Cairn Homes sees full-year operating profit reaching up to €110m
Cairn Homes said on Tuesday it expects its full-year operating profit to rise to between €105 million and €110 million, as increased home sales offset the effect of inflation on construction.
This would represent a 2-6.8 per cent increase on last year’s profit of €103 million.
The Dublin-listed company also said in a trading update that it continues to forecast turnover of more than €650 million this year as its new home sales rise by as much as 20 per cent to 1,750-1,800 units, including 800 social and affordable units.
All of the company’s forecast new home sales for this year and almost 90 per cent of expected closings in 2024 have full planning permission, the company said.
The update, issued just four days after the end of the first half of its financial year, said that Cairn closed 535 new home sales during the period, generating core revenue of €215 million.
“Sales pricing levels were relatively flat in the period despite persistent, if moderating, build cost inflation which is expected to be circa €10,000 per unit in 2023,” said the company, led by chief executive Michael Stanley.