Cairn Homes launches buyback, raises divi as profits surge

(Sharecast News) - Cairn Homes shares surge to a record high on Wednesday after the Irish housebuilder reported a sharp increase in first-half revenues and profits, unveiled a new �50m share buyback and lifted its interim dividend.

Revenue for the six months ended 30 June jumped 60% year-on-year to �455.5m, driven by the delivery of 1,139 units compared with 708 a year earlier.

Operating profit rose 75% to �74.8m, while profit after tax surged 84% to �58.4m from �31.7m. Earnings per share increased 82% to 9.3cents.

Cairn announced a new �50m share buyback programme, starting on Wednesday, and increased its interim dividend by 10% to 4.5cents per share.

The company also struck an upbeat tone on the outlook, pointing to a record closed and forward order book of 5,020 homes worth �1.89bn, up 23% in both volume and value year-on-year and providing visibility into 2027.

Full-year guidance was upgraded, with Cairn now expecting revenue of around �1.08bn and operating profit of approximately �185m, ahead of previous target ranges of �1.05bn-1.08bn and $180m-185m respectively, while its return-on-equity forecast was raised to around 17% from 16.5%.

Chief executive Michael Stanley said the company had delivered a "step change in output", adding that the strong performance had allowed it to upgrade guidance, raise the dividend and launch the new buyback.

At 1216 BST, the shares were up 5.6% at 236.5p, having earlier touched a record high of 240p.