Cairn Homes' 2019 revenues and profits rise
Shares in construction company Cairn Homes rose over 4% today after it reported an operating profit of €68m for 2019, an increase of 28% on 2018's profits.
Revenues for the year to the end of December rose by 29% to €435.3m.
The home builder said it closed 1,080 sales last year, at an average selling price of €372,000 excluding VAT.
This compares to 804 sales in 2018 with an average selling price of €366,000
The average selling price for first-time buyers in 2019 was €314,000, the company added.
Cairn Homes has proposed final dividend of 2.75 cent per share, which will provide a total dividend for the full year of 5.25 cent.
The company is today active on 16 sites which will deliver about 6,750 new homes.
Looking ahead, Cairn said it has seen a positive start to the Spring 2020 selling season with strong levels of demand across its selling sites.
"The company's year to date closed sales and current forward sales pipeline has a sales value of €266.1m (853 units) as at 2 March 2020. This compares to €201.4m (471 units) as at 6 March 2019," it stated.
Cairn said it expects 1,250 to 1,300 sales completions in 2020.
It said that with its increased capacity and capability, it expects to continue to increase annual production and is targeting 1,500 to 1,600 sales completions in 2021 and 1,700 to 1,800 sales completions in 2022.
"2019 has proved to be another very successful year for Cairn with strong growth in revenues," the company's chief executive Michael Stanley said.
"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," Mr Stanley said.
"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," the CEO added.
Shares in the company moved higher in Dublin trade today.