Cairn Homes PLC on Wednesday said it increased the interim dividend as earnings surged following a ‘record’ first-half performance amid ‘favourable market conditions’.

The Dublin-based housebuilder said that for the first six months of 2024, pretax profit more than doubled to €54.4 million from €24.3 million the prior year.

Cairn Homes said revenue increased 67% to €366.1 million from €219.5 million. Basic earnings per share more than doubled to 7.2 cents per share from 3.0 cents, as did operating profit to €61.4 million from €29.6 million.

Cairn Homes also declared a 3.8 cents per share interim dividend, up 23% from 3.1 cents.

Meanwhile, the company reduced net debt to €157.0 million in the first half from €228.6 million.

The company noted it was operating against a ‘favourable’ backdrop, commenting: ‘Ireland’s economy continues to be one of the strongest performing economies in the EU. Its economic growth is underpinned by strong population growth of 13% between 2016 and 2024 to an estimated 5.38 million people (as at April 2024)...31,389 new homes delivered in the 12 months to June 2024, a 3% increase year on year, with 12,730 new homes completed in H1 2024.

‘Despite this positive industry response there remains a significant structural undersupply of new homes with an estimated annual housing requirement of between 49,400 [and] 81,400 new homes required to 2050 in a high population growth scenario.’

Looking forward, Cairn Homes ‘remains in a period of significant operational and volume growth and is committed to both continually reinvesting in our business to fund sustainable multi-year growth’.

It also reaffirmed its financial 2024 guidance of approximately 2,200 units; an operating profit of around €145 million; and a 15% return on equity.

‘2025 is expected to be another year of strong volume, revenue and profit growth as Cairn continues to leverage our exceptional scaled operating platform,’ Cairn Homes added.

Chief Executive Officer Michael Stanley commented: ‘The company has delivered a stellar half-year performance across all key metrics, most importantly in housing delivery with our turnover increasing by 67% year-on-year. By the end of this year Cairn will have delivered over 9,500 energy efficient new homes to our customers across Ireland.

‘We have a scaled, sustainable and mature business platform, positioning us for continued growth as we enter into our tenth year of business in 2025.’

Shares in Cairn Homes were trading 0.6% lower at 163.20p in London on Wednesday morning.

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