- Irish homebuilder Cairn Homes reported Thursday a sharp jump in profits as revenues more than doubled amid ongoing strong demand from home buyers in Dublin.

For the year ended 31 December 2018, profit before tax rose to €37.6m from €6.0m and revenue grew to €337.0m from €149.5 a year earlier.

The homebuilder closed 804 closed sales in 2018 at an average selling price of €366,000, well above the 418 closed sales at an ASP of €315,000 reported a year earlier.

Construction activity had increased since the start of 2019 with five further site commencements planned which would deliver an additional 2,200 new homes, the company said.

Cairn's year to date closed sales and current forward sales pipeline was 'encouraging, with a sales value of €201.4 million (471 units at an ASP of €428,000) as at 6 March 2019,' the company added.

The company estimated that as many as 2,500 - 3,000 units from its 4,400 apartment units could satisfy more than €1bn of the capital seeking multifamily PRS opportunities in the Greater Dublin Area).

Cairn's expected free cash generation of about €350m to €400m by the end of 2021 would enable the board to announce a first interim ordinary dividend of 2.5 cent per share in September 2019.

'Cairn's operational capability across our attractive landbank, combined with pent-up consumer and institutional demand for well built homes, will drive revenues, profitability and cash generation in 2019 and beyond. This in turn enables us to commence a progressive capital return strategy this year. We look forward to the future with confidence,' said Michael Stanley, Co-Founder and CEO.

At 9:23am: [LON:CRN] Cairn Homes Plc share price was -0.01p at 1.32p

Story provided by