Housebuilder Cairn Homes has reported higher revenues and profits for the six months to the end of June and said that demand for its new homes will continue into 2023.
Half year revenues at Cairn Homes jumped by 84% to €240.4m from €130.6m the same time last year when Covid-19 restrictions were still affecting the building industry.
The company said its operating profits for the six months came to €36.2m - its strongest ever half year profit and up over 200% on the €11.7m reported the same time last year.
Cairn said it completed a total of 547 new home sales during the six month period, adding that it is active on 22 sites nationwide with total construction work in progress of €346m.
The company recently extended its regional footprint to Limerick and Kilkenny.
It said it was guiding 1,500 closed sales and in excess of €600m in revenues by the end of the year.
Despite increased costs on a per unit basis, Cairn said it had maintained its average starter home sales price at €330,000, up marginally from €327,000 the same time last year.
Cairn said it remains "vigilant" to the challenging environment today, including continued cost inflation, interest rate increases and geopolitical developments.
"Our business is now operating at scale and providing new homes across all tenures - first time buyers, trade-up/down, institutional, and State," it said.
"This ability to address the full spectrum of end customer, supported by our supply chain and subcontractors, enables Cairn's growth trajectory despite these headwinds," the company said.
"In the three years to 2024, we expect to deliver between 5,000 and 5,500 new homes and generate in excess of €500m in operating cashflow," it added.
"The business has experienced our best ever performance through the first half of 2022 and as anticipated, demand has continued to be exceptionally strong over the summer and autumn selling season," said Cairn's CEO Michael Stanley.
"With 22 active sites nationwide, involving an investment of nearly €350m in work in progress, we are guiding 1,500 closed sales and in excess of €600 million revenue by year-end," he added.
Mr Stanley said that social, affordable rental and affordable ownership homes now represent a much larger proportion of Cairn's output and this year it ill deliver over 500 new homes for or through State agencies.
"Recent sales also include homes across five of our developments to first time buyers who have been able to avail of the Government's new First Home shared equity scheme. This and other supports are absolutely crucial, particularly at a time when building costs continue to increase and mortgage costs are rising," he stated.
Shares in the company moved higher in Dublin trade today.
