Full-year results for Cairn Homes and ECB rate decision

Business This Week: results, indicators and meetings for the week ahead

In its most recent trading statement Cairn Homes said that, as well as dividends, it wanted to return cash to investors through measures such as buying back shares. Photograph Nick Bradshaw

In its most recent trading statement Cairn Homes said that, as well as dividends, it wanted to return cash to investors through measures such as buying back shares. Photograph Nick Bradshaw

 

MONDAY

Results: Greencoat Renewables, Salesforce.

Indicators: Euro-zone PPI (Jan); UK construction PMI (Feb).

Meetings: Fingal Local Enterprise Week (various venues in Fingal, north Co Dublin).

TUESDAY

Results: Trinity Biotech, GVC Holdings, Ibstock, Urban Outfitters.

Indicators: Irish consumer confidence (Feb), services PMI (Feb), industrial production (Jan), unemployment (Feb), exchequer returns; euro-zone composite and services PMI (Feb), retail sales (Jan); UK car sales (Feb), services PMI (Feb); German composite and services PMI (Feb); US composite and services PMI (Feb), economic optimism (Mar).

Meetings: FM Ireland – facilities management conference (RDS, Dublin 4).

WEDNESDAY

Results: Breedon Group, Corbion, Glenveagh Properties, Origin Enterprises, Paddy Power Betfair, Abercrombie & Fitch.

Indicators: German construction PMI (Feb); US exports and imports (Dec), factory orders (Jan).

THURSDAY

Results: Cairn Homes, Irish Continental Group, Premier Oil, Total Produce, Deutsche Post DHL, DS Smith, LafargeHolcim, Barnes & Noble.

Indicators: Euro-zone employment change (Q4), GDP (Q4); UK house price index (Feb); US exports and imports (Jan).

Meetings: ECB interest rate decision; Dublin Rising conference on building height restrictions (1 Sir John Rogerson’s Quay, Dublin 2); Zero Day Con cybersecurity event (Convention Centre Dublin); DMX Dublin marketing conference (Aviva Stadium, Dublin 4).

Positive news for investors

While Thursday should deliver more clarity on cash flow at Cairn Homes, which reports full year results, there is little doubt about positive news for investors.

Last week it emerged the builder was to seek High Court approval for an option to distribute up to €550 million, a plan backed by shareholders at an extraordinary general meeting.

In its most recent trading statement the company said that, as well as dividends, it wanted to return cash to investors through measures such as buying back shares.

Cairn earned €337 million in revenues last year, more than double the €149.5 million of 2017. On average, it sold houses for €366,000 in 2018, up from €315,000.

In a note ahead of Thursday’s results, Davy reiterated its “outperform” rating and said its price target of €1.63 provides about 30 per cent upside from current levels.

“The land bank that Cairn Homes has accumulated since its IPO is formidable,” it said. Its “unwinding... will create significant additional cash flow in the medium term.”

As well as estimating about €310 million in operating profit in FY 2019 to 2021, Davy believes a further €150 million can be generated from a falling working capital.

Meanwhile, noting its success in acquiring planning permissions, Goodbody said Cairn was underpinning its medium-term target of delivering up to 1,500 units from 2021.

FRIDAY

Indicators: Irish construction output (Q4), new car sales (Feb); UK consumer inflation expectations (Q1); German factory orders (Jan); US unemployment (Feb), non-farm payrolls (Feb).

Meetings: Machine Learning Summit (Marker Hotel, Dublin); Accenture International Women’s Day Event (Convention Centre Dublin); Deputy Central Bank governor Sharon Donnery talk on domestic macro-financial policy and the Irish economy (Institute of International and European Affairs, North Great George’s Street, Dublin 1).

International Women’s Day event

Accenture is promising the country’s largest International Women’s Day event on Friday in which 1,600 people will gather at the Convention Centre Dublin to discuss how equality can drive innovation in business.

It says “luminaries” from the business world – as well as technology, government and media – will be on hand to offer insights through a series of panel debates. The international event is quickly becoming a staple focus of industry with increasing importance placed on gender balance in the workforce, particularly in the areas of pay equality and balancing senior executive and board roles.

“Our panellists are women and men who have advocated for equality throughout their lives,” explained Dr Michelle Cullen, head of inclusion and diversity at Accenture in Ireland, ahead of its event. “They are leaders who want real, tangible change for individuals, in organisations and across society.”

The line-up includes Brenda Romero, Bafta-winning game designer; former Fine Gael Minister and TD Frances Fitzgerald; and Brid Horan, co-chair of Better Balance for Better Business.

Separately on Thursday, Dublin Rising – an event organised by the newly-formed Women in Property and Construction Ireland – will look at recent amendments to building height restrictions and hear from Minister for Housing Eoghan Murphy.

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