Results for the Year Ended 31 December 2024

Delivered ROE1 of 15.1%

Dublin / London, 27 February 2025: Cairn Homes plc (“Cairn”, the “Company” or the “Group”) (Euronext Dublin: C5H / LSE: CRN) today announces its preliminary results for the year ended 31 December 2024.

The Company delivered a very strong financial and operating performance in 2024, delivering significant growth and a ROE1 of 15.1% against the backdrop of continuing favourable market conditions. Cairn remains on track for another year of growth in volumes, revenue and profitability in 2025.

Key Financial Highlights

Key Operational and Sustainability Highlights

Macroeconomic and Housing Backdrop

Outlook and Guidance

We expect 2025 to be another strong year as we look to leverage our operational competitive advantages into the medium term. Reflecting the positive business environment the Company will continue to expand our investment in our construction activities this year whilst distributing surplus cash flow and capital to shareholders.

The Company is providing guidance for FY25 as follows:

• Revenue growth in excess of 10%;
• Operating profit of c.€160 million; and
• ROE1 of c.15.5%.

Commenting on the results, Michael Stanley, CEO, said:

“We took a material step, right across our business, in operational performance and volume delivery in 2024. We also made significant progress in our financial performance based on a foundation of continuous and substantial investment in the delivery of new homes for private buyers and for the State. We will continue to be relentless in driving efficiencies through scale, innovation, digital and sustainable construction to deliver new homes at pace, scale and value for money. We look forward to another strong year of growth in housing output.

The newly elected Government has put new home delivery front and centre in its Programme for Government. While policy makers give due consideration to the strategic challenges surrounding housing delivery in the medium term, there are numerous quick wins that can deliver substantially more homes in the short term. This is the time for the Government to be brave and I have confidence that we and the broader industry will respond in kind”.

For further information, contact:

Cairn Homes plc          +353 1 696 4600

Michael Stanley, Chief Executive Officer

Richard Ball, Chief Financial Officer

Stephen Kane, Director of Corporate Finance & Investor Relations

Ailbhe Molloy, Investor Relations Manager

Drury Communications         +353 1 260 5000

Billy Murphy

Claire Fox

Gavin McLoughlin  

An analyst and investor call will be hosted by Michael Stanley, CEO, and Richard Ball, CFO, today 27 February 2025 at 8.30am (GMT). To participate in the call, register using the dial-in details (quoting the access code 731657) or use the registration link below:

Dial-in Details

Registration Link: 

https://www.netroadshow.com/events/login?show=35132a09&confId=76594

Notes to Editors

Cairn is an Irish homebuilder committed to building high-quality, competitively priced, sustainable new homes and communities in great locations. At Cairn, the homeowner is at the very centre of the design process. We strive to provide unparalleled customer service throughout each stage of the home-buying journey. A new Cairn home is expertly designed, with a focus on creating shared spaces and environments where communities thrive. Cairn owns a c.16,150 unit landbank across 38 residential development sites, over 90% of which are located in the Greater Dublin Area (GDA) with excellent public transport and infrastructure links.

Note Regarding Forward-Looking Statements

Some statements in this announcement are, or may be deemed to be forward-looking with respect to the financial condition, results of operations, business, viability and future performance of Cairn and certain plans and objectives of the Company. They represent our expectations for our business and involve risks and uncertainties. We have based these forward-looking statements on our current expectations and projections about future events. We believe that our expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond our control, and which include, among other factors policy, brand, economic, financial, development, compliance, people and climate risks, our actual results or performance may differ materially from those expressed or implied by such forward-looking statements. Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. These forward-looking statements are made as of the date of this document. Cairn expressly disclaims any obligation or undertaking to publicly update or revise these forward-looking statements, other than as required by applicable law.

CHIEF EXECUTIVE STATEMENT

FINANCIAL HIGHLIGHTS

The Group delivered another excellent trading year in 2024 with 2,241 units5 (2023: 1,741 units). Revenues were €859.9 million, a 29% increase on the €666.8 million delivered in 2023. Of this, €838.5 million came from residential closed sales (2023: €649.9 million), while other sales including the sale of development sites contributed €21.4 million (2023: €16.9 million).

Gross profit for the year was €187.0 million (2023: €147.6 million), resulting in a gross margin of 21.7% (2023: 22.1%). The reduction in gross margin was primarily due to the product mix and a significant increase in the delivery of competitively priced affordable homes for State supported counterparties. The Group continues to mitigate the effects of build cost inflation by focusing on our procurement strategy, driving further efficiencies in our construction activities from our scale, innovation and digital construction agenda.

Operating profit for the year was €150.0 million, a 32% increase from the €113.4 million operating profit achieved in 2023, resulting in an operating margin of 17.4% (2023: 17.0%). Operating expenses were €37.0 million (2023: €34.2 million), reflecting the investment we are making in our people, systems and processes to support and underpin our continued growth.

Finance costs for the year were €15.1 million (2023: €14.1 million). In delivering a 29% increase in revenue, there was an increase in our working capital investment throughout the year, leading to higher average drawings on our committed debt facilities.

Profit after tax was €114.6 million (2023: €85.4 million), equating to basic earnings per share of 17.9 cent (2023: 12.7 cent).

As at 31 December 2024, the Company had inventories totalling €862.1 million, down from €943.4 million as at 31 December 2023. This included €615.7 million in land held for development (31 December 2023: €609.2 million), and construction work-in-progress (WIP) of €246.4 million (31 December 2023: €334.3 million).

The increase in land held for development followed the release of land costs from the 2,241 units5 in 2024, totalling €93.0 million, offset by strategic land acquisitions during the year totalling €99.5 million. The €87.9 million decrease in WIP was primarily due to the release of costs associated with the sale of 2,241 units5, totalling €572.2 million, offset by an investment of €484.3 million in WIP during the year.

The Group generated operating cash flow of €134.7 million in the year (2023: €107.0 million), after spending €99.5 million (2023: €57.9 million) on strategic land acquisitions.