Cairn Homes (CRN) H2 2023 earnings summary

Executive summary

• FY23 delivered record operating performance, with revenue of €666.8m, operating profit of €113.4m and 1,741 home completions, up 14% YoY.

• Closed and forward orders reached a record €946m across 2,473 homes, supporting the FY24 plan for c.2,200 units and c.€145m operating profit.

Financial highlights

• Revenue rose 8% YoY to €666.8m; gross profit increased 10% to €147.6m and gross margin improved 40bps to 22.1%.

• EBIT increased 10% to €113.4m, with EBIT margin up 30bps to 17.0%; profit before tax was €99.4m and PAT was €85.4m.

• EPS rose to 12.7c from 11.5c; finance costs increased 47% to €14.1m.

Outlook and guidance

• FY24 guidance: c.2,200 units, c.30% growth, c.€145m operating profit and 15% ROE.

• Nine-plus site commencements are planned over the next 12 months; 2,100 new homes commenced in FY23, up 21% YoY, across 20 active sites.

• Forward orders cover WIP 2.8x; management expects this de-risked investment to support 26% volume growth in 2024.