Cairn Homes defies housebuilding gloom after delivering report gross sales

Cairn Homes defied a downbeat temper amongst housebuilders after delivering report gross sales in 2023, with the Irish agency predicting one other bumper yr forward.  

Cairn reported 1,741 new dwelling gross sales in 2023, up from 1,526 the earlier yr, producing income of €665.0 million (£573million), up from €617.4million in 2022.

The London-listed group’s ahead order e book for 2024 was valued at €900million and a couple of,350 properties, practically triple the ahead order e book worth of €374million on the identical time the earlier yr.

Irish housebuilder Cairn Homes tripled its ahead order e book worth and delivered report gross sales

It made an working revenue of €113.4 million (£97.7million) over the 12 months, up from €103million in 2022, and improved its working margin from 16.7 per cent to 17 per cent.

Chief government Michael Stanley mentioned: ‘Our company is experiencing sustained positive momentum.

‘We are building record numbers of new homes and we have delivered our strongest ever operational and financial performance in 2023. 

‘Continued reinvestment in our building platform and a €900million sales pipeline as we start the new year leaves us poised to grow our business by a further 30 per cent in 2024.’

Cairn’s outcomes are in distinction to latest updates from some friends, with Crest Nicholson slashing its revenue outlook and Taylor Wimpey warning of market uncertainty. 

However, York-based Persimmon constructed extra properties than anticipated in 2023, whereas Vistry’s ahead gross sales place was up 12.4 per cent year-on-year to £4.5billion.

Builders suffered a slowdown in demand for properties in 2023 as excessive mortgage prices put consumers off, whereas corporations have additionally been hit by a rising value of supplies and wages.

Consequently, final yr noticed a big drop within the variety of new properties constructed and offered.

Contracts awarded for development initiatives within the UK fell by £11.1billion to £69.2billionn in 2023 after a report prior yr, with residential housebuilding offers slumping by 13 per cent, in response to trade analysts Barbour ABI.

Easing mortgage charges amid expectations that the Bank of England may lower rates of interest prior to anticipated and will present some reduction for the housing sector however wider financial challenges together with recession fears have dented hopes of a sturdy restoration.

In the primary three months of 2024, Cairn expects to shut 500 new properties, and a couple of,200 for the full-year, and likewise expects an working revenue of €145million.

Stanley mentioned: ‘More broadly, year-on-year housing supply is growing. Yet, despite essential Government supports, a mere 10 per cent of annual housing transactions are newly built homes purchased by First Time Buyers. 

‘Only just over 5,000 young families received keys to new homes in Ireland in the past 12 months.

‘Encouragingly, awareness and take up of the First Home shared equity scheme is improving. 

‘However, a significant increase in the supply of new homes is needed, and at sales prices below the caps set by the Government for this crucial support.’

Shares in Cairn Homes have been up practically 4 per cent to 119.2p on Tuesday morning.