REG-Cairn Homes Plc Cairn Homes Plc: Trading Update for the Year Ended 31 December 2024

Cairn HomesAnnouncement

14/01/2025 07:15

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   Cairn Homes Plc (CRN)
   Cairn Homes Plc: Trading Update for the Year Ended 31 December 2024

   14-Jan-2025 / 07:00 GMT/BST

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               Trading Update for the Year Ended 31 December 2024

         Sustainable operating platform delivering in excess of 15% ROE

                                        

   Dublin / London, 14 January 2025: Cairn Homes plc (“Cairn”, “the  Company”
   or “the Group”) (Euronext Dublin: C5H  / LSE: CRN) today issues a  trading
   update for the year ended 31 December 2024 in advance of full year results
   to be announced on 27 February 2025.

    

   Outperformed FY24 Guidance

   The Company has  again delivered  an excellent  financial and  operational
   performance in 2024, achieving c.30% growth in housing output and  beating
   our 2024 guidance  of c.2,200 closed  units 1 1, c.€145 million  operating
   profit and 15% ROE 2 2.

    

   Highlights            2024 3 3 2023    Movement
   Revenue (€m)          c.860.0  666.8    +c.29%
   Closed units           2,243   1,741     +29%
   Gross margin (%)      c.21.7%  22.1%   -c.40bps
   Operating profit (€m) c.150.0  113.4    +c.32%
   ROE (%)                15.1%   11.3%   +380bps

    

   Key Highlights

     • Significantly invested in our construction activities with over  4,100
       new homes commencements  (2023: 2,162), including  10 new  large-scale
       developments.
     • Forward order book increased  to 2,361 new homes  (net sales value  of
       c.€910 million) at  year-end. This  compares to a  forward order  book
       value of c.€900 million and 2,350 new homes at this time last year.
     • Our average selling price (net of VAT) during the period was  €383,000
       (2023: €389,000) delivering a gross  margin of c.21.7% (2023:  22.1%).
       This is  reflective  of  a  significant step-up  in  the  delivery  of
       competitively priced affordable homes for our State partners. 
     • Our efficient  platform  generated  an improved  operating  margin  of
       c.17.4% (2023:  17.0%)  with operating  costs  below 4.5%  of  revenue
       (2023: 5.1%). 
     • Closed a number  of forward  fund transactions 4 4 which  will see  us
       deliver c.2,150 social and affordable  homes over a multi-year  period
       including a transaction  with the Land  Development Agency, our  first
       under the Project Tosaigh 2 platform.
     • Continued to evolve  our land  acquisition strategy  signing four  new
       option deals, adding  to our established  strategic landbank. We  have
       already closed and commenced construction on one of these sites  which
       will deliver new homes in 2025.
     • Returned over €115 million to  shareholders through our share  buyback
       programmes and our progressive dividend policy.
     • Released our Climate  Transition Plan 5 5 and  Passive House  Position
       Paper, continuing  our  commitment  to  be  a  leader  in  sustainable
       construction. This is  evidenced by having  commenced more than  1,750
       apartments  to  Passive   House  standard  which   will  increase   to
       2,750-3,000 units by the end of 2025.

    

   FY25 Outlook & Guidance

   After an  exceptional  2024  performance, the  Company  will  continue  to
   reinvest in our business and distribute  surplus cash flow and capital  to
   shareholders. Our consistent and proven  track record of paying  dividends
   in  line  with  our  progressive  dividend  policy  to  shareholders  will
   continue.

   2025 will be our  tenth year in  business, and is  expected to be  another
   strong year for Cairn, with revenue growth exceeding 10%. The Company will
   significantly expand our  investment in our  construction activities  this
   year, as we look to  leverage our operational competitive advantages  into
   the medium  term.  This  investment  will  see  the  Company  meaningfully
   increase our sales to  our core First Time  Buyer market. Ten new  private
   launches are planned  in H1 2025,  including our first  two Croí  Cónaithe
   approved apartment  developments  for  owner occupiers.  There  remains  a
   limited supply of competitively priced and well located new starter  homes
   and the  supportive economic  backdrop continues  to drive  very  positive
   momentum. The Company  will provide  more detailed FY25  guidance when  we
   release full year 2024 results on 27 February 2025.

   Commenting on the full  year 2024 trading  update, Michael Stanley,  Chief
   Executive Officer, said:

   “We grew our business  by 30% in a  very successful 2024. This  represents
   the biggest  annual step-up  in operational  and volume  growth since  the
   Company was established. Cairn’s scaled platform, strong balance sheet and
   our continual  reinvestment will  support  further significant  growth  in
   housing output in 2025. Entering our tenth year in business, we are  proud
   that nearly 30,000 residents now live in a Cairn built home. 

    

   With the  imminent  formation of  a  new Government,  intense  focus  will
   quickly shift  to  housing  policy.  While  this  remains  a  complex  and
   multi-faceted challenge, the  new Government must  continue to  prioritise
   essential affordable housing delivery. The current suite of  well-designed
   affordable housing  initiatives  include Croí  Cónaithe,  Local  Authority
   Affordable Purchase and Cost Rental accommodation (CREL). These proven and
   effective measures are however currently  sub-scale, in need of  increased
   investment, broader awareness and support.

    

   Ireland’s stuck  middle is  made  up of  hundreds  of thousands  of  young
   working people, desperately trying to avail  of the new homes which  these
   affordable housing initiatives  can deliver. In  2024, c.3,000 CREL  homes
   were successfully  delivered  by  Approved Housing  Bodies  and  the  Land
   Development Agency. On completion, these  homes were offered on  long-term
   secure tenancies, at  discounted rents,  to people on  net salaries  below
   €66,000  for  Dublin  and   €59,000  elsewhere.  Over  50,000   individual
   applications were submitted by people hoping  to live in one of these  new
   mixed-tenure developments.

    

   The State plays a pivotal role,  directly and indirectly, in the  delivery
   of vital social housing in Ireland. However, the State can play an equally
   pivotal role in supporting the delivery of affordable homes for the  stuck
   middle. Affordable housing policies should also be expanded to attract  or
   partner with international and domestic private capital. This will  reduce
   the  burden  on  the  State  and  make  increased  housing  targets   more
   realisable.”

    

   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

   Andrew Smith  

    

    

   Notes to Editors

    

   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.15,750  unit  landbank  across  39
   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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    6 1 This comprises both closed units and equivalent units. Equivalent
   units relate to forward fund transactions which are calculated on a
   percentage completion basis based on the constructed value of work
   completed divided by total estimated cost.

    7 2 ROE (Return on  Equity) is  defined as  Profit after  Tax divided  by
   Total Equity at Year End.

    8 3 Preparation of the Full Year 2024  results is ongoing and subject  to
   audit.

    9 4 Forward fund transactions involve Cairn delivering new homes under  a
   contractual relationship where the land is  sold up-front and the cost  of
   delivering the new homes is paid on a phased basis.

    10 5 Committing to a 46.2% absolute reduction in Scope 1 & 2 emissions by
   2030, a 61% reduction in Scope 3  intensity by 2030 and submission of  Net
   Zero targets by 2025.

    

    

    

    

    

    

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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.:   370247
   EQS News ID:    2066783


    
   End of Announcement EQS News Service

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