Annual Report 2023
Annual Report 2023

Built

For

Good

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At Cairn, it’s not what we build, it’s why we build. It’s about putting down a marker that will stand for generations to come. Creating new communities of connection and belonging for an Ireland where people can thrive. Reshaping, redefining, reinvigorating our place in the world. Building for people, progress, and potential.

Because when Cairn build, it’s Built For Good.

Cairn is a home and community builder, leading the market in creating sustainable foundations upon which Ireland can thrive.

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Highlights

2023 Financial Highlights

In 2023 we delivered our strongest ever financial and operational performance, building a record number of new homes and confirming our position as a long term, sustainable and profitable business.

Revenue
+8.0%
2023: €666.8m
2022: €617.4m
Gross profit
+13.4m
2023: €147.6m
2022: €134.2m
Gross Margin
+40bps
2023: 22.1%
2022: 21.7%
OPERATING PROFIT
+10.1%
2023: €113.4m
2022: €103.0m
OPERATING MARGIN
+30bps
2023: 17.0%
2022: 16.7%
BASIC EPS/DPS*
+1.2/0.2c
2023: 12.7c/6.3c
2022: 11.5c/6.1c
NET DEBT
-€0.0m
2023: €148.3m
2022: €149.3m
ROE**
+0.0%
2023: 11.3%
2022: 10.8%
SALES COMPLETIONS
+0%
2023:1,741
2022: 1,526
Earnings per Share (“EPS”) is defined as profit attributable to owners of the Company divided by the weighted average number of ordinary shares for the period. Calculated as €85.4m / 673.8m shares (2022: €81.0m / 703.0m shares).
Dividend per Share (“DPS”) is defined as the sum of interim dividend paid plus final dividend proposed for a financial year. Calculated as 3.1 centinterim dividend paid plus 3.2 cent final dividend proposed (2022: 3.0 cent interim dividend plus 3.1 cent final dividend)
Return on Equity (“ROE”) is defined as profit after tax divided by total equity at year end. Calculated as €85.5m / €757.2m (2022: €81.0m / €751.8m)

2023 Non-Financial Highlights

Our established operating platform allows us to deliver at industry leading pace, scale and value for money.

Leading sustainably

Co-founded Ireland's Supply Chain Sustainability School and committed to Net Zero by 2050.

A trusted partner

Continued our delivery of Social & Affordable high quality scaled apartment developments to State supported counter parties.

Passive House

Commenced construction of 598 Passive House apartments at Piper's Square, Charleston.

2023 Operational Highlights

Active sites in 2023
20

nationwide as we continue to expand our regional footprint

Record sales levels throughout the year
2,800+

new homes sale agreed

Energy efficient homes
1,741

A2 rated (Building Energy Rating “BER”) sales completions

Statements
Our commitment is to build homes that are thoughtfully designed and Built For Good.

2023 has been another year of strong performance for Cairn. Despite certain macroeconomic headwinds in recent years, as well as continued cost of living callenges and inflationary pressures, we have once again exceeded expectations across key financial and operational metrics. The strong operational and financial performance of the business during 2023 demonstrates the strength and resilience of our long-term operating model, balance sheet efficiency, and the high calibre and experience of our management team.

JOHN REYNOLDS
CHAIRMAN OF THE BOARD
Download Statement
2023 was a year where we firmly established our scaled platform which is driving momentum into 2024.

The true strength of our scaled operating platform came to the fore in 2023, delivering significant growth and record housing output. This impressive performance reflects the continued reinvestment we have made in our business, delivering growth across all of our key operational and financial performance metrics.

MICHAEL STANLEY
CHIEF EXECUTIVE OFFICER
Download Statement
Housing Supply in Ireland

What does a sustainable residential sector deliver to Ireland?

Supporting Ireland’s growing economy

Ireland has one of the strongest performing economies in Europe. This economic success depends on attracting the right workers to the right places to meet employer demand. Ireland’s continued competitiveness depends on housing supply keeping pace with demand, with 70% of Irish CEOs identifying housing availability as a challenge. The delivery of new housing is critical to the continued growth of the Irish economy.

A sector with impact

Homebuilding has an economic impact far beyond the new homes built in a given year. The building and construction sector employed over 160,000 people in 2023, an increase of over 10,000 since 2019. As well as direct employment the sector contributes to education and upskilling through nearly 5,000 apprenticeships and spin-off jobs in the communities it operates in

Supporting decarbonisation

Ireland aims to achieve a 51% reduction in greenhouse gas emissions by 2030, with households responsible for more than 10% of all emissions. All new homes in Ireland are A2 energy rated achieving Nearly Zero Energy Building (NZEB) standards. Efficient new homes help reduce household emissions, emitting 70% less carbon dioxide than a home built under 2005 standards. Please refer to page 14 of our 2023 Sustainability Report for further detail on our decarbonisation roadmap.

Housing across all tenures

Housing is a pressing need across all areas of Irish society. In 2023, 36% of private renters were at risk of poverty after paying their housing costs. A sustainable residential construction sector is one that is able to work at pace and scale with State supported counterparties to deliver Social & Affordable housing that meet society’s needs.

Quality of life

A sector that delivers quality new housing allows families and individuals to put down roots and enjoy a high quality of life. In Ireland, there has been an 82% increase in 25-29 year olds living with their parents since 2013 and many current renters desire security of tenure in their homes. By building higher quality and secure-tenure homes, homebuilders improve living standards and wellbeing across Irish society.

IN NUMBERS
161k
Construction industry jobs in Q4 2023
11bn
Construction industry GrossValue Added (“GVA”) in 2023
32,695
New homes built in 2023
Our Portfolio

Strategically located and low cost landbank

We have a landbank of c. 16,300 units (across 35 sites nationwide) located in areas with excellent public transport and infrastructure links, allowing communities to thrive.

Click on pins to read more about some key developments

Download Our Portfolio
Seven Mills (Dublin 22)
Charlestown (Dublin 11)
Sorrell Wood (Wicklow)
Archers Wood (Wicklow)
Nyne Park (Kilkenny)
Bayly (Cork)
Our Strategy

Adding value at every step

Our end-to-end delivery platform allows us to control our entire product lifecyle, meaning we create value where others can’t. At Cairn, delivering value and quality to all of our stakeholders is at the centre of everything we do.

Download Business Model
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Land acquisition

Our land acquisition strategy is focussed on identifying sites with strong infrastructure and transport links, and evaluating how to best utilise the land to create optimal value.
Our land acquisition strategy is focussed on identifying sites with strong infrastructure and transport links, and evaluating how to best utilise the land to create optimal value.
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Construction

Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
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Item 5

Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
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Item 7

Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
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Land acquisition

Our land acquisition strategy is focussed on identifying sites with strong infrastructure and transport links, and evaluating how to best utilise the land to create optimal value.
Our land acquisition strategy is focussed on identifying sites with strong infrastructure and transport links, and evaluating how to best utilise the land to create optimal value.
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Construction

Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
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Item 5

Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
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Item 7

Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
Our expanding operating and delivery platform allows us to leverage our scale to delvier value to all of our stakeholders. Through initiatives such as group procurement and standardisation we are able to leverage our position as Ireland’s largest homebuilder.
Business Model

Adding value at every step

Our end-to-end delivery platform allows us to control our entire product lifecyle, meaning we create value where others can’t. At Cairn, delivering value and quality to all of our stakeholders is at the centre of everything we do.

Download Business Model
Scroll to view more
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Land acquisition

Our strategy centres on identifying sites that are complementary to our existing landbank and that represent value accretive opportunities, located in areas with excellent public transport and infrastructure links.
We lead and manage the design and submission of new development designs and planning applications to ensure key stakeholder objectives are achieved, whilst maximising the commercial outcome in a timely manner.
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Pre-construction

Our established capability allows us to mobilise preconstruction and design during the planning process, thereby enabling us to start on site as soon as we receive planning grants.
Our commercial team deliver value through close governance of design efficiency, strong engagement with our supply chain, competitive procurement and robust cost management, all underpinned by comprehensive analytical processes.
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Construction

Our expanding operating and delivery platform allows us to deliver award winning developments and value for money. As Ireland’s largest self-build apartment developer, we leverage our proven apartment delivery capability to deliver energy efficient apartments at pace and scale.
Our commitment to understanding our customers and their needs begins at land acquisition and remains at the core of our entire business model. Our dedication to customer insights and feedback, at all stages, allows us to be a partner of choice and deliver new homes that exceed the diverse expectations of our customers.
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Customer Care

Customer experience is at the centre of the Cairn home buying process. Our dedicated aftercare team work with all of our customers to ensure the highest possible levels of aftercare.
Value added over 60+ years as further decarbonisation takes place, with an A-rated Cairn new home becoming more energy efficient as time goes on. Our transition into Passive House apartments will bring this to the next level.
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Our Strategy

Creating long-term sustainable value for our stakeholders

Cairn is a home and community builder, leading the market in creating sustainable foundations upon which Ireland can thrive. Our strategy is designed to support our purpose – building communities that serve our country’s present and future needs.

Progress and Achievements in 2023
Developed the Cairn Apprenticeship Scheme, to which we will contribute €10 million over the next five years which will help enhance the long-term health and viability of the Irish construction sector.
Included in Ireland’s Top 20 Best Large Workplaces in 2023 and designated, for the second year in a row, as a Great Place to Work.
Awarded 'Investors in Diversity Silver Status'
Partnered with TU Dublin to support them over the next 10 years in the development of their Design and Construct Centre.
Priorities for 2024
Continue to connect, develop and inspire our people through ongoing investment in their personal and professional development.
Expansion of and increased investment in our graduate programme with the aim of trebling our graduate intake in 2024.
Having been announced as the title sponsor of Ireland’s Community Games in January 2024, we will invest €3 million over four years, supporting over 160,000 children who participate annually in these games.
Progress and Achievements in 2023
1,741 sales completions to a diverse customer pool. Cairn has delivered over 7,500 new homes to the Irish market since 2015 with over 20,000 people now living in a Cairn home.
Agreement and approval reached for our first three forward fund transactions with a number of State supported counterparties, expected to close in 2024.
Over 80% of our starter homes in 2023 were available to our customers at prices which are below State support pricing caps.
Maintained our market leading levels of customer care, finishing, landscaping and commitment to community care which have become synonymous with Cairn.
Priorities for 2024
Continue to build relationships with our entire customer base so as to develop long-term sustainable partnerships.
Further expand our aftercare to our commercial and State supported counterparty customers, using learnings from our private customer base.
Build on the success of our mixed tenure developments, such as Archers Wood, to continue to deliver to all of our customers across all tenures.
Progress and Achievements in 2023
Retained the highest possible Safe-T Cert Grade A.
Reduced our Accident Frequency Rate by 16% and our Lost Time Incident Rate by 19%.
Commenced over 2,100 new homes (26% increase on 2022) across 20 active sites nationwide.
Established a dedicated Innovation Team, which project manages our Strategic Innovation Evaluation Framework.
Launched our Group Procurement function to leverage our scale and facilitate more effective and efficient procurement.
Priorities for 2024
Continued focus on Health & Safety initiatives.
Innovation will be central to our construction activities in 2024 as we continue our digitalisation strategy to include the adoption of technology to support our growing supply chain and procurement requirements.
Leveraging our new Group Procurement function to further embed the use of framework agreements.
Commence the development of our second scaled Passive House apartment scheme at the 608 unit second phase of our Seven Mills development.
Progress and Achievements in 2023
Commenced construction on our first 598 unit Passive House apartment scheme at Piper’s Square, Charlestown.
Received SBTi validation of our Near-Term Scope 1, 2 and 3 decarbonisation targets.
Retained our CDP A- rating.
Awarded three ISO certifications:

ISO 9001 - Quality Management,
ISO14001 - Environmental Management,
ISO45001 - Occupational Health and Safety Management
Commenced construction at our Seven Mills development in Clonburris which we are targeting to be Ireland’s first Biodiversity Net Gain town.
Priorities for 2024
Preparation for upcoming reporting requirements under the EU’s Corporate Sustainability Reporting Directive.
Publish our Climate Transition Plan, having committed in 2023 to achieving Net Zero by 2050.
Support and develop the Supply Chain Sustainability School Ireland, which we were a founding partner of in late 2023.
Climate Action
Our Strategy in Action

Leading on Decarbonisation

Cairn have launched our first Passive House apartment scheme at Pipers Square, Charlestown, which will be one of the most sustainable scaled apartment developments in Ireland.

Developed in Germany in the 1990s, the Passive House building standard is designed to minimise the need for space heating and cooling – reducing both carbon emissions and utility bills – while ensuring high levels of comfort and indoor air quality.

The concept centres on the combination of five principles:

•  Minimising thermal bridging
•  Ensuring very high levels of airtightness
•  Installing high performance windows
•  Using high levels of insulation
•  Adopting heat recovery ventilation

Passive House delivers outstanding levels of energy efficiency, typically requiring half the heating energy of a building regulations-compliant, new-build home. Applying this rigorous standard to the Charlestown scheme will reduce Cairn’s Scope 3 emissions by an estimated 9,500 tonnes of carbon compared with standard building regulations, equivalent to 5% of our entire 2019 baseline footprint.

Our key mission is to advance our efforts towards our ultimate goal to halt and reverse nature loss.

We have made major strides in reducing our direct impacts on nature loss by targeting Biodiversity Net Gain (BNG) on increasing numbers of our developments. We have tied achieving our BNG targets to Executive remuneration, ensuring it is front and centre in our corporate actions, and will analyse our full nature-related dependencies, impacts, risks and opportunities. We continue to support the All-Ireland Pollinator Plan with our Pollinator Friendly planting and landscape works across all of our developments and have been acknowledged by the National Biodiversity Data a Pollinator Friendly business since 2018 and our pollinator plan activities are mapped on the All-Ireland Pollinator Plan website.

We have also continued to be supporters of Birdwatch Ireland, an independent conservation organisation, and have collaborated with them on implementing a significant nesting box project as part of our Linden Demesne development.

Site-specific projects are bolstered further by our pollinator-friendly strategies across all Cairn schemes. These include:

• 100% of sites undergo a pre-commencement biodiversity assessment
• Pollinator-friendly mixes of perennials and flowering shrubs in all front gardens
• Native tree planting in open spaces and private gardens
• Mixed bulb drifts of pollinator-friendly plants
• The provision of a packet of pollinator-friendly bulbs and information to every new homeowner

In 2023, Cairn continued to ramp up our efforts to improve the biodiversity of the wider environment in parallel with our Biodiversity Net Gain strategy for our own sites by planting thousand of trees across the country. In choosing native species, we are creating future homes for local wildlife as well as mitigating climate change.

To further this initiative and augment the treeplanting we have carried out on our own sites (18,000+ in 2023, 52,000+ to date), we partnered with Reforest Nation to sponsor a further 3,000 trees at the beginning of 2023. Cairn employees joined a host of volunteers over a weekend in late February to lend a hand tree-planting and come together to make a positive impact on our environment, helping the local ecosystem and supporting biodiversity. This was the second such event held with Reforest Nation.

We are continuing to partner with Reforest Nation in 2024 to further support them in their mission of rejuvenating Ireland’s landscapes and contributing to the global effort against climate change. Cairn recognises our debt to nature, and our obligation to protect it, and also the need to reverse current trends in biodiversity and habitat loss to ensure a sustainable Ireland for future generations. In 2023, we planted more than double the number of trees planted in 2022 resulting in an average of almost 11 trees planted per unit sold during the year.

passive house features
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Thermal insulation +
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Passive House windows +
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passive house features
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