Cairn Homes plc 2017 Full Year Trading Statement (0345B)
January 05 2018 - 1:00AM
UK Regulatory
TIDMCRN
RNS Number : 0345B
Cairn Homes plc
05 January 2018
5 January 2018
Cairn Homes plc
Trading Statement
Dublin/London, 5 January 2018: Cairn Homes plc ("Cairn", or the
"Company") (ISE:CRN, LSE:CRN), the Irish homebuilding company,
today issues a trading update for the year ended 31 December 2017
in advance of its Full Year Results which will be announced on 6
March 2018.
Revenues for 2017 increased significantly to c. EUR149m (2016:
EUR40.9m), including c. EUR131m in residential revenue from 418
unit sales (2016: 105 units). The Company's average selling price
in the period was EUR314,000 excluding VAT (2016: EUR295,000) and
the estimated full year EBITDA is c. EUR14.5m to EUR15m (2016:
EUR3.8m).
During the year, Cairn delivered completed sales across seven
separate developments in the Greater Dublin Area. These are
Parkside, Malahide Road; the Company's joint venture with NAMA
adjoining Parkside; Churchfields, Ashbourne; Shackleton Park,
Lucan; Glenheron, Greystones; Albany, Killiney; and the
award-winning apartment development at Marianella, Rathgar.
Included in the Company's unit sales in 2017 were 24 units sold on
non-core sites.
The Company is building on three further sites. Sales
completions at Elsmore, Naas are expected from mid-2018, while the
Dublin City Centre apartment development at Hanover Quay has a
planned sales launch in Summer 2018. The Company has also recently
commenced work on a new apartment development at Greenfield Park,
Donnybrook.
Cairn continues to evolve its product mix, and further apartment
commencements in prime Dublin City locations can be expected during
2018. Added to this, the Company now also has a student apartment
pipeline of 1,700 beds at five locations close to Ireland's major
universities.
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
believes that the supply of new residential homes in the Irish
market will continue to significantly undershoot demand in 2018 and
2019. This, allied with strong demographics, strengthening mortgage
market fundamentals and a growing economy are all supportive of
Cairn's business model.
The Company starts 2018 with a strong forward sales pipeline
with a net sales value of EUR134.3m (348 units at an average
selling price of EUR386,000 excluding VAT) which underpins H1 2018
sales. The increase in average selling price reflects the higher
number of apartments in the forward sales pipeline. Further sales
launches are planned in early 2018, with first show homes opening
in Q1 in Glenheron and Shackleton Park.
Michael Stanley, Chief Executive Officer of Cairn commented:
"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."
-ENDS-
For more information, please contact:
Cairn Homes plc +353 1 696 4600
Michael Stanley
Tim Kenny
Powerscourt +44 20 7250 1446
Justin Griffiths
Nick Dibden
Jack Hickey
Drury Porter Novelli +353 1 260 5000
Morwenna Rice
Louise Walsh
Notes to Editors
Cairn Homes plc is an Irish homebuilder committed to building
high-quality sustainable homes in excellent locations and providing
unparalleled customer service at each stage of the home-buying
journey. Cairn's highly experienced management team has a clear
vision of delivering innovative and thoughtfully designed homes
which meet market demand and enhance communities by placing home
owners at the very centre of the design process. The Company owns
33 residential development sites with capacity for over 12,700 new
homes, over 90% of which are located in the Greater Dublin Area
(GDA) with excellent public transport and infrastructure links.
Cairn is today building on ten sites in the GDA, which will deliver
over 3,350 units.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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