.

Commenting on the results, Michael Stanley, Co-Founder and CEO, 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.”

Previous articleAggreko shares bounce 6% following 9% annual rise in profit
Next articleBoku unaffected by coronavirus and start 2020 in strong fashion