Cairn Homes Plc (CRN)
Trading Update for the Year Ended 31 December 2022
Cairn Grows Revenues by 46% and Completes Over 1,500 Closed Sales in 2022
Dublin / London, 9 January 2023: Cairn Homes plc (“Cairn”, “the Company” or “the Group”) today issues a trading update for the year ended 31 December 2022 in advance of full year results to be announced on 2 March 2023.
FY 2022 Trading Update
The Company delivered a very strong performance in 2022 in respect of new homes sold and revenue generation, both ahead of market guidance:
Cairn has a proven track record as a high quality housebuilder. Allied with our design and construction capability on higher-density apartment schemes, this gives us a unique competitive advantage and supports growth across our multiple and expanding market segments.
The Company has a large and principally planning consented residential landbank, including full planning permission on all of our forecasted units for this year. We will be active on 20 developments nationwide during 2023, underpinning our continued and ambitious volume growth trajectory.
Cairn enters 2023 with our largest ever forward sales pipeline of over 1,100 new homes and we are confident of making further financial progress in the year ahead.
The Irish economy is expected to grow again in 2023 with the Government forecasting a second year of an exchequer surplus. Inflation and interest rates remain a concern, however, population growth, family formation numbers, strong employment, a healthier banking environment and more Government initiatives than ever to support home buyers are all positive tailwinds.
The Company will provide guidance and an update on capital allocation for FY 2023, together with details of our FY 2022 final dividend, when we release our full year results on 2 March 2023.
Commenting on the full year 2022 trading update, Michael Stanley, Chief Executive Officer, said:
“Cairn is proud to have become the first company in Ireland to deliver over 1,500 new homes in a calendar year. This included a broad mix of first time buyer houses and duplexes, houses and apartments for second time buyers, and apartments for the private and affordable rental markets.
Our completions last year also included 495 new Social & Affordable homes delivered across our larger developments nationwide. We expect to significantly grow this output in 2023 and continue to provide value and timely delivery for our partners in Local Authorities, Approved Housing Bodies and the Land Development Agency.
We witnessed exceptional levels of demand from first time buyers, many of whom are now able to avail of impactful Government supports including the recently launched First Home shared equity scheme. Considering the level of embedded build cost inflation throughout the last two years coupled with significant interest rate increases, many of these customers would not otherwise be able to purchase their new family homes.
Looking at the wider market, Ireland has increased its working population by 500,000 to over 2.5 million people in the last six years. Supply of new residential accommodation in response to this successful economic period has seen a significant increase in the number of lower density houses completed in suburban and regional areas. This well supported bias or misjudged focus means that new apartment developments close to any areas of high employment or multimodal transport links remain virtually non-existent.
Today, there are over 80,000 planned apartments in the pipeline, all of which meet new design and size standards. While many have been held up by our planning system or objections, nearly one third have full planning permission and should be under construction. Viability and funding remain challenging, however, our industry has the capacity to deliver, and working collaboratively with Government support, can address this damaging supply imbalance. Ireland’s sustainable social, environmental and economic future depends on it.”
For further information, contact:
Cairn Homes plc +353 1 696 4600
Michael Stanley, Chief Executive Officer
Shane Doherty, Chief Financial Officer
Ian Cahill, Head of Finance
Declan Murray, Head of Investor Relations
Drury Communications +353 1 260 5000
Notes to Editors
Cairn Homes plc (“Cairn”) is the leading Irish homebuilder committed to building high-quality, competitively-priced, sustainable new homes in great locations. At Cairn, the homeowner is at the very centre of the design process and we strive to provide an unparalleled customer service throughout each stage of the home-buying journey. A new Cairn home is thoughtfully designed and built to last with a focus on creating shared spaces and environments where communities prosper. Cairn owns a c. 16,700 unit landbank, over 90% of which are located in the Greater Dublin Area (“GDA”) with excellent public transport and infrastructure links.
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