Irish house builder Cairn Homes to return €95 million to investors this year
House builder earns €58 million profit on strongest ever performance and upgrades its forecasts for 2022.
Irish house builder Cairn Homes will return €95 million to investors this year after earning €58 million profit in 2021 on its strongest ever performance. It has also upgraded its financial forecasts for this year.
Cairn earned €419 million revenue last year from selling 1,120 homes at an average of €350,000 each.
The company said in a trading statement on Wednesday that its operations earned profits of around €58 million, 10 per cent ahead of its predictions.
Cairn intends to buy back shares worth a maximum of €75 million from shareholder this year.
In addition it will pay a final dividend of €20 million, 2.7 cent a-share, assuming shareholders back this at its annual general meeting.
Its statement highlighted that the second half of the year was Cairn’s strongest in terms of house sales and profits.
The builder expects to earn operating profits this year of between €95 million and €100 million on revenues of €600 million from selling 1,500 homes.
Cairn had previously expected this year’s operating profit to be around €85 million.
Michael Stanley, chief executive, said Cairn had met all its objectives in 2021, despite Covid-19 lockdowns.
He stressed that giving shareholders returns was key for the company. “It is therefore important that we were able to reinstate dividend payments in 2021 and we are now also recommencing a sizeable share buyback programme,” said Mr Stanley.