- Irish homebuilding company Cairn Homes said it expected to 'significantly' increase sales and profit in 2021 after guiding operating profit in 2020 to fall by more than half on lower margins as house prices and the pandemic halted stalled building activity.

For the year ended 31 December 2020, operating profit was expected to be about €24.1 million, down from €68.0 million year-on-year, as the company sold 743 homes, down from 1,080.

Revenue was forecast to fall to €260 million, down from €435.3 million, and the full-year gross margin was expected to be 16.3%, down from 19.6%.

Cairn's sales mix in 2020 was more oriented towards housing compared to previous years, reducing its average selling price to €332,000 from €372,000, the company said.

The company also announced a forward sale of 150 residential units at Shackleton Park in Dublin to Carysfort Capital and Angelo Gordon for €48.6 million.

These new homes would be delivered on a phased basis between H2 2021 and H2 2022, the company said.

'(W)e start 2021 with an exceptionally strong forward sales pipeline of 698 new homes with a net sales value of €214 million as at 12 January 2021, of which 588 are expected to close this year,' it added.

At 9:01am: [LON:CRN] Cairn Homes Plc share price was 0p at 0.99p

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