(Alliance News) - Irish housebuilder Cairn Homes PLC on Thursday declared its first ever shareholder return, setting out both a dividend and a share buyback.
Cairn will be paying 2.5 pence per share to shareholders for the six months to June and also will be buying back shares worth a maximum of EUR25 million.
"Our business has reached an important milestone today with the commencement of capital returns to shareholders by way of an interim dividend and a share buyback programme," said Chief Executive Michael Stanley, who also co-founded the firm.
Cairn's revenue for the period rose 48% year-on-year to EUR192.4 million, with pretax profit more than doubling to EUR21.8 million from EUR8.9 million.
Revenue growth was driven by a sharp rise, of 52%, in new home sales, with the average selling price climbing 14% to EUR449,000 due to the sale of homes at Six Hanover Quay in Dublin.
"We are delivering high-quality and competitively-priced starter homes at affordable prices for hundreds of Irish families. We are availing of the substantial interest of long-term institutional capital in multifamily private rental sector apartments," said Stanley.
"We are realising value for non-core assets. As a consequence, Cairn has delivered good revenue and profit growth and strong cash generation in the first half. Given market demand for our product and delivery pipeline, we look forward to the full year with confidence."
Revenue for the year will be second-half weighted, Cairn added, and it has "marginally" increased guidance to around 1,100 closed sales at EUR370,000 to EUR380,000 and for a gross margin of around 19.5%. The gross margin at the end of June was 18.6%.
Cairn shares were 4.8% lower on Thursday morning in London at EUR1.10 each.
Cairn Homes (CRN)