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Cairn Homes PLC on Wednesday announced a new share buyback programme and the intention to declare a higher dividend amid an upbeat update about spring sales. The Dublin-based housebuilder said the increase in housing output and profitability that it has delivered in recent trading periods has continued in the year to date. The company declared a share buyback programme of €45 million, which represents €40 million in respect of a new programme and the remaining €5 million of the 2023 programme. The new programme started Wednesday and may run until the end of June 2025. The maximum number of shares to be bought back will be around 92.4 million. Shares in the company rose 8.1% to 144.00 pence each late on Wednesday morning in London. Cairn Homes said 894 closed units generated revenue of around €365 million in the first half of 2024, up 66% from a year ago. It added that its closed and forward order book has grown to around 3,100 new homes, up 25% from 2,473 as at February 28. The company intends to announce an interim dividend of 3.8 euro cents, up 23% from 3.1 cents a year ago. It plans to release its half-year results on September 4. Cairn Homes reaffirmed its guidance for 2024, aiming for an operating profit jump of 28% to €145 million from €113.4 million in 2023. Return on equity is set to improve to 15% from 11.3%. Chief Executive Officer Michael Stanley said: ‘Cairn experienced a very strong spring sales season for first time buyer homes, which has added to our order book of over 3,000 homes. We will grow our output by 30% this year and invest heavily in 10 new site commencements, including eight in the second half of 2024. ‘Recent data on increased mortgage approvals for first time buyers is positive news and the broader homebuilding industry is also responding to improved realisable demand by increasing the supply of new family homes.’ Copyright 2024 Alliance News Ltd. All Rights Reserved.
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