Cairn sees significant increase in FY revenues

Cairn Homes' revenues increased significantly in the year to the end of December to around €149m (2016: €40.9m), including about €131m in residential revenue from 418 unit sales (2016: 105 units).

The company's average selling price in the period was €314,000 excluding VAT (2016: €295,000) and it estimated full year EBITDA at around €14.5m to €15m (2016: €3.8m).

Cairn said market conditions remain positive with continued strong demand for new starter homes, trade-up/mover new homes and premium apartments witnessed in the autumn 2017 selling season.

The company said it believed that the supply of new residential homes in the Irish market would continue to undershoot demand significantly in 2018 and 2019.

And it said this, allied with strong demographics, strengthening mortgage market fundamentals and a growing economy were all supportive of Cairn's business model.

The company said it has started 2018 with a strong forward sales pipeline with a net sales value of €134.3m (348 units at an average selling price of €386,000 excluding VAT) which underpins H1 2018 sales.

It said the increase in average selling price reflected the higher number of apartments in the forward sales pipeline.

Chief executive Michael Stanley said: 'Achieving 418 home sales is a very strong outcome in our second full trading year.

'We completed sales on seven separate developments during the year.

'Our practice of acquiring and building on larger scale developments, on average in excess of 400 units, allowed us to respond quickly to increased demand during 2017.

'Given the quality and historical cost of our land bank, our dual focus on competitively priced houses and premium apartments and our increasing operational capability, we continue to look forward with confidence.'

At 8:00am: (LON:CRN) Cairn Homes Plc share price was -0.04p at 1.95p