Housebuilder plans listing after 1,000% revenue spike

Irish housebuilder Cairn Homes PLC has announced its intention to seek a primary listing on the Irish Stock Exchange (ISE) after posting a 1,005% surge in revenues last year.

In its preliminary results for the year ended 31st December 2016, the Dublin-based company reported total revenues of €40.9m (approximately £35.5m), marking a 10-fold rise on the €3.7m (approximately £3.2m) posted in 2015.

This revenue was largely attributed to 105 completions, with forward sales of 301 units at a gross sales value of €121.2m (approximately £105m) also expected to complete this year.

The company will now seek a primary listing on the ISE during 2017.

Michael Stanley, CEO at Cairn Homes, said: "We have made significant progress during 2016, both in terms of construction activity and sales performance.

“We are now building on seven sites in the Greater Dublin area, with additional sites due to commence later this year.

“We believe that this expansion is well timed, as the supply/demand imbalance for new homes, particularly in the Greater Dublin area – where the vast majority of our land bank is located – remains as stark as it was at the time of our IPO.”

Cairn Homes reported operating profits of €3.6m (approximately £3.2m) for 2016, up from a loss of €3.8m (approximately £3.3m) in the previous year.

The company also revealed that its weekly sales run rate had climbed from 10 per week in Q4 2016 to 19.7 per week in Q1 2017 to date, and has now doubled its build rate to over 250 units and 200 units per annum at its Parkside and Ashbourne development sites respectively in response to this demand.

"2017 will be a transformative year for Cairn, and with strengthening mortgage-backed demand, we now expect to close between 375 and 400 units in the current year,” added Michael.

“This underpins our confidence in achieving our 2018 and 2019 targets of in excess of 850 units and 1,200 units respectively."

Leave a comment