Cairn Homes Plc: Results for the Year Ended 31 December 2024

Results for the Year Ended 31 December 2024

Delivered ROE1 of 15.1%

Dublin / London, 27 February 2025: Cairn Homes plc (“Cairn”, the “Company” or the “Group”) (Euronext Dublin: C5H / LSE: CRN) today announces its preliminary results for the year ended 31 December 2024.

The Company delivered a very strong financial and operating performance in 2024, delivering significant growth and a ROE1 of 15.1% against the backdrop of continuing favourable market conditions. Cairn remains on track for another year of growth in volumes, revenue and profitability in 2025.

Key Financial Highlights

• Generated revenues of €859.9 million, a 29% increase on 2023 (€666.8 million) from 2,241 units5 (2023: 1,741 units).
• Our average selling price (net of VAT) during the period was €383,000 (2023: €389,000)6. This competitive price point has been achieved by driving significant efficiency and innovation as we continue to deliver value for money for our customers.
• Gross profit of €187.0 million (2023: €147.6 million), resulting in a gross margin of 21.7% (2023: 22.1%).
• Operating costs of 4.3% of revenue (2023: 5.1%) as we continue to drive productivity in our scaled operating platform.
• Basic EPS increased by 41% to 17.9 cent (2023: 12.7 cent).
• Returned €115.3 million to shareholders through our share buyback programmes and our progressive dividend policy.
• DPS3 increased by 30% to 8.2 cent (2023: 6.3 cent), including proposed final dividend of 4.4 cent (subject to shareholder approval at our AGM on 8 May 2025) representing a payout ratio7 of approximately 46%.
• Generated €134.7 million in operating cash flow, a 26% increase on the €107.0 million generated in 2023.
• Invested €99.5 million (2023: €57.9 million) on strategic land acquisitions, underpinning our future growth.
• Net debt of €154.4 million (2023: €148.3 million).
• In February 2025, the Company successfully completed a refinancing of its sustainability linked syndicate facility with Allied Irish Banks plc, Bank of Ireland and Home Building Finance Ireland, increasing it by €75 million to €402.5 million and extending the duration to June 2029 with an option to extend a further year. The Company now has access to €460 million of facilities to support the continued growth into the medium term.

Key Operational and Sustainability Highlights

• Significantly invested in our construction activities with over 4,100 new homes commencements (2023: 2,162), including 10 new large-scale developments. This will see us significantly increase our construction work-in-progress (WIP) spend in 2025.
• Continued focus on driving efficiencies in our construction activities from our scale, innovation and digital construction agenda resulted in build cost inflation of less than 2%.
• Our closed and forward order book has increased to 2,593 new homes with a net sales value of €989 million. This compares to a closed and forward order book value of €946 million and 2,473 new homes at this time last year.
• Entered into a number of forward fund transactions8 which will see us deliver c.2,150 social and affordable homes over a multi-year period. We are progressing a number of other forward fund transactions which we expect to enter into in H2 2025.
• Continued our commitment to be a leader in sustainable construction with 72% of our 2024 commencements on Biodiversity Net Gain sites. 
• With over 2,000 new homes commenced, we continue to achieve significant momentum at our flagship Seven Mills development with over 3,500 people expected to be living in this new town by the end of 2025.
• Won the prestigious Green Transformation Award at the Green Awards 2025 recognising our role as Ireland’s first developer to build new homes to the Passive House standard at scale. We will have commenced 2,750-3,000 new homes to Passive House standard by the end of 2025.
• Ranked in Time Magazine’s Top 100 global companies (Top Three in Ireland) for ‘World’s Best Companies in Sustainable Growth 2025’, which identifies companies globally that have demonstrated both outstanding financial and environmental performance.

Macroeconomic and Housing Backdrop

• Ireland remains one of the strongest performing economies in the EU with modified domestic demand forecast to increase from 3.9% to 4.1% in 2025 (source: ESRI). It continues to benefit from a more normalised inflation environment (1.4% in December 2024), record and near full employment, strong consumer spending and a growing population.
• The Programme of the newly elected Government has outlined various supportive measures including extending Help to Buy and First Homes Schemes for first time buyers (“FTB”) to 2030.
• The Government is also seeking to reform infrastructure, delivery and planning to support the acceleration of housing delivery to over 300,000 new homes by 2030. Annual completion targets have significantly increased with a target of averaging 50,000 new homes per annum announced in November 2024, increasing to 60,000 by 2030. This includes building an average of over 12,000 new social homes per annum.
• Mortgage market conditions remain positive. FTB mortgage drawdowns for new homes in 2024 were at €3.1 billion, an increase of over 13% in volume and 15% in value compared to 2023 (source: BPFI). Green mortgages are also available for A2 rated new Cairn homes at meaningful discounts to equivalent standard fixed rates.

Outlook and Guidance

We expect 2025 to be another strong year as we look to leverage our operational competitive advantages into the medium term. Reflecting the positive business environment the Company will continue to expand our investment in our construction activities this year whilst distributing surplus cash flow and capital to shareholders.

The Company is providing guidance for FY25 as follows:

• Revenue growth in excess of 10%;
• Operating profit of c.€160 million; and
• ROE1 of c.15.5%.

Commenting on the results, Michael Stanley, CEO, said:

“We took a material step, right across our business, in operational performance and volume delivery in 2024. We also made significant progress in our financial performance based on a foundation of continuous and substantial investment in the delivery of new homes for private buyers and for the State. We will continue to be relentless in driving efficiencies through scale, innovation, digital and sustainable construction to deliver new homes at pace, scale and value for money. We look forward to another strong year of growth in housing output.

The newly elected Government has put new home delivery front and centre in its Programme for Government. While policy makers give due consideration to the strategic challenges surrounding housing delivery in the medium term, there are numerous quick wins that can deliver substantially more homes in the short term. This is the time for the Government to be brave and I have confidence that we and the broader industry will respond in kind”.

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

Gavin McLoughlin  

An analyst and investor call will be hosted by Michael Stanley, CEO, and Richard Ball, CFO, today 27 February 2025 at 8.30am (GMT). To participate in the call, register using the dial-in details (quoting the access code 731657) or use the registration link below:

Dial-in Details

Registration Link: 

https://www.netroadshow.com/events/login?show=35132a09&confId=76594

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.16,150 unit landbank across 38 residential development sites, over 90% of which are located in the Greater Dublin Area (GDA) with excellent public transport and infrastructure links.

Note Regarding Forward-Looking Statements

Some statements in this announcement are, or may be deemed to be forward-looking with respect to the financial condition, results of operations, business, viability and future performance of Cairn and certain plans and objectives of the Company. They represent our expectations for our business and involve risks and uncertainties. We have based these forward-looking statements on our current expectations and projections about future events. We believe that our expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond our control, and which include, among other factors policy, brand, economic, financial, development, compliance, people and climate risks, our actual results or performance may differ materially from those expressed or implied by such forward-looking statements. Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. These forward-looking statements are made as of the date of this document. Cairn expressly disclaims any obligation or undertaking to publicly update or revise these forward-looking statements, other than as required by applicable law.

CHIEF EXECUTIVE STATEMENT

FINANCIAL HIGHLIGHTS

The Group delivered another excellent trading year in 2024 with 2,241 units5 (2023: 1,741 units). Revenues were €859.9 million, a 29% increase on the €666.8 million delivered in 2023. Of this, €838.5 million came from residential closed sales (2023: €649.9 million), while other sales including the sale of development sites contributed €21.4 million (2023: €16.9 million).

Gross profit for the year was €187.0 million (2023: €147.6 million), resulting in a gross margin of 21.7% (2023: 22.1%). The reduction in gross margin was primarily due to the product mix and a significant increase in the delivery of competitively priced affordable homes for State supported counterparties. The Group continues to mitigate the effects of build cost inflation by focusing on our procurement strategy, driving further efficiencies in our construction activities from our scale, innovation and digital construction agenda.

Operating profit for the year was €150.0 million, a 32% increase from the €113.4 million operating profit achieved in 2023, resulting in an operating margin of 17.4% (2023: 17.0%). Operating expenses were €37.0 million (2023: €34.2 million), reflecting the investment we are making in our people, systems and processes to support and underpin our continued growth.

Finance costs for the year were €15.1 million (2023: €14.1 million). In delivering a 29% increase in revenue, there was an increase in our working capital investment throughout the year, leading to higher average drawings on our committed debt facilities.

Profit after tax was €114.6 million (2023: €85.4 million), equating to basic earnings per share of 17.9 cent (2023: 12.7 cent).

As at 31 December 2024, the Company had inventories totalling €862.1 million, down from €943.4 million as at 31 December 2023. This included €615.7 million in land held for development (31 December 2023: €609.2 million), and construction work-in-progress (WIP) of €246.4 million (31 December 2023: €334.3 million).

The increase in land held for development followed the release of land costs from the 2,241 units5 in 2024, totalling €93.0 million, offset by strategic land acquisitions during the year totalling €99.5 million. The €87.9 million decrease in WIP was primarily due to the release of costs associated with the sale of 2,241 units5, totalling €572.2 million, offset by an investment of €484.3 million in WIP during the year.

The Group generated operating cash flow of €134.7 million in the year (2023: €107.0 million), after spending €99.5 million (2023: €57.9 million) on strategic land acquisitions.