REG-Cairn Homes Plc Cairn Homes Plc: H1 2023 Trading Update

Cairn HomesAnnouncement

04/07/2023 07:15

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   Cairn Homes Plc (CRN)
   Cairn Homes Plc: H1 2023 Trading Update

   04-Jul-2023 / 07:00 GMT/BST

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              Trading Update for the Six Months Ended 30 June 2023

        Another Year of Significant Growth and Increased Housing Output

    

   Dublin / London, 4 July 2023:  Cairn Homes plc (“Cairn”, “the Company”  or
   “the Group”) (Euronext  Dublin: C5H  / LSE:  CRN) today  issues a  Trading
   Update for the six months ended 30 June 2023 in advance of interim results
   to be announced on 7 September 2023. 

    

   H1 2023 Highlights

     • Closed 535 new home  sales across all  tenures, including private  and
       State buyers, and generated total core revenue of c. €215 million.
     • Demand  for  our  nZEB  (nearly  zero-emission  building)   compliant,
       A2-rated new  homes remains  exceptionally strong  across starter  and
       trade-up/down houses, duplexes and scaled apartment developments.  The
       Company has agreed over 1,100 new home sales in the period.
     • Current closed and forward  sales pipeline has grown  by in excess  of
       300 new homes since our last update on 11 May 2023 to 2,230 new  homes
       with a net sales value of  over €800 million, strong evidence of  this
       demand dynamic.
     • Sales pricing  levels  were  relatively flat  in  the  period  despite
       persistent, if moderating, build cost  inflation which is expected  to
       be c. €10,000 per unit in FY23.
     • All four  annual sustainability  performance targets,  aligned to  our
       decarbonisation, biodiversity and  people strategies, met  as part  of
       our €277.5  million  sustainability  linked term  loan  and  revolving
       credit facility.
     • The Board  intends to  announce a  c. 3.1  cent interim  dividend  per
       ordinary share at interim results on 7 September 2023.
     • €40 million  share  buyback  programme continuing  with  21.2  million
       ordinary shares repurchased at an average purchase price of €1.06  per
       share since 3 March 2023.

    

   H1 2023 – Macro Backdrop

     • The Irish Government is  forecasting a general  budget surplus of  €10
       billion this year  and a cumulative  2023 – 2026  surplus of over  €65
       billion (source: Stability Programme Update, April 2023).
     • Government housing policy  remains very supportive  through the  fully
       funded Housing for All strategy. Capital funding of €4 billion in 2023
       is supplemented by an additional €1 billion, announced in April  2023,
       in respect of development levy and water connection charge rebates and
       a new cost rental subvention scheme to deliver more affordable  rental
       homes.
     • Ambitious annual Social & Affordable new home delivery targets (14,600
       in 2023)  are complemented  by impactful  initiatives for  first  time
       buyers through  the Help  to Buy  and the  First Home  Scheme  (shared
       equity)  initiatives.  The  industry  is  responding   with  new  home
       completions increasing by 19% year-on-year in Q1 2023, resulting in  a
       twelve-month total of over  30,000 completions for  the first time  in
       over a decade (source: CSO).
     • The Irish mortgage  market remains  buoyant, with Q1  2023 first  time
       buyer mortgage drawdown volumes up 7% and values up 13%  year-on-year.
       First time buyer mortgage approvals were  up over 8% in volume in  the
       five months to May 2023 (source: BPFI).

    

   Reaffirming and Updating FY23 Guidance

     • The Company remains on course to deliver another year of growth across
       all key financial and operational metrics.
     • Unit closings,  profit and  cash generation  are, as  in prior  years,
       heavily weighted towards the second half of the year and current  full
       year guidance is reaffirmed and updated:

     • turnover in excess of €650 million from 1,750 – 1,800 closed new  home
       sales, with  H2  sales  closings including  our  new  developments  at
       Parkleigh, Clonburris and Sorrel Wood, Blessington. Within this, Cairn
       remains on target to  deliver over 800 Social  & Affordable new  homes
       nationwide;
     • core housebuilding gross margin of c. 21%; and
     • operating profit growth to €105 - €110 million.

     • All of our forecasted closed new home sales in 2023 and nearly 90%  of
       our expected closings in 2024 have full planning permission. This will
       underpin our  continued growth  as we  make progress  towards our  15%
       Return on Equity target.

    

   Commenting on the H1 2023 trading update, Michael Stanley, Chief Executive
   Officer, said:

    

   “Cairn is pleased to  be on course to  significantly increase our  housing
   delivery by up  to 20% targeting  between 1,750 and  1,800 new home  sales
   this year. We  are proud  to be delivering  this volume  of high  quality,
   energy efficient A-rated new homes to our customers.”
    

   The Company will release our 2023 interim results on 7 September 2023.

    

    

   For further information, contact:

    

   Cairn Homes plc                  +353 1 696 4600

   Michael Stanley, Chief Executive Officer

   Shane Doherty, Chief Financial Officer

   Declan Murray, Head of Finance and Treasury

    

   Drury Communications                 +353 1 260 5000

   Billy Murphy

   Claire Rowley

   Paul Clifford  

    

           

    

   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  34
   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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   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.:   255140
   EQS News ID:    1671717


    
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