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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Cairn Homes Plc | LSE:CRN | London | Ordinary Share | IE00BWY4ZF18 | ORD EUR0.001 (CDI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1.80 | 1.33% | 137.40 | 136.80 | 137.80 | 137.40 | 135.60 | 135.60 | 282,944 | 08:38:40 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Management Services | 666.81M | 85.43M | 0.1319 | 10.42 | 889.89M |
From Apr 2019 to Apr 2024
TIDMCRN
RNS Number : 6450Z
Cairn Homes plc
04 September 2018
4 September 2018
Cairn Homes plc
Interim Results for the six months ended 30 June 2018
Scale achieved to meet the enormous demand for new homes
Dublin/London 4 September 2018: Cairn Homes Plc (LSE/ISE: CRN) ("Cairn", "the Company", or "the Group"), the Irish homebuilding company, today announces our interim results for the six months ended 30 June 2018.
HIGHLIGHTS
Financial
-- Strong revenue growth to EUR130.2 million (H1 2017: EUR41.2 million).
-- Gross profit margin of 20.0% (H1 2017: 18.7%). Gross profit of EUR26.1 million (H1 2017: EUR7.7 million).
-- Sevenfold growth in operating profit to EUR18.1 million (H1 2017: EUR2.5 million after exceptional items of EUR0.5 million).
-- 293 closed sales in H1 2018 at an average selling price (ASP) of EUR393,000 excluding VAT (221 houses - EUR326,000: 72 apartments - EUR599,000) (H1 2017: 94 closed sales at an ASP of EUR280,000 excluding VAT).
-- As at 3 September 2018, total closed sales year to date of 399 units and forward sales of 517 units comprising:
- Housing: 327; and
- Apartments: 190 units (including 120 apartments at Six Hanover Quay and 33 student apartments at Blackhall Place);
Current forward sales have a net sales value of EUR221.2 million, the majority of which will close this year with the exception of Six Hanover Quay which is scheduled to complete as a single transaction in Q1 2019.
-- Completed a EUR350 million debt refinancing after the period end which provides greater flexibility, reduces our finance costs and extends the maturity profile of our debt.
-- As Cairn transitions to a significantly more profitable business with distributable reserves, a first dividend will be paid from 2019 profits.
Operational
-- The Company is active on 13 developments (31 December 2017: 11 developments) which will deliver over 3,750 new homes, with 4 further site commencements anticipated over the next 6-12 months.
-- 11 of our large planning applications (c. 3,500 units) have utilised either the new single step Strategic Housing Development (SHD) planning process or the Strategic Development Zone (SDZ) fast track planning process with seven granted full planning permission (c. 1,900 units). Six additional planning applications (c. 2,500 units) will enter the SHD process this year.
-- Contracted in June 2018 to sell our landmark Six Hanover Quay development in Dublin City Centre on completion for EUR101 million (EUR89.7 million excluding VAT) with legal completion scheduled for Q1 2019.
-- Completed our first student apartment development at Blackhall Place (Dublin 7) following a EUR6 million redevelopment of 33 apartments (112 beds). The Company has agreed to dispose of this completed development as well as two other student apartment developments for a total consideration of EUR45 million. This transaction is expected to complete in H2 2018.
-- Completed the sale of all 71 units on our joint development with NAMA at Parkside (North Dublin). Further joint development opportunities are being pursued.
-- Annualised build cost inflation for our operations in the last 12 months has been 2.9%. House price inflation has averaged 4.7% on our active housing developments and 7.5% on our active apartment developments in the same period.
-- The Company has entered into a partnership with Kingspan Group plc for the supply of off-site manufactured (OSM) timber frame structures for our housing division. The Company will continue to use both traditional and OSM building methods depending on site location and scale.
-- Cairn has announced that the Group's Co-Founder, Alan McIntosh, has decided to step down from his executive role. We are very pleased that he will remain on the Board as a non-executive Director. Alan, as a non-executive Director, will continue to play an important role in the strategic development of the Company.
Hot Features
Premium
-- Cairn is proud to be now supporting over 2,500 jobs across our active sites.
Financial Highlights 6 months ended 6 months ended
June 2018 June 2017
EUR'000 EUR'000
Revenue 130,214 41,178
Gross Profit 26,077 7,703
Operating Profit 18,098 3,034(1)
As at 30 June As at 31 December
2018 2017
EUR'000 EUR'000
Inventories (Land & WIP) 950,728 911,496
Total Equity 730,276 721,720
Net Debt 176,324 159,394
1 Before exceptional items of EUR0.5 million in 2017
Commenting on the results, Michael Stanley, Co-Founder and CEO, said:
"We are experiencing levels of demand for our quality new homes exceeding our expectations. Our business has matured and in 2018 we expect to generate revenues of EUR350 million in only our third full year of operations. This is a remarkable achievement by our talented team. Today we are increasing our medium term target to c. 1,400 to 1,500 units annually from 2021. Our strong profit and cash generation this year and in 2019 will enable us to pay our first dividend to our shareholders."
For further information, contact:
Cairn Homes plc +353 1 696 4600
Michael Stanley
Tim Kenny
Drury Communications +353 1 260 5000
Billy Murphy
Morwenna Rice
Louise Walsh
Powerscourt +44 20 7250 1446
Justin Griffiths
Nick Dibden
Jack Hickey
There will be an Analyst and Investor call today 4 September 2018 at 8.30am hosted by Michael Stanley, Co-Founder and CEO and Tim Kenny, Group Finance Director. Please use the numbers below, quoting the following Conference ID: 32075395#:
Ireland UK US
* Toll free - 1800 936 842 * Toll free - 0808 237 0030 * Toll free - 1866 928 7517
International
* Toll - +44 (0) 203 139 4830
Notes to Editors
Cairn Homes plc is an Irish homebuilder committed to building high-quality sustainable homes in excellent locations and providing exceptional customer service at each stage of the home-buying journey. Cairn's highly experienced management team has a clear vision of delivering innovative and thoughtfully designed homes which meet market demand and enhance communities by placing home owners at the very centre of the design process. The Company owns 34 residential development sites with capacity for c. 14,500 additional new homes, with over 90% of those units located in the Greater Dublin Area (GDA) with excellent public transport and infrastructure links. Cairn is today building on 13 development sites in the GDA, which will deliver over 3,750 new homes.
Note regarding forward-looking statements
Some statements in this announcement are forward-looking. They represent our expectations for our business and involve risks and uncertainties. We have based these forward-looking statements on our current expectations and projections about future events. We believe that our expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond our control, our actual results or performance may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this document and no obligation is undertaken, save as required by law, by the Listing Rules of the Irish Stock Exchange or by the listing rules of the UK Listing Authority, to reflect new information, future events or otherwise.
CHIEF EXECUTIVE STATEMENT
STRATEGIC OBJECTIVES
The Company's objective is to be the leading Irish homebuilder by building in great locations and creating places and homes where people love to live. This objective is underpinned by a very favourable Irish macroeconomic backdrop which continues to improve. By doing this, the Company will maximise the opportunities which exist in the Irish new homes residential property market and deliver substantial shareholder value. This strategy is supported by our vision to be the most trusted and respected homebuilder in Ireland through operating our business under five strategic pillars:
1. Customers - make the home buying journey exceptionally positive for all of our customers; 2. Homes - design and build brilliant homes; 3. Places - create places for communities to prosper; 4. People - attract and retain the best talent in the market; and 5. Operational Excellence - leverage a commercial operational platform.
Since IPO in June 2015, Cairn has moved at pace in assembling a unique c. 14,500 unit land bank, maximising the development potential of each individual site through planning enhancements and commencing a substantial construction programme in housing and apartments which is expected to deliver up to 4,000 closed sales in the four and a half years from IPO to 2020. This focus will enable us to achieve considerable growth in profitability and generate cash returns to shareholders in the near term.
Financial Review
Revenues in the first six months of 2018 increased to EUR130.2 million (H1 2017: EUR41.2 million), which is an increase of EUR89.0 million year-on-year. These revenues included EUR115.2 million from 293 unit sales (H1 2017: EUR26.3 million from 94 unit sales) and EUR14.4 million from non-core site sales (H1 2017: EUR14.1 million).
Gross margin increased significantly to 20.0% (H1 2017: 18.7%). Gross profit of EUR26.1 million (H1 2017: EUR7.7 million).
Operating profit grew to EUR18.1 million (H1 2017: EUR2.5 million, after EUR0.5 million exceptional costs), an increase of EUR15.6 million.
Net finance costs (excluding an exceptional cost of EUR3.25 million) for the six months were EUR5.9 million (H1 2017: EUR2.9 million), reflecting increased drawn debt levels as a result of site acquisitions (including the Montrose site) and increasing construction work in progress. In accordance with IFRS 3, a contingent consideration settlement of EUR3.25 million was charged to profit or loss in the period ended 30 June 2018 in respect of the Swords site acquired as part of the Argentum acquisition in 2016. This is a non-routine transaction which is non-recurring and has been classified as an exceptional finance cost.
Inventories as at 30 June 2018 of EUR950.7 million (31 December 2017: EUR911.5 million) comprise land held for development of EUR796.2 million (31 December 2017: EUR788.8 million), construction work in progress of EUR151.4 million (31 December 2017: EUR104.5 million) and development land collateral of EUR3.1 million (31 December 2017: EUR18.2 million). The investment in work in progress reflects the significant increase in development activity during the period, with the Company now active on 13 developments (31 December 2017: 11 developments).
Net debt of EUR176.3 million at 30 June 2018 (31 December 2017: EUR159.4 million) comprised of drawn debt of EUR239.7 million (net of unamortised arrangement fees and issue costs) (31 December 2017: EUR245.2 million), available cash of EUR46.4 million (31 December 2017: EUR68.8 million) and restricted cash of EUR17.0 million (31 December 2017: EUR17.0 million).
After the period end, Cairn successfully completed a debt refinancing of our existing EUR200 million senior debt facility with Allied Irish Banks plc and Ulster Bank Ireland DAC into a new EUR277.5 million Term Loan and Revolving Credit Facility with Allied Irish Banks plc, Ulster Bank Ireland DAC and Barclays Bank Ireland plc. Additionally, the Company completed a EUR72.5 million Private Placement of Loan Notes with Pricoa Capital Group. The refinance has enabled the Company to build on our pool of banking partners with the addition of Barclays Bank Ireland plc and the Private Placement with Pricoa Capital Group. The new facilities provide additional financial flexibility in supporting the growth of our business as well as reducing our finance costs and extending the maturity profile of our debt.
The Company announced the completion of the third founder share test period (1 March - 30 June 2018) on 20 July 2018 and confirmed that the founder share value created would be satisfied through the conversion of 27,110,622 founder shares into the same number of ordinary shares, which occurred on 16 August 2018. Under the approved terms of the Founder Share Scheme, the founders are entitled to 20% of total shareholder return generated each year up to and including 30 June 2022, subject to achieving a 12.5% annual compounding hurdle rate.
OPERATIONS REVIEW
Sales
The Company delivered 293 unit legal completions in H1 2018 at an ASP of EUR393,000 comprising 221 houses (ASP EUR326,000) (H1 2017: 94 houses at an ASP of EUR280,000) and 72 apartments (ASP EUR599,000) (all excluding VAT).
Cairn has a strong forward sales pipeline as of 3 September 2018 of 517 units with a sales value of EUR221.2 million and an ASP of EUR428,000 (all excluding VAT). The current forward sales pipeline strongly underpins remaining H2 2018 completions. The increase in ASP in the Company's forward sales pipeline (EUR374,000 as at 5 March 2018) reflects enhanced mix and increasing sales prices across all active developments (including the 120 apartments at Six Hanover Quay at an ASP of EUR705,000 each) (all excluding VAT). The forward sales pipeline will be enhanced by Autumn 2018 sales launches across our eight selling developments.
The breadth of the Company's construction activities from affordable, starter homes in suburban locations to premium apartments in Dublin City Centre appeals to a broad range of buyers. Market conditions have remained very favourable in 2018 and the Company believes that ongoing supply constraints will result in the demand for new homes continuing to outstrip supply in the medium term.
Demand for the Company's starter home developments is growing across all locations, with strong sales absorption rates maintained across all selling developments and an average weekly sales rate of 3.1 units per development since the first formal sales launch. Improving affordability and an increasingly competitive mortgage market is resulting in more sustained demand for well designed, quality and competitively priced starter homes in locations where mortgage-backed first-time buyers desire to live.
With sales absorption rates increasing across all active housing development sites, building on sites which have an average of 425 units allows Cairn to respond quickly to increased demand by increasing and accelerating construction. With phase 1 of Shackleton Park (Lucan) nearing completion (267 units), the construction of phase 2 (268 units) and the adjacent Airlie Stud (237 units) has commenced in the year to date to meet strong demand in an established and popular starter home location.
Cairn is now actively selling across eight separate developments and the Company delivered completed sales across seven separate developments in the GDA in H1 2018 - Parkside (Malahide Road); Cairn's joint development with NAMA adjoining Parkside; Churchfields (Ashbourne); Shackleton Park (Lucan); Glenheron (Greystones); Albany (Killiney); and the award-winning apartment development at Marianella (Rathgar). In addition, sales completions at Elsmore (Naas) commenced in early H2 2018.
Sales at Glenheron (Greystones), a trade up/down development, have been strong. This development was formally launched to the market in April 2018 and 48 units, including the remaining 23 units in Phase 1, with a gross sales value of EUR25 million sold on the first day. The Company's award-winning Marianella apartment development continues to sell well, with strong ongoing demand from purchasers seeking to trade down as well as from investors and young professionals.
Cairn recently completed the sale of the final unit in the 71 unit joint development with NAMA at Parkside (Malahide Road). This successful development is now complete, just over a year after construction commenced at the end of Q1 2017.
As announced on 28 June 2018, the Company has agreed to sell our landmark Dublin City Centre premium apartment development at Six Hanover Quay (120 apartments, a 5,000 sq. ft. restaurant and 1,400 sq. ft. café) for a total cash consideration of EUR101 million (EUR89.7 million excluding VAT). Legal completion is scheduled for Q1 2019. The contracted sale is a considerable achievement for the Cairn team. The agreement to sell Six Hanover Quay to an Irish real estate investment manager, and the interest which the formal sales process generated amongst international institutional investors and private rental sector operators seeking exposure to the Irish residential market recovery, has broadened Cairn's buyer pool for our other well-located developments.
The Company has also agreed to dispose of the refurbished student apartment development at Blackhall Place (Dublin 7) following a EUR6 million redevelopment of 33 apartments (112 beds) as well as two other student apartment developments for a total consideration of EUR45 million. This transaction is expected to complete in H2 2018 and will deliver a strong profit and cash return.
The Company will manage our residual non-core sites through an ongoing and measured disposal programme with total realised revenue of EUR14.4 million in H1 2018 (H1 2017: EUR14.1 million). The Company will dispose of a small number of remaining non-core sites over the near-term.
Construction Activity
The Company continued to make significant progress in our construction activities during the first six months of the year and commenced four new developments at Airlie Stud (Lucan), Oak Park (Naas), Cork Street (Dublin 8) and a EUR6 million redevelopment of Blackhall Place (Dublin 7). In addition, the Company commenced the construction of new phases at our Parkside (Malahide Road), Glenheron (Greystones) and Shackleton Park (Lucan) developments in the first half of 2018, while construction of our apartment development at Donnybrook Gardens is progressing well. Construction of our joint development with NAMA at Parkside (Malahide Road) finished at the end of Q2 2018. The Company is now active on 13 developments which will deliver up to 3,750 residential units, with our average active housing development containing 425 residential units and our average active apartment development containing 120 residential units.
Cairn is a developer contractor. Our directly employed site management teams, in conjunction with central functions, manage and control a strong supply chain and a well-established subcontractor base, many of whom work across several active Cairn developments. Subcontractors tender on a "supply and fit" basis and Cairn proactively manages cost inflation through direct procurement strategies, initiatives and fixed term framework agreements. Our experience of build cost inflation in the last 12 months is low single digit (c. 2.9%). This is significantly below the SCSI Tender Price Index (7.5% in the 12 months to June 2018) and reflects our business model and the strong, established relationships with our subcontractor base. We carefully monitor build cost inflation and continuously seek out innovative ways to ensure we achieve the lowest cost without compromising quality. Direct construction costs which are subject to build cost inflation account for on average c. 50 - 55% of net sales prices.
The Company's practice is to acquire and build on larger scale housing developments which enables us to deliver economies of scale through direct and indirect procurement efficiencies and amortising fixed site costs (site works, preliminaries, site accommodation, machinery and professional fees) over longer-term, multi-year, multi-phase construction programmes. The same site management teams and subcontractors work more effectively and efficiently together as they progress through each phase, and given the uniform nature of a number of our starter home developments, subcontractors become more familiar with the limited number of unit types as they progress through phases. Operational efficiencies are achieved by standardisation across our starter home developments which are further complimented by the use of both traditional and new off-site construction methods, including timber frame construction across a number of our active developments. The Company estimates that c. 30% of all houses constructed over the next two years will be off-site modular constructed units.
The continually improving efficiency of Cairn's construction activities, and importantly evidence of tightly managed costs, can be seen in the Company's impressive gross margin progression.
Land and Planning
The Company's confidence in achieving our medium-term run-rate of c. 1,400 to 1,500 sales completions annually from 2021 is underpinned by the great locations of the sites within our c. 14,500 unit wholly owned land bank, and more importantly the fact that in excess of 97% of these units either have the benefit of full planning permission, are residentially zoned or are within a strategic development zone.
Cairn's strategic approach to assembling this unique land bank, our demonstrable core strength in planning expertise and the favourable planning environment in Ireland (with the SHD fast-track, one step planning process for housing developments greater than 100 units now up and running in earnest) is resulting in the constant conversion of sites from the Company's land bank into active development sites. This supports our substantial growth plans. The Company's strong track record in delivering planning gains continues and 11 of our large planning applications (c. 3,500 units) have utilised the single step SHD or fast-track SDZ process;
-- 7 applications granted full planning permission (c. 1,900 units) including Cork Street (Dublin 8), Mariavilla (Maynooth) and Blakes (Stillorgan) through the SHD process in 2018;
-- 4 applications are in the SHD process (c. 1,600 units) - a starter home development at Citywest (Dublin 24) and apartment developments at Montrose (Dublin 4), Cross Avenue (Blackrock) and Griffith Avenue (Dublin 9) with formal planning applications to be submitted on each over the coming months.
A further pipeline of six SHD planning application submissions are also well progressed. In the year to date, 1,631 units have been granted full planning permission. As a result of the further progress achieved in the first half of 2018, Cairn expects to deliver an extra c. 700 units on our existing sites by maximising densities through planning enhancements (in addition to the c. 1,900 incremental units added in 2017). This is being delivered by amending historic planning consents with historic densities into current, demand driven higher densities and putting practical and relevant planning and design expertise into each planning application.
Following the announcement by the Government of new apartment design guidelines in February 2018, the draft guidelines for "Urban Development and Building Heights - Guidelines for Planning Authorities" were issued in August 2018. The guidelines are intended to set a more responsive policy and regulatory framework for planning the growth and development of cities and towns upwards, rather than outwards. They propose the removal of numerical height caps and promote higher density in areas that are well connected with good public transport accessibility. An important feature of the draft guidelines is a policy shift away from traditional, two storey own-door residential developments to a greater mix of higher density housing typologies and a greater mix of building heights, on the basis that both density and heights will be appropriate to their location. All of this supports the Company's ongoing work to maximise the value of our land bank, across both housing and high density apartment sites, with higher densities already achieved on a number of sites, including Blakes (Stillorgan), where planning permission was granted for heights reaching nine storeys in parts of the development.
Cairn acquired the majority of our well-located land bank at attractive prices within nine months of our June 2015 IPO. Since then, the Company has made considerable progress in increasing the value of our land bank. Cairn's land acquisitions have been at a low level for the last 15 months. The Company is very well positioned in terms of the size, historical cost (which compares favourably to the high cost of land acquisitions witnessed in the market over the past 12 months) and locations of our development sites.
The Company's reduced level of site acquisitions in 2018 is reflective of our evolving acquisition strategy, with a focus on sites adjoining existing sites, and the fact that we have already acquired the majority of the land which we need to deliver on our strategic objectives. Cairn is exploring further joint development opportunities and also anticipates that a number of strategic high-density apartment sites in and around Dublin City Centre, which may benefit from the Government's new building height strategy, will be brought to the market in the medium term and will consider these sites as and when they are brought to market.
Health and Safety
The Company is fully committed to the highest standards of health and safety on our sites. The health and safety of employees, subcontractors, customers and the general public is a key priority for the Company. Increased construction activity levels increase the risk of accidents on active sites and the Company continually promotes the importance of a safe working environment and ensures the highest industry health and safety standards are set. Each active site has a dedicated health and safety manager, ensuring that the Company's health and safety policies and procedures are adhered to and implemented. Health and safety is a standing agenda item at all Board and Audit and Risk Committee meetings and the Company retains an independent external auditor to undertake a monthly audit of health and safety practices and management across all active sites.
The Cairn Team
The Company's headcount at 30 June 2018 was 154 (31 December 2017: 126). The Company has assembled a team with the requisite skills, experience and expertise to deliver our medium-term objectives.
MARKET CONDITIONS
Economy
The Irish economy is one of the fastest growing economies in the euro area for a fifth consecutive year in 2018 (source: European Commission). Employment reports point to ongoing strong momentum with the total number of people employed growing by 3.4% in the year to June 2018 and the unemployment rate falling to 5.9% in July 2018, the lowest rate since October 2007 (source: CSO). Consumer spending is growing (2.2% in the year to March 2018) (source: CSO), all underpinning future GDP growth forecasts of 5.0% in 2018, 3.5% in 2019 and 3.1% in 2020 (source: Goodbody - Irish Economy Q2 2018 Health Check).
Residential Property Market
The medium-term demand for new homes in Ireland is 30,000 units (source: ESRI). Goodbody estimate current annual demand at c. 35,000 new homes and Davy estimate c. 36,000 - 53,000 new homes. The Company believes that the GDA alone requires c. 25,000 new homes per annum driven by a growing population, increasing employment, annual obsolescence and years of chronic undersupply. 16,274 new homes were built nationally in the year to June 2018 (source: CSO New Dwelling Completions Q2 2018), including 11,777 new homes in multi-unit developments. Goodbody currently estimate that, based on current trends, there will be 18,000 new completions in 2018, roughly half the estimated level of annual housing demand. Current levels of residential construction activity are still not meeting the needs of a growing population and expanding economy.
Headline house price inflation (HPI) was 12.0% nationally (Dublin - 9.0%; Rest of Ireland - 15.2%) in the 12 months to June 2018 (source - CSO). Eurostat, the statistical office of the EU, report that 12.3% national HPI in the year to March 2018 was split 8.6% new homes and 12.9% existing homes. House price inflation on our active developments has averaged 5.3% in the last 12 months.
Dublin prices remain 22% behind peak 2007 levels (source: CSO), whilst rents are now 34% above their peak levels (source: Daft.ie Q2 2018 Rental Price Report). The rental crisis continues unabated, the level of stock available to rent remains close to record low levels and rents are increasing across the country, and in Dublin in particular (up 13.4% in the year to June 2018) (source - Daft.ie Q2 2018 Rental Price Report). It is significantly more expensive to rent than own and finance a starter home in Dublin. The Company estimates that the gap in the cost of owning against renting has grown from EUR494 per month or 37.3% in March 2018 to EUR578 per month or 42.1% today (and having increased from 32.5% in September 2017). This is reflective of the spiralling rents which prospective first time buyers are being forced to pay while simultaneously trying to save for a deposit for their first home. The Company is ideally positioned to continue to offer high quality new homes at competitive prices which attract customers who are paying these excessive rents.
Mortgage Market
Competition in the Irish mortgage market is continuing to have a positive impact on access to mortgages, particularly for first time buyers. However, Irish mortgage interest rates remain nearly twice the EU average (1.78%) with an average 3.29% interest rate charged on all variable rate mortgage drawdowns and 3.11% on all fixed rate mortgage drawdowns in the first 6 months of 2018 which suggests further scope for a reduction in Irish mortgage rates as competition continues (source: CBI Retail Interest Rates - June 2018).
The value of mortgage drawdowns rose by 24.2% in the year to June 2018 to EUR8.0 billion, while mortgage approval values increased by 15.4% to EUR9.8 billion in the same period (Source: BPFI Mortgage Approvals June 2018 and BPFI Mortgage Drawdowns June 2018). Full year 2018 mortgage drawdowns are forecast to increase by 21% to EUR8.8 billion (source: Goodbody - Irish Economy Q2 2018 Health Check). The ongoing strength of approvals indicates that the value of mortgage drawdowns is increasing, however the continued shortage of housing for mortgage approved customers will depress conversion rates (volume of mortgages drawdown as a percentage of the volume of mortgages approved). The conversion rate in the year to June 2018 was 81% compared to 82% in the year to June 2017 and 86% in the year to June 2016 (source - BPFI).
Government Initiatives
The objective of the Government's "Rebuilding Ireland" action plan in respect of residential construction is to double the annual level of new homes construction to 25,000 by 2021. A number of welcome initiatives have been implemented to date, including the launch of the EUR226 million Local Infrastructure Housing Activation Fund (the Company owns five sites which will benefit from this funding), the introduction of new fast-track planning for developments greater than 100 residential units and 200 student beds through the SHD process, the introduction of the Help to Buy income tax rebate scheme to assist first time buyers in the purchase of new homes and the launch of the Rebuilding Ireland Home Loan product which provides mortgages, through local authorities, to first time buyers acquiring new or existing homes subject to certain approval criteria.
The new National Planning Framework, known as "Project Ireland 2040", was launched in early 2018 and aligns the country's spatial planning and investment decisions, underpinned by EUR116 billion in capital spending, and forms a strategy for Ireland's growth and development until 2040.
New apartment design guidelines were announced in March 2018 and the Company welcomes the issuance of new draft guidelines for "Urban Development and Building Heights - Guidelines for Planning Authorities" in August 2018, which remove numerical height caps and actively encourages higher density developments.
The supply of affordable starter homes in Dublin remains constrained. The average price of a new home sold in Dublin in H1 2018 was EUR419,000 incl. VAT (source: 2018 Property Price Register), and of the 2,082 new homes sold in Dublin in the period, only c. 51% were priced below EUR350,000.
OUTLOOK
Market conditions are very positive and the Company is making significant progress in executing our strategy as evidenced by the current level of construction activity across our housing and high density apartment sites and the quantum of our forward sales pipeline.
The Company reiterates our expectation of completing 800+ unit sales and generating revenue of in excess of EUR350 million in 2018.
The fundamentals of the business remain strong, and the Company looks forward to significant growth in sales, profit and cash generation. The Company is increasing the medium term target to revenue of c. EUR550 million from c. 1,400 to 1,500 sales units annually from 2021. Cairn expects to generate substantial cash and profits in the 2018 and 2019 financial years which will enable the Company to declare and pay our first dividend to our shareholders.
CAIRN HOMES PLC
PRINCIPAL RISKS AND UNCERTAINTIES
The principal operating risks and our approach to mitigating those risks is set out in more detail below.
Risk Description Mitigation
Economic Conditions
Cairn's business is sensitive Cairn's business strategy reflects the
to the performance of the wider cyclical nature of the industry.
economy and particularly changes The Board and the management team closely
in interest rates, employment monitor economic indicators for indications
and general consumer confidence. of weakness in the economy.
Changes in economic conditions Internal systems are in place to track
in Ireland (which are linked the margin impact of reduction in sales
to the performance of the broader prices/increased construction costs.
global economy, given Ireland's Regular site appraisal reviews are undertaken
open economy) are likely to to address any risk of impairment.
impact on house prices and house The Company continues to monitor the
sales rates. potential impacts of Brexit.
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Mortgage Availability & Affordability
The availability of mortgage The Company monitors mortgage availability,
finance, particularly the deposit including any impact from regulations
and income requirements set on mortgage lending and rates on an ongoing
by the Regulator on mortgage basis and it is a standing item for discussion
lending, is fundamental to customer at Board meetings.
demand. The Company also monitors volumes of
first time buyers, in order to quantify
the impact of the changes to the Central
Bank of Ireland Loan to Value (LTV) ratios
and the Government Help to Buy tax rebate
scheme, as this results in more immediately
realisable mortgage demand. The Company
is monitoring the position on the possible
changes to the Help to Buy income tax
rebate scheme.
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Health & Safety
Health and safety breaches can The Health and Safety department operates
result in injuries to Cairn independently of the construction division
staff or subcontractors operating and reports directly to senior management
on Cairn sites and/or result in order to maintain independence. Health
in delays in construction or and safety is also a standing item on
increased costs, in addition the Audit and Risk Committee and Board
to reputational damage and potential agendas.
litigation. Reportable and non-reportable incidents
are measured across sites and reported
to management and the Board on a regular
basis in order to track trends across
and within sites.
A strong health and safety culture exists
across the organisation.
A formalised (industry standard) Safe-T
Cert system has been implemented, which
incorporates a robust management system
and includes monthly independent safety
audits and scoring of results.
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Availability and Strength of
Subcontractors Supply agreements with subcontractors
The risk that the Company is are fixed for all, or a significant portion
unable to attract the right of each scheme, in order to ensure that
quantity and quality of subcontractors, supply is guaranteed.
which are critical to the construction Given the size of the Company's land
and delivery of the Company's bank and its position in the marketplace,
new homes, due to the outsourced it is a very attractive client for subcontractors.
business model applied by the Senior and middle management have many
Company. years of experience in the industry and
strong relationships with and knowledge
of key subcontractors.
The Company ensures payments are made
on time to subcontractors in order to
maximise their liquidity as they scale
their operations in conjunction with
the Company.
A panel of approved subcontractors is
in place and circulated on all relevant
tenders.
-----------------------------------------------------
CAIRN HOMES PLC
PRINCIPAL RISKS AND UNCERTAINTIES (continued)
Risk Description Mitigation
Succession Planning
A risk that the loss of key "9 box" succession planning methodology
staff will result in a loss in place, in order to identify succession
of key corporate knowledge and gaps and actions to close any gaps identified.
consequential impact on operations. Performance management process ensures
annual goal-setting and structured performance
feedback with mid-year and year-end staff
ratings.
Ensuring that remuneration policy is
robust enough to meet market demands.
Succession planning actions will be directly
linked to compensation outcomes to ensure
reward and retention of best talent.
-------------------------------------------------
Recruitment and Retention of
Key Personnel The Company's ambitious growth plans
The risk that the Company does and plc status make it an attractive
not have a sufficiently robust place of employment for high calibre
HR strategy in place in order staff.
to ensure the Company's recruitment The Company ensures that it has a remuneration
policy/plans are delivered and policy in place that is competitive in
that key staff are retained. the market-place to retain key staff.
The LTIP plan further incentivises and
aligns staff to Company performance.
Annual performance reviews in place to
ensure that Company strategy and goals
are communicated to key staff and to
provide regular feedback to staff to
ensure they are kept motivated.
The Company utilises a talent acquisition
recruitment specialist to ensure recruitment
of high quality staff.
-------------------------------------------------
Financial Controls Framework
The risk or failure to adhere Financial controls and policies in place
to agreed policies, procedures in order to manage risks across the key
and processes due to a lack areas.
of financial controls, leading Support Office personnel with direct
to potential financial misstatement, site operational knowledge in place in
fraudulent behaviour or a potential order to monitor site activity and site
financial loss to the Company. costs.
An outsourced internal audit function
has been set up in order to test the
Company's internal control framework
and to suggest improvements where required.
These improvements are presented to the
Audit and Risk Committee and are reviewed
periodically to assess implementation.
-------------------------------------------------
Liquidity Management
The risk that the Company does The Company aims to ensure that it always
not maintain sufficient liquidity has sufficient liquidity in place to
headroom to ensure that it can meet its cash flow requirements for the
always meet its working capital next 3 years.
requirements as they fall due. The Company prepares regular forecasts
Risk that slower than expected that look at both its short-term and
sales impact on the Company's longer-term requirements.
liquidity position. Regular monitoring, forecasting and reporting
The risk that failure to comply of banking covenants.
with the Company's banking covenants Speed of delivery on individual schemes
results in the withdrawal of takes account of sales absorption rates
funding lines. across each individual scheme.
An unforeseen stretch in liquidity can
be managed through a reduction in the
pace of build on one or more sites if
necessary.
-------------------------------------------------
CAIRN HOMES PLC
PRINCIPAL RISKS AND UNCERTAINTIES (continued)
Risk Description Mitigation
Government Policy including
Planning Regulations The Company monitors all policy changes
Inability to adhere to the complex through its planning department and the
and stringent regulatory environment experienced team is well placed to interpret
that applies to the building regulatory changes.
industry. Risk that the Government The Company uses external advisors who
and planning authorities will advise on any changes to relevant legislation.
introduce new legislation or Rigorous design standards in place for
legislative changes that result the new homes the Company builds.
in material cost, or time delays Participation in industry advocacy groups.
for the Company. The changes to the planning regime and
the establishment of the Strategic Housing
Development planning process (involving
a one step process with An Bord Pleanála
for all sites delivering greater than
100 residential units), enacted into
legislation in June 2017, have ensured
that the timeframe to obtain planning
permission on large sites has reduced.
-------------------------------------------------
Programme Risk/Project Planning
The risk that the Company incurs Robust project plans and controls are
costs which are higher than in place.
expected or experiences delays Monthly reporting of all project costs,
in construction due to poor with variances and explanations highlighted
planning. in monthly reports and discussed at monthly
on-site meetings attended by site management
teams and senior management. The construction
programme is linked clearly to the sales
programme, with regular analysis by site
comparing sales status with forecast
completion dates.
Key oversight personnel in place across
all projects.
-------------------------------------------------
Availability and Quality of
Materials Current size and growth prospects make
The risk that the Company is the Company an attractive customer for
unable to source the materials suppliers. Continued scaling of the business
it requires at the right time should ensure that the Company has access
and at the best price, due to to necessary materials at competitive
availability and volume constraints, prices.
or risk that subcontractors Framework agreements in place with key
utilise poor quality, prohibited suppliers providing certainty over supply
or dangerous materials. and pricing.
There is strong quality monitoring through
on-site engineers and materials are tested
at concrete plants and on site.
-------------------------------------------------
CAIRN HOMES PLC
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE HALF-YEARLY FINANCIAL REPORT
For the six month period ended 30 June 2018
The Directors are responsible for preparing this interim management report in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, the Transparency (Directive 2004/109/EC) Regulations 2007 ("the Transparency Directive"), and the Transparency Rules of the Central Bank of Ireland.
In preparing the interim financial information, the Directors are required to:
- prepare and present the interim financial information in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, the Transparency Directive, and the Transparency Rules of the Central Bank of Ireland;
- ensure the interim financial information has adequate disclosures; - select and apply appropriate accounting policies; and - make accounting estimates that are reasonable in the circumstances.
The Directors are responsible for designing, implementing and maintaining such internal controls as they determine are necessary to enable the preparation of interim financial information that is free from material misstatement whether due to fraud or error.
We confirm that to the best of our knowledge:
(1) the condensed set of financial statements in the half-yearly financial report of Cairn Homes plc ("the Company") for the six months ended 30 June 2018 ("the interim financial information") which comprises the condensed consolidated statement of comprehensive income, condensed consolidated statement of financial position, condensed consolidated statement of changes in equity, condensed consolidated statement of cash flows and the related explanatory notes, have been presented and prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union.
(2) The interim financial information presented, as required by the Transparency Directive, includes:
a. an indication of important events that have occurred during the first 6 months of the financial year, and their impact on the condensed set of financial statements;
b. a description of the principal risks and uncertainties for the remaining 6 months of the financial year;
c. related party transactions that have taken place in the first 6 months of the current financial year and that have materially affected the financial position or the performance of the enterprise during that period; and
d. any changes in the related party transactions described in the last annual report that could have a material effect on the financial position or performance of the enterprise in the first 6 months of the current financial year.
On behalf of the Board
Michael Stanley Tim Kenny
Chief Executive Officer Group Finance Director
CAIRN HOMES PLC
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
For the six month period ended 30 June 2018
For the six month period ended For the six month period
30 June 2018 ended 30 June 2017
--------------------------------------------- -------------------------------------
Before Exceptional Before Exceptional
Exceptional Items Total Exceptional Items Total
Items (Note 15) Items (Note 15)
Note EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
Continuing operations
Revenue 2 130,214 - 130,214 41,178 - 41,178
Cost of sales (104,137) - (104,137) (33,475) - (33,475)
------------ ------------ ---------- ------------ ------------ ---------
Gross profit 26,077 - 26,077 7,703 - 7,703
Other income 3 - - - 523 - 523
Administrative expenses (7,979) - (7,979) (5,192) (500) (5,692)
------------ ------------
Operating profit 18,098 - 18,098 3,034 (500) 2,534
Finance income 4 - 4 12 - 12
Finance costs 4 (5,900) (3,250) (9,150) (2,938) - (2,938)
------------ ---------- ------------ ------------ ---------
Profit/(loss) before
taxation 12,202 (3,250) 8,952 108 (500) (392)
Tax (charge)/credit 5 (946) 120
---------- ---------
Profit/(loss) for the period 8,006 (272)
Other comprehensive income - -
---------- ---------
Total comprehensive income/(loss)
for the period 8,006 (272)
---------- ---------
Profit/(loss) attributable to:
Owners of the Company 7,508 (272)
Non-controlling interests 498 -
---------- ---------
Profit/(loss) for the year 8,006 (272)
---------- ---------
Basic earnings/(loss) per share 13 0.99 (0.04
cent cent)
---------- ---------
Diluted earnings/(loss) per 13 0.95 cent (0.04
share cent)
---------- ---------
CAIRN HOMES PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
As at 30 June 2018
30 June 31 Dec 2017
2018
Unaudited Audited
Assets Note EUR'000 EUR'000
Non-current assets
Property, plant and equipment 1,402 1,372
Intangible assets 860 821
Restricted cash 8 17,002 17,002
---------- ----------------
19,264 19,195
Current assets
Inventories 6 950,728 911,496
Trade and other receivables 7 5,553 5,540
Cash and cash equivalents 8 46,423 68,803
---------- ----------------
1,002,704 985,839
Total assets 1,021,968 1,005,034
---------- ----------------
Equity
Share capital 9 828 828
Share premium 9 749,616 749,616
Share-based payment reserve 14,772 14,222
Retained earnings (37,233) (44,741)
---------- ----------------
Equity attributable to owners of the
Company 727,983 719,925
Non-controlling interest 11 2,293 1,795
---------- ----------------
Total equity 730,276 721,720
---------- ----------------
Liabilities
Non-current liabilities
Loans and borrowings 10 227,923 226,838
Deferred taxation 5 5,273 5,611
---------- ----------------
233,196 232,449
Current liabilities
Loans and borrowings 10 11,826 18,361
Trade and other payables 12 44,805 31,636
Current taxation 1,865 868
---------- ----------------
58,496 50,865
Total liabilities 291,692 283,314
---------- ----------------
Total equity and liabilities 1,021,968 1,005,034
---------- ----------------
CAIRN HOMES PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the six month period ended 30 June 2018
Attributable to owners of the Company
----------------- ----------
Share Share Share-Based Retained Total Non-Controlling Total
Capital Premium Payment Earnings Interests Equity
Reserve
---- ----- ---- ---------- ---------- ------------- ---------- ---------- ----------------- ----------
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
---- ----- ---- ---------- ---------- ------------- ---------- ---------- ----------------- ----------
As at 1 January 2018 828 749,616 14,222 (44,741) 719,925 1,795 721,720
----------------------------------- ---------- ---------- ------------- ---------- ---------- ----------------- ----------
Total
comprehensive
income
for the period
---------------- ---------- ---------- ------------- ---------- ---------- ----------------- ----------
Profit for the period - - - 7,508 7,508 498 8,006
----------------------------------- ---------- ---------- ------------- ---------- ---------- ----------------- ----------
- - - 7,508 7,508 498 8,006
---------- ---------- ------------- ---------- ---------- ----------------- ----------
Transactions
with owners
of the Company
---------------- ---------- ---------- ------------- ---------- ---------- ----------------- ----------
Equity-settled share-based
payments - - 550 - 550 - 550
----------------------------------- ---------- ---------- ------------- ---------- ---------- ----------------- ----------
- - 550 - 550 - 550
---------- ---------- ------------- ---------- ---------- ----------------- ----------
As at 30 June 2018 828 749,616 14,772 (37,233) 727,983 2,293 730,276
----------------------------------- ---------- ---------- ------------- ---------- ---------- ----------------- ----------
CAIRN HOMES PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the six month period ended 30 June 2017
Attributable to owners of the Company
--------------------------------------------------------
Share Share Share-Based Retained Total Non-Controlling Total
Capital Premium Payment Earnings Interests Equity
Reserve
----- ---- ------------- --------- ------------ ---------- -------- ---------------- --------
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
----- ---- ------------- --------- ------------ ---------- -------- ---------------- --------
As at 1 January 2017 794 697,733 24,779 (58,935) 664,371 - 664,371
------------------------------- ------------- --------- ------------ ---------- -------- ---------------- --------
Total
comprehensive
loss
for the period
----------------- ------------- --------- ------------ ---------- -------- ---------------- --------
Loss for the period - - - (272) (272) - (272)
------------------------------- ------------- --------- ------------ ---------- -------- ---------------- --------
- - - (272) (272) - (272)
------------- --------- ------------ ---------- -------- ---------------- --------
Transactions
with owners
of the Company
----------------- ------------- --------- ------------ ---------- -------- ---------------- --------
Issue of ordinary shares
for cash 34 51,883 - - 51,917 - 51,917
------------------------------- ------------- --------- ------------ ---------- -------- ---------------- --------
Share issue costs - - - (1,282) (1,282) - (1,282)
------------------------------- ------------- --------- ------------ ---------- -------- ---------------- --------
Equity-settled share-based
payments - - 121 - 121 - 121
------------------------------- ------------- --------- ------------ ---------- -------- ---------------- --------
34 51,883 121 (1,282) 50,756 - 50,756
------------- --------- ------------ ---------- -------- ---------------- --------
Changes in
ownership
interests
-----------------
Investment in subsidiary
by non-controlling
shareholders - - - - - 1,268 1,268
------------------------------- ------------- --------- ------------ ---------- -------- ---------------- --------
- - - - - 1,268 1,268
As at 30 June 2017 828 749,616 24,900 (60,489) 714,855 1,268 716,123
------------------------------- ------------- --------- ------------ ---------- -------- ---------------- --------
CAIRN HOMES PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
For the six month period ended 30 June 2018
For the six For the six month
month period period ended
ended 30 June 30 June 2017
2018
EUR'000 EUR'000
-------------------------------------------------- --------------- --- ------------------
Cash flows from operating activities
---- --------------- --- ------------------
Profit/(loss) for the period 8,006 (272)
--------------- ---
Adjustments for:
---- --------------- --- ------------------
Share-based payments expense 550 121
--------------- --- ------------------
Finance costs 9,150 2,938
--------------- --- ------------------
Finance income (4) (12)
Depreciation and amortisation 158 178
Taxation 946 (120)
--------------- ------------------
18,806 2,833
-------------------------------------------------- --------------- --- ------------------
Increase in inventories (39,128) (39,195)
--------------- --- ------------------
Increase in deposits paid - (10,750)
--------------- --- ------------------
Increase in trade and other receivables (13) (5,609)
--------------- --- ------------------
Increase in trade and other payables 11,286 11,465
Tax paid (287) -
--------------- --- ------------------
Net cash used in operating activities (9,336) (41,256)
--------------- --- ------------------
Cash flows from investing activities
---- --------------- --- ------------------
Interest received - 12
---
Purchases of property, plant and
equipment (227) (559)
---
Purchases of intangible assets (104) (261)
---
Net cash used in investing activities (331) (808)
--------------- --- ------------------
Cash flows from financing activities
---- --------------- --- ------------------
Proceeds from issue of share capital,
net of issue costs paid - 50,635
--------------- --- ------------------
Proceeds from borrowings, net of
debt issue costs 5,294 22,312
--------------- --- ------------------
Repayment of loans (11,896) -
----
Investment in subsidiary by non-controlling
interest - 1,268
Settlement of contingent consideration
for Argentum acquisition (3,250) -
Interest paid (2,861) (2,669)
--------------- --- ------------------
Net cash (used in)/from financing
activities (12,713) 71,546
--------------- --- ------------------
Net (decrease)/increase in cash
and cash equivalents in the period (22,380) 29,482
Cash and cash equivalents at beginning
of period 68,803 45,645
--------------- ------------------
Cash and cash equivalents at end
of period 46,423 75,127
--------------- ------------------
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
1. Basis of Preparation
Cairn Homes plc ("the Company") is a company domiciled in Ireland. The Company's registered office is 7 Grand Canal, Grand Canal Street Lower, Dublin 2. The Company and its subsidiaries (together referred to as "the Group") is predominantly involved in the development of residential property for sale.
These unaudited condensed interim consolidated financial statements and the information set out in this report cover the six month period ended 30 June 2018 and have been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the European Union.
The condensed interim consolidated financial statements do not include all the information required for a complete set of financial statements prepared in accordance with IFRS as adopted by the European Union. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since 31 December 2017. They should be read in conjunction with the statutory consolidated financial statements of the Group, which were prepared in accordance with IFRS as adopted by the European Union, as at and for the year ended 31 December 2017. Those statutory financial statements have been filed with the Registrar of Companies and are available at www.cairnhomes.com. The audit opinion on those statutory financial statements was unqualified and did not contain any matters to which attention was drawn by way of emphasis.
The new IFRS standards, amendments to standards or interpretations that are effective for the first time in the financial year ending 31 December 2018 have not had a significant impact on the Group's reported profit or net assets in these interim financial statements.
IFRS 15, Revenue from Contracts with Customers, replaced IAS 18 Revenue Recognition and IAS 11 Construction Contracts for the period ended 30 June 2018. IFRS 15 is based on the principle that revenue is recognised when control of a good or service transfers to a customer. The Group has assessed its contractual arrangements with customers in the current and prior periods. In respect of its residential property sales and site sales contracts, control passes to customers at legal completion and revenue is therefore recognised at that point in time. Based on the Group's assessment of IFRS 15, it has no impact on the residential property sales or residential site sales recognised up to the end of the period. The Group will continue to review all contracts as they occur in the future to ensure that their treatment is consistent with IFRS 15.
IFRS 9, Financial instruments replaced IAS 39, Financial Instruments: Recognition and Measurement for the period ended 30 June 2018. The standard addresses the classification, recognition, measurement and derecognition of financial assets and liabilities, and introduces new rules for hedge accounting and a new impairment model for financial assets. The Group considers that there is no material impact on the accounting for financial liabilities. The new requirements affecting the accounting for financial liabilities that are designated at fair value through profit or loss do not impact on the Group as it does not have any such liabilities. The Group considers that there is no material impact on its financial assets which continue to be accounted for at amortised cost. In view of the arrangements with customers where payment is ordinarily received at the point of legal completion, the Group does not generally have significant trade receivables arising from its property sales. Accordingly, the requirements for bad debt provisions under IFRS 9 to be based on an expected credit loss model (rather than an incurred credit loss model) do not have a significant impact on the Group. Also, the Group had no hedging arrangements in the current or prior period.
The Group's other accounting policies, presentation and method of computations adopted in the preparation of the condensed interim financial statements are consistent with those followed in the preparation of the Group's financial statements for the year ended 31 December 2017.
The preparation of consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results could differ materially from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The key judgements and estimates impacting these interim financial statements are the carrying value of inventories and allocations from inventories to cost of sales (note 6). The interim condensed consolidated financial statements are presented in Euro, which is the functional currency of the Company and presentation currency of the Group, rounded to the nearest thousand.
The interim condensed consolidated financial statements were approved by the Directors on 3 September 2018.
2. Revenue
For six month For six month
period ended period ended
30 June 2018 30 June 2017
EUR'000 EUR'000
-------------- --------------
Residential property sales 115,159 26,331
Residential site sales 14,377 14,147
-----------------------------
Income from property rental 678 700
-------------- --------------
130,214 41,178
-------------- --------------
3. Other income
For six month For six month
period ended period ended
30 June 2018 30 June 2017
EUR'000 EUR'000
-------------- --------------
Other income - 523
-------------- --------------
- 523
-------------- --------------
In the prior period, other income of EUR0.5 million represented net income on certain loans originally acquired in the Project Clear loan portfolio.
4. Finance costs
For six month For six month
period ended period ended
30 June 2018 30 June 2017
EUR'000 EUR'000
-------------- --- --------------
Interest expense on financial liabilities
measured at amortised cost
Settlement of contingent consideration
- exceptional item 5,900 2,938
3,250 -
------------------------------------------- -------------- --------------
9,150 2,938
------------------------------------------- -------------- --------------
Finance costs for the period to 30 June 2018 include interest and amortised transaction costs on the drawn Term Loans and Revolving Credit Facility, plus commitment fees on the undrawn element of the Revolving Credit Facility during the period.
Also, in accordance with IFRS 3 Business Combinations, a contingent consideration settlement of EUR3.25 million was charged to profit or loss in the period ended 30 June 2018 in relation to the Swords site which was acquired as part of the Argentum acquisition in 2016. This is a non-routine transaction which is non-recurring and has thus been classified as an exceptional item (note 15).
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (continued)
5. Taxation
For six month For six month
period ended period ended
30 June 2018 30 June 2017
EUR'000 EUR'000
----------------------------------------- ---------------- --------------
Current tax charge for the period 1,284 -
---------------- --------------
Deferred tax credit for the period (338) (120)
---------------- --------------
Total tax charge/(credit) 946 (120)
---------------- --------------
Deferred tax
-----------------------------------------
The deferred tax liability is comprised
of the following: For six month For year
period ended ended
30 June 2018 31 December
2017
---------------- --------------
EUR'000 EUR'000
---------------- --------------
Opening balance 5,611 5,490
---------------- --------------
(Credited)/charged to profit or loss (338) 121
---------------- --------------
Closing balance 5,273 5,611
---------------- --------------
6. Inventories
30 June 2018 31 Dec 2017
EUR'000 EUR'000
------------- ------------
Land held for development 796,228 788,791
Construction work in progress 151,381 104,492
----------------------------------------
Development land collateral (for loans
in the foreclosure process) 3,119 18,213
------------- ------------
950,728 911,496
------------- ------------
The Directors consider that all inventories are essentially current in nature although the Group's operational cycle is such that a considerable proportion of inventories will not be realised within 12 months. It is not possible to determine with accuracy when specific inventories will be realised as this will be subject to a number of factors such as consumer demand and the timing of planning permissions.
As the build costs on each site can take place over a number of reporting periods the determination of the cost of sales to release on each sale is dependent on up to date cost forecasting and expected profit margins across the various developments. There is a risk that one or all of the assumptions may require revision as more information becomes available, with a resulting impact on the carrying value of inventory or the amount of profit recognised. The risk is managed through ongoing site profitability reforecasting with any necessary adjustments being accounted for in the relevant reporting period. The Directors considered the evidence from impairment reviews and profit forecasting models across the various sites and are satisfied with the carrying values of inventories (development land and work in progress), which are stated at the lower of cost and net realisable value, and with the methodology for the release of costs on the sale of inventory.
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (continued)
7. Trade and other receivables
30 June 2018 31 Dec 2017
EUR'000 EUR'000
--------------- --------------
Construction bonds 4,292 4,344
--------------------
Other receivables 1,261 1,196
--------------- --------------
5,553 5,540
--------------- --------------
The carrying value of all trade and other receivables is approximate to their fair value.
8. Restricted cash and cash and cash equivalents
30 June 2018 31 Dec 2017
EUR'000 EUR'000
------------------ --------------
Non-current
------------------ --------------
Restricted cash 17,002 17,002
------------------ --------------
As at 30 June 2018, EUR17 million was required to be maintained in an interest-bearing blocked deposit for the duration of the Group's senior debt facilities (note 10), as part of the collateral for those facilities. The estimated fair value of this restricted cash at 30 June 2018 is EUR17 million. All this restricted cash was released to current assets after 30 June 2018 as a result of the Group's refinancing in July 2018 (note 19).
30 June 2018 31 Dec 2017
EUR'000 EUR'000
--------------- --------------
Current
--------------- --------------
Cash and cash equivalents 46,423 68,803
--------------- --------------
Cash deposits are made for varying short-term periods depending on the immediate cash requirements of the Group. All deposits can be withdrawn without significant changes in value and accordingly the fair value of current cash and cash equivalents is identical to the carrying value.
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (continued)
9. Share capital and share premium
30 June 2018 31 Dec 2017
Number EUR'000 Number EUR'000
-------------- ------------- -------------- ------------
Authorised
-------------- ------------- -------------- ------------
Ordinary shares of EUR0.001
each 1,000,000,000 1,000 1,000,000,000 1,000
-------------- ------------- -------------- ------------
Founder shares of EUR0.001
each 100,000,000 100 100,000,000 100
-------------- ------------- -------------- ------------
Deferred shares of EUR0.001
each 120,000,000 120 120,000,000 120
-------------- ------------- -------------- ------------
A Ordinary shares of EUR1.00
each 20,000 20 20,000 20
-------------- ------------- -------------- ------------
Total authorised share
capital 1,240 1,240
-------------- ------------- -------------- ------------
Share Capital Share Premium Total
As at 30 June 2018 Number EUR'000 EUR'000 EUR'000
------------------------------ ------------ -------------- -------------- --------
Issued and fully paid
------------ -------------- -------------- --------
Ordinary shares of EUR0.001
each 761,672,549 762 749,570 750,332
------------ -------------- -------------- --------
Founder shares of EUR0.001
each 46,292,771 46 46 92
------------ -------------- -------------- --------
Deferred shares of EUR0.001
each 19,980,000 20 - 20
-------------- -------------- --------
A Ordinary shares of EUR1.00 - - - -
each
------------------------------ -------------- -------------- --------
828 749,616 750,444
------------ -------------- -------------- --------
Share Capital Share Premium Total
As at 31 December 2017 Number EUR'000 EUR'000 EUR'000
------------------------------ ------------ -------------- -------------- --------
Issued and fully paid
------------ -------------- -------------- --------
Ordinary shares of EUR0.001
each 761,672,549 762 749,570 750,332
------------ -------------- -------------- --------
Founder shares of EUR0.001
each 46,292,771 46 46 92
------------ -------------- -------------- --------
Deferred shares of EUR0.001
each 19,980,000 20 - 20
-------------- -------------- --------
A Ordinary shares of EUR1.00 - - - -
each
------------------------------ -------------- -------------- --------
828 749,616 750,444
------------ -------------- -------------- --------
Long Term Incentive Plan
The Group operates an equity settled Long Term Incentive Plan (LTIP), which was approved at the May 2017 Annual General Meeting, under which conditional awards of 2,561,541 shares have been made to senior executives. The shares will vest on satisfaction of service and performance conditions attaching to the LTIP. Vesting of 80% of the awards will be based on Earnings per Share (EPS) performance and 20% will be based on Total Shareholder Return (TSR) over a 3 year period. The Group recognised an expense of EUR0.550 million related to the LTIP in profit or loss during the period ended 30 June 2018.
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (continued)
10. Loans and borrowings
30 June 2018 31 Dec 2017
EUR'000 EUR'000
--------------- --------------
Current liabilities
Bank loans
-----------------------------
Repayable within one year 11,826 18,361
----------------------------- --------------- --------------
Total borrowings 11,826 18,361
----------------------------- --------------- --------------
Non-current liabilities
Bank loans
--------------- --------------
Repayable as follows:
--------------- --------------
Between one and two years 227,923 226,838
--------------- --------------
Total borrowings 239,749 245,199
--------------- --------------
The amount presented in the financial statements is net of related unamortised arrangement fees and transaction costs.
The above maturity profile, which is based on the facilities that existed at 30 June 2018, has subsequently changed as a result of the Group's refinancing after the period end. The Group's committed new post period end facilities total EUR350 million which comprise a new EUR277.5 million Term Loan and Revolving Credit Facility with Allied Irish Bank plc, Ulster Bank Ireland DAC and Barclays Bank Ireland plc, repayable by 31 December 2022 and a EUR72.5 million Private Placement of Loan Notes with Pricoa Capital Group, repayable between 2024 and 2026 (note 19).
11. Non-controlling interest
The non-controlling interest at 30 June 2018 of EUR2.3 million (31 December 2017: EUR1.8 million) relates to the 35% share of the net assets of a subsidiary entity, Balgriffin Cells P13-P15 DAC, which is held by National Asset Management Agency ("NAMA"). Cairn Homes plc holds 65% of the equity share capital in this subsidiary which is involved in the development of residential property.
12. Trade and other payables
30 June 2018 31 Dec 2017
EUR'000 EUR'000
--------------- --------------
Trade payables 20,319 8,193
-----------------
Accruals 20,007 14,202
-----------------
VAT liability 3,697 7,854
-----------------
Other creditors 782 1,387
----------------- --------------- --------------
44,805 31,636
--------------- --------------
The carrying value of all trade and other payables is approximate to their fair value.
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (continued)
13. Earnings per share
The basic earnings per share for the period ended 30 June 2018 is based on the earnings attributable to ordinary shareholders of EUR7.5 million and the weighted average number of ordinary shares outstanding for the period.
For six month For six month
period ended period ended
30 June 2018 30 June 2017
Profit/(loss) attributable to owners of
the Company (EUR'000) 7,508 (272)
------------------------------------------------- -------------- --- --------------
Numerator for basic and diluted earnings/(loss)
per share 7,508 (272)
------------------------------------------------- -------------- --- --------------
Weighted average number of ordinary shares
for period (basic) 761,672,549 697,890,074
-------------- --- --------------
Dilutive effect of Founder Shares and options 27,337,398 -
------------------------------------------------- -------------- --- --------------
Denominator for diluted earnings/(loss)
per share 789,009,947 697,890,074
------------------------------------------------- -------------- --- --------------
Earnings/(loss) per share
---
0.99 cent (0.04 cent)
* Basic 0.95 cent (0.04 cent)
* Diluted
------------------------------------------------- -------------- --- --------------
The diluted earnings per share calculation reflects the number of ordinary shares issued through conversion of Founder Shares in August 2018 (note 19). The impact of share options is also reflected in the calculation.
Additional ordinary shares may be issued under the Founder Share scheme in future periods up to and including 2022 if the performance condition under the rules of the scheme is reached.
14. Dividends
There were no dividends declared and paid by the Company during the reporting period and there were no dividends proposed by the Directors in respect of the reporting period up to the date of authorisation of these interim financial statements.
15 Exceptional items
Six month period ended 30 June 2018
The terms of the agreements for the Argentum acquisition in 2016 included contingent consideration which could be payable in certain circumstances in relation to the Swords site. The exceptional finance cost of EUR3.25 million (note 4) in the period relates to the settlement of this contingent consideration which was agreed with the Argentum vendors during the period. This is required to be charged to profit or loss in the consolidated financial statements in accordance with IFRS 3 Business Combinations. As this is a material non-routine transaction which is non-recurring it has been classified as an exceptional item.
Six month period ended 30 June 2017
In the prior period, transaction costs of EUR0.5 million, incurred in connection with the Euronext Dublin Listing which was completed in July 2017, were charged to profit or loss. As the listing of the Group is a non-routine transaction, these costs were classified as an exceptional item.
16. Related party transactions
There were no related party transactions during the period other than Directors' remuneration.
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (continued)
17. Financial risk management
The Group has exposure to the following risks arising from financial instruments:
-- credit risk; -- liquidity risk; and -- market risk.
This note presents information about the Group's exposure to each of the above risks, and the Group's objectives, policies and processes for measuring and managing risk.
(a) Risk management framework
The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk management framework.
(b) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group's trade and other receivables and cash and cash equivalents. The carrying amount of financial assets represents the maximum credit exposure.
Exposure to credit risk
The Group's principal financial assets comprise cash and short term deposits. Group management in conjunction with the Board manage risk associated with cash and short term deposits by depositing funds with a number of Irish financial institutions and AAA rated international institutions. At 30 June 2018, the Group's deposits were held in three Irish financial institutions with a minimum credit rating of BBB-.
30 June 31 Dec 2017
2018
Carrying amount - amortised
cost EUR'000 EUR'000
Construction bonds and other
receivables 5,553 5,540
Restricted cash - non-current 17,002 17,002
Cash and cash equivalents -
current 46,423 68,803
-------- ------------
68,978 91,345
-------- ------------
(c) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.
The Group monitors the level of expected cash inflows from trade and other receivables together with expected cash outflows on trade and other payables and commitments. All trade and other payables (EUR44.8 million) at 30 June 2018 are considered current with the expected cash outflow equivalent to their carrying value.
Management monitors the adequacy of the Group's liquidity reserves (comprising undrawn borrowing facilities and cash and cash equivalents) against rolling cash flow forecasts. In addition, the Group's liquidity risk management policy involves monitoring short term and long term cash flow forecasts.
The Group's refinancing since the period end (note 19) will increase the available committed funding, reduce the Group's finance costs and extend the maturity profile from 2019 to between 2022 and 2026.
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (continued)
17. Financial risk management (continued)
(d) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
(i) Currency risk
The Group is not exposed to significant currency risk. The Group operates only in the Republic of Ireland.
(ii) Interest rate risk
At 30 June 2018, the Group had the following facilities:
(a) Term Loan and Revolving Credit facilities with Allied Irish Bank plc and Ulster Bank Ireland DAC that had a principal drawn balance of EUR180 million (EUR150 million Term Loan and EUR30 million Revolving Credit Facility), of which EUR70 million has a fixed interest rate of 0% plus a margin of 3%, with the balance on a variable interest rate of 3 month Euribor (with a 0% floor), plus a margin of 3%. The Group has an exposure to cash flow interest rate risk where there are changes in Euribor rates. The Group's refinancing after the period end (note 19) will result in reduced interest rates on the new Term Loan and Revolving Credit Facility.
(b) a EUR50 million Term Loan facility with Activate Capital at a variable interest rate of 1 month Euribor (with a 0% floor), plus a margin of 6%. The Group has not hedged its interest rate exposure on this Term Loan and retains an exposure to interest rate risk where there are changes in the prevailing 1 month Euribor rate.
(c) a EUR10 million short-term loan facility with Allied Irish Bank plc, at a variable interest rate of 3 month Euribor (with a 0% floor), plus a margin of 5%. This was repaid in August 2018.
(d) an additional Term Loan facility with Allied Irish Bank plc in relation to the joint development with NAMA (note 11) with a drawn balance of EUR1.8 million, at a variable interest rate of 3 month Euribor (with a 0% floor), plus a margin of 4.25%. This was repaid in July 2018.
(e) Fair value of financial assets and financial liabilities
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: valuation techniques for which the lowest level of inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and
Level 3: valuation techniques for which the lowest level of inputs that have a significant effect on the recorded fair value are not based on observable market data.
The following table shows the Group's financial assets and liabilities and the methods used to calculate fair value.
Asset/ Liability Carrying Level Method Assumptions
value
----------------- ---------- ------ ----------- ------------------------------------
Borrowings Amortised 2 Discounted Valuation based on future repayment
cost Cash Flow and interest cash flows discounted
at period end market interest
rates.
----------------- ---------- ------ ----------- ------------------------------------
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (continued)
17. Financial risk management (continued)
Fair value of financial assets and financial liabilities (continued)
The following table shows the carrying values of financial assets and liabilities including their values in the fair value hierarchy. The table does not include fair value information for financial assets and liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
30 June 2018 Fair Value
----------------------------
Carrying Level 1 Level 2 Level
Value 3
------------- -------- -------- --------
EUR'000 EUR'000 EUR'000 EUR'000
-------------------------------- ------------- -------- -------- --------
Financial assets measured
at amortised cost
------------- -------- -------- --------
Construction bonds and other
receivables 5,553
------------- -------- -------- --------
Cash and cash equivalents
- current 46,423
-------------
Restricted cash - non-current 17,002
-------------
68,978
-------------
Financial liabilities measured
at amortised cost
------------- -------- -------- --------
Trade payables and accruals 40,326
-------------
Borrowings 239,749 241,345
-------------
280,075
31 Dec 2017 Fair Value
----------------------------
Carrying Level 1 Level 2 Level
Value 3
------------ -------- -------- --------
EUR'000 EUR'000 EUR'000 EUR'000
-------------------------------- ------------ -------- -------- --------
Financial assets measured
at amortised cost
------------ -------- -------- --------
Construction bonds and other
receivables 5,540
------------ -------- -------- --------
Cash and cash equivalents
- current 68,803
------------
Restricted cash - non-current 17,002
------------
91,345
------------
Financial liabilities measured
at amortised cost
------------ -------- -------- --------
Trade payables and accruals 22,395
------------
Borrowings 245,199 245,199
------------
267,594
CAIRN HOMES PLC
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS (continued)
18. Commitments and contingent liabilities
On 27 June 2018, the Group agreed to sell its prime Dublin City Centre premium apartment development at Six Hanover Quay (120 apartments, a 5,000 sq. ft. restaurant and 1,400 sq. ft. café) on completion for a total cash consideration of EUR101 million (EUR89.7 million excluding VAT). Construction activity is ongoing with legal completion scheduled for Q1 2019.
The Group is not aware of any other commitments or contingent liabilities that should be disclosed in these financial statements.
19. Events after the reporting period
After the period end, the Group successfully completed a debt refinancing of its existing EUR200 million Term Loan and Revolving Credit Facility with Allied Irish Bank plc and Ulster Bank Ireland DAC, which was repayable by 11 December 2019, into a new EUR277.5 million Term Loan and Revolving Credit Facility with Allied Irish Bank plc, Ulster Bank Ireland DAC and Barclays Bank Ireland plc, repayable by 31 December 2022. Additionally, the Company completed a EUR72.5 million Private Placement of Loan Notes with Pricoa Capital Group, repayable on 31 July 2024 (EUR15 million), 31 July 2025 (EUR15 million) and 31 July 2026 (EUR42.5 million). The new facilities are secured by a debenture incorporating a fixed and floating charge over certain assets of the Group.
The Group announced the completion of the third founder share test period (1 March - 30 June 2018) on 20 July 2018 and confirmed that the founder share value created would be satisfied through the conversion of 27,110,622 founder shares into the same number of ordinary shares, which occurred on 16 August 2018. Under the approved terms of the Founder Share Scheme, the founders are entitled to 20% of total shareholder return generated each year up to and including 30 June 2022, subject to achieving a 12.5% annual compounding hurdle rate.
The Group has agreed to dispose of the refurbished student apartment development at Blackhall Place, Dublin as well as two other student accommodation development sites which recently received planning permission for a
total consideration of EUR45 million. 20. Approval of financial statements
These financial statements were approved by the Board on 3 September 2018.
Independent Review Report to Cairn Homes plc
Introduction
We have been engaged by Cairn Homes plc ("the Company") to review the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2018 which comprises the condensed consolidated statement of comprehensive income, condensed consolidated statement of financial position, condensed consolidated statement of changes in equity, condensed consolidated statement of cash flows and the related explanatory notes. Our review was conducted having regard to the Financial Reporting Council's ("FRC's") International Standard on Review Engagements ("ISRE") (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of consolidated financial statements in the half-yearly report for the six months ended 30 June 2018 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, the Transparency (Directive 2004/109/EC) Regulations 2007 ("the Transparency Directive"), and the Transparency Rules of the Central Bank of Ireland.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Transparency Directive and the Transparency Rules of the Central Bank of Ireland. As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRS as adopted by the EU. The Directors are responsible for ensuring that the condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of consolidated financial statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review having regard to the Financial Reporting Council's International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We read the other information contained in the half-yearly financial report to identify material inconsistencies with the information in the condensed set of consolidated financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the review. If we become aware of any apparent material misstatements or inconsistencies, we consider the implications for our report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Transparency Directive and the Transparency Rules of the Central Bank of Ireland. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.
KPMG 3 September 2018
Chartered Accountants
1 Stokes Place
St. Stephen's Green, Dublin 2
CAIRN HOMES PLC
COMPANY INFORMATION
Directors Solicitors
John Reynolds (Non-Executive Chairman) A&L Goodbody
Michael Stanley (Chief Executive Officer) IFSC
Tim Kenny (Group Finance Director) 25-28 North Wall
Quay
Alan McIntosh (Non-Executive, British) Dublin 1
Gary Britton (Non-Executive)
Giles Davies (Non-Executive, British) Eversheds-Sutherland
Andrew Bernhardt (Non-Executive, British) One Earlsfort
Centre
Earlsfort Terrace
Secretary and Registered Office Dublin 2
Tara Grimley
7 Grand Canal Pinsent Masons LLP
Grand Canal Street Lower 30 Crown Place
Dublin 2 Earl Street
London EC2A 4ES
Registrars
Computershare Investor Services Beauchamps
(Ireland) Limited
Herron House Riverside Two
Corrig Road Sir John Rogerson's
Quay
Sandyford Industrial Dublin 2
Estate
Dublin 18
Principal Bankers/Lenders
Auditors Allied Irish
Banks plc
KPMG Bankcentre
Chartered Accountants Ballsbridge
1 Stokes Place Dublin 4
St. Stephen's Green
Dublin 2 Ulster Bank Ireland
DAC
33 College Green
Website Dublin 2
www.cairnhomes.com
Barclays Bank
Ireland plc
Two Park Place
Hatch Street
Dublin 2
Pricoa Capital Group
One London Bridge
8(th) Floor
London
SE1 9BG
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR UOUURWOAKRUR
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September 04, 2018 02:01 ET (06:01 GMT)
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