Ireland’s largest homebuilder Cairn Homes confirmed it had posted its strongest-ever performance in the second half of 2021, despite rising cost inflation.
In preliminary 2021 results released today, Cairn said revenue for 2021 was €424 million, up 62 per cent from 2020, as 1,120 new homes were sold.
The average sales price for starter houses in 2021 was €350,000 including VAT, around €2,000 more than in 2020.
Gross margin increased 19.8 percent from 2020, up 3.5 percent, while operating income of €58 million increased 139 percent from 2020.
Operating cash flow was better than expected at €132 million, taking the company into profitability after posting negative cash flow in 2020 and leaving net debt at €109 million, down €58.8 million from 2020.
It enabled the resumption of progressive common dividends and a $75 million share buyback program.
“We sold our 5,000th home in 2021 in our seventh year of business and we expect to build at least that number again over the next three years,” said Chief Executive Michael Stanley.
“Our financial performance allows us to reinvest heavily in our business to drive this significant growth in delivery and underpin our contribution to meeting the housing needs of our society.”
Cairn has an upbeat outlook for 2022, expecting sales to exceed £600m
Construction cost inflation is expected to average €10,000 per new home built, which has not affected expected operating profits, which at €100m are at the top of Cairns’ previous range. Cairn now expects an operating profit margin of around 16.5% this year.
https://www.independent.ie/business/irish/cairn-homes-reports-record-sales-despite-rising-inflation-41406020.html Cairn Homes reports record sales despite rising inflation