Revenues at homebuilder Cain Homes rose by €190m or 46% last year as the company completed sales on more than 1,500 homes in 2022.

Cairn Homes closed sales on 1,526 new homes, up 406 or 36% year-on-year, and realised an extra €190m in revenue, bringing in €610m for the full financial year.

The Irish homebuilder said in a trading update that its performance would be comfortably within its guidance fo 21.5% gross margin, €100m operating profit and 16.5% operating margin.

Cairn complained of "significant" build cost inflation taking effect last year, stating that the cost of building homes increased by c. €20,000 per new home, with the cost having increased by c. €35,000 over the past two years.

The company, however, credited strong demand from first-time buyers, buttressed by government supports such as the First Home shared equity scheme, and partnerships with state housing bodies for its 2022 performance.

In Association with

The firm has partnered with approved housing bodies, local authorities, and the Land Development Agency over the past two years to deliver more homes, including nearly 500 social and affordable A-rated homes and apartments last year.

The company said it would deliver a further 800 new social and affordable homes for state agencies in 2023.

“Cairn is proud to have become the first company in Ireland to deliver over 1,500 new homes in a calendar year. This included a broad mix of first time buyer houses and duplexes, houses and apartments for second time buyers, and apartments for the private and affordable rental markets," said Michael Stanley, CEO of Cairn Homes.

"Our completions last year also included 495 new social & affordable homes delivered across our larger developments nationwide. We expect to significantly grow this output in 2023 and continue to provide value and timely delivery for our partners in local authorities, approved housing bodies and the Land Development Agency.

"We witnessed exceptional levels of demand from first time buyers, many of whom are now able to avail of impactful government supports including the recently launched First Home shared equity scheme.

"Considering the level of embedded build cost inflation throughout the last two years coupled with significant interest rate increases, many of these customers would not otherwise be able to purchase their new family homes."

Cairn was actively working on 20 sites nationwide last year, and will work at a further 20 sites in 2023 after investing "heavily in sustained growth" with commencements at eight new suite in Cork, Limerick and Kilkenny.

Stanley pointed to a continued dearth of apartment developments in areas of high employment and close to transport links, however, and called on government to address viability and funding challenges.

Cairn entered 2023 with a forward sales pipeline of over 1,100 new homes and said it was "confident of making further financial progress in the year ahead," forecasting wider economic growth with inflation and interest rates still a concern.

The firm has commenced significant infrastructure workers in the new Dublin suburb of Clonburris ahead of a formal site commencement early in 2023, and its plans for 688 apartments and a 192-bed hotel at its Montrose site in Donnybrook has received approval.

The company will publish its full year results, provide guidance and an update on capital allocation as well as details of the final FY 2022 divided on 2 March.

(Pic: Chris Ratcliffe/Bloomberg via Getty Images)