LONDON (Alliance News) - Irish housebuilder Cairn Homes PLC said on Tuesday it swung to a profit on revenue that more than tripled in the first half of 2018.
Cairn reported a pretax profit for the six months to the end of June at GBP9.0 million, swinging from a loss of EUR392,000 the year before, due to revenue that swelled to EUR130.2 million from EUR41.2 million.
Revenue mainly came from 293 unit sales in the period at an average selling price of EUR393,000, up from 94 closed at an average selling price of EUR280,000 a year prior.
The increase in the average selling price reflects an enhanced product mix and higher sales prices across all the group's developments, Cairn Homes said.
Cairn's forward sales pipeline currently stands at 517 units with a sales value of EUR221.2 million and an average selling price of EUR428,000.
Cairn expects to pay its first dividend from profits in its 2019. For 2018 the group expects to complete more than 800 unit sales and produce revenue at around EUR350 billion, up from EUR149.6 million.
"We are experiencing levels of demand for our quality new homes exceeding our expectations. Our business has matured and in 2018 we expect to generate revenues of EUR350 million in only our third full year of operations. This is a remarkable achievement by our talented team. Today we are increasing our medium term target to 1,400 to 1,500 units annually from 2021. Our strong profit and cash generation this year and in 2019 will enable us to pay our first dividend to our shareholders," said Chief Executive Officer Michael Stanley.
Shares in Cairn Homes were up 4.9% at EUR1.63 on Tuesday.
Cairn Homes (CRN)