Cairn Homes (CRN) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 performance with 894 unit closings, a 67% year-on-year increase, and revenue of EUR 366.1 million, supported by a robust order book exceeding EUR 1.32 billion for 3,450 homes.

• Maintained strong gross margin of 22% and operating margin of 16.8%, with operating profit up 107% year-on-year to EUR 61.4 million.

• Strategic focus on first-time buyers, competitive pricing, and expanding partnerships and joint ventures, especially in urban areas.

• Continued investment in land, WIP, and sustainability initiatives, including Passivhaus energy standards, digital transformation, and apprenticeship programs.

• Interim dividend of 3.8c per share (+23% YoY) and EUR 45 million share buyback, with total 2024 shareholder returns expected to exceed EUR 115 million.

Financial highlights

• Revenue reached EUR 366.1 million in H1 2024, up 67% year-on-year; operating profit EUR 61.4 million, up 107%; gross profit up 73% to EUR 80.4 million.

• Gross margin held at 22%; operating margin improved to 16.8% (up 330 bps year-on-year).

• Profit after tax EUR 46.9 million, up 126% year-on-year; EPS increased to 7.2c.

• Net debt reduced to EUR 157 million from EUR 228.6 million in H1 2023; available liquidity of EUR 241.8 million at H2 start.

• Operating cash flow of EUR 49.5 million generated, a EUR 80.2 million improvement from H1 2023.

Outlook and guidance

• Reaffirmed 2024 guidance: circa 2,200 unit closings, operating profit of EUR 145 million, and ROE of 15% (up from 11.2% in 2023).

• H2 2024 forecast for circa 1,300 closed units, supporting full-year targets.

• 2025 expected to deliver further growth in volumes, revenue, and profit; updated guidance to be provided in January.