REG-Cairn Homes Plc Cairn Homes Plc: 2024 AGM Trading Update

Cairn HomesAnnouncement

10/05/2024 07:15

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   Cairn Homes Plc (CRN)
   Cairn Homes Plc: 2024 AGM Trading Update

   10-May-2024 / 07:00 GMT/BST

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                            2024 AGM Trading Update

                                        

   Dublin / London, 10 May 2024:  Cairn Homes plc (“Cairn”, “the Company”  or
   “the Group”)  (Euronext Dublin:  C5H /  LSE: CRN)  is holding  our  Annual
   General Meeting (“AGM”)  today at  12.00pm at The  Merrion Hotel,  Merrion
   Street Upper, Dublin  2 and in  advance provides the  following update  on
   current trading for FY24.

    

   Current Trading

     • The demand backdrop for our  well located, energy efficient new  homes
       remains exceptionally high across all tenure types. In our core  first
       time buyer market, State supports for our customers, a more favourable
       mortgage market and the limited supply of competitively priced starter
       homes are driving the positive momentum in our business.
     • The  Company  continues  to   grow  our  longer-term  sales   pipeline
       reflecting  the   increase  in   active  large   apartment   projects.
       Our current total  closed and  forward orderbook  now stands  at  over
       2,750 new homes and a net sales  value in excess of €1.05 billion  (29
       February 2024: 2,473 closed and forward  sales with a net sales  value
       of €946 million). Over 1,000 of these units will be delivered in  2025
       and beyond.
     • Our first three  forward fund transactions will  deliver nearly  1,300
       much needed Social & Affordable new homes, with the first  transaction
       at Parkside (368 new  homes) expected to close  in the short-term  and
       the other two transactions expected to complete in H2 2024.
     • Agreed commercial  terms with  a leading  university for  the  forward
       funded delivery  of  c.  500  student beds  in  a  scaled  development
       adjacent  to  their  campus.  The  student  accommodation  market   is
       significantly undersupplied and the Government has recently launched a
       new initiative  with  long-term  funding to  increase  the  supply  of
       affordable student housing.
     • Received seven new grants of planning permission for c.1,500 new homes
       through  both  the  Large-scale  Residential  Development  (LRD)   and
       Strategic  Development   Zones  (SDZ)   planning  processes,   further
       underpinning our medium-term delivery.
     • Increased our existing  €277.5 million sustainability-linked  facility
       by €50.0 million  (to €327.5 million).  Home Building Finance  Ireland
       (HBFI), the State supported lender,  will be joining our syndicate  of
       lenders. These funds will be used to support the ongoing growth of our
       established scaled operating  platform as  we continue  to expand  and
       invest in our business and replace maturing debt facilities.

    

   Reaffirming FY24 Guidance

     • The Company reaffirms our FY24 guidance:

     • c. 2,200 units 1  1 ;
     • Operating profit of c. €145 million; and
     • ROE of 15%.

     • The  Company  remains  committed  to  distributing  surplus  cash   to
       shareholders and our  significant cash generation  in 2024 and  beyond
       will continue to  fund consistent shareholder  returns. The  remaining
       c.€13 million  in the  FY23  share buyback  programme is  expected  to
       complete shortly,  at which  point the  Company will  issue a  further
       capital allocation update.

    

   Cairn will release a H1 2024 trading update in early July 2024 in  advance
   of 2024 interim results on 4 September 2024.

    

   Commenting on the trading update, Michael Stanley, CEO, said:

   “We are pleased that our housing output will grow by nearly 30% this  year
   and our forward order book  of in excess of €1  billion is a testament  to
   the exceptional demand for our homes. What is equally pleasing is that the
   broader industry is ramping up completions and Government initiatives  are
   working.”

   For further information, contact:

    

   Cairn Homes plc                  +353 1 696 4600

   Michael Stanley, Chief Executive Officer

   Richard Ball, Chief Financial Officer

   Stephen Kane, Director of Corporate Finance & Investor Relations

   Ailbhe Molloy, Investor Relations Manager

    

   Drury Communications                 +353 1 260 5000

   Billy Murphy

   Claire Fox

   Morwenna Rice  

    

   Notes to Editors

   Cairn Homes plc (“Cairn”)  is an Irish  homebuilder committed to  building
   high-quality, competitively priced, sustainable new homes and  communities
   in great locations. At Cairn, the homeowner  is at the very centre of  the
   design  process.  We  strive  to  provide  unparalleled  customer  service
   throughout each stage  of the  home-buying journey.  A new  Cairn home  is
   expertly designed, with a focus on creating shared spaces and environments
   where communities thrive. Cairn owns a  c. 16,300 unit landbank across  35
   residential development  sites,  over 90%  of  which are  located  in  the
   Greater  Dublin  Area   (“GDA”)  with  excellent   public  transport   and
   infrastructure links.

    

    

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    2  1  This comprises both closed sales units and equivalent units.
   Equivalent units relate to forward fund transactions and are calculated on
   a percentage completion basis based on the constructed value of work
   completed divided by total estimated cost.

    

    

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:           IE00BWY4ZF18
   Category Code:  TST
   TIDM:           CRN
   LEI Code:       635400DPX6WP2KKDOA83
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   320633
   EQS News ID:    1899895


    
   End of Announcement EQS News Service

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