Cairn Homes maintains guidance as demand stays strong

10th May 2024 08:45

(Sharecast News) - Irish homebuilder Cairn Homes has reiterated its full-year guidance after a strong start to the year, saying demand for new homes remains "exceptionally high", as it reported a forward order book of more than €1bn.

The current forward order book stands at €1.05bn, representing 2,750 new homes, 1,000 of which will be delivered in 2025 and beyond.

This was up from a forward order book of €946m and 2,473 homes on 29 February when it published its annual results.

"The demand backdrop for our well located, energy efficient new homes remains exceptionally high across all tenure types," the company is expected to say at its annual general meeting in Dublin on Friday.

"In our core first time buyer market, State supports for our customers, a more favourable mortgage market and the limited supply of competitively priced starter homes are driving the positive momentum in our business."

Cairn said it continues to expect to deliver 2,200 units in 2024, compared with 1,741 sales completions in 2023. It also is targeting an operating profit of €145m, up from €113.4m in 2023, with a return on equity of 15%, up from 11% previously.

"We are pleased that our housing output will grow by nearly 30% this year and our forward order book of in excess of €1 billion is a testament to the exceptional demand for our homes," said chief executive Michael Stanley.

"What is equally pleasing is that the broader industry is ramping up completions and government initiatives are working."

Shares were up 2% at 143.87p by 0907 BST.