Cairn Homes Plc: Trading Update for the Year Ended 31 December 2024
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Cairn Homes Plc (CRN)
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 units1, c.€145 million operating profit and 15% ROE2.
Key Highlights
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.
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. 2 ROE (Return on Equity) is defined as Profit after Tax divided by Total Equity at Year End. 3 Preparation of the Full Year 2024 results is ongoing and subject to audit. 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. 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.
Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. |
| 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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