In its trading update for 2022, Cairn Homes states that it has delivered over 1,500 new homes during the year, with Ireland’s largest homebuilder recording a 46% rise in revenues.
However, it points out that inflation across the year has seen the cost of construction rising by around €20,000 per home. “The cost of building new homes in Ireland remains significantly elevated compared to two years ago, with our build costs having increased by about €35,000 per new home in this period,” the company said.
Cairn was active on over 20 sites nationwide during the year. Overall, it closed 1,526 new home sales for the year ended 31 December, up from 1,120 in 2021.
Cairn generated total core revenue of around €610m in the same period, a jump on the €419m in revenue reported the prior year.
The company anticipates an operating profit of €100m for the year, in line with existing guidance. The full-year gross margin is also expected to be around 21.5%, a rise from 19.8% in 2021.
During 2022, Cairn was granted approval for its new “masterplan” for its Montrose site in Donnybrook, including 688 apartments and a 192-bedroom hotel, during 2022.
Cairn operations on 2023
The company is starting 2023 with its largest-ever forward sales pipeline of over 1,100 new homes and is confident of making further financial progress in the year ahead.
Chief executive officer Michael Stanley said that a lack of new apartment developments close to areas of high employment or public transport links remains a challenge in Ireland.
He said the focus to date has been on lower density homes in suburban or residential areas and called on the industry, alongside the Government, to tackle this “damaging supply imbalance.”
“Today, there are over 80,000 planned apartments in the pipeline, all of which meet new design and size standards,” he said. “While many have been held up by our planning system or objections, nearly one-third have full planning permission and should be under construction.