Housebuilder Cairn Homes has reported operating profits of €18.1m for the six months to the end of June, up from €2.5m the previous year.

Cairn Homes said its half yearly revenues rose to €130.2m from €41.2m, adding that it is active on 13 developments which will deliver over 3,750 new homes.

It said it expects to start on another four sites within the next six to 12 months.

The company said it closed 293 sales in the first half of the year at an average selling price of €393,000, excluding VAT. This comprised of 221 houses at €326,000 and 72 apartments at €599,000.

It had sold 94 houses with a selling price of €280,000 the same time last year.

Michael Stanley, the company's co-founder and CEO, said that Cairn Homes was experiencing levels of demand for new homes which exceeded its expectations. 

"Our business has matured and in 2018 we expect to generate revenues of €350m in only our third full year of operations," he said.

Mr Stanley said the company was today increasing its medium term target to about 1,400 to 1,500 units annually from 2021. 

"Our strong profit and cash generation this year and in 2019 will enable us to pay our first dividend to our shareholders," he added.

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The company said that market conditions have remained very favourable during the year and it believes that the ongoing supply constraints will result in demand for new homes continuing to outstrip supply in the medium term. 

It is currently selling across eight separate developments including Parkside on the Malahide Road, Churchfields in Ashbourne, Shackleton Park in Lucan, Glenheron in Greystones, Albany in Killiney and Marianella in Rathgar.

During the six month period, Cairn finished its first student apartment development in Dublin 7 after a €6m redevelopment of 33 apartments. It has agreed to sell this development as well as two other student apartment developments for €45m.

It also completed the sale of 71 units at its joint development with NAMA at Parkside in North Dublin and agreed a deal to sell its landmark Dublin city centre premium apartment development at Six Hanover Quay for €101m. 

Meanwhile, the company had seven applications granted full planning permission for about 1,900 units including Cork Street in Dublin 8, Mariavilla in Maynooth and Blakes in Stillorgan.

Four applications are also in the Strategic Housing Development (SHD) for about 1,400 units.

These include a starter home development at Citywest in Dublin 24 and apartment developments at Montrose in Donnybrook, Cross Avenue in Blackrock and Griffith Avenue in Dublin 9 with formal planning applications to be submitted over the coming months.

Cairn Homes today reiterated its expectation of completing over 800 unit sales and generating revenue of over €350m in 2018. 

"The fundamentals of the business remain strong, and the company looks forward to significant growth in sales, profit and cash generation," it said in its results statement. 

"The company is increasing the medium term target to revenue of about €550m from about 1,400 to 1,500 sales units annually from 2021. Cairn expects to generate substantial cash and profits in the 2018 and 2019 financial years which will enable the company to declare and pay its first dividend to its shareholders", the company added.

Meanwhile, Cairn Homes' co-founder Alan McIntosh said he was stepping down from an executive role at the housebuilder and would move to a non-executive role at the company. 

Shares in the company were higher in Dublin trade today.