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Cairn Homes pledges significant shareholder returns amid spike in sales

The Irish home builder expects revenue of more than €600mln and gross margin of 21.5% for the full year

Cairn Homes plc (LSE:CRN) more than tripled first-half profits, following its best-ever sales performance, and pledged "significant shareholder returns" in the coming years.

The Ireland-based mid-cap housebuilder expects demand for its new homes to remain high into 2023, and reported a current closed and forward sales pipeline in excess of €760mln.

In the three years to 2024, it said it expects to deliver at least 5,000 new homes and generate more than €500mln in operating cashflow, leading to "significant shareholder returns".

For the full year, the company expects revenue of more than €600mln from 1,500 closed new home sales and with gross margin to remain at 21.5% as it did in the first half.

Revenue jumped 84% to €240.4mln for the half year, while operating profit rose over 200% to €36.2mln.

An interim dividend of 3.0c per share was announced versus 2.66c a year ago.

"Cairn remains vigilant to the challenging environment today, including continued cost inflation, interest rate increases and geopolitical developments," the company said in a statement.

Shares were trading 1.52% higher at 87.10p in London.

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