(Alliance News) - Cairn Homes PLC on Tuesday said it expects to report revenue growth for 2023 on strong sales and expects to see momentum continue into the new year.
The Dublin-based housebuilder said 2023 new home sales revenue grew 7.7% to EUR665.0 million from EUR617.4 million the year before, citing 1,741 new home sales in the year.
Its order book at December 31 was EUR900 million, with 2,350 homes, compared to a forward order book value of EUR374 million last year.
It also expects to deliver a gross margin of around 22%, unchanged from last year.
Operating profit surged 10% to EUR113.4 million in 20203 compared to EUR103.0 a year ago, with its operating margin unchanged at 17%.
Cairn added build cost inflation continued to moderate throughout 2023 in line with its expectations to less than EUR10,000 per new home built or around 4% of hard built costs, compared to EUR20,000 and 8% respectively in 2022.
Looking ahead, Cairn said it has started 2024 with a "very strong momentum" and a forward sales pipeline of 2,350 new homes. It expects turnover and profit growth of 30%.
Chief Executive Officer Michael Stanley said: "Our company is experiencing sustained positive momentum. We are building record numbers of new homes, and we have delivered our strongest ever operational and financial performance in 2023. Continued reinvestment in our building platform and a EUR900 million sales pipelines as we start the new year leaves us poised to grow our business by a further 30% in 2024."
Shares in Cairn Homes were up 4.4% at 119.80 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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Cairn Homes (CRN)