Cairn Homes plc | Annual Report 2024
Annual Report 2024
Built for Good
Cairn Homes plc | Annual Report 2024
Sustainability StatementsStrategic Report Corporate Governance
At Cairn, it’s not
about what we
build, it’s about
why we build...
Strategic Report
1 Financial Highlights
2 Built For Good
6 Our Investment Case
8 Chairman’s Statement
10 Chief Executive Officer’s Statement
12 Market Overview
14 Strategy
24 Business Model & Value Chain
30 Stakeholder Engagement
33 KPIs/Performance Metrics
34 Chief Financial Officer’s Statement
36 Risk Report
50 Sustainability Statements:
Introduction
54 Sustainability: Environment
72 Sustainability: Social
84 Sustainability: Governance
88 Sustainability: Disclosures
{
Corporate Governance
105 Board Highlights
106 Board of Directors
108 Senior Leadership Team
110 Corporate Governance Report
118 Audit & Risk Committee Report
122 Nomination Committee Report
128 Directors’ Remuneration Report
146 Directors’ Report
Financial Statements
151 Statement of Directors’
Responsibilities in Respect
of the Annual Report and the
Financial Statements
152 Independent Auditor’s Report
160 Consolidated Statement of
Profit or Loss and Other
Comprehensive Income
161 Consolidated Statement of
Financial Position
163 Consolidated Statement of
Changes in Equity
165 Consolidated Statement of Cash Flows
166 Notes to the Consolidated
Financial Statements
203 Company Statement of
Financial Position
204 Company Statement of Changes
in Equity
206 Company Statement of Cash Flows
207 Notes to the Company Financial
Statements
Cairn Homes plc | Annual Report 2024
1
Corporate GovernanceStrategic Report Financial Statements
The Company delivered
a strong financial and
operational performance in
2024, achieving significant
growth in housing output
and generating meaningful
returns for our shareholders
with a Return on Equity
of 15.1%.
1 ROE (Return on Equity) is defined as profit after tax divided by total equity at
year end. Calculated as €114.6m/€758.2m (2023: €85.4m/€757.2m).
2 FY24 8.2 cent dividend per ordinary share represents a 3.8 cent interim dividend
per ordinary share paid in October 2024 and 4.4 cent proposed final dividend per
ordinary share.
3 This comprises both closed sales and equivalent units. Equivalent units relate to
forward fund transactions which are calculated on a percentage completion basis
based on the constructed value of work completed divided by total estimated cost.
Financial Highlights
REVENUE
€859.9m
2023: €666.8m
UNIT
COMMENCEMENTS
4,100+
2023: 2,162
GROSS PROFIT
€187.0m
2023: €147.6m
ACTIVE
SITES
21
2023: 20
Operational Highlights
UNITS
3
2,241
2023: 1,741
OPERATING PROFIT
€150.0m
2023: €113.4m
WIP SPEND
€484.3m
2023: €439.9m
OPERATING CASHFLOW
€134.7m
2023: €107.0m
DPS
2
8.2 cent
2023: 6.3 cent
NEW SITE
COMMENCEMENTS
10
2023: 4
OPERATING MARGIN
17.4%
2023: 17.0%
ROE
1
15.1%
2023: 11.3%
We build
communities
From local to national
2024 saw us scale our community building
efforts in a significant way. Our Home
Together initiative continues to expand to
new developments. Our sponsorship of the
Cairn Community Games has increased
our impact with a €3 million investment
over a four-year period to grow awareness
and participation in an organisation that
aligns perfectly with our commitment
to building thriving communities.
READ MORE
p22
160,000+
young people participating in
the Cairn Community Games
Cairn Homes plc | Annual Report 2024
Strategic Report Corporate Governance Financial Statements
2
Cairn Homes plc | Annual Report 2024
Built For Good
3
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
We build
partnerships
Towards a
common purpose
Collaboration and partnership are at the core of
what we do. Building strong partnerships with supply
chain partners, customers and landowners, working
together to create quality homes and communities.
Through collaboration, trust and shared expertise,
we deliver sustainable, efficient solutions that meet
housing needs and enhance the lives of residents
and stakeholders.
READ MORE
p18
c2,150
new homes being delivered under
forward-funded partnerships with
State-supported counterparties
Built For Good continued
Cairn Homes plc | Annual Report 2024
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Strategic Report Corporate Governance Financial Statements
We build
foundations for
future generations
Leading the way
We are accelerating our investment in
the education and training of our team,
our partners and the next generation of
our industry. Our ongoing work with the
Supply Chain Sustainability School Ireland,
Childrens Books Ireland , mentorships
and transition year programmes are
all examples of our leadership in
this area. In 2024, we launched the
Cairn Apprenticeship Programme, with
a €10 million investment over five years,
attracting more young people to our
industry and training them to the highest
standards of skill and innovation.
READ MORE
p80
€10 million
investment in the Cairn Apprenticeship
Programme
Built For Good
5
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Corporate GovernanceStrategic Report Financial Statements
A sustainable future
In 2024, we significantly increased our investment in
Passive House standard commencements, with over
1,750 apartments under construction, setting new
standards for energy efficiency with up to 55% less
energy demand compared to nZEB. This will increase
to 2,750-3,000 new homes by the end of 2025. Our
commitment to sustainable construction, habitat
preservation and Biodiversity Net Gain all demonstrate
our commitment to creating long-lasting positive
impacts for communities and the environment.
READ MORE
p57
75,000+
tonnes of CO
2
saved over
four passive developments
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.
Building for people, progress,
and potential.
When Cairn
build, it’s
Built For Good.
5
Built For Good continued
6
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Total:
38 sites
High capacity public
transport routes
Coastal commuter train
Rapid city
train red line
Rapid city
train green line
Commuter rail
M1
N11
N81
N7
M50
M4
M3
M2
M50
Meath
Wicklow
Kildare
Dublin
Our Investment Case
What makes
us different
Cairn is a home and community builder, leading the market
in creating sustainable foundations upon which Ireland can
thrive. Cairn delivers sustainable new homes, including houses,
duplexes and apartments, to a broad customer base. These
new communities are delivered from a scalable and efficient
operating platform, with established supply chain partnerships
on development sites across our historic low-cost landbank.
Why invest in Cairn Homes?
Market Opportunity
Attractive market opportunity
underpinned by a strong economy
and supportive Government
housing policies.
Low-cost Landbank
Own a c.16,150-unit low-cost landbank
across 38 residential sites with over
90% located in the Greater Dublin Area
with excellent public transport and
infrastructure links.
Deliver for Shareholders
Proven track record of delivering
sustainable growth and attractive
returns for shareholders.
Leading Sustainably
Deliver high-quality, energy-efficient
sustainable homes and communities,
leveraging our position of leadership
with an emphasis on innovation and
sustainable construction.
Scaled Operating Platform
Scaled and efficient operating
platform with established supply
chain partnerships, delivering housing
and apartment developments at
industry-leading pace, scale and
value for money.
Plot costLandbank
HOUSING (C.11,700)
€28k
AVERAGE
€38k
APARTMENTS (C.4,450)
€64k
TOTAL LANDBANK
c .16,150 u nit s
Residentially
zoned
Subject
to zoning
11% 2%
SDZ (effective
full planning
permission)
19%
Full planning permission
51%
In planning
17%
Cairn Homes plc | Annual Report 2024
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Corporate GovernanceStrategic Report Financial Statements
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Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
“We are committed to
building thoughtfully
designed, high-quality,
sustainable homes
for our customers.”
JOHN REYNOLDS
CHAIRMAN OF THE BOARD
Chairman’s Statement
I am pleased to present the
annual report for the year ended
31December 2024.
This report highlights our strong performance over the
past year and demonstrates how we are strategically
positioned for sustained growth while creating
significant value for our shareholders, employees,
customers and broader stakeholders. Ambitions
towards improving the sustainability of, and diversity
within, our business are a reflection of our core values
as a Company and our belief that they enhance our
Company’s financial prospects.
Our Commitment
At Cairn, our mission goes beyond building houses –
we aim to create enduring homes and communities
where people can thrive for generations. In 2024,
we continued our efforts to create high-quality,
energy-efficient homes designed to stand the test
of time. As one of Ireland’s leading homebuilders, we
have delivered nearly 10,000 A-rated homes to date,
with nearly 30,000 people now calling Cairn-built
neighbourhoods home.
Our end-to-end operating platform, sustainable
construction model and in-house expertise enable
us to build homes that meet the growing demand for
high-quality, energy-efficient and affordable housing
in Ireland. As we continue to grow and evolve, we
remain committed to addressing the evolving needs
of Ireland’s population.
Financial Performance
2024 marks another year of outstanding financial
performance and value creation for Cairn, as we once
again exceeded expectations across our key financial
and operational metrics. This success reflects the
dedication of our Board, management and employees
in building and scaling our operating platform over
the past decade. With 2,241 units and total revenue of
€859.9 million in 2024, we achieved an operating profit
of €150 million. We are also particularly pleased to have
met our stated ambition of a 15.1% Return on Equity in
2024, underscoring our strong focus on value creation
as the business continues to scale and mature.
Ireland remains one of the EU’s strongest-performing
economies, driven by population growth and rising
disposable income. These favourable conditions,
alongside supportive Government housing policies
addressing the national housing shortage, have
sustained strong demand for our homes, with our
forward order book growing to 2,593 homes as at
26 February 2025.
Shareholder Returns
The Board remains committed to a disciplined
approach to capital allocation, balancing reinvestment
to drive business growth and meet housing demand
with delivering consistent returns to shareholders. This
includes maintaining a progressive annual dividend
of 40-50% of profit after tax and returning surplus
cash flow and capital to shareholders. In 2024, we
returned over €115 million to shareholders through
our progressive dividend policy and share buyback
programmes. In October 2024, we paid an interim
dividend of 3.8 cents per ordinary share. We are
proposing a final dividend of 4.4 cents per ordinary
share for 2024, subject to shareholder approval at our
2025 AGM, bringing the total proposed dividend to
8.2 cents per ordinary share – an increase of 1.9cents
over 2023. As part of our broader capital returns
programme, we returned €70.6million to shareholders
through our share buyback programmes.
Sustainability and Diversity
Our commitment to build homes that are thoughtfully
designed and built for good, and our sustainability
agenda are integrated into every aspect of our
business and culture. During 2024, we released our
first Climate Transition Plan, we have four Passive
House developments under construction, and we
also sold our first EU Taxonomy-aligned development
in 2024. In addition, more than half of our
commencements in 2024 target Biodiversity Net Gain.
8.2c
2024 full year dividend
€335m+
Shareholder returns
from 2021 to 2024
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Corporate GovernanceStrategic Report Financial Statements
We were delighted to launch the Cairn Apprenticeship
Programme and the ‘Women in Cairn Network’
Employee Resource Group in 2024. While we have
achieved appropriately strong gender diversity
at Board level, we recognise that the pace of
improvement in gender representation has been
slower in senior leadership roles. We remain firmly
committed to improving gender diversity across
our organisation and in particular among the most
senior roles. This priority has been embedded into our
Executive Directors’ incentives for the ongoing year.
Stakeholder Engagement
As a Board, we recognise the benefits of considering
the views of all our stakeholders in our decision-
making process.
Our employees are the driving force behind our success,
and their dedication is key to our ambitious growth
agenda. In 2024, Orla O’Gorman, the Non-Executive
Director responsible for workforce engagement,
continued to provide a valuable forum for the Board
to hear employee views. Further detail on this
engagement can be found on page 125.
Since our IPO, we have established a strong network
of trusted subcontractors and suppliers, fostering
long-term partnerships that enhance productivity,
efficiency and resilience against build cost inflation.
Following the roll out of our approach to responsible
sourcing, initiated in 2022, we have continued to
engage with our suppliers with a view to enhancing
their approach to ethical, social and environmental
issues in support of our sustainability objectives.
Aligned with our purpose of building long-lasting
homes and communities, our commitment to
customers extends beyond the point of sale. 2024
marks the third year of the Home Together initiative
aimed at ensuring that our customers feel supported
and connected to their communities.
The Board also recognises the importance of
constructive dialogue with our investors, and we
remain open to all feedback, which informs Board
discussions and deliberations. As a Board, we
consider regular and meaningful engagement with
shareholders to be a cornerstone of strong corporate
governance. In 2024, our Nomination Committee Chair,
Julie Sinnamon, engaged with several shareholders
to discuss our comprehensive approach to Board
refreshment, which remains a critical topic as we
approach our tenth anniversary.
Health & Safety
The Board, through the Audit & Risk Committee
continues to monitor performance against our
Environmental, Health & Safety agenda. We were pleased
to note that despite significant year-on-year productivity
increases, our overall accident frequency rates and lost
time incidents reduced. The Board also visited sites
several times during the year for health & safety focused
site walks, underpinning our commitment to ensuring
health & safety remains our number one priority. Further
details on our health & safety strategy and performance
can be found on page 20.
Board Refreshment and Chairman Succession
After serving on the Board since the Company’s IPO
and following a carefully planned succession process,
I will be stepping down in April. Bernard Byrne, who
joined the Board in January 2025, will succeed me as
Chair. Bernard brings exceptional business acumen and
extensive experience leading major private and public
Irish companies. Since January, we have worked closely
to ensure a seamless transition, and I am confident in
Cairn’s future under his and Michael’s leadership.
As announced last year, Gary Britton stepped down
from the Board at the end of 2024 having served since
the IPO. In addition, having also served on the Board
since the IPO, Giles Davies has informed the Board of
his intention to step down at the end of the year. Giles
has provided invaluable insight on a range of issues
during his tenure, and we will continue to benefit from
his expertise prior to his departure at the end of 2025.
Following Gary’s departure, we were pleased to
welcome Orla O’Connor as a new Board member in
January 2025. Orla brings extensive legal and financial
expertise, along with a strong track record in business
development. With the appointments of Orla and
Bernard, we continue to strengthen the Board’s
diversity, skills and experience as the Company enters
its next phase of growth. I sincerely thank Gary for his
invaluable contributions and extend my best wishes
to Orla and Bernard in their new roles.
Board Evaluation
In 2024, we engaged Independent Audit Limited
to conduct our triennial external Board evaluation.
The assessment confirmed that both the Board and
its sub-committees operate at a high standard and
benefit from a strong composition. The evaluator
noted that recent appointments have been valuable
additions, particularly for the external perspectives
that they bring to the Board. As the business and its
environment continue to evolve, the evaluation also
identified opportunities for further development,
including enhancing our strategy-setting processes
and evolving further our focus on people and culture
to ensure Cairn’s continued success.
Adoption of the Irish Corporate
Governance Code
In September 2024, Euronext Dublin introduced its
inaugural Irish Corporate Governance Code (‘Irish
Code’), building on the principles and provisions of
the UK Code while tailoring them to the Irish market
and broader EU regulatory framework. Following a
thorough review, the Board has decided to adopt the
Irish Code from 1 January 2025. As an Irish business
with a primary listing on Euronext Dublin, this
transition naturally aligns with our corporate identity
and regulatory environment. We do not envisage any
material changes to our governance framework as a
result of reporting against the Irish Code. Instead, we
will continue to abide by the view that Cairn’s success
is rooted in our commitment to the highest standards
of governance, balanced with a recognition of the
culture of the business we oversee, which form the
foundation of our strategic decisions and our ability
to consistently deliver value to both our shareholders
and our wider stakeholders.
Looking Ahead
As we enter 2025, Cairn is stronger than ever. The
maturity and scale of our end-to-end operating
platform, combined with a strong Irish economy and
the ongoing demand for high-quality, energy-efficient
and affordable homes, position us well for sustained
growth. We anticipate revenue growth of over 10% in
2025 and plan to significantly expand our investment
in our construction activities, leveraging our
operational strengths to drive long-term success while
continuing to play a key role in addressing Ireland’s
housing challenges.
As I conclude my final statement as Chair, I would like to
thank everyone at Cairn, as well as our subcontractors
and supply chain partners for their hard work and
commitment. It has been a privilege and a pleasure to
participate in Cairn’s development over its first decade.
JOHN REYNOLDS
CHAIRMAN OF THE BOARD
Chairman’s Statement continued
10
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
“Our operating platform
continues to set us
apart, delivering high-
quality competitively
priced homes to our
customers.”
MICHAEL STANLEY
CEO
Chief Executive Officer’s Statement
Record Performance Sets Foundation
for Future Growth
2024 was an excellent year for Cairn as we grew our
housing output by nearly 30%. This represents the
biggest annual step-up in operational and volume
growth since the Company was established almost
a decade ago. Our operating platform continues to
set us apart, delivering high-quality competitively
priced homes to our customers. We continue to show
leadership within our industry, delivering homes
that set the industry standard for energy efficiency
and sustainability. My colleagues and I are proud that
nearly 30,000 residents live in a Cairn built home.
We expect 2025 will be another year of strong growth
as we look to leverage our operational competitive
advantages. Our scaled platform, strong balance
sheet and approach to relentless re-investment in
our business will support further growth in housing
output in Ireland.
Our Strategy and 2024 Performance
Cairn’s strategy is to deliver sustainable new homes
to expanding, multiple markets at pace, scale and
value for money. We build communities that serve
Ireland’s present and future needs. We deliver
homes using our scaled operating platform, through
established supply chain partnerships and our historic
low-cost 16,150 unit landbank across 38 residential
development sites.
In 2024, we delivered a very strong performance,
generating significant growth against the backdrop
of continuing favourable market conditions. We
delivered 2,241 units
1
representing a 29% increase year
-on-year.
1 This comprises both closed sales and equivalent units. Equivalent units relate to forward fund transactions which are calculated on a
percentage completion basis based on the constructed value of work completed divided by total estimated cost.
2 Forward fund transactions involve Cairn delivering new homes under a contractual relationship where the land is sold up-front and
the cost of deliveirng the new homes is paid on a phased basis.
A combination of State supports for customers, a
favourable mortgage market and the limited supply
of competitively priced and well-located new starter
homes continues to drive positive momentum for
our First Time Buyers (FTB). The Company will increase
sales to the core FTB market over a multi-year period
and in H1 2025 we have 11new private launches
planned, including our first Croí Cónaithe approved
apartment development for owner occupiers.
The demand from our State-supported partners
for new homes is expected to remain strong in the
coming years as the State continues to increase its
ownership of permanent housing stock. The current
level of State-owned stock remains relatively low
at approximately 10% compared to some of our
European peers at over 20% (Source: OECD).
We have delivered, or currently have under
construction, over 6,200 homes to our State Partners
since 2022. During 2024, we delivered homes to a
number of State-supported counterparties, including
Affordable Housing Bodies (AHBs), local authorities
and the Land Development Agency (LDA). We also
delivered homes under forward purchase transactions
and entered into a number of forward fund
transactions
2
with State supported counterparties.
Forward fund transactions are enabling Cairn to
materially increase our supply of social and affordable
homes at competitive prices to the State.
We significantly invested in our construction activities
during the year which positions us strongly for 2025
and beyond. We commenced over 4,100 new homes
last year, including 10 new large-scale developments.
30k
Nearly 30k residents live
in a Cairn built home
11
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Corporate GovernanceStrategic Report Financial Statements
We also evolved our land acquisition strategy to include
‘subject to planning’ deals, options and potential joint
ventures. These structures provide strategic optionality,
allow us to leverage our operating platform, and
represent an efficient way to acquire land.
We will continue to deliver homes at a pace that
is comfortably ahead of the industry average. Our
industry-leading operating platform, construction
efficiency and balance sheet strength enable us to
play a role in addressing Ireland’s housing needs
through the delivery of high-quality and in-demand
homes at attractive pricing.
Irish Economy and Housing Market Outlook
The newly elected Irish Government is committed to
prioritising the delivery of housing as a mission-critical
initiative to meet the needs of the population. Home
delivery, across all tenures is the most pressing issue
for the State and for society.
Ireland’s economy continues to be one of the
strongest performing economies in the EU, with
modified domestic demand expected to grow by
4.1% in 2025. The economy is underpinned by a strong
labour market that is near full employment, continued
growth in disposable income and an increase in
population to an estimated 5.38 million people.
These drivers have created significant demand for
housing, which has failed to keep pace with the needs
of the Irish economy. There remains a significant
structural undersupply of new homes in the market
and our objective is to continue to deliver high-quality,
competitively priced homes which, in turn, will
continue to drive positive momentum for our business.
Sustainability Leadership
Since our foundation, we have placed a priority on
being a leader in sustainability which is embedded
across our business, strategy and investment
decision-making process.
This year, we also published our inaugural Climate
Transition Plan. It details the actions and measures
we have taken to achieve our emissions targets
and places our operations and business model on
a decarbonisation journey that aligns with climate
science recommendations. Our commitment is to
being a leader in sustainable construction with a focus
on reducing emissions and protecting and restoring
biodiversity to meet the needs of present and future
communities in Ireland.
We continue to push our commitment with the
implementation of Passive House standards on four
of our apartment developments. Passive House is the
world’s leading energy performance-based building
standard, ensuring high performance and low energy
use for the lifetime of a building. This investment
provides more value for our customers and future-
proofs the long-term value of these apartments,
many of which are for State-supported housing
bodies. While the environmental benefits of these
ultra-low energy homes are unparalleled, equally
as important is the benefit to our customers, with
Passive House units delivering a c.40% reduction in
annual utility bills.
Capital Allocation Strategy
A key aspect of our growth has been our capital
allocation strategy which has focused on delivering
consistent returns to our shareholders. In 2024, we
delivered over €115.3 million to shareholders through
our progressive dividend policy and share buyback
programmes. This brings our total shareholder returns
over the last four financial years to over €335 million.
2025 Outlook
This is our tenth year in business and, over that
time, Cairn has transformed into one of Ireland’s
leading businesses, which delivers value for all of our
stakeholders and the communities in which we operate.
I would like to thank all of my colleagues in Cairn –
and all our industry partners for their hard work and
dedication to help build Cairn into the business it is
today.
Our Chair John Reynolds will be retiring from our
Board at the end of April. John has served as Chair
since our IPO in 2015 and has been an integral part
of the Company’s growth and success over the last
decade. On behalf of everyone at Cairn, I would like to
sincerely thank John for his invaluable contribution to
Cairn’s success.
We expect 2025 to be another strong year, and the
outlook for our business is positive. Our industry-leading
operating platform, coupled with our cash generative
capabilities, robust balance sheet and growth pipeline,
leaves us positioned strongly to deliver long-term and
sustainable value for all our stakeholders.
MICHAEL STANLEY
CEO
Chief Executive Officer’s Statement continued
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Corporate GovernanceStrategic Report Financial Statements
Ireland’s economy remains in a
robust position, despite a year
of geopolitical uncertainty.
Modified domestic demand
(MDD), a measure that captures
Ireland’s economic growth while
excluding short-term fluctuations
in multinational activity, grew by
2.7% in inflation-adjusted terms
in 2024. Growth is predicted to
accelerate to 4.1% in 2025.
(Source: CSO, ESRI)
Market Overview
Demand
underpinned by
economic strength
That economic strength is reflected in the
employment market, with total employment growing
2.6% to 2.78 million in 2024. Unemployment is at
3.9%, which the Central Bank of Ireland describes as
‘full employment’.
(Source: CSO, CBI)
This strong economic performance comes alongside
positive news for inflation. The Consumer Price Index
rose by just 1.4% in 2024, below the European Central
Bank’s 2.0% target. Over time, this lower inflation
environment will begin to ease cost-of-living pressures
and boost consumer sentiment, indicated by the
Irish League of Credit Unions’ consumer sentiment
index hitting a three-month high in October 2024.
(Source: CSO, ILCU)
Demographics
In May 2024, the independent Housing Commission
reported that Ireland’s housing deficit lies between
212,500 and 256,000 homes.
(Source: The Housing Commission)
Ireland’s need for new homes continues to grow with
the population, which increased by 98,700 in the year
to April 2024, the largest annual increase since 2008.
Immigration drove this increase, with net inward
migration of 79,300 – the highest figure since 2007.
(Source: CSO)
Housing delivery in Ireland has risen rapidly, growing
59% from 20,495 in 2021 to 32,525 in 2023. However,
growth stalled in 2024, with delivery falling by 6.7%
to 30,330. Resuming housing’s growth trajectory and
reversing Ireland’s housing deficit will require concerted
support from central government, local authorities,
approved housing bodies, and the private sector.
(Source: CSO)
Government’s Continued Support
for Housing
Housing remains the top national issue for voters,
according to Ipsos polling conducted during the 2024
General Election.
The 2025 Programme for Government reiterates the
State’s support for housing delivery. It sets out a target
of building 300,000 new homes by the end of 2030,
averaging delivery of over 50,000 new homes per year.
To support this, Government will implement planning
reform, increase the quantum of zoned and serviced
land, and support state agencies to deliver the
infrastructure needed to support these new homes.
The Programme for Government also confirms
continued support for a range of schemes to support
housing delivery, such as Help to Buy, the First Home
Scheme, and Croí Cónaithe.
Government retains the fiscal capacity to follow
through on these promises. The Department of Finance
predicts a cumulative €80 billion surplus from now
until 2030, bolstered by windfall receipts such as the
€13billion in back taxes awarded by the European Court
of Justice in 2024.
(Source: Department of Finance)
Commencement Acceleration
In 2023, Government waived development levies
(c.€12,000 per home). In April 2024, they extended this
waiver until the end of the year and gave homebuilders
an additional 12 months to complete the homes, until
December 2026. Rebates for water connection fees,
worth around €5,000 per home, were in place
for homes commenced by September 2024.
Both waivers have spurred on a rapid rise in
residential commencements. Developers started
work on 69,060 homes in 2024, more than double
the previous year’s 29,961.
(Source: CSO )
Planning Reform
During 2024, the Irish Government adopted new
planning legislation (Planning and Development
Act 2024) and completed the National Planning
Framework review. Transitional arrangements will be
critical to ensure new housing delivery is not adversely
impacted in the period between the expiry and
adoption of new County and Local Area Plans, which
dictate land zoning at a local level. The transition
period for the implementation of both is expected to
take up to 24 months. This interim period, before new
legislation is fully implemented, is expected to create
some uncertainty.
13
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
4.51.5 2.52.01.00.50 3.53.0 4.0
% growth
Ireland
(MDD)
Euro
Area
United
Kingdom
2,776
2,795
2,754
2,704
2,706
2,696
2,683
2,653
2,617
2,603
2,601
2,559
2,551
2,515
2,382
2,260
2,305
2,275
2,161
2,369
3,0000 1,500
Persons in employment, ’000s
2020
2021
2022
2023
2024
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
62,000
30,330
44,000
50,000
53,000
42,000
93,000
100,0000 50,000
Annual housing delivery/need
2024
completions
ESRI
(2024, baseline)
Programme for
Government
(2025)
ESRI
(2024, high
migration)
Housing
Commission
(2023)
Davy
(2025)
2024 Actual Completions
Housing Commission 20,000 Range
Market Overview continued
Mortgage Affordability
With inflation moderating worldwide, central banks
have begun to loosen monetary policy. The European
Central Bank (ECB) deposit rate reached its peak in
September 2023, then started falling in June 2024
with four rate cuts by the end of the year. The ECB
deposit rate was 2.5% as of March 2025, its lowest
level since February 2023.
(Source: ECB)
Consequently, the average interest rate on new
mortgages fell from 4.20% in Q1 of 2024 to 3.86%
in Q4. We expect to see further falls in the cost of
mortgages through 2025 and beyond.
(Source: CBI)
Households buying new homes will continue to
benefit from lower mortgage rates on the most
energy efficient homes. Mortgage lenders in Ireland
offer preferential rates for homes with a high Building
Energy Rating, with discounts as high as 150 basis
points for some lenders. For a €300,000 mortgage,
this discount equates to a €289 saving on monthly
repayments.
Economic backdrop
POPULATION GROWTH
98,700
Ireland’s population grew by 1.9% annually
between 2023 and 2024. (Source: CSO)
HELP TO BUY SCHEME
35%
Annual increase in applications for the Help to
Buy Scheme in 2024, rising to 24,140.
(Source: Revenue)
FTB MORTGAGE APPROVALS
€9.6bn
Total FTB mortgage approvals in 2024.
Up 9.4% on 2023. (Source: BPFI)
COMPLETIONS
30,330
New homes completed in 2024.
Down 6.7% on 2023. (Source: CSO)
COMMENCEMENTS
69,060
New homes commenced in 2024.
Up 130% on 2023. (Source: CSO)
APARTMENTS
8,763
New apartments completed in 2024.
Down 24% on 2023. (Source: CSO)
RECORD EMPLOYMENT
2.78m
Number of people in employment in Q4 2024.
A 2.6% increase on 2023. (Source: CSO)
HEALTHY PUBLIC FINANCES
€23.7bn
Government surplus forecast for 2024.
(Source: Dept. of Finance)
2025 FORECAST GROWTH
4.1%
The ESRI’s forecast for modified domestic
demand (MDD) growth. (Source: ESRI)
2025 FORECAST GROWTH RECORD EMPLOYMENT SUPPLY STILL BELOW FORECAST
ANNUAL STRUCTURAL DEMAND
14
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Cairn Homes plc | Annual Report 2024
People ConstructionCustomers Sustainable
Communities
Our people agenda is at the heart of
everything we do. We are committed
to driving employee engagement to
continue to deliver a high-performance
culture, in a rewarding working
environment. Collaboration and
innovation allow us to harness insights
and knowledge from our talented team.
Cairn has a proven track record in
delivering award-winning schemes
to our broad customer base.
We design and build high-quality,
well-located, energy-efficient A-rated
homes that people love living in.
With a focus on meeting the diverse
needs of our customer base, we are
dedicated to selling high-quality
new homes to a broad mix of
private individuals, State-supported
counterparties and institutional buyers.
We define high-level principles to
achieve a well-designed, quality-built,
vibrant and sustainable development
with a network of public spaces that
promote and enhance residents’ health
and wellbeing. We are committed
to building homes in sustainable
communities where people can thrive.
READ MORE:
p15
READ MORE:
p18
READ MORE:
p20
READ MORE:
p22
Strategy
Creating long-term sustainable value
for our stakeholders
Cairn’s corporate strategy is to deliver sustainable new homes to our customers at pace, scale and value for money. We are building communities that serve our country’s present and future needs. Cairn continues to invest
in the capacity and capability of our business to support our growth strategy and to optimise our product delivery. Our strategy links back to our purpose, with each pillar aligning to one of the four component parts –
People, Customers, Construction and Sustainable Communities.
RANKED
Top 3
Ranked by Great Place To Work Ireland as third
in the top 10 Best Large Workplaces in Ireland.
COMMENCEMENTS IN 2024
4,100+
We signficantly invested in our construction activities
with over 4,100 new homes commencements (2023:
2,162) including 10 new large-scale developments.
UNITS*
2,241
2024 saw us work in close partnership with
our private customers and State-supported
counterparties, as we delivered 2,241 units, a 29%
increase on 2023.
PASSIVE HOUSE COMMENCEMENTS
1,750+
We commenced more than 1,750 apartments to
Passive House standard by the end of 2024. This
will increase to 2,750-3,000 commencements to
Passive House standard by the end of 2025.
“ This comprises both closed sales and equivalent units. Equvalent units related to forward fund transactions which are calculated on a percentage completion basis based on the contracted value of work completed divided by total estimated cost.
Cairn Homes plc | Annual Report 2024
15
Corporate GovernanceStrategic Report Financial StatementsStrategic Report
15
Cairn Homes plc | Annual Report 2024
Corporate Gov
Engagement sentiment among our new joiners is
very strong, with 97% saying they are proud to work
for Cairn. We also invested heavily in developing
and progressing our existing talent to ensure Cairn
continues to be recognised as an employer of choice,
with 80% of our workforce engaged in training and
development activity and 91 promotions awarded
in 2024. People remained a key pillar of our
remuneration framework in 2024, where we
measured engagement, talent development and
management capability.
People
PILLAR 1
In 2024 we continued to scale
and grow our business with the
addition of 168 new employees.
We received over 10,000 job
applications which demonstrates
the extensive reach of our brand
in attracting diverse talent into
Cairn.
Employee Engagement
We invested heavily in receiving feedback from
employees throughout the year and actively worked
to respond with targeted initiatives. We established a
cross-functional Engagement Working Group to drive
engagement activity and ensure that all new initiatives
are inclusive and impactful. We use these data points
from our employees together with best practice
thinking to ensure we remain an employer of choice.
Our eNPS (employee Net Promoter Score) was 58
this year, up from 42 in 2023. We also retained our
Great Place to Work accreditation with an overall score
of 82% which is closely aligned with the top ranked
company from 2023.
We are committed to driving a high-performance
culture and creating a rewarding environment where
we harness insights and knowledge from our talented
team. The impact of this investment is seen through
our engagement feedback, with a 9% increase in our
Reward category score in our Great Place to Work
survey 2024. 83% of staff also indicated that they feel
we have special and unique benefits in Cairn which
supports our efforts in attracting and retaining
top talent.
Diversity and Wellbeing
Our top priority for our Equality, Diversity, and
Inclusion (EDI) agenda is to keep inclusivity at the
heart of our culture, championed by our senior
leaders. This is evidenced by our EDI scores, with
positive sentiment among our more diverse
Strategy continued
employee groups increasing year on year. In addition
to the Families in Cairn Employee Resource Group
established in 2023, we launched the Women in
Cairn Network to connect and empower our female
employees. While we have had significant success
in growing a more diverse workforce, with a 56%
increase in the number of non-Irish employees,
we recognise that our scaling efforts have impacted
adversely on our Gender Pay Gap in 2024.
90%
of our employees felt that Cairn
was an inclusive place to work.
88%
of employees feel good about the ways
we contribute to the community.
94%
of employees believe that Cairn
invests in and supports its employees.
83%
of employees believe we have special
and unique benefits at Cairn.
Cairn Homes plc | Annual Report 2024
16
Strategic Report Corporate Governance Financial Statements
16
Strategic Report
Attracting, Developing and
Retaining Female Talent
As part of our investment in the next generation,
we hosted 13 female participants across three
groups of our transition year programme, providing
them with the opportunity to experience working
in construction.
We increased our market presence through
participation in a number of industry awards either
through sponsorship or being shortlisted ourselves.
Additionally, some of our female colleagues sit on
various industry panels and boards such as the Irish
Planning Council, Royal Institute of Architects Ireland,
Society of Chartered Surveyors Ireland and
the 30% Club.
For our existing female employees, we focused
heavily on facilitating exposure and development
opportunities through our Women in Cairn Network.
We also continued to invest in female talent through
our graduate, mentoring and manager development
programmes, and sponsored a number of female
employees to complete a Professional Diploma in
Women in Leadership, through University College
Dublin. This support and investment has already
resulted in meaningful progression for many of our
female employees, with 29% of total promotions in
PILLAR 1 CONTINUED
2024 being awarded to female employees (compared to 25% of our
workforce overall being female).
Enhancing Management Capability
We continue to invest in our people managers as the key cohort
that impacts employee engagement and performance. While
scaling at pace, the challenge has been to capture and communicate
Cairn’s values and how they align to our ways of working in order
to onboard new managers efficiently and provide a consistent
employee experience.
To support this, we established a new manager development
framework and launched ‘Manager Fundamentals’ training, which
covers the day-to-day operational toolkit for newly promoted
managers and those new to Cairn. We also continued to run our
existing leadership development modules for more experienced
managers.
Strategy continued
Priorities for 2025
Our ambition for 2025 is to drive collective ownership of our
people and culture agenda. We will establish a People & Culture
Steering Committee, empowering employees to enhance and
promote the unique benefits and possibilities that distinguish us
as an employer of choice.
Equality, Diversity & Inclusion
Our ambition is to become recognised both internally and
externally as a leading driver of EDI within the construction
industry in Ireland. We have now formalised our EDI strategy
and moving into 2025 we will focus on driving collective
responsibility for our ambition, continuing to attract and retain
diverse talent, and expand our broader industry impact.
Guided by the People & Culture Steering Committee, we will
deliver inclusive leadership and language training for managers
and employees, and continue to focus on inclusive recruitment
practices, policies and benefit offerings. We will also work
closely with our Procurement and Marketing Teams to ensure
our supply chain and community partners are aligned to our
strategic focus in this area.
Communication and Recognition
We will enhance our communication channels to keep
employees informed and engaged, expanding the Cairn Live
platform and establishing regular feedback mechanisms.
Additionally, we will focus on fostering a culture of recognition
through a structured system for peer-to-peer recognition.
Manager Competency Framework
In 2025 we will continue to embed our manager competency
framework and integrate it across the employee life cycle, from
interview questions for new candidates to assessment criteria
for the manager objective in our annual performance cycle. We
believe that setting clear expectations for what good leadership
looks like in Cairn and then continuing to provide managers
with the tools to grow and develop is the best way to unlock
their potential and increase the impact they have on employee
performance.
97%
of new joiners are proud to
tell others they work at Cairn
88%
of employees believe that
Cairn is a great place to work
Cairn Homes plc | Annual Report 2024
17
Corporate GovernanceStrategic Report Financial Statements
17
Strategy continued
CASE STUDY
We acknowledge female under-representation in our industry is a
long-term challenge that can be corrected through genuine investment
in our future talent pipeline. While we recognise that there are certain
changes we can make in the short term, including female talent
attraction at senior levels, we have equally focused our efforts this
year on retaining and developing our existing female workforce.
Developing a sense of belonging is key to this
effort and continues to be an ongoing challenge
with female employees dispersed across multiple
sites and locations. For this reason, the initiatives
driven through the newly established Women in
Cairn Network have all been underpinned by our
Employee Value Proposition (EVP) – to Connect,
Develop and Inspire our female workforce-driven
by Jennifer O’Neill, the Chairperson of our Women
in Cairn Network. We know from our engagement
scores that these initiatives are reinforcing this
Employee Value Proposition for our female
employees, with scores for all three pillars increasing
year on year.
Connect – these initiatives bring together our
female employees as a community that support
and empower each other to thrive and succeed.
Examples of this include:
• Setting up a dedicated Cairn Live Space to share
information, events, articles and updates; and
• Hosting a networking event attended by the
majority of female employees focusing on cross-
functional exposure at a group level, as well as
1:1 conversations allowing participants to
connect on a personal level.
Develop – these initiatives aim to provide mentoring,
networking and development opportunities that our
female employees can tap into to support personal
effectiveness and career growth. Examples of this include:
• Introducing IMAGE Business Club Subscriptions
for all female employees offering access to external
networking events, coaching sessions, co-working
days, and inspirational content via subscriptions
and podcasts;
• Delivering female specific Soft Skills
Masterclasses, facilitated by an external coach.
Over three sessions, we welcomed 39 females
from various departments. These sessions focused
on reframing limiting beliefs and leveraging
liberating beliefs to help attendees grow in
confidence; and
• Actively supporting our female employees to
identify development opportunities and career
pathways through Individual Development Plans.
Inspire – these initiatives aim to expose our female
employees to leading trends and insights on gender
issues and share the successes and achievements of
women within Cairn. Examples of this include:
• Hosting our International Women’s Day 2024
event to mark the official launch of the network,
featuring external guest speakers and female
members of our Board for a panel discussion; and
• Participating in the Irish Independent’s
‘Empowering Women at Work’ media campaign
including contributions from three female
employees to celebrate how Cairn is creating
an environment where women feel valued,
respected, and empowered.
Looking ahead to 2025 we will continue to prioritise
the attraction, development and retention of
female employees in Cairn. Our focus will be on
embedding the network, including our male allies
and managers in the journey and continuing to
provide opportunities for exposure and discussion
through female-focused events and initiatives.
Women in Cairn Network
39
participants in our Soft
Skills Masterclasses
122
members of the Women
in Cairn Network
29%
of total promotions awarded
to female employees (who
represent 25% of the total
Cairn workforce)
18
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
18
We continue to see exceptionally high levels of
demand for our energy-efficient new homes across
all buyer profiles. In 2024 we delivered 2,241
1
units
to our private buyers and our partners in local
authorities, Approved Housing Bodies (AHBs)
and the Land Development Agency (LDA) – a 29%
increase from 2023.
In our core first time buyer (FTB) market, State
supports for our customers, a favourable mortgage
market and the limited supply of competitively
priced new starter homes are continuing to drive
strong demand.
2024 saw us increase our offering to our State-
supported partners, delivering homes under forward
purchase transactions and also our first forward fund
transactions.
2
These forward fund transactions have
enabled us to materially increase our supply of social
& affordable homes at competitive prices to our
State-supported partners.
As a leader in sustainable construction, we are the
first homebuilder to deliver new homes to the Passive
House standard at scale in Ireland, having commenced
more than 1,750 apartments to the Passive House
standard. While the environmental benefits of these
Customers
Our customer strategy is to build
on our current partnerships and
explore new opportunities with
our customer base. Cairn now
has an established track record
of meeting, and exceeding, the
needs of our broad and diverse
customer base.
PILLAR 2
ultra-low energy homes are unparalleled, equally
as important is the benefit to our customers, with
Passive House units delivering a c.40% reduction in
annual utility bills. Please refer to our Sustainability
Statements, from page 50, for further detail on
Passive House.
Creating sustainable communities where our
customers can thrive and feel a sense of belonging
is a central tenet of our customer offering. Through
initiatives such as our Home Together programme
and our newly launched Seven Mills Community
Fund, we ensure a holistic approach to placemaking
is taken with our customers at its heart. Please refer
to our Sustainable Communities section, page 22,
for further detail.
Customer Care
2024 was an exceptional year for Cairn Customer
Care, with a number of processes, procedures
and initiatives implemented allowing for a more
targeted and effective approach to our customer
journey across all tenure types, resulting in an
overall Cairn Customer Experience rating of 96%.
This metric is incorporated into our annual bonus
plan, meaning that everyone in Cairn is responsible
for contributing to our customers’ experience.
Strategy continued
2,241
Units
1
96%
Cairn Customer
Experience Rating
1 This comprises both closed sales and equivalent units. Equivalent units relate to forward fund transactions which are calculated on a percentage completion basis based on the constructed value of work
completed divided by total estimated cost.
2 Forward fund transactions involve Cairn delivering new homes under a contractual relationship where the land is sold up-front and the cost of delivering the new homes is paid for on a phased basis.
In 2024, Customer Care and Aftercare became a
functional objective pillar for our Construction &
Operations Team, ensuring that our customers are
at the heart of our unique end-to-end operating
platform. Our Customer Team is there from the start
of the customer journey, providing accurate and clear
information about our homes, their features and
relevant paths to ownership.
Our Aftercare Team ensures that our customers
remain supported upon moving into their new
Cairn home. While these teams are the touchpoint
for our customers, customer care is a focus for all of
our teams, ensuring that we understand, and most
importantly, exceed our customers’ needs across our
business. Progress in 2024 included:
• Appointment of an Aftercare Co-ordinator;
• Vehicles and uniform branding – improving our
visibility to Customers;
• Post occupation reviews with our business
customers and our partners in local authorities,
AHBs and the LDA; and
• First full year operating on D365 (CRM tool) which
has provided invaluable qualitive and quantitative
data to aid informed data-led decision making.
19
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
19
Strategy continued
Priorities for 2025
In 2025 we will meaningfully increase our sales
to our core FTB market with 11 new private sale
launches planned in H1 2025. We will continue
to work closely with our State-supported
partners ensuring the delivery of social &
affordable new homes at pace, scale and value
for money.
Our Customer and Aftercare Teams will look
to build on the successes of 2024 in 2025 by:
• Launching a customer portal for our
business customers and our partners
in local authorities, AHBs and the LDA;
• Upgrading our existing private customer
portal, including ongoing video uploads and
the launch of detailed product warranties
and maintenance schedules; and
• Rolling out our D365 field service app to
key subcontractor partners to facilitate the
early intervention and resolution of any
quality issues.
CASE STUDY
Located in Blessington Demesne, Sorrell Wood is
a prime example of our commitment to not only
delivering high quality, affordable new homes
but also creating sustainable communities
where people can thrive.
This 94 new home development comprises five two-bed, 71 three-bed
and 18 four-bed houses for our core first time buyer (FTB) and trade-up/
trade-down markets, with many of the new homes qualifying for FTBs
to use the Help to Buy and First Home schemes.
In December 2024, we opened the first phase of Blessington town park
and playground, in partnership with Wicklow County Council. This 16-acre
park is a transformative addition to Blessington, offering a playing pitch,
tennis courts, a bowling green and scenic walkways for all ages. It will
serve as a focal point for the community and forms part of a larger 37-acre
development, with ongoing work on a greenway to Glen Ding Woods.
Cairn is proud to continue to create sustainable communities where people
can thrive and we thank Wicklow County Council for their collaboration in
delivering this invaluable amenity.
Sorrell Wood (Blessington) –
Creating Communities
Building Thriving
Communities
20
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Strategy continuedStrategy continued
Operating Platform
Our continued investment in our business has
created an efficient platform which will support
further growth as we look to leverage our operational
competitive advantages into the medium term.
In 2024 we commenced over 4,100 new homes
across 21 sites, a 90% increase from 2023. In 2024
we invested €484.3 million in construction work in
progress (WIP). This will significantly increase again
in 2025.
Construction
2024 was a transformational
year for Cairn in which we grew
our housing delivery by nearly
30%, and commenced over
4,100 new homes.
Innovation
Working with our partners, Cairn drives a culture of
continuous improvement as we look to remain at the
forefront of industry innovation. Key areas of progress
and achievements in 2024 include:
• Established the Cairn Innovation Test Centre at
our Seven Mills development. This centralises
innovation tests and acts as a research and
development (R&D) centre where employees,
subcontractors and suppliers collaborate on
innovation projects. The centre is capable of
testing over 15 separate initiatives simultaneously,
with industry visits arranged for local authorities,
insurance bodies, customers, and internal teams;
• Launched the Cairn Drone Deploy Platform which
provides detailed 3D mapping of all of our projects.
This platform has significantly improved how we
manage soil movements and groundworks and
record site progress;
PILLAR 3
• Developed new housing typologies including a
modern townhouse as an alternative design to the
standard Cairn duplex typology. This new design,
which is included in some of our 2024 planning
applications, drives operational efficiencies whilst
delivering an excellent product for our customers; and
• Launched the Cairn Technical Design Library to
the wider business through a series of functional
presentations and training. This library is a
shared project design guide that refines the
approach to standardisation which continuously
allows us to increase productivity and enhance
standardisation. We have presented the library at
multiple industry events and to key stakeholders
with the platform being seen as the most
advanced in the industry.
Health and Safety
Operating and maintaining safe environments for
our employees, subcontractors, suppliers, customers
and the communities in which we live and work has
always been our number one priority at Cairn. In 2024,
we appointed an Environmental, Health & Safety (EHS)
Director to ensure our EHS agenda remains industry
leading and aligns fully with our strategic priorities.
The Company continued to invest heavily in health
and safety during 2024 and retained our externally
accredited Safe-T Cert Grade A. In the context of
a year where output increased by nearly 30%, we
commenced 10 new large-scale sites and began
11new phases of existing sites our Accident
COMMENCEMENTS IN 2024
4,100+
NEW SITE COMMENCEMENTS IN 2024
10
Frequency Rate decreased by 27% and our Lost Time
Incident Rate reduced by 9%. Please refer to our
Sustainability Statements at page 50 for further detail
on our Health and Safety agenda.
Procurement Efficiencies
As our operating platform continues to scale,
our Group procurement team continues to see
efficiencies. Enhanced standardisation throughout
2024 facilitated an increased number of framework
agreements across key product categories – adding
value, providing delivery certainty and de-risking our
pipeline. Our proactive approach to engaging with our
supply chain partners along with the security of multi-
year, multi-project contracts awarded have enabled us
to manage and mitigate inflationary pressures.
21
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
21
Strategy continued
Priorities for 2025
We will significantly accelerate our investment
in our construction activities in 2025, as we
look to leverage our operational competitive
advantages into the medium term. This will see
us increase our WIP spend in 2025.
As we increase our capacity and output, we will
continue to engage with our subcontractor base
to ensure a collaborative approach to capacity
planning and best practice environmental,
health and safety standards are maintained.
Key areas of focus to achieve this will be:
• building on the back-to-basics focus around
our health and safety performance that
has improved our already strong record in
recent years;
• continuing to support our supply chain
partners, through initiatives including our
Apprenticeship Programme and the Supply
Chain Sustainability School, as they scale and
develop with us;
• ensuring we leverage our operating scale and
competitive advantages into the medium
term to deliver value-for-money, energy-
efficient, high-quality new homes; and
• further integrating our sustainability agenda,
which is a central tenet of our ambitious growth
strategy, into our scaled operating platform.
CASE STUDY
Innovation CentreDigital Design Toolkit
A place to test, trial and train
In 2024, we developed and launched our Innovation Centre –
a research and development facility where new ideas can thrive, and
develop in a zero-risk environment. The centre has already facilitated
significant innovative breakthroughs for us, with our industry-
leading Passive House developments among the ideas tested in the
Innovation Centre. Current projects being tested include PV Roof
Tiles, Digital Homes and Upgrade Utility Pods. With over 15 separate
innovation tests and working models completed in 2024 we have seen
a 50% increase in idea conversion since establishing the test centre,
allowing projects to move to production quicker.
With over 300 visitors to the centre since opening in September 2024,
in 2025 we will look to expand the reach of the Innovation Centre
as we move towards welcoming members of the wider industry
and customers.
Standardisation and repeatable design are
key to successful residential development
Cairn has invested heavily in our design platform in order to create
consistent quality homes. Previous innovation launches such
as the Cairn Technical Design Library are a key part of this. In late
2024 we launched our Digital Design Toolkit project to further
enhance this process. The system will house our design platform
which will create design information using a step-by-step process,
significantly increasing the quality of our design information.
The platform will take full advantage of Building Information
Modelling (BIM) and Revit software which will store a number of
pre-completed Cairn standard template drawings. Key outcomes
of this digitalisation project include:
• 25% design program saving on Cairn Standard Projects;
• Reduced resource requirement for design information;
• Consistent information to take advantage of quality on site
benefits; and
• Increased centralised control over what represents Cairn
Standard Design.
Innovation
Cairn Homes plc | Annual Report 2024
22
Strategic Report Corporate Governance Financial Statements
22
Strategic Report Corporate Gov
Strategy continued
This is achieved by taking a holistic approach to
placemaking through thoughtful planning, considered
public spaces and public ammenities. This is embodied
in some of our initiatives such as the Seven Mills
Community Fund, the Cairn Community Games and
our Home Together programme.
Seven Mills Community Fund
We launched the Seven Mills Community Fund in
November 2024. We committed €30,000 to support
local organisations across Dublin 22 by funding
seven community projects. This fund is designed to
support clubs, community groups, and societies that
are already making a real difference. By offering seven
awards to support inspiring local projects, we aim to
bring people together and make a positive impact in
our communities.
Sustainable communities
We believe that building homes
is not just about buildings, but
about fostering environments
where people can thrive and
feel a sense of belonging. Our
vision is to create communities
of connection and belonging,
building towards an Ireland
where everyone can prosper.
Priorities for 2025
We will continue our partnership with the Cairn
Community Games as we look to expand the
reach and impact to more communities across
Ireland. Our aim is to increase participation in
the Cairn Community Games by 10% (from a
2023 baseline) over the next three years, with
a targeted 5% increase in non-sporting events.
Our Home Together initiative will remain
central to building cohesive communities
across our developments with the
introduction of Home Together across
three new developments.
We will integrate and streamline our
placemaking efforts to create a more holistic
approach and to deliver more tangible results
for the communites we create and support.
Cairn Community Games
The Cairn Community Games is a cornerstone
of our efforts to promote active, healthy lifestyles
and ensure inclusivity. Our partnership with the
Community Games throughout 2024 reflects our
core values of equality, inclusion, and local impact.
Home Together Programme
Our Home Together programme, run in collaboration
with Neighbourhood Network, is an ongoing and
expanding programme that focuses on developing
community initiatives that are sustainable in the long
term. This approach ensures that our developments
evolve and grow over time, catalysing a community
cohesion that can otherwise take decades to
achieve. In 2024, we concentrated on giving residents
the tools, resources, and power to drive projects
forward after the initial pilot schemes. Throughout
the year we had a number of development
graduations including Whitethorn, Donnybrook
Gardens and Graydon – as developments
completed the initial three-year programme
and began to operate autonomously.
PILLAR 4
€450 million
contributed to public infrastructure
projects to date
600ha
of public realm, parks, pitches
and green space created to date
Cairn Homes plc | Annual Report 2024
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Corporate GovernanceStrategic Report Financial Statements
23
Strategy continued
CASE STUDY
Our partnership with the Cairn Community Games is a testament
to our commitment to creating communities where people can
thrive. The Community Games have been a cornerstone of Irish
communities for decades, involving over 160,000 children annually
in 430 towns across the country. This initiative not only promotes
active, healthy lifestyles but also ensures that every young person,
regardless of their background or ability, can participate and excel.
Our investment of €3 million over four years aims
to increase participation by 10% by 2027 and grow
non-sports categories such as arts, culture, and music
by 5%. The ‘We’re All In’ campaign is at the heart of
this effort, focusing on inclusivity and broadening
the range of activities available to participants.
The positive outcomes from the first year of our
partnership are already evident. We have seen a 2.2%
increase in overall participation and a 3% increase in
non-sports categories. Additionally, our involvement
has significantly improved trust and favourability
metrics by 20%, and increased brand awareness and
consideration. These results underscore the tangible
benefits of our collaboration with the Community
Games, not just for the participants but for the
broader community as well.
The Cairn Community Games allows us to maintain
and communicate a positive and inclusive company
culture. This partnership is more than just a
sponsorship; it reflects our dedication to building
communities where everyone can thrive.
Cairn Community Games
At the Heart
of the Community
€3 million
investment over four years
+2.2%
increase in overall participation
+20%
increase in trust and
favourability metrics
Business Model
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Business Model & Value Chain
Adding value at every step
Strategically Located and
Low-Cost Landbank
We have a landbank of c.16,150 units (across 38
sites nationwide) located in areas with excellent
public transport and infrastructure links, allowing
communities to thrive.
Trusted Subcontractors and Suppliers
Our well-established subcontractor base and supply
chain partners have grown their businesses with
us, scaling and developing to meet our increased
capacity while engaging with us to ensure a
collaborative and forward-looking approach.
Scaled Operating Platform
We continue to invest in the capacity and
capability of our business, driving growth and
further leveraging our scaled and sustainable
operating platform. This sustained investment
in our operational platform underpins the
Company’s medium term growth ambitions.
People
The strength of our team is key to our success as
we continue to invest in our people and extend
our capacity and capability.
Key Resources Our End-to-End Operating Platform
1. Land Acquisition
Our strategy centres on identifying sites that are complementary
to our existing landbank, well-located and represent value accretive
opportunities. In 2024, we evolved our land acquisition strategy to
include subject-to-planning deals, options and potential joint ventures.
These structures provide strategic optionality, allowing us to leverage
our operating platform, and are an efficient way to acquire land.
2. Planning
We manage all of our planning applications, leading the full life cycle of the
application process to ensure that commercial outcomes are maximised
in a timely manner.
3. Pre-Construction
Our Pre-Construction Team operates in tandem with the planning
process, allowing the Pre-Construction and Design Teams to mobilise
in preparation to start on site as soon as we receive planning grants.
4. Construction
Our scaled operating platform allows our Construction Team to deliver
at pace, scale and value for money. We continue to leverage our proven
apartment capability as Ireland’s largest self-build developer delivering
much-needed apartments nationwide.
5. Sales and Customer Care
Understanding and exceeding the diverse needs of our broad customer
pool is at the heart of our operating platform. Both our Sales and
Customer Care Teams are dedicated to not only gathering but also acting
on our customer insights and feedback, ensuring that we remain their
partner of choice.
Our unique end-to-end scaled operating platform means we control
our entire product life cycle and allows us to leverage our operational
competitive advantages to deliver quality and value at every step.
The Value We Create
For Our Customers
We deliver award-winning, value-for-money, energy-efficient new homes
in sustainable communities where our customers can thrive.
For Our Supply Chain
Our long-standing supply chain partners have grown with us. Since our IPO
in 2015, our top 20 subcontractors have accounted for 69% of all procurement
(an average in excess of €55.0 million each), working across an average of
20 developments each.
For the Construction Industry
Through initiatives such as our €10 million Cairn Apprenticeship Scheme, we
are helping to attract and retain graduates in the construction sector in Ireland.
For the Environment
Having released our Climate Transition Plan and Passive House Position Paper
in 2024 we continue to be a leader in sustainable construction in Ireland. This
is evidenced by having commenced more than 1,750 apartments to Passive
House standard which will increase to 2,750-3,000 units by the end of 2025.
For Employees
We focus heavily on facilitating exposure and development opportunities
for our employees as we continue to invest in our capacity and capability.
We retained our Great Place to Work accreditation for the third consecutive year,
evidencing the value we continue to create for our employees.
For Shareholders
Proven track record of delivering sustainable growth and attractive returns
for shareholders.
For Communities
We believe that building homes is not just about buildings, but also about
fostering environments where people can thrive and feel a sense of belonging.
Our communities of connection are embodied in our initiatives such as Home
Together, the Cairn Community Games and our Seven Mills Community Fund.
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Corporate GovernanceStrategic Report Financial Statements
Business Model & Value Chain continued
Our Value Chain
We are committed to building sustainable communities where people can thrive.
This is the driving force behind our commitment to quality, health and safety, sustainable
building practices and respect for our people, our customers, and the world in which we live.
OWN OPERATIONS – CONSTRUCTION OF RESIDENTIAL BUILDINGS
Acquisition,
Planning and Design
Marketing and Sales
Development Build
Procurement
Customer Use Extract and Mine Resources
Subcontractor
Construction Activities
End of Life
Manufacture Materials
and Transport
Waste Management
UPSTREAM DOWNSTREAM
Location in the value chain
Upstream
Own Operations
Downstream
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UPSTREAM
Business Model & Value Chain continued
Extract and
Mine Resources
Materials Manufacture
and Transport
Subcontractor
Construction Activities
Extracting natural resources in the construction
industry can typically be categorised into two groupings:
Plant-based raw materials obtained via forestry & logging
and mined or quarried raw materials such as minerals and
fossil fuels. At Cairn, we rely on resources such as wood,
iron, sand, and limestone in the initial production phase
of construction products. These construction products
are then used to build our homes.
In this stage of our value chain we do not engage directly
with extraction or mining companies. We engage with
those in our supply chain who procure their products,
ensuring they are aware of our expectation to demonstrate
the same standards and due diligence that we display
in conducting our business.
Most raw materials extracted for use in the construction
sector must be manufactured into construction products.
Cairn is heavily reliant on these products to enable us
to build our homes. It is essential that these products
comply with Ireland’s high safety, durability, and quality
standards to ensure they contribute to the long-term
viability of our homes.
We rely on the supply chain not only to manufacture
these products but to also ensure the safe distribution,
transport, and delivery of them to our sites. The majority
of this distribution and transport takes place by sea or road,
which results in a complex logistics system which must
be managed efficiently.
Given the broad range of materials and products that are
required to build our homes, this aspect of our value chain is
critical to Cairn’s success. We work with all our direct suppliers
at this stage of our value chain to ensure they are aware of our
materials and products requirements, particularly regarding
the delivery of our sustainability objectives.
Cairn has an established subcontractor base and proven
operating platform on which we rely to ensure our
continued delivery of energy-efficient homes at pace,
scale, and value for money. This subcontractor base
comprises a broad range of skills and disciplines across
numerous trades. We also rely on our utilities providers
to ensure the successful supply of utilities to our sites
such as water and electricity, resulting in successful
development completion.
We were active on 21 sites during 2024, supporting over
5,500 jobs with over 2,100 people accessing our sites daily.
This level of activity requires a significant focus on health
& safety, which remains our number one priority.
Our Responsible Sourcing Programme involves extensive
engagement with our subcontractors to enable strong
communication, while striving to improve the sustainability
performance of our supply chain. Collaborating with our
subcontractors to upskill and develop more sustainable
practices is a strategic priority for Cairn.
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OWN OPERATIONS – CONSTRUCTION OF RESIDENTIAL BUILDINGS
Business Model & Value Chain continued
Acquisition, Planning and Design Procurement
Land acquisition is an integral part of our
commitment to building sustainable
communities where people can thrive. It is
the first stage in our value chain where Cairn
has direct control, and it is a critical part of our
strategy that we identify and purchase sites that
are complementary to our existing landbank, are
in areas with excellent infrastructure and public
transport links, and are viable and not subject
to flooding or other environmental risks.
We lead and manage the design and submission
of new development designs and planning
applications to ensure key stakeholder objectives
are achieved. Our experienced planning and
design team work closely with external
professionals including architects and ecologists,
to ensure we consistently create vibrant and
sustainable communities which have excellent
amenities in a well-designed and planned
environment that maximises the potential
of every site.
This is supported by our Cairn Design Platform
which includes the Cairn Technical Design Library,
a repository of knowledge accessible to our
consultants, which provides them with extensive
industry knowledge and preferred methods
of Cairn design specification and process. This
allows us to eliminate design variations and
inefficiencies, meaning we can deliver more
efficiently and effectively for our customers.
To support our scaling business, we launched our
Group Procurement function in 2023, enabling
more effective and efficient procurement
across our growing project pipeline.
Our focus on design efficiency and
standardisation has enabled Group
Procurement to establish strategic framework
agreements across key product categories.
This further enhances our supply chain
relationships, provides delivery certainty,
and de-risks our pipeline.
We recently published our new Supply Chain
Procurement Policy which clearly sets out our
expectations of our suppliers, subcontractors
and service providers and the minimum
standards they are required to meet.
Cairn is a proud Founding Partner of the
Supply Chain Sustainability School in Ireland,
a free educational resource established to
support our supply chain partners with the
upskilling needed to help deliver a sustainable
built environment.
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OWN OPERATIONS CONTINUED
Business Model & Value Chain continued
The management and delivery of our build
schedule is a critical element of our business.
This is underpinned by the dedication of our site
teams in ensuring we build safely and responsibly.
Innovation, quality, and professionalism are
at the forefront of everything we do, with the
diligence, hard work and dedication of our people
driving Cairn’s strong performance and growth.
Our expanding operating and delivery platform
allows us to build award-winning developments
in tandem with value for money.
We leverage our proven delivery capability to
build partnerships with local authorities and
state agencies, delivering energy-efficient,
affordable homes at pace and scale.
Development Build Marketing and Sales
Our commitment to understanding our
customers and their needs begins at land
acquisition and remains at the core of our
entire business model.
With a focus on meeting the diverse needs of
a rapidly expanding customer base including
private and state buyers, we engage with our
customers through both our internal sales and
marketing functions and external selling agents.
Our marketing strategy has ensured that we
reach our customers through an extensive
out-of-home media campaign including TV,
radio, social media, and billboard posters.
Our goal is to ensure a best-in-class experience
for all buyers by providing support, guidance,
and clear information. From the start of the
customer journey, we focus on providing clear,
accurate, and concise information around our
homes, their features, and the relevant paths
to ownership available to our customers such
as the First Home Shared Equity Scheme and
the Help to Buy initiative.
Our fully integrated customer relationship
management system allows us to
continuously learn and improve on every
point of the customer journey from enquiry
through to aftercare, feeding our customers’
experiences back into the design and
specification of future developments.
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DOWNSTREAM
Customer Use Waste Management End of Life
We have always been committed to building high-quality,
energy-efficient homes. Our homes are built for good and
during their lifetime provide a healthy and comfortable home
for our customers. During the lifetime of our homes and as
part of their daily lives, our customers consume energy, water,
and other resources and materials, while also producing
waste and carbon emissions.
While we already build highly energy-efficient homes, as part
of our evolution, we are pushing what it means to build to the
highest possible standards by adopting the Passive House
standard on our flagship developments, facilitating energy
savings and reduced emissions through increased efficiencies.
These initial projects are an investment in innovation, in
ourselves and in Ireland’s future.
Customer experience is at the centre of what we do. Our
dedicated aftercare team works with all of our customers to
ensure the highest possible levels of aftercare, which includes
access to our customer portal. This portal contains a central
repository for all the information our residents need to
efficiently operate their new home.
We have identified waste management as a strategic
part of our downstream value chain. Through activity in
our own operations and customer use, the production
of waste is unfortunately unavoidable. However, we
are committed to reducing our waste production and
increasing our level of recycling as much as possible.
We are continuing to target net-zero soil import and
export by maximising on-site reuse of excavated material
and managing any remaining surplus, further reducing
what is sent to landfill. This approach lends itself to our
initial foray into the world of circular economy, while we
continue to upskill and investigate the adoption of circular
design as part of our strategy.
Our Waste Working Group is working to transform
our current waste management strategy into a more
sustainable solution. This is a key strategic priority
for Cairn.
Currently, the built environment is designed around a
linear model in which materials are sourced, used, and
then disposed of as waste. This approach has contributed
to the construction industry becoming one of the main
consumers of natural resources and raw materials and
a large producer of waste and carbon emissions.
When our homes reach their end of life and are
deconstructed, some components can be reused and/
or recycled. However, by adopting a circular economy
approach, renewable materials are used where possible,
energy is provided from renewable sources, and waste and
negative impacts are designed out. This circular approach
results in homes that are designed to enable maintenance,
repair, and reuse at all life-cycle stages, most importantly
at their end of life.
Cairn is committed to developing building designs and
techniques that support circularity and waste reduction
while maintaining our high-quality standards.
Business Model & Value Chain continued
CustomersPeople
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Our Performance
In 2024 we had exceptionally high levels of employee engagement in our two employee surveys –
93% in our summer survey and 97% in the Great Place to Work Survey. Employee sentiment
remains high with our eNPS (employee Net Promoter Score) increasing from 42 in 2023, to
58 in 2024. We also retained our Great Place to Work accreditation with an overall score of 82%,
4% higher than our 2023 score.
Our Performance
We measure success through four key pillars: the customer handover process, customer surveys,
customer and aftercare experience, and post-occupation reviews. In 2024 we achieved a 96% Cairn
Customer Experience Rating.
Stakeholder Engagement
How did we engage?
Meaningful engagement with our workforce is central to our Employee Value Proposition (EVP) as
we look to receive feedback and respond proactively with targeted and impactful initiatives. In 2024,
we established a cross-functional Engagement Working Group to drive all engagement activity across
our workforce, through surveys, workshops, steering groups, and committees.
What did we learn?
Recognition, culture, and reward are key insights from our surveys. We focused on creating a rewarding
environment and enhancing our high-performance culture. The impact of this investment is seen
through our engagement feedback, with a 9% increase in our Reward category score and significant
improvements in areas such as Strategy & Direction (+6%), Innovation & Continuous Improvement (+5%)
and Talent Management (+5%) in our Great Place to Work survey 2024.
Our focus for 2025
In 2025, we will enhance our communication channels to keep employees informed and engaged,
expanding the Cairn Live platform and establishing regular feedback mechanisms.
We will continue to engage in formal feedback through surveys and workshops, while fostering a culture
of peer-to-peer engagement through the newly established People & Culture Committee. All feedback
and insights will be used in organisational and functional action plans to address focus areas and enhance
existing ways of working. We will also focus on improving recognition through our management
development training and team engagement feedback.
How did we engage?
Our Customer Team is involved from the start of the customer journey, providing accurate and clear
information about our homes, their features and relevant paths to ownership. Our Aftercare and Customer
Care teams ensure that our customers remain supported upon moving into their new Cairn home.
We engage with our customers throughout their home buying process in a number of ways, including:
• Customer surveys;
• Our bespoke customer portal where our customers can log any queries they may have during the first
year of moving into their new home. The portal also includes notifications of events and news about
their new neighbourhood;
• Post occupation surveys with our institutional customers and our partners in local authorities,
Approved Housing Bodies (AHBs) and the Land Development Agency (LDA); and
• Community initiatives such as our Home Together programme.
What did we learn?
Being supported and informed is what matters to our customers. Easy and quick access to a library of
information, or where needed to our Customer and Aftercare Teams, is critical for our broad customer pool.
Our focus for 2025
In 2025 we will further enhance our customer journey by strengthening relationships, enhancing brand
presence and utilising data-driven insights to deliver a seamless and engaging customer experience.
Key areas of focus will include:
• Launching a customer portal for our institutional customers and our partners in local authorities, AHBs
and the LDA;
• Upgrading our existing customer portal to include helpful video uploads and the launch of detailed
product warranties and maintenance schedules; and
• Introducing the D365 field service app to our key subcontractor partners to facilitate the early
intervention and resolution of any quality issues.
Sustainable Communities Supply Chain
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Our Performance
Our 2024 Supply Chain Engagement Survey found that positive sentiment towards Cairn among
our supply chain is at an all-time high, with a record Net Promoter Score (NPS) of 64 achieved in
2024, an increase from 53 in 2023.
Our Performance
We have set ambitious targets for the success of our Cairn Community Games, including
a 10% increase in overall participation and a 5% increase in non-sports categories by 2027.
Already in 2024, we have helped to achieve a 2% and 3% increase respectively.
Stakeholder Engagement continued
How did we engage?
We engage with our supply chain primarily through our established Supplier Relationship Management
(SRM) programme. Much of the focus in 2024 involved regular communications with our supply chain
to ensure there is capacity to meet our pipeline demands, while realising the collective commercial value
our increasing scale generates.
2024 also saw increased engagement on sustainability-related topics, with Cairn being a Founding
Partner of the Supply Chain Sustainability School (SCSS) Ireland, a free online training resource available to
all within our industry and beyond. Critically, 2024 also saw further targeted and sustained engagement
with our supply chain on health and safety strategy, focusing on specific growth areas for the supply
chain, ensuring a collaborative drive towards continuous improvement of health and safety standards
across our projects.
What did we learn?
We have a very well-established, innovative and scalable supply chain, with the average tenure of our
top 20 supply chain partners being more than five years. Our Apprenticeship Programme supported
179 apprentices on Cairn sites in 2024 and this number will grow by 20% in 2025. Our annual Supply
Chain Engagement Survey provided valuable insights from our supply chain, such as a desire for Cairn
to continue to support them to transition to more sustainable practices.
Our focus for 2025
We continue to engage with our supply chain to ensure that a collaborative and forward-looking
approach to capacity planning, cost management, and best practice environmental, health and safety
standards are maintained as our output grows. With a strong appetite from our supply chain partners to
contribute towards a more sustainable future, we will maintain our focus and investment in up-skilling,
training, and educating our supply chain on how we collectively contribute to this shared objective.
How did we engage?
We are committed to fostering sustainable communities that extend beyond just the homes we build.
Over the past year, we have made strides in deepening our engagement with local communities and
expanding our impact on a national scale.
Through our Home Together initiative, we furthered our commitment to sustainability within our
developments. The Seven Mills Community Fund extended our impact into the wider community and
surrounding areas, creating opportunities for collaboration and support.
However, it was our Cairn Community Games initiative that allowed us to bring our efforts to a national
scale. This platform gave us the opportunity to engage with communities across the country, fostering a
deeper sense of connection and showcasing the positive effects of sustainable living on a broader stage.
What did we learn?
Our work with the Cairn Community Games highlighted the significant impact of engaging with
communities on a national scale. The feedback we’ve received from participants has demonstrated that
national initiatives can have a far-reaching positive influence. Engaging with communities at this level
reinforces Cairn’s commitment to making a difference, both locally and nationally.
Our focus for 2025
A key priority for 2025 is to increase our involvement with the Cairn Community Games. We will focus
on increasing staff participation, which will allow us to expand the scope of the initiative, drive greater
community involvement, and further solidify Cairn’s commitment to national engagement. We will
also explore new ways to activate events and partnerships, deepening our connection with both our
customers and the communities in which we operate.
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Stakeholder Engagement continued
Policymakers and Government
How did we engage?
Cairn recognises the importance of regular communication and interaction with shareholders, potential
investors and the international financial and investment community. Executive Directors and the Investor
Relations (IR) Team proactively engage with investors throughout the year through financial results,
presentations, meetings, roadshows, conferences, site visits and conference calls.
We also engage via our regulatory reporting through our Annual Report, full year results, half year results,
trading updates and our Annual General Meeting.
In 2024, we conducted our first Double Materiality Assessment (DMA). Conducting this assessment
with a representative group of shareholders allows us to fully understand their salient Environmental,
Social and Governance (ESG) issues, detailing both how they view Cairn’s impact on the environment
and society, and how Cairn is impacted by sustainability related factors. The results of this assessment
identify our material Impacts, Risks and Opportunities (IROs) which we will utilise to inform our improved
reporting of non-financial information going forward.
What did we learn?
Shareholders are valuing the importance of in-person meetings with both Executive Directors and the
IR Team, in particular the opportunity to engage in site visits. Ad-hoc meeting requests significantly
increased in 2024 as investors look for engagement outside of the traditional results-focused roadshows,
with the IR Team participating in three non-results roadshows . We have also noticed an increased
appetite for group meetings at conferences, notably as an opportunity for potential investors or newer
shareholders to enhance their knowledge of Cairn.
Our focus for 2025
In 2025 we will look to increase our investor engagement by working with our corporate brokers to identify
meaningful opportunities for engagement, be they conferences, roadshows, site visits or meetings.
How did we engage?
‘Housing for All’ is a cross-department responsibility and as such we regularly engage with key government
departments, permanent government officials, policymakers and state entities at local and national
government level through proactive and transparent communication.
Cairn is in a unique and willing position to provide valuable and relevant insights into all aspects of the
sector, including planning, housing delivery across mixed density, mixed tenure and critical infrastructure
to help in meeting the objectives of ‘Housing for All’.
What did we learn?
Our country faces a housing crisis. For Irish people, it’s one of the most important concerns today. This
isn’t a new challenge. Government acknowledged the scale of the problem and took steps to accelerate
housing delivery through positive policy and targeted measures.
While government policies are having a positive impact with committed capital funding for social and
affordable homes delivery, we also know that currently these supports are sub-scale and need to be
increased to have a more meaningful impact in addressing the housing crisis.
Our focus for 2025
We will continue to position Cairn as a leading business which plays a constructive and influential role
in the delivery of quality homes for society and the State. The most recent Programme for Government,
published in January 2025, recognised the role Cairn has played in housing delivery, planning and
provision of infrastructure and included a call for the sector to ‘’support the development of new
transport orientated development towns as necessary, replicating the development of Clonburris
(Seven Mills) and Adamstown’’.
Our Performance
We conducted a comprehensive programme of investor engagement throughout 2024,
with over 120 investor engagements through meetings, conferences, roadshows and site visits.
Our Performance
As one of the country’s leading homebuilders we understand the unique position we are in and
take seriously our responsibility to proactively engage with and respond to policymakers and
Government. To date we have contributed over €450 million to public infrastructure projects
and will deliver c.2,150 new homes under forward funded partnerships with State supported
counterparties – both critical areas of focus for policymakers and government.
Shareholders
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Cairn Homes plc | Annual Report 2024
KPIs/Performance Metrics
Our 2024
performance
160,000+
young people supported by the
Cairn Community Games Sponsorship
5,200
people moved into a Cairn home
1,750+
apartment commencements to
Passive House standard to date
5,500
people employed on Cairn sites
2,241
units
1
15.1%
ROE
2
168
new Cairn employees
4,100+
new homes commenced
€150.0m
operating profit
88%
of employees believe Cairn is a great
place to work
1 This comprises both closed sales and equivalent units. Equivalent units relate to
forward fund transactions which are calculated on a percentage completion basis.
2 ROE (Return on Equity) is defined as profit after tax divided by total equity at year
end. Calculated as €114.6m/€758.2m.
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Chief Financial Officer's Statement
“2024 was another strong year
for the Group as we delivered
a 29% increase in revenue and
output, and a 34% increase
in profit after tax. Critically,
our Return on Equity grew
to 15.1% as we continue to
invest in further growth.”
RICHARD BALL
CHIEF FINANCIAL OFFICER
Revenue
The Group delivered a 29% increase in revenue
as we comfortably broke through the 2,000 unit
delivery mark in what was another strong year for
our business. With 2,241 units
1
representing a 29%
increase in output compared to 2023, the Group’s
revenues grew to €859.9 million, from €666.8
million in 2023. Of this, €838.5 million came from
residential sales, compared to €649.9 million in 2023,
while development site and other sales contributed
€21.4million, up from €16.9 million in 2023.
Gross Profit and Operating Profit
Gross profit for the year grew to €187.0 million, an
increase from €147.6 million in 2023, resulting in
a gross margin of 21.7%, down from 22.1% in the
previous year. The reduction in gross margin was
primarily due to the product mix during the year and
reflective of a significant increase in the delivery of
competitively priced affordable homes for State-
supported counterparties. The Group continues
to mitigate the effects of build cost inflation by
focusing on our procurement strategy, driving
further efficiencies in our construction activities as
we continue to scale, and driving our innovation and
digital construction agenda.
Operating profit for the year was €150.0 million,
a 32% increase from the €113.4 million operating
profit achieved in 2023, resulting in an operating
margin of 17.4% (2023: 17.0%). Operating expenses
were €37.0million (2023: €34.2 million), reflecting
the investment we are making in our people, systems
and processes to support and underpin our continued
operational growth.
1 This comprises both closed sales and equivalent units. Equivalent units relate to forward fund transactions which are calculated as a
percentage completion basis based on the constructed value of work completed divided by total estimated costs.
2 Return on Equity (“ROE”) is defined as profit after tax divided by total equity at year end. Calculated as €114.6m/€758.2m. (2023:
€85.4m/€757.2m).
3 Consists of loans and borrowings €182.0 million less cash and cash equivalents of €27.6 million (2023: loans and borrowings of
€173.8 million less cash and cash equivalents of €25.5 million).
Profit after Tax and Earnings per Share
Finance costs for the year were €15.1 million (2023:
€14.1 million). In growing our revenue by 29%, there
was an increase in our working capital investment
during the year, leading to higher average drawings on
our committed debt facilities.
Profit after tax grew significantly to €114.6 million
(2023: €85.4 million), equating to basic earnings per
share growth of 41% to 17.9 cent (2023: 12.7 cent).
Balance Sheet Efficiency
Total assets were €1,072.3 million at 31 December
2024 (2023: €1,039.9 million), with net assets of
€758.2million (2023: €757.2 million). In growing our
profit after tax by 34% to €114.6 million, we delivered
a return on equity (ROE)
2
of 15.1%, an increase of
380bps from 11.3% in 2023.
Our well-capitalised balance sheet included inventories
totalling €862.1 million. This included €615.7 million
in land held for development (31 December 2023:
€609.2 million), and construction work in progress
(WIP) of €246.4 million (31 December 2023: €334.3
million). The increase in land held for development
followed the release of land costs from the 2,241
units in 2024, totalling €93.0million, offset by land
acquisitions during the year totalling €99.5 million.
The €87.9million decrease in WIP was primarily due
to the release of costs associated with the sale of
2,241 units totalling €572.2million, offset by an
investment of €484.3million in WIP during the year.
As at 31 December 2024, the Company had available
liquidity, including cash and undrawn facilities, of
€229.6 million, compared to €200.6 million as at
31 December 2023. Net debt
3
of €154.4 million,
as at 31 December 2024, was similar to the net debt
REVENUE
€859.9m
GROSS MARGIN
21.7%
OPERATING PROFIT
€150.0m
35
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Chief Financial Officer's Statement continued
of €148.3 million as at 31 December 2023. Our net
debt to inventories (at historic cost) was 17.7% (2023:
17.0%), reflecting a lowly leveraged balance sheet.
Cash Flow
The Group generated operating cash flow of
€134.7million in the year (2023: €107.0 million),
after spending €99.5 million (2023: €57.9 million)
on strategic land acquisitions. We also returned a
total of €115.3 million to our shareholders including
€44.7 million through our progressive ordinary
dividend policy.
Capital Allocation
Cairn remains in a period of significant operational and
volume growth and is committed to both continually
reinvesting in our business to fund sustainable
multi-year growth and distributing surplus capital
to shareholders. Our consistent and proven track
record of paying dividends in line with our progressive
dividend policy to shareholders will continue.
For the year ended 31 December 2024, we returned
€115.3 million to shareholders. The Board proposed
a final dividend of 4.4 cent per ordinary share,
equivalent to €27.3 million which, when combined
with the interim dividend of 3.8 cent per ordinary
share, will represent a total dividend for the year of
8.2 cent per ordinary share.
During 2024, the Company spent €70.6 million in
completing the remainder of our €75.0million 2023
share buyback programme and the majority of our
€45 million 2024 share buyback programme, acquiring
39.5 million shares at an average share price of €1.79.
Operating Review
In 2024, Cairn significantly invested in our
construction activities with over 4,100 new homes
commencements (2023: 2,162), including 10 new
large-scale developments. This will see us significantly
increase our construction work-in-progress (WIP)
spend in 2025, following our highest ever total WIP
spend of €484.3 million in 2024 (2023: €439.9 million).
We were active on an average of 21 sites during
the year.
We have evolved our land acquisition strategy
to include subject to planning deals, options and
potential joint ventures. These structures provide
strategic optionality, allow us to leverage our
operating platform, and are an efficient way to acquire
land. Cairn spent €99.5 million on land acquisitions
in 2024 (2023: €57.9 million), including buying a large
strategic low density development site in Donabate
(Co. Dublin) with full planning permission, adding
to our established low cost landbank. Our 38 site
low-cost landbank now includes 14 high-density
apartment sites (c.4,450 units at an average historic
site cost of c.€64k per unit) and 24 low-density
housing sites (c.11,700 units at an average historic
site cost of c.€28k per unit).
During 2024, we obtained seven new grants of
planning permission comprising nearly 1,300 new
homes (2023: nine new grants comprising over 2,350
new homes) through a combination of applications
made under the traditional Section 34 planning route
(a number of which were located within Strategic
Development Zones) and under the LRD planning
process. Approximately 70% of our c.16,150 unit
landbank has effective full planning permission,
underpinning our future growth.
Our supply chain strategy leverages our scaled
operating platform including our planning capability,
established supply chain partnerships, delivery
platform, procurement and people. Our strategy
is centred on securing, supplementing and where
necessary, substituting across our supply chain. Our
proactive approach to engaging with our supply chain
partners through our group procurement function
along with the security of multi-year, multi-project
contracts awarded has enabled us to manage and
mitigate inflationary pressures. We currently expect
total build cost inflation (BCI) for FY25 to be c.2%.
In 2024, the Company delivered 2,241 units
1
at an
average selling price, net of VAT (ASP) of €383,000
4
(2023: 1,741 units at an ASP of €389,000). The decrease
in ASP was driven by product mix including a significant
step-up in the delivery of competitively priced social
and affordable homes for our State partners.
Market conditions remain very attractive with strong
demand for our energy-efficient new homes across
all buyer profiles. State supports for our customers, a
favourable mortgage market and the limited supply
of competitively priced and well-located new starter
homes is continuing to drive positive momentum.
Enquiry lists across all of our active selling sites remain
at historic highs. The demand from private purchasers,
across all price points, remains exceptionally strong
and has continued into the early months of 2025.
Cairn continues to deliver homes at pace, scale and
value for money for our partners across a number of
State supported counterparties, including Affordable
Housing Bodies (AHBs), Local Authorities and the Land
Development Agency (LDA). In 2024, we delivered
homes under forward purchase transactions and also
entered into a number of forward fund transactions
with State supported counterparties. Forward
fund transactions are enabling Cairn to materially
increase our supply of social & affordable homes at
competitive prices and we are progressing a number
of additional forward fund transactions which we
expect to enter into in H2 2025.
Outlook
2024 was another successful year and we continue to
look forward with confidence. 2025 will be our tenth
year in business and is expected to be another strong
year for Cairn as we look to leverage our operational
competitive advantages into the medium-term.
Reflecting the positive business environment, the
Company will continue to expand our investment in
our construction activities this year whilst distributing
surplus capital to our shareholders.
BASIC EARNINGS PER SHARE
17.9 cent s
2023: 12.7 cents
DIVIDENDS PER SHARE
8.2 cents
2023: 6.3 cents
OPERATING CASH FLOW
€134.7m
2023: €107.0m
NET DEBT
€154.4m
2023: €148.3m
T O T A L E Q U I T Y
€758.2m
2023: €757.2m
R O E
15.1%
2023: 11.3%
4 ASP of €383,000 (2023: €389,000) excludes commercial units and associated revenue.
36
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Risk Report
Encouraging
a sustainable
risk approach
to underpin
our purpose
Cairn’s commitment to the
sustainable delivery of housing
in Ireland is supported by an
approach to risk management
that embeds the understanding
and identification of risk
throughout every stage of a Cairn
project. Our risk management
process continues to be refined
to ensure it supports our
purpose and overall strategy,
so we can be confident of the
impact of what we do, the risks
that affect us, and how we
mitigate against them.
Board of Directors
The Board retains responsibility for ensuring the level of risk to
which Cairn is exposed is appropriate to its strategic objectives
and overall risk profile; it is also responsible for setting Cairn’s
appetite for risk and overseeing the effectiveness of the
process for identifying, assessing and managing risk.
Audit & Risk Committee (ARC)
The ARC monitors the effectiveness of Cairn’s risk management framework
and its implementation, on behalf of the Board, and maintains oversight
of the Group’s risk register. This includes ensuring the Group’s principal
risks and uncertainties are identified, assessed and controlled, and that the
potential impact of risks on the Group’s strategy are appropriately mitigated.
The ARC receives from management a comprehensive risk report at each of
its meetings, where it also reviews and considers the Group’s risk register.
Cairn’s approach to risk management is designed to ensure that the
identification, assessment, management and monitoring of risk is
both effective and sustainable. To achieve this, our risk management
framework aligns with accepted risk management standards, Cairn’s
overall risk appetite, our strategic objectives, operational practices
and evolving delivery systems. The upward reporting of risks and
opportunities is a core part of the risk management framework, as
is the approval and oversight of mitigation plans by management and
the Senior Leadership Team, who also determine the strategic approach
to risk and the establishment of our structure for risk management.
They are also responsible for ensuring the most significant risks for
Cairn’s business are identified, understood, and effectively managed.
Risk Governance
RISK FRAMEWORK
RISK STRATEGY
Senior
Leadership Team
Identify principal risks
—
Approve mitigation
plans
Management
Identify risks
—
Define mitigation
plans
Process
Deliver y Teams
Identify risks
—
Implement mitigation
plans
37
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Identification
of risks
Alignment
of risks
Assessment
of risks
Informing
strategy
Managing
risk
8
7
6
5
4
3
1
2
Principal Risks
The Risk Management Process
To help ensure the sustainability of Cairn’s risk management process, it is integrated into
process delivery systems so risk can be identified wherever it arises, and managed accordingly.
The process is supported by expertise and resources that help ensure it is optimised to Cairn’s
strategic, operational, and financial objectives, and applied in a consistent way.
To ensure our risk management process remains meaningful, relevant and effective, the
fundamental assumptions on which it is based are subject to persistent rigorous review.
Facilitated by professional risk advisors, all levels of the business
support risk identification and evaluation. This includes process
delivery teams, who are tasked with identifying risks that
could impact strategic goals and operational activities. The
Senior Leadership Team actively engages in this process and
meets formally throughout the year to review risks identified
by functional management, augment those risks with risks
identified by them, and ensure new and emerging risks are
identified and managed.
Once a risk is identified, it is aligned to a principal risk area to
validate the risk and help identify emerging principal risks and
uncertainties. We also align our risks to macro-risk factors, such
as inflation. These are risks we cannot control, but which give
rise to a range of specific consequences that we can anticipate
in the context of the macro-risk and then specifically manage.
Our assessment of risk first requires us to consider how likely
it is the risk will occur, and then the impact of the risk on Cairn
should it occur (having regard to controls we have already
effectively implemented). This assessment supports decisions
on how we apply Cairn’s risk appetite to each risk.
The risk management process and the risks it identifies are
fundamental to the development of Cairn’s strategy, the
ongoing monitoring of that strategy, and its persistent review.
The risks associated with the Group’s business are deeply
understood by management and the opportunities they
present are reflected in how Cairn has developed and grown its
business. In turn, the process of developing the Group’s strategy
informs how the management of risks, and opportunities,
should be adjusted to ensure success.
Our risk management framework requires our risks to be
actively managed in line with our risk appetite. All risks are
assigned to risk owners, who are responsible for ensuring the
risk is appropriately managed. Supported by a comprehensive
risk register, plans for managing risks are monitored for
implementation and progress by the Senior Leadership Team.
The management of Cairn’s principal risks is overseen by the
Audit & Risk Committee on behalf of the Board.
Principal Risks and Uncertainties
Cairn’s risk management process
has identified eight principal risks.
These are risks that, should they
arise, could have a material impact
on the Group’s ability to meet its
strategic and financial objectives.
These risks are described in
further detail from page 39 but
are summarised below, together
with a risk heat map showing each
principal risk’s likelihood and
impact weighting.
1
Economic
Economic conditions, including
mortgage availability and affordability,
may adversely affect house prices and
sales rates.
4
Financial
Cairn substantively fails to meet
financial targets or obligations, suffers
unexpected financial loss, or misstates
its financial position.
7
People
Cairn fails to recruit, engage, and
retain the right employees, in the
right positions, to deliver its strategy.
2
Policy
Local and national policy or regulation in
respect of residential property development
adversely impacts Cairn.
5
Development
Developments fail to meet the operational
or financial targets set for them.
8
Climate
Cairn fails to anticipate and address
the strategic, market, regulatory, and
operational impacts of climate change.
3
Brand
Brand reputation is damaged through
Cairn’s failures or the failures of its
supply chain.
6
Compliance
Cairn fails to meet its legal and regulatory
obligations (such as health & safety or
data protection).
Rare Unlikely Possible Likely Almost
Certain
Insignificant Minor Moderate Major Catastrophic
Consequences/Impact of Event
Probability
Risk Report continued
38
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Risk Report continued
The Irish Macroeconomic Landscape
Building a long-term sustainable business requires
Cairn to identify and respond to the risks that are
inherent in the overall environment in which we
operate. So, as we continue to expand our capacity to
meet the demands of the Irish market, we are aware
that the impact of external risks can be amplified.
The principal factors underpinning the demand for
new homes remain housing availability, the overall
state of the Irish economy and housing affordability.
As we look forward to 2025 and beyond, we remain
vigilant of the global ramifications of the rapidly
emerging and evolving trade and economic policies
of the United States and other geopolitical risks.
This must be viewed in the context of the current
strength of the Irish economy, which continues to
support strong demand for new homes across all
buyer profiles. This demand supported by a growing
mortgage market (+4% in 2024 to €12.6 billion),
upwardly revised Government targets for new housing
growth (average of 50,000 new homes annually to
2030), and Government policy changes to facilitate
and encourage the construction of new homes.
Economic environment
We are continuously evaluating the likely impacts on
the global and Irish economy of the policy decisions
of the current United States administration, and this
will continue to inform our objectives and longer-
term strategy. However, we believe that any such
impacts, should they arise, will be offset by a resilient
Irish economy. This is underpinned by predicted
economic growth (modified domestic demand)
exceeding 3% in both 2025 and 2026, annual general
Government balance surpluses predicted until 2030,
and expectations of continued employment growth.
Market demand
Demand for housing in Ireland remains exceptionally
strong across all buyer profiles, driven by a growing
population, continued employment growth, and
ongoing undersupply. This market demand, coupled
with Ireland’s strong economic growth, is supported by
strong consumer savings (the household savings rate
grew to 14.1% in Q3 2024), and a supportive mortgage
market with €7.8 billion in first time buyer drawdowns
in 2024, the highest annual level since 2007.
Having regard to the current demand for housing and
the capacity of the industry to deliver new housing
within the Irish market, we do not anticipate any
fundamental risks to our business model arising from
a shift in market demand in the near to medium-term.
This is further underpinned by our ability to address
the needs of individual buyer pools including first and
next time private buyers, the State as a purchaser of
social and affordable housing, and the institutional
market, so mitigating our exposure to any single
market sector.
Macroeconomic Backdrop
CORPORATION
TAX
35%
of total tax receipts
IRISH MORTGAGE
MARKET
€86bn
Peak 2008 - €127bn
GNI*/
CAPITA
€54,637
GDP/
CAPITA
€99,148
HOUSEHOLD
SAVINGS RATE
14.1%
HOUSEHOLD DEBT
AS % OF DEPOSITS
69.2%
NET CONSUMER
EQUITY
€43.53bn
GENERAL GOVERNMENT
BALANCE
+4.9%
of GDP. Forecast at
+1.6% in 2025 and 2026
GENERAL GOVERNMENT
SURPLUS
€23.7bn
GENERAL GOVERNMENT
DEBT BURDEN
69.1%
Housing policy
The Government continues to prioritise its focus
on increasing the number of new homes delivered
to the Irish market and ensuring the affordability of
those homes for buyers and occupiers. As well as
increasing housing delivery targets to 300,000 new
homes by 2030 across all tenures (social, affordable
and private rental and ownership), the Government
has also adopted new planning legislation through the
Planning and Development Act 2024, and completed
the National Planning Framework review.
However, the resulting new planning environment
has given rise to some uncertainties in the planning
process, in particular flowing from the transition
period between the expiry and adoption of new
County and Local Area Plans. These uncertainties
can be challenging in preparing existing sites for
development, and potentially increases the costs
associated with that process. Cairn has invested
heavily in building its capability both to bring owned
sites through planning and to identify suitable
acquisition sites for development and manage the
associated planning issues, meaning it is able to
manage these uncertainties effectively, ensuring its
pipeline of potential developments is maintained.
However, there remains a heightened risk that issues
may arise in respect of specific sites that will require
close management or changes in the scheduling of
our expected development pipeline.
Sources: CSO, Department of Finance,
Central Bank of Ireland, Banking and
Payments Federation Ireland, ESRI
39
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Principal Risk:
Economic
Economic conditions, including
mortgage availability and
affordability, may adversely affect
house prices and sales rates.
Risk landscape
The Irish domestic economy grew by 2.7% in
2024, with headline inflation remaining low, and
sustained employment growth and consumer
confidence. Irish public finances are expected to
remain strong, and under the 2025 Programme
for Government the housing delivery target has
been revised upwards to 300,000 new homes
by 2030 (average of 50,000 per annum) across
all tenures to relieve chronic under-supply.
First-time buyer demand remains high,
supported by a growing mortgage market with
net lending increasing by 4% in 2024. A new
Starter Home programme has been announced,
underpinned by an expanded First Home
Scheme and Help to Buy (both extended until
2030) in addition to other schemes to support
and deliver 15,000 starter homes per year.
Ireland remains exposed to broader geopolitical
risks amid rising international trade tensions
which may affect the level of foreign direct
investment in Ireland, and by extension
employment and exchequer returns. While
the underlying risks within the Economic
area remain unchanged or have improved,
management is taking a conservative approach
in considering this Principal risk as being stable.
Appetite
Economic conditions and other macro factors
that affect house prices and sales rates are
monitored and Cairn continuously reviews
its plans to ensure the adverse impacts of
changing economic conditions are minimised.
Risk factor
Demand for Cairn’s product may
be impacted by economic/policy
changes. This could impact the
saleability of current or planned
schemes and/or limit the scope
for future schemes.
Risk factor
Economic factors, including
inflation, rising interest rates,
adverse mortgage conditions,
or falling employment, may
negatively impact affordability
and the demand for housing.
Risk factor
Land value reductions adversely
impact the Group’s balance
sheet and its current land cost
advantage in respect of planned
developments.
Response
Cairn closely monitors the demand for new homes
across all of our buyer cohorts. It also continues to
actively manage its developments and corporate
strategy to ensure it can meet the relative demand of
this diverse customer base. This approach mitigates
against over exposure to any particular market and
takes account of national supply, where new home
completions fell 6.7% in 2024.
Response
Anticipating the impact of current and future
economic factors is a key driver of Cairn’s strategy,
as well as how it deploys its capital in delivering its
diverse product mix. This is based on Cairn’s deep
understanding of the Irish new homes market
and the factors that influence it. Cairn continually
monitors the economic landscape and responses
from policymakers and other key stakeholders such
as the CBI (Central Bank of Ireland), mortgage market
participants and its diverse customer base.
Response
The Group actively manages the short, medium
and long-term activation and monetisation of its
landbank and associated carrying value to ensure
that at all times the landbank does not exceed the
requirements of its development strategy, and the
scale of investment does not expose the Group to
carrying value risks.
Risk trend
The demand for Cairn’s developments continues
to be strong from its diverse customer base.
Cairn’s product mix mitigates the risk of it being
exposed to specific economic or policy factors
impacting any particular market.
Risk trend
Reducing interest rates, high employment and
increasing mortgage availability is continuing
to support the demand for homes. This is
reflected in house price inflation during 2024.
Notwithstanding the current environment,
2025 is forecast to be another year of Irish
economic growth, underpinned by a strong
labour market, and lower inflation. This is
expected to provide continued strong demand
for the new homes Cairn builds.
Risk trend
The demand for development land, in particular
land with the benefit of full planning permission,
and for new homes across all markets, continues
to support the cost value of development land
values on Cairn’s balance sheet.
Strategic priority: Strategic priority: Strategic priority:
Risk owner:
Chief Investment Officer
Risk owner:
Chief Financial Officer
Risk owner:
Chief Financial Officer
Risk trend key:
Risk increased
Risk decreased
Risk unchanged
People
Sustainable
communities
Construction
Customers
Strategy key:
Risk Report continued
40
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Risk Report continued
Principal Risk:
Policy
National policy, regulation and
legislation in respect of residential
property development adversely
impacts the Group.
Risk landscape
During 2024, the Irish Government adopted new
planning legislation (Planning and Development
Act 2024), and completed the National Planning
Framework review. Transitional arrangements will
be critical to ensure new housing delivery is not
adversely impacted in the period between the
expiry and adoption of new County and Local Area
Plans, which dictate land zoning at a local level.
The transition period for the implementation
of both is expected to take up to 24 months.
However, it is expected that continued housing
demand, coupled with Government commitments
on housing delivery which were further reinforced
in the January 2025 Programme for Government,
should promote a consistent approach between
national policy and planning outcomes.
The underlying risks within the Policy area remain
unchanged, however when management
reviewed Policy risk on a holistic basis, taking into
consideration the macro environment and until
such time as the impacts of changes to the Policy
landscape are fully understood, we felt it was
prudent to consider this Principal risk as increasing.
New home completions fell 6.7% in 2024 to
30,330 new homes (2023: 32,525), including
a 14.5% drop in Q4 2024. This highlights the
critical role which housing policy plays in
increasing supply over the coming years
to meet Government housing targets.
Appetite
Cairn will always adhere to legislation, policy and
regulation. As a community homebuilder it seeks
to positively address, as well as ensure it is always
prepared for, policy and regulatory change.
Risk factor
Planning applications, can be adversely affected by
planning delays, objections, appeals, undetermined
applications or judicial reviews. This can lead to
delayed starts on sites and the potential for increased
development costs.
Risk factor
Housing policy changes impact Cairn’s fundamental
business model.
Response
The Group operates a highly rigorous and detailed process for identifying,
evaluating and mitigating planning risks associated with a development at
the earliest possible stages of its design process to ensure planning potential
is maximised.
It collaborates and engages early with the relevant planning authority, local
authority and community to ensure all concerns are effectively addressed
to mitigate against the possibility of delays or refusals.
Response
Cairn’s core market remains first time buyers, other private buyers and State-
supported counterparties.
Cairn ensures the manner in which it delivers its new homes directly addresses
the current and expected future demands of these customers.
The Company actively and regularly engages with key stakeholders and
policymakers to ensure potential future policy requirements are fully understood,
and furthermore that any potential policy changes can be considered as it
progresses its plans on future developments.
Risk trend
The Large-scale Residential Development (LRD) planning process is now
Cairn’s main route for all planning applications. While more streamlined,
it remains subject to judicial review risk. A number of Local Area Plans
that were left to lapse have given rise to a small number of adverse LRD
planning decisions. The interim period, before new legislation is fully
implemented, is expected to create some uncertainty.
Future planning risks are increasingly being mitigated through
Cairn’s acquisition of development sites that already benefit from
full planning permission.
Risk trend
Government continues to support the development of new social and
affordable homes as a key component of its Housing for All strategy,
in addition to significant supports for first time buyers. Government’s
investment in social and affordable homes in collaboration with the private
sector is likely to continue, as evidenced by the January 2025 Programme
for Government.
Strategic priority:
Strategic priority:
Risk owner:
Chief Operating Officer
Risk owner:
Chief Executive Officer
Risk trend key:
Risk increased
Risk decreased
Risk unchanged
People
Sustainable
communities
Construction
Customers
Strategy key:
41
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Principal Risk:
Brand
Cairn’s reputation could be
impacted in a number of ways
through failures in the quality of
the new homes being delivered or
failures of its supply chain.
Risk landscape
As Cairn increases the pace and scale at which
it develops and completes its new homes, it
seeks to ensure the potential for failures in the
end-to-end development process reduces or if
Cairn’s supply chain proportionately decreases.
By doing so, Cairn seeks to both build to
the highest standard and meet the highest
expectations of its home buyers, addressing
not just the finished product, but also the
quality and sustainability of its materials, how
its developments are built and the level of
aftercare services provided following the legal
completion of each new home sale.
Cairn has maintained its ISO 9001 (Quality
Management System) accreditation and
continues to invest in its customer care
processes to capture and resolve any issues
which may arise, as well as identify quality
trends that should be addressed.
Housing remains the number one societal issue
in Ireland with significant political focus on
increasing the supply of new homes. As Cairn
continues to deliver annual volume growth
across different buyer cohorts, it is critically
important that it maintains its quality and
customer service standards.
Appetite
Cairn has a limited appetite for risks that may
adversely affect its brand and its ability to
engage with key stakeholders or markets or sell
its homes. It manages these risks accordingly.
Risk factor
A failure in the quality of designs, materials,
supplies and construction can have an adverse
impact on the Cairn brand and the strength
of its position in the market.
Risk factor
Failures in the supply chain lead to Cairn not meeting
its commitments relating to respect for human rights
and labour standards.
Response
Cairn continues to embed dedicated and standardised quality management controls
throughout its delivery processes to ensure the highest quality standards are met
and any issues are identified and remediated. The integration of construction activity,
supply chain quality management and customer care experience is fundamental
to this and continues to support ongoing quality improvements.
Supply chain standards are maintained through rigorous materials and
supplier qualification, as well as internal quality verification processes. This has
been supported by various supply chain quality initiatives, aimed at quality
maintenance and improvement.
Response
Key policies and their stringent processes support the assessment and
management of risks associated with exploitative, unlawful and unfair work
practices. This includes our internal Code of Conduct and external Supplier Code
of Conduct which set the standards for Cairn’s employees, subcontractors and
suppliers to meet, as well as the means by which issues can be identified, reported
and managed.
Cairn’s promotion of the Supply Chain Sustainability School Ireland is an important
element of this work.
Risk trend
Identifying, preventing and managing issues that could affect the
quality of its new homes delivery remains a core fundamental of
Cairn’s commitments and strategy. This drives continuous improvement
activities which promote quality performance at a time when the
business continues to scale and increase output.
Risk trend
Cairn is committed to ongoing investment in its systems to monitor and
manage its supply chain and promote lawful and sustainable practices.
Strategic priority: Strategic priority:
Risk owner:
Chief Operating Officer
Risk owner:
Chief Operating Officer
Risk trend key:
Risk increased
Risk decreased
Risk unchanged
People
Sustainable
communities
Construction
Customers
Strategy key:
Risk Report continued
42
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Principal Risk:
Financial
Cairn substantively fails to meet
financial targets or obligations,
suffers unexpected financial loss,
or misstates its financial position.
Risk landscape
The Group was active on 21 sites during
2024 building low, medium and high-
density developments, including ten new
sites which commenced in the year. All
new site commencements are governed
by our multi-stage Gateway Process which
sets out our standardised and established
quality checkpoints across planning, design,
construction, product delivery and sales. This
established process ensures our investment
in these sites is adequately forecasted with
review and oversight controls at each stage,
and all benchmarked against established
internal KPIs. This supports broader liquidity
management.
All active development sites are subject
to a monthly commercial and executive
review process where all costs, timelines
and budgeted profit levels are discussed
and reviewed.
These operational processes are overlaid with
a stringent financial management framework,
which supports an established budgeting
and forecasting process performed by
experienced and knowledgeable personnel,
with performance against budget continuously
monitored.
Appetite
Cairn has no appetite for a failure of this
nature and implements stringent controls and
processes to ensure financial risk is identified
and controlled.
Risk factor
The credit and funding arrangements of the Group
do not meet Cairn’s strategic or operating needs or
prevailing trading conditions.
Risk factor
A failure of internal financial controls could lead
to potential financial misstatement, impairment,
undetected fraud or financial loss.
Response
The Group’s committed credit facilities, which were negotiated and renewed in
early 2025 on terms that were favourable and without adverse conditions, are
expected to continue to match Cairn’s working capital requirements, growth
ambitions and projected operational performance into the medium-term.
The Group regularly reviews the appropriateness and maturity of its credit facilities
in the context of its growth ambitions, and engages with its lending partners on a
regular basis to discuss its strategic objectives.
Response
A robust financial controls framework continues to be maintained by the Group.
This is accompanied by rigorous cost oversight and controls, including external and
independent assessment of the progress and cost management of certain projects.
This is supported by an outsourced internal audit function which provides independent
and objective assurance that internal control processes are operating effectively.
This is all overseen by the Audit & Risk Committee of the Board and is subject
to regular audit, which supports an ongoing programme of feedback, review,
and improvement.
Risk trend
Cairn’s financial and operational performance exceeds the covenant
conditions of its credit facilities. Appetite from Cairn’s funding partners
remains strong.
Risk trend
The Group continues to review and refine its financial controls, based
on changing operational risks for the business as it scales, anticipated
changes to standards, and overall effectiveness.
Strategic priority: Strategic priority:
Risk owner:
Chief Financial Officer
Risk owner:
Chief Financial Officer
Risk trend key:
Risk increased
Risk decreased
Risk unchanged
People
Sustainable
communities
Construction
Customers
Strategy key:
Risk Report continued
43
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Principal Risk:
Development
Developments fail to meet the
operational or financial targets
set for them.
Risk landscape
Build cost inflation and supply chain concerns
have moderated. However, an increase in
residential construction in Ireland, together
with unexpected events that have a macro-
economic impact, could have an adverse effect
on supply chain efficiency and costs, which
could impact Cairn’s margins and productivity
levels. Cairn’s ongoing investment in our new
home designs, construction methodologies
and supply chain management anticipate
such events and is intended to underpin
Cairn’s resilience.
Appetite
There is inherent risk associated with
the planning, delivery, and sale of any
development. Cairn is willing to accept
levels of financial or operational risk that
are consistent with the planned outcomes
of its developments but will always seek
to minimise those risks accordingly.
Risk factor
Failure to meet development milestones and
schedules, and/or release developments to the
market in line with the Group’s commitments,
can adversely affect development costs, the ability
to meet development targets, and the maintenance
of appropriate levels of cashflow and liquidity.
Risk factor
Availability of materials and supplies, or supply
chain disruption, causes development delays or
an unexpected increase in development costs.
Response
Cairn continues to refine its integrated methodology so that development
launches, construction scheduling and supply chain capacity management
are at all times fully aligned, ensuring on-time and on-target completion of
developments.
Production controls and the construction planning team act independently of site
teams, and report into the Construction Production Director who oversees the
timely and efficient delivery of our projects. Construction programmes are subject
to ongoing and regular review, with any programme risks reported and mitigated
on an ongoing basis.
This integrated methodology is supported by an increased use of innovative
technology and systems, increased data-driven insights, and the continued
adoption of the most up-to-date construction methodologies and materials.
Response
Cairn’s operations rely on an effective and rigorously managed supply chain to
ensure development targets and forecast delivery dates can always be met.
Our supply chain is actively managed on a strategic and tactical basis by Cairn’s
commercial function, which adopts best industry practices to ensure materials
and supplies are always available, whilst ensuring Cairn is regarded as a preferred
partner with its supplier base. This includes developing supply chain partnerships
focused on advancing productivity, efficiencies, sustainability, quality and
continuous product development.
Risk trend
Cairn’s operations continue to scale, meaning this is a dynamic risk that
reflects variations in product mix and an overall increase in output.
Risk trend
While competition for labour and materials may intensify in the medium-
term, Cairn expects to be able to overcome the associated risks through
the effectiveness of its supply chain management strategies and the
visibility and certainty provided on its medium-term development
pipeline.
Strategic priority: Strategic priority:
Risk owner:
Chief Operating Officer
Risk owner:
Chief Operating Officer
Risk trend key:
Risk increased
Risk decreased
Risk unchanged
People
Sustainable
communities
Construction
Customers
Strategy key:
Risk Report continued
44
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Principal Risk:
Development
(continued)
Developments fail to meet the
operational or financial targets
set for them.
Risk factor
Build cost inflation (including
materials, supplies and labour cost)
adversely impact the Group’s
margin and profitability.
Risk factor
Delivering an increasing number
of developments to a consistent
quality and costs standard,
requires greater standardisation
of product and delivery.
Risk factor
Utility companies (water,
drainage, electricity) are unable
to provide sufficient connections,
supply or capacity for proposed
developments.
Response
The Group commercial function is tasked with
implementing best industry practice to effectively
monitor, anticipate and manage supply chain costs.
This is reflected in Cairn’s procurement strategy,
which includes forward procurement, its supporting
business processes, and its input into the design of
Cairn’s developments.
In addition to category management, operating
efficiencies are actively identified to reduce
unmitigated costs in product utilisation, logistics
and construction activity.
Response
The ability to ensure consistency and deliverability
at scale through standardised, repeatable design
and construction methodology is central to Cairn’s
delivery model.
Cairn’s delivery methodologies and supporting
processes are constantly challenged and reviewed
to ensure they are always capable of meeting Cairn’s
commitments, whilst addressing requirements for
sustainability, efficiency, and effectiveness.
This includes ensuring our management and quality
structures are adequate to deliver our existing
and future development pipeline, whilst ensuring
adequate resources and support are in place.
Response
Active engagement with utility providers is a
continuous process to ensure communication and
awareness of Cairn’s current and future requirements
and the effective identification and management of
specific utility supply risks.
The operational risk process facilitates the
management of development-specific utility risks,
which are mitigated through a variety of measures,
including alternative supply solutions and the
dynamic management of construction planning
schedules.
Risk trend
Although build cost inflation has slowed, there
remains price volatility in specific materials.
Cairn will continue its close management of all
input costs and the drive for productivity gains
to mitigate any cost increases.
Risk trend
The Group’s design and development
methodologies are embedded in Cairn’s delivery
model. As Cairn scales, these standards will
continue to be tested, reviewed and modified
on a regular basis.
Risk trend
The delivery of local and strategic infrastructure
required to maintain housing outputs remains
a challenge. By fostering positive relationships
with utility providers, Cairn has been able to
effectively manage this risk in respect of all its
developments.
Strategic priority: Strategic priority: Strategic priority:
Risk owner:
Chief Operating Officer
Risk owner:
Chief Operating Officer
Risk owner:
Chief Operating Officer
Risk trend key:
Risk increased
Risk decreased
Risk unchanged
People
Sustainable
communities
Construction
Customers
Strategy key:
Risk Report continued
45
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Principal Risk:
Compliance
Cairn fails to meet its legal and
regulatory obligations (such as
health & safety or data protection).
Risk landscape
Cairn’s sustainability principles, and its
commitment to its people and its values
are reflected in Cairn’s management of the
safety of its employees, subcontractors,
suppliers, and customers as a number one
priority. That means that although Cairn’s
safety performance continues to improve, the
health & safety agenda remains committed to
ensuring an ongoing rigorous and disciplined
approach to the management and mitigation
of health & safety risks.
While the regulatory environment in which
Cairn operates is becoming more complex,
Cairn will continue to address its obligations
positively and in a way that benefits
all stakeholders.
Appetite
Cairn has no appetite for failures that give
rise to injury or loss of life. Cairn will manage
legal and regulatory risks in a manner that
is consistent with good practice.
Risk factor
A failure by Cairn to meet the
requirements of health & safety
legislation or best practice, giving
rise to death or personal injury
in the workplace for which Cairn
is responsible.
Risk factor
A failure of the business to meet
its data protection obligations
arising under Irish and EU data
protection laws.
Risk factor
A failure or loss of any of the
Group’s key systems or corporate
data as a consequence of a
successful cyber-attack.
Response
Cairn’s health & safety system and supporting
framework aligns with ISO 45001 (Occupational
Health, Safety and Welfare Management), and with
an AA rating accreditation from Safe-T-Cert Safety
Management Certification System, Cairn exceeds the
legal standards that apply to its activities.
The Board oversees health & safety performance
whilst the Senior Leadership Team ensure Cairn’s
response to health & safety risks remain robust
and effective in the context of continually scaling
operations. A newly appointed Environmental, Health
& Safety Director provides operational leadership
across Cairn’s operations and shared ownership and
responsibility across its supply chain.
Response
An accountability framework managed by the
Company Secretary supported by an independent
Data Protection Officer supports the processing of
personal data in accordance with data protection laws.
The framework is periodically assessed against
established standards.
Response
The protection of the confidentiality, integrity and
availability of Cairn’s data is a core part of Cairn’s
overall IT strategy. Cairn continues to review and
invest in measures to protect its systems and
data from external and internal cyber-threats and
associated risks.
The effectiveness of these measures is tested and
reviewed periodically to ensure they adequately
address current risk trends and emerging
vulnerabilities.
Risk trend
Cairn’s health & safety performance continues
to improve. However, maintaining, delivering
and constantly improving the Group’s health &
safety system remains central to our activities.
Risk trend
Data protection and privacy regulation
remains a business risk. The accountability
framework is actively managed and an
ongoing improvement plan is in place.
Risk trend
Cyber-risks generally, and their associated
threats, remain frequent and sophisticated,
with potentially high impacts.
Strategic priority: Strategic priority: Strategic priority:
Risk owner:
Chief Operating Officer
Risk owner:
Company Secretary
Risk owner:
Chief Financial Officer
Risk trend key:
Risk increased
Risk decreased
Risk unchanged
People
Sustainable
communities
Construction
Customers
Strategy key:
Risk Report continued
46
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Principal Risk:
People
Cairn fails to recruit, engage,
and retain the right employees,
in the right positions, to deliver
its strategy.
Risk landscape
Cairn’s strategy relies on ensuring it is able
to attract, recruit and retain the right people
to deliver its strategic objectives. Ireland
remains close to full employment and there
is an expectation the construction sector
will continue to suffer from a shortage of
talent with the requisite skills and experience.
However, Cairn’s commitment to its people
strategy has allowed it to be regarded as an
employer of choice in the industry, so helping
Cairn build its talent pool and competencies.
Appetite
Cairn’s appetite for people risk is limited with
a view to ensuring that the overall strategy
can be delivered by the wider Cairn team.
Risk factor
A lack of skilled and/or
professionally qualified entrants to
the construction industry creates
a shortage of skills available in the
supply chain which are required
to facilitate Cairn’s development
plans, scaling goals and succession
planning strategies.
Risk factor
The Group fails to retain top
talent and build from within,
and/or acquire top talent, reducing
its ability to meet its goals and
objectives, and/or maintain a pool
of talent to meet its succession plans.
Risk factor
The Group’s people engagement
fails to engender or facilitate
the optimal performance of
its employees, so that people
performance does not match
its potential.
Response
Cairn actively promotes participation in the
construction industry through a variety of
programmes, including its Apprenticeship Academy
which in 2024 placed over 150 apprentices into Cairn’s
supply chain. Cairn’s support of workers in the supply
chain in respect of their mental health, healthcare and
financial wellbeing further supports this aim.
Response
The success of Cairn, the promotion of the Cairn
brand, and its people strategy positively supports
recruitment and retention. Recruitment is supported
by the deployment of a wide range of targeted
recruiting tools and strategies.
A continued focus on graduate recruitment and
apprenticeships, with an accompanying learning
and development scheme, also facilitates the
development of a talent pipeline.
Response
Reflecting the importance of its people to Cairn’s
success, the Group has adopted a wide-ranging
People Strategy to ensure optimal performance.
As well as competitive remuneration and
reward policies, initiatives include wellbeing,
supportive learning and development, and
clear progression pathways.
Risk trend
As Cairn scales, and housebuilding in Ireland
accelerates, it is expected that current skills
shortages will be exacerbated. Cairn has
anticipated the consequent shortfall between
demand and capacity and, through its various
programmes, is actively managing this risk.
Risk trend
Competition for candidates in operational and
professional roles is not expected to improve
during 2025, but Cairn is well placed to address
this challenge positively.
Risk trend
The Group’s people strategy continues to be
successful in delivering effective employee
engagement, low staff turnover and a high
net promoter score, helping underpin Cairn’s
continued ability to perform.
Strategic priority: Strategic priority: Strategic priority:
Risk owner:
Chief People Officer
Risk owner:
Chief People Officer
Risk owner:
Chief Executive Officer
Risk trend key:
Risk increased
Risk decreased
Risk unchanged
People
Sustainable
communities
Construction
Customers
Strategy key:
Risk Report continued
47
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Principal Risk:
Climate
Cairn fails to anticipate the
strategic, market, regulatory,
and operational impacts of
climate change.
Risk landscape
In 2024, the continuing impact of climate
change saw a growing occurrence of the
physical risks associated with climate change,
brought about by increasing temperatures
and periods of more extreme weather. Cairn
continues to invest in limiting its impact on the
environment and responding to the impact of
climate change on Cairn’s business model and
strategy, be it from transitional risks or physical
risks. Further details of our Climate Transition
Plan are available on our website.
Appetite
Identifying and proactively responding to the
challenges of climate change are core to Cairn’s
purpose and strategy. Cairn will proactively
identify and manage risks associated with
climate change in a way that ensures it can
continue to deliver on its mission.
Risk factor
Cairn fails to reduce the negative impacts of
construction on the environment, increasing
the relative environmental impacts of Cairn’s
developments and reducing demand for its homes.
Risk factor
Planning approvals for developments require a greater
number of environmental-related planning conditions
to ensure climate-related targets can be met, impacting
on development costs and development times.
Response
To ensure Cairn is able to address its environmental and sustainability targets,
Cairn has completed an assessment of how it addresses key issues (climate
action, biodiversity and responsible sourcing and procurement). Using this
assessment, Cairn has implemented, and continues to develop, ways to reduce
its environmental impacts.
As set out in its Climate-Related Financial Disclosures (see pages 58 to 63), Cairn
has submitted targets for reducing its Scope 1, 2 and 3 greenhouse gas emissions,
taken action to reduce those emissions and identified strategic priorities for
continued progress.
Response
Responding to environmental factors and Cairn’s sustainability targets are key
elements of each stage of Cairn’s planning and construction process. Environmental-
related planning conditions are expected, and so acknowledged, accepted, planned
for, and managed as an integral part of the development process.
Risk trend
Cairn is committed to reducing the impact of its activities on the
environment, and meeting its emission reduction targets is a strategic
priority.
Risk trend
Environmental-related planning conditions are increasingly a core aspect
of planning approvals received by Cairn.
Strategic priority: Strategic priority:
Risk owner:
Chief Operating Officer
Risk owner:
Chief Operating Office
Risk trend key:
Risk increased
Risk decreased
Risk unchanged
People
Sustainable
communities
Construction
Customers
Strategy key:
Risk Report continued
48
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Going Concern
The Group delivered our strongest ever performance
in 2024 with a year-on-year growth of 29% in both
revenue and units and a 34% increase in profit after
tax. With 2,241 units and total revenue of €859.9
million in the year, the Group generated €134.7 million
in operational cash flow, a significant increase from the
€107.0 million generated in 2023, and started 2025
with a multi-year forward sales pipeline of 2,361 new
homes with a net sales value of c.€910 million.
The Group has a growth strategy that focuses on
minimising financial risk and maintaining financial
flexibility to ensure we have a strong, sustainable and
long-term business. The business has strong liquidity,
a significant investment in construction work-in-
progress underpinned by a significant forward order
book, a robust balance sheet and committed, lowly
leveraged debt facilities.
To mitigate liquidity risk, the Group applies a prudent
cash management policy ensuring our construction
activities in the near and medium-term are focused
on forward sold inventories, including lower average
selling price starter homes for our core first time buyer
market and scaled apartment developments with
multi-year delivery timelines.
The Group had a total committed debt facility of
€385.0 million at the start of 2025. This increased
to €460.0 million in February 2025, of which
€402.5 million is a syndicate facility comprising a
sustainability-linked term loan and revolving credit
facility with Allied Irish Banks, Bank of Ireland, and
Home Building Finance Ireland (HBFI), maturing in
June 2029 with a one-year extension option at our
discretion. HBFI joined our syndicate during 2024.
Four sustainability performance targets underpin
these green facilities which are linked directly to key
elements of our sustainability strategy.
Net debt was €154.4 million as at 31 December 2024
(31 December 2023: €148.3 million). The Company
had available liquidity (cash and undrawn facilities) at
31 December 2024 of €229.6 million (31 December
2023: €200.6 million), including €27.6 million of cash
(31 December 2023: €25.5 million).
The Group invested €484.3 million in our
construction activities during 2024, including
commencing construction on ten large-scale,
multi-year, new developments. The Group continues
to focus our new site commencements on our
core starter homes market and large apartment
developments for State-supported counterparties.
During the period, the Group entered into five
forward fund transactions which benefit the
business from a liquidity perspective and support
our continued and ambitious growth plans.
The Group is also encouraged by the sustained level
of underlying demand for new homes in the market
as evidenced by the size of its forward sales pipeline,
with strong demand continuing into the early months
of 2025. Enquiry lists across all of our active selling
sites remain high with particularly strong interest in
our starter home developments. The Group’s closed
and forward sales pipeline increased to 2,593 new
homes with a net sales value of €989 million as at
26 February 2025. Of these, over 1,600 new homes are
expected to close in 2025.
The Directors have carried out a detailed assessment
of the principal risks facing the Group and have
considered the impact of these risks on the going
concern of the business. In making this assessment,
consideration has been given to the uncertainty
inherent in financial forecasting including future market
conditions such as sales prices. Where appropriate,
severe but plausible downside-sensitivities have been
applied to the key factors affecting the future financial
performance of the Group.
Having considered the Group’s forecasts and outlook
including the strength of its forward order book,
the Directors have a reasonable expectation that
the Group has adequate resources to continue in
operational existence for the foreseeable future.
Accordingly, they are satisfied that it is appropriate to
continue to adopt the going concern basis in preparing
the consolidated financial statements.
Viability Statement
In accordance with the UK Corporate Governance
Code Provision 31, the Directors have assessed the
prospects of the business and its ability to meet its
liabilities as they fall due over the medium-term.
The Directors have concluded that three years is an
appropriate period for assessment as this constitutes
the Group’s rolling strategic planning horizon.
The Group has developed a financial forecasting
model as part of our three-year plan, which is
updated at least annually and is regularly tested and
assessed by the Board. Progress against the three-
year plan is regularly reviewed by the Board through
presentations from senior management on the
performance of the business.
The Group’s Principal Risks and Uncertainties
aggregate the risks identified, as well as the mitigation
plans implemented as part of this process. They
include the risks that may have short-term impacts
as well as those which may threaten the long-term
viability of the Group. The Directors have made a
considered assessment of the potential impact that
these risks may have on the Group’s business model,
future performance, solvency and liquidity.
The three-year plan has been tested for a range of
scenarios which assess the potential impact of severe
but plausible downside-sensitivities to the long-term
viability of the Group. These scenarios included the
stress testing of the Group’s business model assuming
that a combination of events result in a continued
reduction in sales over the three-year period from
2025 to 2027, with a deterioration in employment
levels and consumer confidence, coupled with a
reduced bank risk appetite, leading to a material
reduction in credit availability in the mortgage market
in addition to reduced demand for scaled apartment
developments from State-supported agencies. In
assessing these severe downside scenarios, it is
assumed that there is a considerable slowdown in
construction and sales activities including a sudden
decline in demand compared to the Group’s forecasts,
leading to reduced sales volumes and a reduction in
sales prices, followed by a gradual recovery. In these
scenarios, the Directors assumed they would take
appropriate actions to ensure that the overall financial
risk was minimised through this cycle, including:
• reducing capital returns to shareholders;
• disposing of non-core sites;
• reducing planned construction work-in-progress
spend; and
• deferring or not proceeding with planned site
acquisitions and commencements.
Having reviewed the three-year plan and considered
the above stress testing, the Directors confirm that
they have a reasonable expectation that the Group
will continue to operate and meet its liabilities as they
fall due over the three-year period from 2025 to 2027.
Risk Report continued
Cairn Homes plc | Annual Report 2024
49
Corporate GovernanceStrategic Report Financial Statements
Cairn Homes plc | Annual Report 2024
50
Strategic Report Corporate Governance Financial Statements
Cairn is committed to continuously improving our
sustainability reporting, seeking to always report
transparently.
In this section:
51 Introduction
54 Environment
72 Social
84 Governance
Sustainability
Statements
51
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Improving our Sustainability Reporting
At Cairn, we are continuously working to improve the way in
which we collect and report non-financial information, in particular,
information relating to our environmental and social impacts.
Sustainability Statements: Introduction
Our Sustainability reporting timeline
Key highlights
• Our 2024 reporting follows European
Sustainabiity Reporting Standards
(ESRS) structure but no compliance
to all aspects of ESRS yet.
• Double Materiality Assessment
conducted in 2024.
• Policies and actions are disclosed for
sustainability mattersto the extent
currently available .
• Near-term greenhouse gas (GHG)
emission reduction targets validated
by SBTi.
• Scope 1 & 2 emissions reduction
target exceeded by 19%.
• Scope 3 emissions performing in line
with reduction targets .
• Long-term net-zero GHG emission
reduction targets submitted
for validation.
Our goal is to ensure the reader gets a clear picture of
the initiatives and ambitions the Company delivers
upon year after year, in a transparent, comparable and
accurate way. This is evident in the evolution of our
sustainability reporting from our first stand-alone
Sustainability Report for FY21, to the most recent
release of our Climate Transition Plan.
Our previous disclosures were aligned to the
standards and definitions set out by the IFRS
Sustainable Accounting Standards Board (SASB)
Standards, the Global Reporting initiative (GRI), and
the Task Force on Climate Related Financial Disclosures
(TCFD). Additionally, we report annually in line with
Ireland’s Gender Pay Gap (GPG) Information Act 2021.
We have included updated disclosures for FY24 in line
with each of these frameworks in this report.
Whilst we have been diligently preparing to report
under the Corporate Sustainability Reporting Directive
(CSRD), which applied to the Company from 1 January
2025, we are closely monitoring the impacts of
the recent Omnibus proposal, to see how this may
affect our current in-scope position. Regardless of
the outcome of this proposal, we remain committed
to utilising the results of our Double Materiality
Assessment (DMA), incorporating our stakeholders’
views into our reporting, and ensuring we minimise
our impact on environmental and social issues, whilst
continuously improving our sustainability reporting.
As part of our preparation for alignment with the CSRD,
we have taken the decision to proceed with voluntarily
aligning with the new Sustainability Statements
format for our 2024 Annual Report. We have prepared
the Sustainability Statements with reference to the
European Sustainability Reporting Standards (ESRS)
topics, and we have aimed to implement as much of
the fundamental structure as possible. This voluntary
introduction of the Sustainability Statements’
structure allows us to develop and refine our reporting
capabilities and build on our previous Environmental,
Social and Governance (ESG) reporting.
READ MORE
TCFD p58, SASB p89, GRI p94
2015
Cairn established and
successfully listed
on the Stock Exchange
2016 -19
Transition from CSR
agenda to ESG
2020
First Materiality
Assessment undertaken
to understand our
material impacts
2022
Submitted our near-term
emission reduction
targets to the Science
Based Targets initiative
(SBTi). Expanded our
TCFD and GRI Disclosures
2024
Conducted our
first CSRD-aligned
Double Materiality
Assessment
2021
Published our inaugural
Sustainability Report,
including our first
TCFD disclosure.
Measured our Scope 1, 2,
and 3 baseline
2023
Alignment with United
Nations’ Sustainable
Development Goals
(SDGs)
2025
Improved
sustainability
reporting, informed by
our Double Materiality
Assessment results
NEXT YEAR
52
Cairn Homes plc | Annual Report 2024
Corporate GovernanceStrategic Report Financial Statements
Sustainability Statements: Introduction continued
Impact materiality deals with Cairn’s actual or
potential impacts on people and planet, while
financial materiality addresses the financial effects
(risks and opportunities) sustainability topics may
have on Cairn.
We conducted our first DMA in 2024, which was
aligned with guidance from the European Financial
Reporting Advisory Group (EFRAG). While we are still
finalising the results of our DMA, we are committed to
reviewing our results annually to ensure their ongoing
validity. We are also committed to undertaking a
full revision of the DMA process should there be
significant change to our organisational structure or
any external factors that could impact the relevance
of standards, topics, or disclosures.
Methodology,
Assumptions and Process
Methodology and Assumptions
Scope
Our DMA followed a five-step process that involved
mapping our business activities and value chain,
identifying potential material topics and associated
impacts, risks, and opportunities (IROs), engaging
with stakeholders on our performance, assessing the
significance of our IROs, and determining our material
standards and topics for reporting.
Given that all Cairn sites are located in Ireland, and our
operational strategy is streamlined with broadly the
same homebuilding activities occurring on each site, the
identification and analysis of IRO’s at a company level
rather than a site level was appropriate for this exercise.
Where possible, primary data was used to inform the
DMA, largely related to our own operations. In the case
of value chain activities and business relationships,
sector-level sources were deemed appropriate where
primary data was unavailable.
Stakeholder Engagement
We engaged with various key stakeholder groups
to determine material topics for reporting. These
included affected stakeholders such as employees
and customers, and business relationships including
financial institutions, suppliers, and industry
associations to understand how they each may
be impacted by our business activities.
As part of our People Strategy, we conduct regular
employee engagement throughout the year,
and this is sufficient to evaluate for our DMA.
Our other stakeholder groups were engaged via
survey or interview.
While all our stakeholders are important, not all
stakeholders were targeted for direct engagement
in this process. As an alternative, we have included
insights from representative bodies who through
their interaction have a valid overview of stakeholder
interests and views.
Scoring
Impacts
In scoring the severity of our actual impacts we have
used the prescribed parameters of ‘Scale’, ‘Scope’ and
‘Irremediable Character’.
• Scale – Assessment of how great the impact is,
positive and negative, on the environment
and people.
• Scope – Assessment of the reach of the impact
in the environment, e.g. area, and on people,
e.g. number of people/% of select group.
• Irremediable Character – Assessment of the
difficulty to reverse any damage caused.
For potential impacts we also considered the ‘Likelihood’
of an impact occurring. ‘Likelihood’ ratings are aligned
to our existing Risk Management Framework (see
page 37 for more detail).
Risks and Opportunities
In scoring our risks and opportunities we assessed the
potential ‘Financial Magnitude’ and the ‘Likelihood of
Occurrence’ of each risk/opportunity.
• Financial Magnitude – Assessment of how
significant the financial effect is should the risk/
opportunity occur. These were assessed as being
Insignificant, Minor, Moderate, Major, Catastrophic.
• Likelihood of Occurrence – Assessment of the
probability of the risk/opportunity occurring.
These were assessed as being Rare, Unlikely,
Possible, Likely, Almost Certain.
Based on these scores and with reference to our
risk matrix, our risks and opportunities are then
rated as being Low, Medium, High, or Extreme.
This methodology is aligned to our existing Risk
Management Framework where sustainability-related
risks are given equal priority to all other business-
related risks.
Thresholds
Impacts
When determining thresholds for impacts, different
criteria must be considered, resulting in different
thresholds being applicable depending on the impact
classification.
For actual impacts, a threshold of ‘Significant’ or above
was set, with impacts scoring above this threshold
deemed material for reporting.
For potential impacts, a threshold of ‘Significant’
and ‘Possible’ or above was set, with impacts scoring
above this threshold deemed material for reporting.
Risks and Opportunities
When the Risk and Opportunities scoring process
is complete, they can have a potential maximum
significance score of 25. A threshold of 10 or above
was set for materiality to ensure alignment with our
existing Risk Management Framework and inclusion
of all risks rated ‘High’ or above by management.
Double materiality approach
Cairn
Impact materiality
Cairn’s impact on
people and planet
I M P A C T
OUTWARDS
I M P A C T
INWARDS
Financial materiality
Sustainability and climate
impact on Cairn
Double Materiality Assessment
The first step in improving our sustainability reporting was to conduct
a Double Materiality Assessment (DMA) to identify our material
sustainability impacts and issues. Double Materiality requires us to
investigate the relationship between Cairn and the environment and
society, considering both ‘Impact Materiality’ and ‘Financial Materiality’.
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1
Business
Context
and Scope
To fully comprehend the context and scope
of our business and set our assessment
boundaries we completed the following:
• mapped our business model and
full value chain including our own
operations and the upstream and
downstream activities to which we
are connected;
• identified the affected stakeholder
groups and business relationships
associated with each of these
business activities;
• identified our procured products with
the highest environmental impacts,
e.g. steel, timber and cement, in line
with our due diligence responsibility,
and reviewed the geographic origins
of these materials (where known) to
identify heightened risks of adverse
impacts; and
• mapped our dependencies on
resources and relationships,
categorising these according to
types of capital, including financial,
manufacturing, natural, intellectual,
human and social.
Identify Long List of Topics
and Preliminary Impacts,
Risks and Opportunities
The inclusion of a long list of topics
and preliminary impacts, risks and
opportunities (IROs) is a crucial
component of the double materiality
assessment. To create our initial long-
listing of IROs we:
• used sectoral screening to establish a
long list of potentially material topics
focusing on topics most relevant to our
sector and value chain;
• compared the topics raised to the list
of topics and sub-topics within ESRS 1,
adding any additional entity-specific
topics;
• preliminary IROs were identified in
relation to each topic, ensuring the
findings of our previous materiality
assessments were considered;
• impacts were categorised by positive/
negative, actual/potential, and were
considered in relation to their position
in value chain, relevant stakeholder
and time horizon; and
• Risks and Opportunities were reviewed
against our dependencies, our existing
Risk Register and our previous risk
reporting under CDP and TCFD. They
were also assessed in line with our
existing Risk Management Framework
by our Sustainability Team and Group
Risk Advisor to establish their financial
significance and likelihood ratings.
Stakeholder
Engagement
Engaging with key stakeholders, including
subject matter experts to understand
what topics and related IROs they believe
are most relevant to the business, what
information they expect to be reported
and how they are affected by the
identified IROs underpins the validity of
the DMA. Our Stakeholder Engagement
process includes:
• identifying Cairn’s affected stakeholder
groups and business relationships
during step 1 of our DMA process;
• identifying key stakeholder groups to
be engaged. A representative selection
of contacts in each group was agreed;
• agreeing the appropriate engagement
method for each group: online survey
or interview;
• attributing weightings to each
stakeholder group per topic. The
perspectives of those most affected by
a topic were given higher priority; and
• analysing the responses and calculating
scores per stakeholder group, and
then as an overall stakeholder score
taking the stakeholder weightings
into account.
Assess
Significance
and Prioritise
Each IRO must be assessed and scored.
This scoring then assists with determining
materiality. Our scoring methodology
follows these steps:
• the scale, scope, irremediability and
likelihood of each impact is assessed
to generate a combined score;
• the preliminary likelihood and
financial magnitude ratings of risks
and opportunities are validated by the
individual topic owners. Any changes
are considered by the Sustainability
Team and Risk Advisor and a final
determination made;
• stakeholder engagement scores are
integrated based on agreed weightings
and compound significance is
calculated;
• Final Assessment of each impact, risk
and opportunity is then produced; and
• threshold is agreed with IROs scoring
above this threshold deemed material
for reporting. Those below the
threshold are deemed immaterial for
reporting.
Analysis and
Preparation
for Reporting
Topics associated with the impacts,
risks and opportunities determined to
be above the threshold are identified
with a final listing of material standards
and topics for reporting in line with ESRS
requirements produced.
We are currently reviewing the outcome of
our DMA and mapping it against previous
materiality assessments to ensure
consistency.
Our sustainability reporting will continue
to evolve throughout 2025 and beyond to
ensure we are reporting our non-financial
information transparently and accurately.
To achieve this, we will fully utilise
the results of our Double Materiality
Assessment, incorporating our
stakeholder’s views into our reporting,
while ensuring we minimise our impact
on environmental and social issues.
2 3 4 5
Sustainability Statements: Introduction continued
Cairn Homes plc | Annual Report 2024
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Strategic Report Corporate Governance Financial Statements
54
Environment
Environment
Our ambition is to create sustainable
communities in Ireland, always mindful
of our position of leadership, investing
in innovation and in Ireland’s future.
In this section:
55 Foreword
56 Climate Change
58 TCFD
64 Pollution
65 Water and Marine Resources
66 Biodiversity and Ecosystems
69 Resource Use and Circular Economy
Our sustainability strategy ensures we
address environmental issues both in our
direct operations and throughout our value
chain.
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Due to our size and scale, we have a unique position
in the market, allowing us to investigate low-carbon
and modern methods of construction such as Passive
House and promote them within the industry. We are
very much aware that our plans for growth will only
be truly successful if sustainability is embedded in all
that we do.
Our sustainability strategy ensures we make
meaningful improvements in the areas material
to our business while managing and addressing
environmental issues both in our direct operations
and throughout our value chain. In 2024, we
conducted our first Double Materiality Assessment
(DMA) to determine our material impacts, risks and
opportunities (IROs), with which we will align our
objectives and focus our efforts.
In 2023, we aligned ourselves to the United Nations
Sustainable Development Goals (SDGs). The 17
UN SDGs provide a blueprint to achieve a more
sustainable future, against which we have reviewed
and mapped our strategy. We analysed each SDG
against the topics identified in our 2022 materiality
assessment and carefully selected the SDG’s listed
below under the E pillar to align our environmental
activities. These act as a guide in developing new
initiatives and strategies to address environmental
issues and will assist us in reducing our impact on
the planet.
We recognise this will continue to evolve over time as
our material topics become evident and we improve
and advance our sustainability reporting.
In September 2024, we published our Climate
Transistion Plan outlining the actions and measures we
have implemented to 1) transition our operations and
business model to a decarbonisation trajectory that
aligns with climate science recommendations, and 2)
assist us in achieving our emissions reduction targets.
Foreword
At Cairn, we are working to develop a new, more sustainable way
to deliver housing in Ireland. We are aware of the potential impacts we
can have on the environment through our construction activity and are
striving to reduce any negative impact. We aim to take a prominent role
in promoting sustainable building in Ireland. By adapting how we do
things and transitioning towards a decarbonisation strategy that aligns
with climate science recommendations, we hope to achieve our vision
for a more sustainable built environment in Ireland.
UN 17 SDG STRATEGIC PILLARS
Environment continued
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56
Climate Change
Cairn’s broad climate change objective is to deliver high-
quality, energy-efficient homes at scale, with a focus
on reducing emissions and protecting and restoring
biodiversity to meet the needs of present and future
communities in Ireland. To begin our journey to achieving
this, we submitted our near-term company-wide Science
Based Targets in 2022, and these were approved in 2023.
Our Approach and Policies
To ensure we can fulfil our climate change objective,
Cairn commits to actively addressing climate change by:
• supporting the transition to a net-zero economy; and
• building homes and creating places that are resilient
to the impacts of climate change.
We commit to reduce absolute Scope 1 & 2 GHG
emissions by 46.2% by 2030 from a 2019 baseline year.
We also commit to reduce Scope 3 GHG emissions from
purchased goods and services, upstream transportation
and distribution, use of the sold products and end-of-life
treatment of the sold products by 61% per total floor area
sold within the same timeframe.
These targets are supported by our Sustainabiliity Strategy,
and our Environmental Climate Action policies.
Environment continued
OUR TARGETS
46.2%
Scope 1 & 2 combined target
of absolute reduction by
2030 from a 2019 baseline
61%
Scope 3 intensity reduction
by 2030
Our Actions
Scope 1 & 2
We have taken immediate action which has helped us
exceed our 2030 Scope 1 & 2 reduction target, resulting
in these emissions being reduced by 65.2% to date from a
2019 baseline.
The primary driver of the reduction in our Scope 1 & 2
emissions has been our switch to hydrotreated vegetable
oil (HVO) fuels across our sites which we initiated towards
the end of 2022. Despite the increase in the scale of our
operations, this has had a significant impact on reducing
our Scope 1 emissions, with 100% of the fuel used to power
our on-site machinery during 2024 being HVO.
During 2024, we continued to expand our operations across
Ireland with active sites now in Cork, Galway, Kilkenny
and Limerick. With this expansion has come the need for
additional hires, increased fleet requirements and increased
levels of travel, resulting in our vehicle fleet consuming
more fuel than in previous years. While our overall Scope
1 emissions are still decreasing, we are mindful of any
emissions increase, and are committed to taking action.
We have invested in our aftercare fleet, which are hybrid
vehicles, but have found it difficult to procure suitable
electric vehicles that meet the needs of the business.
We are continuing our move to 100% renewable energy
across our operations to reduce our Scope 2 emissions as
much as possible.
Scope 3
We are constantly updating our build methodologies,
systems, materials, and processes where appropriate,
to reduce waste and carbon, and increase safety and
efficiency on site. We use timber frames in our houses, and
modular balconies and bathroom pods in our apartments
as standard. We have also developed a timber-framed
construction methodology to substantially reduce the
embodied carbon of low-rise apartment units and duplexes.
However, we know that to meaningfully reduce the
embodied carbon of our homes and achieve our Scope
3 reduction targets, we will need to collaborate with
our supply chain partners over the coming years and be
ambitious in our search for innovative low-carbon products
and construction methods. Our Innovation Framework
is well-established in Cairn with more than 50 innovation
solutions focused on sustainability and modern methods
of construction currently being evaluated.
Furthermore, we understand the critical importance of
planning for the transition to a net-zero economy and
are developing an action-orientated strategy to achieve
net-zero emissions across our value chain by 2050 and
ensure our business model is fully adapted to suit. We
have submitted our 2050 Net Zero Targets to SBTi and are
awaiting validation.
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Environment continued
27,000
estimated tonnes of carbon reduced
compared to standard building regulations
c.1,750
Passive Homes under commencement
Leading on Decarbonisation
We have immediately initiated design changes to reduce the operational (‘in-use’) carbon of several projects
by adopting the Passive House standard for a number of flagship developments.
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.
By adopting this approach, we seek to demonstrate
the significant benefits that can be secured by scale
housebuilders. We will use our leading position in the
Irish construction industry to show that this world-
class building standard is achievable using existing
supply chains and can become the norm, accelerating
decarbonisation across our sector.
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 our flagship
developments will reduce Cairn’s Scope 3 emissions
by an estimated 27,000 tonnes of carbon compared
with standard building regulations, equivalent to 13%
of our entire 2019 baseline footprint.
As well as reducing carbon emissions, reducing energy
consumption by adopting these measures results in
reduced demand on our energy infrastructure. This
reduced energy demand supports the resilience of the
national grid, which is likely to come under increasing
pressure as heating, transport and other sectors
decarbonise and drive demand for renewable energy.
As an established standard, Passive House allows
benefits to be secured in the short term,
contributing to the achievement of
national net-zero goals. In the longer term,
the ‘fabric first’ approach that reduces
reliance on technologies that may
become obsolete, also helps to ‘future
proof’ buildings.
Our Passive House Position Paper outlines our
commitment to building energy-efficient homes
that significantly reduce environmental impact while
enhancing comfort and cost savings for residents.
CASE STUDY
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Task Force on
Climate-Related
Financial
Disclosures (TCFD)
As a principal risk for Cairn,
identifying and proactively
responding to the challenges
of climate change is core to
Cairn’s purpose and strategy.
Reflecting Cairn’s work in this area, our
expanded TCFD response addresses
potential future changes to our
business, operations, and business
model arising from climate-related
risks and the transition to a lower-
carbon economy.
We have evaluated these risks to our
business model and strategy and
continually strive to minimise risk and
maximise opportunity in these areas.
Governance
The Board is ultimately responsible for sustainability
at Cairn while the Executive Directors maintain
full strategic and operational oversight of the
sustainability agenda. In 2024, the Board established a
new role to facilitate more oversight and support for
Cairn’s sustainability agenda.
The Director Responsible for Sustainability and
Environmental Impact:
• oversees operational workstreams, engages
and interacts with various personnel across key
functions, who are responsible for sustainability
matters such as carbon reduction, waste
management and biodiversity; and
• reports their findings, recommendations, and
any other pertinent information that is relevant
to the Board.
Cairn’s sustainability agenda addresses our response
to the transition risks associated with the shift to a
lower-carbon economy, and the physical risks it faces
in respect of climate change.
Governance and Strategy
At each Board meeting (approximately seven per
year), progress towards our strategic objectives is
discussed, together with factors that are affecting or
may affect those objectives and our strategy. Climate-
related issues are a key lever in our strategic objectives
and, consequently, form an integral part not only
of the strategic reporting cycle, but also the annual
strategic review.
The Chief Executive Officer retains responsibility for
defining the strategic direction of the business and
Cairn’s climate-related performance.
Governance and Risk Management
The Audit & Risk Committee maintains oversight of
the risk register, monitors our response to risk, and has
identified the impacts of climate change as a principal
risk. Cairn’s risk management framework supports
and promotes the identification and management of
climate-related issues on a business-wide basis, managed
through our embedded risk management process.
This is reflected in the inclusion of sustainability-
related metrics within our remuneration frameworks
(approved by the Remuneration Committee),
including our annual bonus plans, long-term incentive
plans and our sustainability-linked financing facilities.
This ensures that the business’s targets as well as the
individual goals and objectives of our employees,
including Executive Directors, are fully aligned.
Operationally, Cairn’s Sustainability Steering Group
(SSG) directs the management of climate risks and
opportunities. Separately, the Chief Financial Officer
is responsible for ensuring the financial impacts
of climate-related issues are fully understood and
reflected in Company budgets.
The SSG is a decision-making body with responsibility
for driving and determining Cairn’s sustainability
strategy and roadmap. The SSG is supported by the
Senior Review Team (SRT), who are responsible for
integrating sustainability considerations into day-
to-day operations and decision making, including
through the gateway process.
For sustainability considerations to be fully embedded
in the business, the SSG and SLT have responsibility
for engaging managers, employees and workers and
clearly communicating the role of each team and
individual in achieving Cairn’s sustainability goals. In
addition to communicating the roadmap and progress
to managers, employees, and workers, the SSG reports
on progress to the Board, who provide oversight.
All employees at Cairn, regardless of seniority, are
responsible for supporting the delivery of goals and
objectives, identifying, and managing risks, and
promoting the Company values. Through our People
Strategy, the Chief People Officer ensures that climate-
related issues, and our response to them, are both
communicated and incorporated into employees’
annual objectives and associated incentives. The
Chief People Officer is also responsible for ensuring
the Company’s resources and capabilities match its
climate-related responses.
Our disclosure is in line with latest TCFD guidance,
recommendations, and publications. As we continue
to improve our reporting of non-financial information,
we will continue to review our TCFD disclosure and
update our response where necessary.
Environment continued
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Strategy
Our Risk Management Framework, which has
identified climate-related issues as a principal risk and
uncertainty, considers all risks based on three horizons.
The climate-related risks and opportunities presented
on pages 60 to 61 were identified through our climate-
related scenario analysis.
These risks and opportunities were also considered
during our Double Materiality Assessment and were
included during the identification of our preliminary
IRO’s (see page 52).
Scenario Analysis
In 2024, we undertook a more detailed and robust
scenario analysis than completed previously, utilising
two different, science-based, physical scenarios as
well as a bespoke scenario relevant to our industry.
This scenario analysis was completed using our 2022
scenario analysis as the foundation, with quantitative
measures used to assess climate-related risk and
opportunity impacts.
The first scenario was a physical scenario in line with
a 4°C
1
world based on climate modelling from EPA
Ireland. This showed Ireland’s climate from 2041-2060
modelled with the IPCC Representative Concentration
Pathway (RCP) SSP5-8.5 scenario.
The second scenario was a physical scenario in line
with a 2°C
2
world based on climate modelling from
EPA Ireland. This showed Ireland’s climate from
2041-2060 modelled with the IPCC Representative
Concentration Pathway (RCP) SSP2-4.5 scenario.
The third and final scenario was a transitional scenario
in line with a 1.5°C
3
world which included inputs
from Ireland’s Climate Action Plan 2021, International
Energy Authority (IEA) Net Zero by 2050 Scenario,
the London Energy Transformation Initiative (LETI), the
Irish Green Building Council (IGBC) and Network for
Greening the Financial System (NGFS).
This climate-related scenario analysis helped to
identify material risks and opportunities, as well
as inform Cairn’s strategy for managing these
risks. Where possible, we have estimated the
potential financial impact of climate-related risks
and opportunities. We are continuously striving for
improved accuracy of our scenario analyses and are
working towards fully disclosing the numeric financial
significance of our climate risks and opportunities
in the coming years.
Impact on Business Strategy
of Risks and Opportunities
The transitional and physical climate risks and
opportunities of our strategy directly influence our
financial planning through three key processes:
1. Risks and opportunities influence financial
planning through ongoing cost benefit analysis
of new technologies and options for more
sustainable construction or green building. The
known and material environmental benefits of
new technologies are considered and addressed in
a qualitative manner in this analysis while financial
impacts on costs and revenues are recorded in
monetary terms.
2. Project-level financial appraisal that accounts for
the additional costs associated with mitigating
known risks as well as savings or increased
revenues associated with climate opportunities.
This includes a tender assessment for each
element procured. The total cost of all known
inputs then forms the budget for the project.
Environment continued
3. Strategic cost planning for the business as a whole
is undertaken annually and is based on projections
of costs and revenues for future developments
and operations including those associated with
climate risks and opportunities. This process
covers an eight-year time horizon.
We recognise that climate change represents
a principal risk and uncertainty to our strategic
intent. Consequently, our process for identifying
and reviewing that strategic intent incorporates a
comprehensive analysis and understanding of the
climate-related risks and opportunities presented
by our purpose and our vision.
This informs our strategy and goals creating a
positive feedback process in which climate risks and
opportunities play a fundamental role in defining
strategy, with goals and objectives to mitigate or
capitalise on opportunities having budgeted cost and
margin impacts.
Following our commitment to the Science Based
Targets initiative (SBTi) for our Scope 1, 2 and 3
emissions, our targets were approved and validated in
September 2023, and our resulting strategy is aligned
to the goal of the Paris Agreement to limit the rise of
global mean surface temperatures to 1.5°C above pre-
industrial levels.
While completing this process we modelled various
emissions reduction targets on current and future
developments. This exercise has allowed us to
understand the potential changes that will be required
operationally from the business and the resulting
outcomes. We have linked our resulting emissions
reduction commitments to a sustainability-linked loan
to ensure action. This includes, but is not limited to, key
Scope 1, 2 and 3 emission reduction targets which must
be achieved and independently verified each year.
In September 2024, we published our Climate
Transition Plan, outlining the actions and measures we
have implemented to 1) transition our operations and
business model to a decarbonisation trajectory that
aligns with climate science recommendations, and
2) assist us in achieving our emissions targets
mentioned above.
In December 2024 we submitted our net-zero target
proposal to SBTi. We are currently awaiting validation
of this net-zero target; however, this commitment will
further influence and inform our strategy as we look
to move towards a net-zero carbon future.
1 4°C world – This scenario refers to a high-emissions trajectory in which global mean surface temperatures rise by approximately 4 degree Celsius above pre-industrial levels.
2 2°C world – This scenario refers to a moderate-emissions trajectory in which global mean surface temperatures rise by approximately 2 degree Celsius above pre-industrial levels.
3 1.5°C world – This scenario refers to a pathway in which the goals of the Paris Agreement have been achieved and the global mean surface temperature risk has been limited to 1.5 degrees Celsius above pre-industrial levels.
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Strategy continued
Our Risk Management Framework, which has
identified climate-related issues as a principal risk
and uncertainty, considers all risks based on three
horizons as detailed below.
The climate-related risks and opportunities
presented here were identified through our
climate-related scenario analysis.
These risks and opportunities were also considered
during our Double Materiality Assessment and were
included during the identification of our preliminary
IRO’s (see page 52).
Climate-Related Risks and Opportunities
TCFD RISK/
OPPORTUNITY
TYPE
DESCRIPTION
T I M E
HORIZON
RESPONSE
Transitional
Risk
Technology There is a risk that Cairn may be unable to transition to low-
carbon products at the pace needed.
For example, there are often public/local authority obstacles
to using reused materials within Cairn sites. Where these
obstacles are overcome, there may be issues with securing
a reliable supply of those materials on a large scale. Some
targets for reduction would require timber frame in
apartments, which is not normal practice in Ireland. There is
also a consideration that financiers may not lend to potential
customers if units are not built to certain specifications, e.g.
no brick and clad.
Long-
Term
Our Technical Team continues to
review low-carbon products, systems and
processes for our house types.
We are members of the Irish Green Building
Council and actively participate in the
Healthy Homes Ireland Forum with the aim
of delivering greener healthier homes.
Transitional
Risk
Emerging
Regulation
Future regulation may lead to restrictions on what Cairn is
able to build, increased costs, or longer build times, or affect
the ability to gain permits.
For example, carbon pricing may lead to an increase in
material costs as manufacturers face higher input costs, in
addition to increased costs associated with excavated
materials disposal. Energy efficiency requirements may
increase costs and reduce build options. An increasing focus
on retrofitting existing homes and quotas on new builds in
net-zero scenarios for Ireland may limit capacity for new
build. Broader planning conditions are expected to include
greater environmental mitigation, specifically related
to biodiversity, water and climate resilience.
Medium-
Term
We submitted a Science Based Target in line
with a 1.5°C pathway in December 2022,
which was verified in September 2023 by
the Science Based Targets initiative (SBTi). In
December 2023 we committed to the SBTi
net-zero standard and submitted our net-
zero Target for validation in December 2024.
These commitments guide our internal
strategy towards the same goals as national
and EU regulation to keep in line with the
Paris Agreement and mitigate risk from
emerging regulation.
Transitional
Opportunities
Products
and Services
Scenarios to keep in line with national climate reduction
targets show all new builds should be A rated and have heat
pumps as a heating source. This demand may come from
any or all parts of our customer base including individual
homebuyers and institutional buyers, particularly
government agencies.
Medium-
Term
All of our new houses have heat pumps by
default and all of our homes have a BER
rating of A3 or above. We have commenced
construction on four Passive House
developments in 2024, further reducing the
energy demand in the homes we build.
Transitional
Opportunites
Market In the chosen scenarios, more sustainable-focused
policies will lead to an increased onus on the financial
sector to facilitate the transition to net zero. An outcome
of this is financing at lower rates for companies with strong
ESG performance.
Medium-
Term
As part of the business’s refinancing in 2022,
Cairn availed of a sustainability-linked loan
(SLL). Cairn have successfully achieved the
associated performance targets each year.
These are externally assured to ensure
transparency.
Risk Time Horizon Explained
Environment continued
Here and now
Risks to the immediate term
(one year or less) goals and
objectives of the business
Medium-term
Risks with a horizon of between
1 year and 4 years
Long-term
Risks with a horizon of more
than 4 years
Climate-related risks are categorised
into: ‘transitional risks’, being the risks
related to the transition to a lower
carbon economy, and ‘physical risks’,
being risks arising from the physical
effects of climate change.
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Strategy continued
Risk Time Horizon Explained
Environment continued
Here and now
Risks to the immediate term
(one year or less) goals and
objectives of the business
Medium-term
Risks with a horizon of between
1 year and 4 years
Long-term
Risks with a horizon of more
than 4 years
Climate-related risks are categorised
into: ‘transitional risks’, being the risks
related to the transition to a lower
carbon economy, and ‘physical risks’,
being risks arising from the physical
effects of climate change.
Climate-related Risks and Opportunities continued
TCFD RISK/
OPPORTUNITY
TYPE
DESCRIPTION
T I M E
HORIZON
RESPONSE
Physical Risk
Chronic Physical There is expected to be an increase in temperatures overall
in Ireland, and in extreme scenarios increased heatwaves.
Homes sold by Cairn need to be able to withstand these
rising temperatures and not overheat whilst also accounting
for increasing rainfall intensity. Additionally, increased
heatwaves or intense periods of rainfall may result in reduced
outdoor labour productivity due to unsafe working conditions.
An increase in dry periods may also lead to increased dust
levels on site. Excess dust exiting the site can result in a work
stoppage, or site closure by the EPA, county councils or the
HSA. A decrease in rain in the summer may also lead to stress
on water systems. Increased rainfall may require changes
to construction practices and methods to ensure output can
be maintained without impacting on safety or quality.
Long-
Term
Our Technical, Construction and
Environmental Teams are analysing
the impact of shifts in climate patterns
such as prolonged increasing temperatures
on our house types. As an ongoing project
they are assessing mitigating overheating
in our homes through altering our home
designs.
We closely monitor weather forecasts
to ensure worker safety, and make
preparations or adjust build schedules
where needed. Remediations are designed
on a site-by-site basis, informed by a pre-
commencement risk assessment and
responsive mitigation plan.
Physical Risk
Acute Physical Rising sea levels and increased rainfall in winter are expected
to lead to a higher risk of flooding in Ireland. This may pose
an issue for Cairn if potential customers face challenges when
looking for mortgage approval or home insurance due to
changing flood plains. For example, where homes are built
on areas that were not deemed to be flood plains during
development but are expected to become floodplains in the
future in a >3°C scenario.
Long-
Term
The impacts of severe weather events
and extreme conditions are actively
monitored and evaluated by the Group’s
Technical, Construction and Environmental
Teams on a site-by-site basis with
remediations developed to respond to
site-specific risk and mitigate the cost impact.
Flood risk assessments are a key part of our
land appraisals.
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Rare Unlikely Possible Likely Almost
Certain
Insignificant Minor Moderate Major Catastrophic
Consequences/Impact of Event
Probability
8
Risk Management and Identification
Our Risk Management Framework assesses climate
risks and opportunities, through engagement at
all levels of the business to ensure comprehensive
identification and evaluation. We consider the
likelihood of the risk occurring, and the impact of the
risk should it occur (having regard to controls we have
already effectively implemented). This assessment
supports decisions on how we apply Cairn’s risk
appetite to each risk and informs the materiality
of the risk (or associated opportunity).
The purpose of the risk management process is to:
establish a process to consider risks and opportunities
in the context of Cairn’s risk appetite; help define
strategies, including controls, to mitigate risks, or
capitalise on the opportunities they may present; and
ensure risks, mitigating controls and responsibilities
for managing risk and opportunities are recorded
and monitored.
Risk Identification
Risk management is an important tool, and we take
a business-wide approach, allowing us to consider
the potential impact and opportunity presented
by all types of risk affecting our business, including
climate risks. When considering climate risks, we seek
to identify and consider all existing and emerging
material factors relevant to our core activities:
• Policy risks: how government policy in respect
of climate may impact on our business model,
for example through planning policies or
economic policies;
• Brand risks: how our brand is impacted
by our response to climate-related risk, for
example if our developments do not meet
customer requirements;
• Economic risks: how climate-led factors impact
economic conditions, such as increases in supply
chain costs;
• Development risks: how climate-related issues
impact on our ability to deliver developments,
including through local development plans; and
• Compliance risks: such as how the Company
complies with regulatory constraints on what
and how we build.
This is Cairn’s fourth year disclosing against the
TCFD framework and recommendations, with our
disclosures evolving and becoming more transparent
each year. As we continue to improve our reporting
of non-financial information, we may initially shift
our focus to address our material climate risks and
opportunities that are identified through the Double
Materiality Assessment (DMA) Process.
However, our intention is not to simply abandon
the climate risks and opportunities we have
previously identified and addressed through our
TCFD disclosures to date. Ultimately, our goal is to
become more comprehensive in our approach,
ensuring cohesiveness and transparency, and in time
incorporate any additional risks and opportunities
identified through our DMA in our TCFD disclosures.
Managing Climate Risk
Our approach to the assessment of risk is consistently
applied based on the probability of the risk arising,
and the consequences of the risk (which includes a
materiality assessment based on a range of financial
and non-financial factors). Our response to the risk
is then dependent on the overall risk rating (low,
medium, high, or extreme) and the Company’s
appetite for the risk.
Identifying and proactively responding to the
challenges of climate change is core to our purpose
and strategy. This means that as part of our overall risk
management process, we proactively identify and
manage risks associated with climate change in a way
that ensures we can continue to deliver on our vision.
Environment continued
Risk management process
Identification
of risks
Alignment
of risks
Assessment
of risks
Informing
strategy
Managing
risk
8
Climate
Cairn fails to anticipate and
address the strategic, market,
regulatory, and operational
impacts of climate change.
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Metrics and Targets
For the 2024 reporting period we are disclosing the
metrics to assess and manage climate risks and
opportunities as set out within the ‘Disclosures and
Policies’ section.
As a homebuilder, we operate in an energy-intensive
industry. Emissions are the key driver of global
temperature rise and result in many of the regulatory
changes we are now facing. Measuring our carbon
emissions allows us to gain a full and thorough
understanding of the emissions we produce directly
and indirectly. Our Scope 1 & 2 emissions are reported
under GRI 305-1 and GRI 305-2. Our Scope 3 emissions
are reported under GRI 305-3.
Measurable Impact
This year we solidified our commitments to change
for the better at Cairn and lead the way for our
industry by:
• Becoming Ireland’s first large-scale developer to
adopt Passive House principles at scale, thereby
mitigating climate change by dramatically reducing
the amount of energy required to heat our homes
and, by default, the carbon emissions produced;
• Releasing our Climate Transition Plan, which
describes the targets, actions, and resources
addressing climate mitigation and risk
management that will support our transition
to a low-carbon economy; and
• Submitting our Net Zero by 2050 Targets to the
Science Based Targets initiative (SBTi).
We have taken our commitments further by
incorporating sustainability into our remuneration
frameworks. This demonstrates the importance
we place on accountability for our sustainability
commitments. We have:
• Incorporated environmental metrics on
Biodiversity Net Gain into our long-term
incentive plan;
• Incorporated environmental metrics on
climate-related targets into our long-term
incentive plan; and
• Incorporated social metrics, including our
customer and people framework with a health &
safety underpin, into our short-term incentive plan.
All metrics and targets are reported in line with
appropriate standards including GRI, SASB (pg 89)
and Industry (pg 93) standards.
Metrics and Targets
KPI CODE 2024 2023 2022 2021
Gross direct (Scope 1) GHG emissions GRI305-1 638 tCO
2
e 793 tCO
2
e 1,680 tCO
2
e 1,522 tCO
2
e
Gross market-based energy indirect
(Scope 2) GHG emissions
GRI305-2 240 tCO
2
e 241 tCO
2
e 299 tCO
2
e 695 tCO
2
e
Gross other indirect (Scope 3) GHG
emissions by category (including
embodied carbon)
GRI305-3 326,369 tCO
2
e
1
(1.79 per square metre)
259,393 tCO
2
e
(1.60 per square metre)
237,132 tCO
2
e
(1.59 per square metre)
177,138 t CO
2
e
(1.49 per square metre)
Total energy consumption within the
organisation
GRI302-1 15,260,678 kWh 13,050,001 kWh 10,647,906 kWh 10,211,304 kWh
Total weight of waste generated
including breakdown by disposal route
GRI306-3,
GRI306-4
10,250 tonnes
2.8% sent to landfill (286t)
97.2% recycled or recovered
(1,599t recycled and 8,365t recovered)
12,207 tonnes
3.6% sent to landfill (443t)
96.4% recycled or recovered
(1,869t recycled and 9,895t recovered)
12,810 tonnes
3.9% sent to landfill (495t)
96% recycled or recovered
(1,096t recycled and 11,219t recovered)
6,810.7 tonnes
4.0% sent to landfill (272t)
96% recycled or recovered
(538t recycled and 6,001t recovered)
Percentage of sites with biodiversity
impact assessments
Industry 100% of our developments
meet this standard
100% of our developments
meet this standard
100% of our developments
meet this standard
100% of our developments
meet this standard
Environment continued
155 tCO
2
e
Scope 1 reduction from 2023
65.2%
Scope 1 & 2 reduction from 2019 baseline
1,957 tonnes
Total waste reduction from 2023
1 Please see page 97 for further information in relation to our FY24 Scope 3 emissions.
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64
Management
review
I
m
p
l
e
m
e
n
t
a
t
i
o
n
a
n
d
o
p
e
r
a
t
i
o
n
C
h
e
c
k
i
n
g
a
n
d
c
o
r
r
e
c
t
i
v
e
a
c
t
i
o
n
P
o
l
i
c
y
E
n
v
i
r
o
n
m
e
n
t
a
l
Continual
improvement
P
l
a
n
n
i
n
g
Environment continued
Pollution
While we are aware construction activities have the
potential to cause water, air, and soil pollution, particularly
through the extraction, processing, and transportation
of raw materials, we do not consider Cairn to be a major
polluter largely due to the mitigation efforts we employ
as standard on all our sites.
Our Approach and Policies
Cairn is committed to building high-quality, sustainable
homes at scale. To help us achieve this, we have
created an Environmental Management System
(EMS) which outlines how we address and manage
environmental issues, and identifies the actions we
are taking to minimise our potential impact on the
environment during the construction phase of all
Cairn developments.
Cairn strives to implement best practice environmental
management on all sites which enables continuous
improvement and growth as the business scales.
We actively manage the potential impacts from
pollution through our own operations through
our ISO 14001 accreditation which we achieved in
2023. ISO 14001 is the internationally recognised
standard for environmental management systems
(EMS). By adhering to this standard, we can ensure
we are taking proactive measures to minimise our
pollutant emissions. This is also supported by our
Environmental Policy.
Despite this proactive approach and mitigation efforts
in our own operations, we are aware of the potential
impacts in relation to pollution in our wider value
chain, specifically in our upstream value chain.
Understanding where potential water, air, and soil
pollutants may arise in our upstream operations is
vital in addressing the potential negative impacts
that may occur particularly for people and local
biodiversity. This is supported by our Supplier Code
of Conduct.
Our Actions
Cairn has established, implemented and
maintained a process which identifies and
records the environmental aspects and impacts
of activities under our control. An Environmental
Aspects and Impacts Register has been created for
all Cairn sites. As part of this register the following
are considered:
• Emissions to water
• Emissions to air
• Emissions to soil
These environmental aspects are then assessed
under the following criteria to identify the
probability and significance of potential impacts:
• Frequency
• Legislation
• Environmental Impacts
• Control
As previously disclosed through TCFD, we monitor
dust and particle levels on all our sites ensuring water,
air and soil pollution is minimised. We implement a
robust dust minimisation plan across our sites with
regular water suppression of site roads, dust fogging
systems, and systematic dust suppression.
The EMS Continual
Improvement Loop
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65
Water and
Marine Resources
Across our sites and central office, Cairn is not currently,
nor has ever been, an intensive consumer of water.
Additionally, we do not build or operate in regions with
high or extremely high baseline water stress. However,
as the construction of new homes necessitates the
consumption of water, it is important that we consider
our indirect impact on water consumption throughout
our value chain.
Our Approach and Policies
Water is a natural resource that we are dependent on in
our upstream operations for the extraction, processing,
and transportation of construction materials, and through
the use of water in the homes we build throughout their
lifetime in our downstream operations.
The construction of new homes necessitates the
consumption of water and it is important we take a leading
role in developing innovative methods to help conserve
water throughout the construction process.
Our approach to effective water management is reflected
in our work from the design phase right through to when
our homes are occupied by our customers, ensuring the
responsible consumption of water throughout our value chain.
Environment continued
To fully understand our potential impact in our
upstream value chain, we will commence engagement
with our key supply chain partners in 2025, developing
our understanding of water use in our upstream value
chain, and where necessary using our position to
encourage action.
100%
of our developments
incorporate Sustainable
Urban Drainage Systems
(SuDS)
Our Actions
Water Efficiency at Cairn
Design Phase
We engage with external consultants to incorporate water
conservation measures into the design of our homes. These
measures come as standard and include:
• Rainwater swales that capture and divert excess
rainwater to adjacent green areas/treelines and
hedgerows to enable further growth;
• We incorporate permeable pavement & Sustainable
Urban Drainage Systems (SuDS) into the design of our
schemes; and
• Attenuation tanks that ensure that storm events do not
lead to an overburden of storm sewer networks which
can lead to localised flooding.
During Construction Phase
We incorporate stringent environmental mitigation
measures as needed, to ensure there is no runoff into
adjacent watercourses, and carry out regular turbidity
monitoring at adjacent streams measuring water clarity.
Additionally, we collect and reuse surface water for dust
suppression using water bunds on our sites.
None of our homes are within flood zones. Where part of a
site is within a potential flood zone, this area is incorporated
in the open space design to ensure no risk to property.
All of our developments incorporate Sustainable Urban
Drainage systems (SuDS) designed to accommodate
once-in-100-year flood events.
Post-Construction Phase
From the design stage we also consider how new
homes can use water as efficiently as possible once
they are occupied.
All our homes are fitted with water fixtures that aim to
minimise the amount of water used by the homeowner
and their performance is rated by the Dwelling Energy
Assessment Procedure (DEAP), which is used for assessing
the energy performance of homes in Ireland. These flow-
restricting fittings ensure that not only is water conserved
but also that the heating of such water is minimised.
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Environment continued
Biodiversity
and Ecosystems
We depend on diverse, healthy ecosystems
to survive and we are committed to reducing our
impact on these ecosystems as much as possible.
Our Approach and Policies
Our biodiversity key mission is to advance efforts
towards our ultimate goal to halt and reverse nature
loss. As a construction company, we are aware of
the potentially devastating impact we could have
on nature and our local biodiversity.
We depend on diverse, healthy ecosystems to
survive, and we are committed to reducing our
impact on these ecosystems as much as possible.
We are currently assessing our full nature-related
dependencies, impacts, risks, and opportunities to
ensure our Biodiversity strategy is evidence based
and minimises our impacts as much as possible.
Biodiversity has previously been identified as a
material issue for both Cairn and our stakeholders, and
we are confident it will remain so. We are committed
to reviewing and updating our Biodiversity Policy to
reflect our continued growth and understanding of
our impacts, and the changing reporting landscape.
Our Actions
Currently all Cairn sites are subject to a pre-
commencement comprehensive Ecological Impact
Assessment (EIA), which assesses and records;
• The existing flora and fauna of the site;
• The existing habitat created by the present
biodiversity; and
• The contribution of the site biodiversity to the
local environment.
These EIAs are used to identify the impacts
development will have on the site and its immediate
environs. The EIA also identifies whether the potential
impacts are negative, neutral, or positive.
In response to the outcomes of the EIA, mitigation
efforts are identified and incorporated into the
design, construction and subsequent management
of all developments. This process is designed to
mitigate Cairn’s impacts on the biodiversity of
our landbank and local environment, while also
supporting the achievement of our biodiversity
targets and objectives.
In addition to EIAs, bat surveys are also undertaken on
all sites. We incorporate bat boxes and bird boxes into
public open space on our developments and ensure
the use of bat-sensitive lighting.
To reduce our direct impact on nature loss, we
have targeted Biodiversity Net Gain (BNG) on
increasing numbers of sites, in addition to linking
the achievement of these BNG targets to Executive
remuneration since 2022. This ensures biodiversity
remains front and centre in our corporate actions.
We are currently reviewing our Biodiversity Strategy
to ensure we are considering all our potential
impacts and acknowledging our environmental
responsibilities, enabling us to set new, meaningful,
and realistic targets.
Through this strategy, we will mitigate the
direct impact on local biodiversity of each Cairn
development, regardless of type, size, or location.
This will be achieved through a development-specific
biodiversity programme that replaces or improves
the local biodiversity of each new Cairn development,
or otherwise contributes to the improvement of
Ireland’s biodiversity.
70%
of unit commencements
in 2024 on Biodiversity Net
Gain sites
34,888
Trees planted in 2024
87,000+
Trees planted to date
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CASE STUDY
Protecting Biodiversity
As a developer Cairn can have a profound impact on the lands we
develop for new housing and communities. It is incumbent on Cairn
as Ireland’s leading home builder to ensure that our developments
have a minimal impact on the existing biodiversity of our sites and
where possible augment and enhance local biodiversity within the
new communities we develop.
Cairn and
Biodiversity
We recognise the opportunities biodiversity
conservation and enhancement brings to creating
developments with distinctive identity and sense
of place. In embracing these opportunities, we can
create high-quality environments for our residents,
giving them the opportunity to explore and grow
in proximity to nature.
Each Cairn development incorporates a range of
biodiversity measures to protect and enhance local
biodiversity and raise awareness and knowledge
of local flora and fauna amongst our residents.
Biodiversity action begins with the planning and
design of a development, starting with a thorough
appraisal of existing site features and scope for
incorporating existing habitats, water courses,
woodland, hedgerows and trees into the new
neighbourhoods. Well-considered retention of trees
and hedgerows within green spaces provides a
wonderful opportunity to deliver a neighbourhood
with a unique sense of place and character.
Cairn has been recognised as a Pollinator Friendly
Business since 2018 in recognition of the multiple
measures taken to support pollinators across all our
developments. Cairn has a proud record of planting
approximately nine trees for each residential unit
and we have provided our customers with packets of
pollinator-friendly bulbs in customer welcome packs
since 2017. We have also collaborated with Birdwatch
Ireland on several nesting box projects including
erecting nesting boxes for rarer species such as Barn
Owls, Woodpeckers and Dippers.
Cairn has been targeting a Biodiversity Net Gain
approach to the design and planning of our
residential developments since 2022. Biodiversity
Net Gain is a well-established approach used in
the UK and is covered by legislation and metrics for
measurement (Natural England Metric). By applying
an established and recognised methodology
Cairn can give confidence to customers and
investors that best practice is being applied and
that all biodiversity measures are implemented.
Where Biodiversity Net Gain cannot be achieved,
Cairn is committed to ensuring no Biodiversity
Net Loss occurs.
What is Biodiversity Net Gain?
Biodiversity Net Gain (BNG) is a way of creating
and improving natural habitats. BNG ensures that
development has as measurably positive impact
(‘net gain’) on biodiversity, compared to what was
there before development. BNG operates based
on units of terrestrial habitat such as parkland,
woodland, open water and green roofs that can
be measured and their conditions assessed and
translated into a quantity of habitat units.
There are many approaches to measuring
Biodiversity Net Gain across the world. The
preferred methodology for Cairn is the Natural
England Metric. It is amongst the better-established
methodologies and one in frequent use by peer
house builders in England and Wales, where
terrestrial ecology and development models are
broadly similar to Ireland.
For a development to be deemed Biodiversity Net
Gain, there must be a) a minimum 10% increase in
habitat units, and b) certainty of habitat creation
remaining in place for 30+ years.
Our Targets and Progress
In 2022 Cairn set ambitious annual BNG targets,
which have been achieved and exceeded each year
since. Our 2024 target was 50% and we achieved
BNG on 70% of our FY24 commencements.
Additionally, we have tied achieving our BNG
targets to Executive remuneration, ensuring it
remains front and centre of our strategic actions.
These targets are reviewed and updated in line
with our remuneration cycle.
Environment continued
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Biodiversity Maintenance and Management
Under the Biodiversity Net Gain approach habitats
retained and created must be managed appropriately
in perpetuity. Thus, new habitats will typically be
areas to be managed by an owner’s management
company or a local authority. However, it is important
that the following items be considered in the design
of the development and where required the aftercare
specifications and owners’ manuals are amended to
address the same:
General:
• The design team needs to carefully consider the
maintenance and access requirements for the
safe and effective maintenance of all habitat
areas; in particular where access is required for
maintenance vehicles and machinery.
• All green roof and soft landscape areas require some
watering during an establishment period (years
1 - 3). The design team should carefully consider
where access to water can be provided to allow
for the safe watering of green roofs and planting.
Green Roofs:
• Green roofs require periodic maintenance and
must be accessible for safe maintenance.
• Extensive and biodiverse green roofs require less
intensive maintenance and can be maintained
utilising handheld equipment, and appropriate
access must be provided.
• Prior to appointing contractors to maintain the
green roofs, the contractor must provide a detailed
method statement for the safe execution of the
maintenance works.
Bird Nesting Season:
• Pruning works to hedges, hedgerows and
woodlands should only be undertaken outside
of the bird nesting season.
Grassland and Meadows:
• Areas of meadow (wildflower) grassland should
be cut during late August or early September,
and the arisings removed as hay or to a green
waste recycling facility. Where possible the arisings
should be left for 1 - 2 weeks to maximise the seed
drop from the cuttings.
Extensive Green Roof
• Sedum mix
• 80mm thick growing medium
• Habitat units 1,000 sqm: 0.22 units approx
Intensive Green Roof
• Multiple layers of vegetation types
• 200-900mm thick growing medium
• Habitat units 1,000 sqm: 0.57 units approx.
for ‘Good’ condition; 70% soft landscape coverage.
50% of roof area under wildflowers
Biodiverse Green Roof
• 40 species of Sedum, native grasses and wildflowers
• 80-150mm thick growing medium, min 50% at 150mm
• Area of open gravel/grit and log piles for insects
• 1,000 sqm: 0.67 units approx
Environment continued
CASE STUDY CONTINUED
Mitigation Hierarchy
Biodiversity values
Biodiversity
impact
Biodiversity
impact
Biodiversity
impact
Biodiversity
impact
Restore
MinimiseMinimise
AvoidanceAvoidanceAvoidance
Offset
Contribution
Break even point
Biodiversity loss mitigation hierarchy
Residual impact
Net gain
No net loss
Restore
Minimise
Avoidance
+
-
Step 1 Step 2 Step 3 Step 4
Raw Material Design Production
Remanufacturing
Distribution
Recycling Collection Repair / Reuse Consumption
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69
1,957t
Total waste reduction
from 2023
97.2%
of Cairn’s waste is recycled
or recovered
Resource Use and
Circular Economy
We have been disclosing our waste consumption for
the past number of years under both TCFD and GRI
disclosures. During 2024, however, we have focused
our efforts on understanding not only the volume
and type of waste we produce but also our disposal
methods and how they impact the planet.
Our Actions
As part of our efforts to understand our waste
consumption and production, we have set up a
Waste Working Group, who have been tasked with
auditing our current waste processes, developing
a new waste strategy and policy, and setting waste
targets including increasing our recycling rates and
reducing waste overall. Our Waste Working Group
meets monthly ensuring continuous momentum
and focus.
While we have made great strides in our waste
processes over the past number of years, we know
we must improve by reducing the amount of
waste we generate and improving our segregation
on site. We are committed to driving change
within our business and value chain to achieve
these ambitions.
During 2024, Cairn successfully diverted and
reused over 66% of the soil and stone waste
generated across the company through the
Article 27 process. The reuse of this soil and stone
material supports Cairn’s strategic objective to
reduce the carbon footprint of our developments
while moving away from a linear economy model.
Environment continued
Our Approach and Policies
Currently the built environment is designed around
a linear model in which materials are sourced, used,
and then disposed of as waste. This approach has
contributed to the construction industry becoming
one of the main consumers of natural resources and
raw materials and a large producer of waste and
carbon emissions. A different approach to this linear
model is needed to support our transition to a more
sustainable built environment to deliver the homes
and infrastructure needed.
Transitioning to more circularity in construction is
already supported through recent national policies
including Ireland’s Climate Action Plan and the
National Development Plan and on a wider front
through EU plans such as the Waste Framework
Directive and the Circular Economy Plan.
Cairn is still in the early stages of our circular economy
journey, investigating how best we introduce circularity
to our business model, building designs and supply
chain. We strongly believe there are wide-ranging
benefits in transitioning to more circularity in our
industry, including economic gains in material savings,
increased resilience both in terms of costs and security
of supply, and new job creation, especially in design.
Circular economy
1 Source; Environmental Protection Agency (‘EPA’)
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Soil and Stone Recovery
Construction Waste
14 million tonnes
1
of waste are generated in Ireland every year through
our homes, work and leisure activities. The drive to reduce waste across
the construction industry has led all companies and organisations into
multiple different avenues regarding reuse and recycling of material
through innovation and use of different engineering processes.
Historically, soil and stone have been the main source of
waste generated in the construction industry. 82% of all
waste generated in construction was attributed to soil
and stone, and the need to implement a more circular
approach to soil generation is more pressing than ever.
As reported by the Environmental Protection Agency
(EPA), 8.3 million tonnes of waste were generated
in the construction industry in 2022, which includes
6.8 million tonnes of soil and stone waste. This figure
is projected to grow as the construction industry and
its output continues to grow.
Ireland’s Circular Economy programme (2021-2027)
identifies that as a country, Ireland must utilise fewer
natural resources and prevent waste production
to achieve more sustainable economic growth.
Demonstrating leadership in this area, Cairn has
continuously developed and improved its construction
methods in all aspects, influenced by reducing their
potential environmental impacts. As part of this
strategy Cairn in collaboration with the EPA and local
councils has employed the use of the Article 27 process.
What is Article 27?
The Article 27 process in line with the Waste Action
Plan for Circular Economy seeks to reduce the
environmental and health impacts of waste and
improve resource efficiency. The fundamental goal is
to achieve a circular economy that avoids unnecessary
waste generation and allows for the use of materials as
a resource, wherever possible. This in turn minimises
the requirement for the extraction of additional
natural resources. By-products can play a key role
in achieving this. By-products are residues from a
production process which have been demonstrated
as meeting the conditions of Regulation 27(1) of the
European Union (Waste Directive) Regulations 2011-
2020 (the Regulations/ Regulation 27). By-products
are not classified as waste.
The concept of a by-product was established by the
European Waste Framework Directive (WFD), and this
concept has been transposed into Irish law through
Regulation 27 of the European Communities (Waste
Directive) Regulations 2011.
CASE STUDY
Environment continued
Construction and
demolition projects
Possibilities
for soil reuse
Surplus
excavated soil
Landfill
Reuse of soil
Testing and
risk assessment
Excavated Material
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Only a production residue can be considered a
potential by-product. The notification of a potential
by-product gives industry an opportunity to
demonstrate, with an appropriate level of rigour, that:
• The material can have a further use and will not
be defined as waste;
• The material can be used as a secondary resource
in place of and fulfilling the same role as a non-
waste derived or virgin ‘primary’ resource; and
• The material can be used without causing
overall adverse impacts to the environment
or human health.
Initiative Implementation
During 2024, Cairn successfully diverted and reused
over 66% of the soil and stone waste generated across
the company through the Article 27 process. The
reuse of this soil and stone material supports Cairn’s
strategic objective to reduce the carbon footprint of
our developments while moving away from a linear
economy model.
Reducing the import of virgin quarried material
and export of excavated site material by reusing
the material in this way, significantly reduces the
number of vehicle movements in and out of our
sites, thus reducing the associated transport and
export emissions.
Cairn has also begun engaging with our supply
chain partners to utilise the soil generated through
construction as a natural resource to replace virgin
stone which is currently quarried, creating an
alternative structural fill composed of Class 9B cement
material. The implementation of this type of structural
fill will significantly reduce the need for Clause 804
1
or Clause 808
2
from the construction process. These
quarried virgin materials are becoming a finite resource
due to the level of quarrying being undertaken and an
alternative solution must be realised.
This alternative structural fill material promotes the
reuse of site-won soil, which if not utilised in this way
would have to be disposed of as waste off site. This
initiative contributes to the fulfilment of the Circular
Economy goals as outlined in the Waste Action Plan
for Circular Economy 2020 and the Climate Action
Plan 2019, published by the Department of the
Environment, Climate and Communications.
The implementation of this initiative across the
construction industry would significantly reduce
both the amount of waste produced to landfill,
and the requirement for virgin quarried materials.
Furthermore, this would result in savings on cost,
energy consumption, and carbon emissions,
enabling the establishment of a circular economy
within the industry.
Environment continued
DURING 2024
66%
of soil and stone waste generated across
the business was successfully re-used
INITIATIVE IMPACTS
• Reduced biodiversity loss due to reduced
reliance on quarried material
• c. 2,500 tCO
2
saved
• 66% excavated material diverted from landfill
1 Clause 804: Crushed stone used for binding and levelling on top of Clause 808 stone.
2 Clause 808: Structural stone used in infrastructure and road construction.
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72
Social
At Cairn, it’s not about what we build,
it’s about why we build.
In this section:
73 Foreword
74 Own Workforce
78 Workers in the Value Chain
81 Affected Communities
82 Consumers and End Users
Cairn is a home and community
builder, leading the market in creating
sustainable foundations upon which
Ireland can thrive.
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Housing is currently the most pressing need across all
areas of Irish society. We are committed to delivering
high-quality, energy-efficient homes, to help address
this need. This is supported by our skilled and engaged
workforce and supply chain, thus ensuring the
communities we develop thrive, and benefit from
the significant contribution we make to the vital
infrastructure that is required. These infrastructure
projects, include bridges, roads, cycle routes, schools,
creches, parks and access to public transport, improve
the quality of life of the wider community around our
developments.
We aim to create a workplace where people love to
work and reach their full potential. Attracting and
retaining our employees is a key priority for Cairn.
Their health & safety is our number one priority and
remains at the forefront of the business strategy. We
firmly believe that a diverse and inclusive team leads
to greater success, and we are committed to ensuring
an inclusive environment for all.
We encourage all employees to help us drive change
and contribute in a way that fosters a sense of
purpose for the employee and also supports Cairn’s
sustainability agenda for all stakeholders. Everyone
working for or with Cairn is expected to support
Cairn’s sustainability objectives actively and positively
in what they say and do.
Building our early careers pipeline has become an
increasingly important objective for Cairn. Ensuring
future pipelines of workers and addressing the
significant skill shortage is a key focus area for Cairn,
demonstrating our leadership and commitment to
the future of the construction industry.
Cairn recognises that communities thrive not
just within the walls of homes but in the spaces
between them. Our placemaking framework places
a strong emphasis on providing amenities that
encourage community bonding and interaction,
while also attracting the wider local community.
This commitment to placemaking ensures we create
vibrant and cohesive communities that will stand the
test of time.
Foreword
Our social impacts are centred on the people we employ both directly
and indirectly, the customers we build homes and create places for, and
the communities we impact through our construction activities across
our value chain.
UN 17 SDG STRATEGIC PILLARS
Social continued
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74
Social continued
Own Workforce
At the core of Cairn is our exceptional team, who are highly
skilled and committed to ensuring our future success.
In 2024 we continued to grow our business with the
addition of 168 new employees. In recognition of this rapid
growth and as part of our strategy, Cairn is committed to
continuing to invest in our employee value proposition –
to connect, develop and inspire our workforce.
9%
reduction in Lost Time Incidents
27%
reduction in AFR
Grade A
Safe-T Certificate
ISO 45001
Occupational Health
& Safety Management
Health & Safety
Our Approach and Policies
Central to Cairn’s philosophy is the integration
of Health & Safety (H&S) into every aspect of our
developments, from planning and logistics to
execution and oversight.
Despite significant year-on-year productivity level
increases, Health & Safety remains at the forefront
of the business strategy and continues to be our
number one priority. This is demonstrated by a 27%
reduction in our Accident Frequency Rate (AFR) and
9% reduction in our Lost Time Incident (LTI’ Rate in
2024, while our output increased by nearly 30% for the
same period.
As Cairn continues to scale, we recognise the increased
requirement for maintaining our industry-leading
Environmental, Health and Safety Agenda. To ensure
this agenda continues to align fully with our strategic
priorities, we appointed an Environmental Health &
Safety Director in 2024.
Our approach to Health & Safety is holistic,
involving regular site audits, comprehensive training
programmes, and rigorous standards. This approach
is managed through our H&S Management system
which is accredited to Safe-T Certificate
1
Grade
A, ISO 9001, ISO 14001, and ISO 45001. Our H&S
Management System is also audited externally each
year, ensuring continuous review and awareness.
Our Actions
Our commitment to Health & Safety
is demonstrated by our key principles:
• Planning and logistics are key, engineering out
risks. We ensure that site infrastructure, access,
walkways, exclusion zones, storage areas and
site facilities are in place in advance of each
project phase;
• Regular interrogation and challenging of project
programmes to ensure timelines are realistic –
Safety always comes before productivity.
• Empowering the site team to ‘Stop and Reset’
all project timelines and programmes to ensure
the planned work and planned logistics can
be achieved;
• Establishing our safety baseline – ensuring
everyone working with us is aware of our
expectations around risk control, planning
and logistics;
• Providing a H&S resource, supported by
a senior H&S manager on all projects.
• Ensuring we have appropriate levels of
oversight from our site safety team, to our
Leadership Safety Committee, to our Board;
• Investment in our H&S function. In 2024 we
appointed an Environmental, Health & Safety
Director, who will continue to grow and upskill
both our H&S team and our supply chain; and
• Setting our standards and expectations of our
supply chain, so their Health & Safety culture
aligns with that of Cairn.
1 Safe-T-Cert certification http://www.safe-t-cert.ie is based
on the International Labour Office (ILO) ‘Guidelines on
Occupational Safety and Health Management Systems’.
Safe-T-Cert is recognised by the Government Construction
Contracts Committee (GCCC) in Ireland as meeting the
requirements for public procurement and is accredited by
Safety Schemes in Procurement (SSIP) Forum in the UK.
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Social continued
83%
of employees feel they have special
and unique benefits in Cairn
25
Mental Health First Aiders in 2024
Wellbeing at Cairn
Our Approach and Policies
At Cairn, we are deeply committed to nurturing the
wellbeing of our employees. We provide various
supports that empower them to cultivate a healthy
lifestyle and offer benefits that prioritise their
personal wellbeing needs. Our dedication to delivering
an industry-leading health and wellness programme
for all employees remains unwavering.
Our Workplace Wellbeing Policy sets out how Cairn
promotes the wellbeing of our employees by creating
a safe and positive environment. We are committed
to to creating a more open and inclusive workplace
culture, through implementing initiatives and policies
that are underpinned by workplace practices and
support services.
As part of our commitment to the continuous
development of our Mental Health Strategy we
continue to partner with The Lighthouse Charity, a
charity dedicated to helping construction industry
workers and their families. For the past 18 months,
one of our Senior Health & Safety Officers has been
embedded in the Lighthouse Committee, actively
promoting their work across our sites.
We have extended our Mental Health Awareness
sessions to our Black Hats
1
, identifying that they are in
the unique position to spot the signs and symptoms
of those who may be struggling with their mental
health before our Mental Health First Aiders (MHFAs)
and the importance of early intervention.
Our Actions
We support our employees’ health and
wellbeing through our holistic wellness
programme, which reflects the wellness pillars
of Equality, Diversity & Inclusion, and Mental,
Emotional, and Physical Health.
Wellness Resources
Ongoing programmes and events held with
Irish Life and the Wellness Crew such as
‘Building Resilience’ and ‘Managing Stress at
Work’.
Healthcare and Life Insurance
In 2024 we enhanced our health insurance
offering, now offering alternative plan choices.
Our death in service benefit scheme, provides
four times the employee’s base salary.
Employee Assistance Programme (EAP)
Our EAP provides a wide range of benefits
and services available 24 hours a day,
365 days a year to our employee’s and
their family members.
Health & Wellbeing Allowance
Cairn provides €200 every October to all staff
for wellness-related expenses. This allowance
is designed to support employees’ wellbeing,
helping them to invest in activities and
resources that promote their physical, mental,
and emotional health.
Cairn Running Club
Launched in 2024, the club provides a
supportive and motivating environment for
individuals of all fitness levels to get active.
1 “Black Hats” at Cairn refer to supervisors on site within our
subcontractors who are responsible for, and oversee, our health
and safety practices. These supervisors are supplied with
black hard hats so that their presence on site is visible, leading
to greater compliance with expected safety standards.
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Social continued
90%
of our employees feel Cairn
is an inclusive place to work
93%
of our employees feel people are
treated fairly in Cairn regardless
of their race
29%
of promotions in 2024 awarded
to female employees
Equality, Diversity & Inclusion
Our Approach and Policies
We bring together individuals who share common values
yet come from diverse backgrounds and possess a wide
range of expertise. Inclusivity is ingrained in our company
culture and is promoted from the highest levels.
Our approach to Equality, Diversity and Inclusion (EDI)
is underpinned by our EDI policy which sets out our
intentions and ambition for our diverse workforce.
We are committed to providing an inclusive
working environment which respects diversity of
characteristics, provides equality of opportunities,
promotes an integrated way of working and avoids all
forms of discrimination.
Our EDI policy is supported by additional policies
such as our Maternity, Paternity and Adoptive Leave
Policies, Carers Leave Policy, Parental Leave Policy, and
our Dignity at Work Policy. In 2024 we also introduced
two new policies, Domestic Violence Leave Policy
and Medical Care Leave Policy, ensuring vulnerable
employees are protected.
Our Equality, Diversity, and Inclusion aims are simple.
We want to:
• Ensure everyone feels a sense of belonging at work;
• Ensure equal treatment and representation across
our business;
• Attract diverse talent to the business, creating a
welcoming and supportive workplace for all; and
• Look beyond our immediate environment, lead
our industry, and inspire others.
Our Actions
We have formalised our EDI Strategy and our top priority
for our EDI agenda is to keep inclusivity at the heart of our
culture, championed by our senior leaders. While we have had
significant success in growing a more diverse workforce with a
56% increase in the number of non-Irish employees during 2024,
we recognise that we do have a significant under-representation
of females in senior and higher paying roles, a challenge which
is common in our industry, and which has impacted adversely
on our Gender Pay Gap in 2024 (see page 126).
With our inclusive culture at the forefront, we began to build
our Employee Resource Group (‘ERG’) Programme in 2023
beginning with our ‘Families in Cairn’ Network which was a
great success. In 2024 we continued to build this programme
and launched our ‘Women in Cairn Network’ focusing heavily
on facilitating exposure and development opportunities for
our female employees. Please see page 17 for more detail on
our Women in Cairn Network.
We also continued to invest in our female talent through
our female-focused Learning and Development programme
which sponsored a number of female employees to complete
a Professional Diploma in Women in Leadership through
University College Dublin (UCD).
These targeted supports have resulted in meaningful
progression for many of our female employees, with 29%
of promotions in 2024 being awarded to females. This is in
comparison to 25% of our workforce overall being female.
Building our early careers pipeline has become an increasingly
important objective for Cairn. It is imperative that we attract
and retain the best people to help fulfil our vision of building
an Ireland where everyone can thrive. To achieve this, we are
unwavering in our commitment to the future of our industry,
and in 2024 hosted 13 female students across our Transition
Year programme.
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Social continued
15,000+
hours of CPD completed
96%
orientation learning experience rating
14%
of new hires in 2024 were graduates
Learning & Development
Our Approach and Policies
At Cairn, our Learning & Development (L&D) Strategy
supports the continued learning, development and
education of our people, empowering them to take
ownership of their career progression. This strategy
incorporates all role types in Cairn, beginning with
New Starter Orientations, right through to People
Management Development, and is supported by our
Learning & Development Policy.
We believe that supporting our employees to develop
existing and new skills, knowledge, and behaviour,
improves their performance, enhances their
career prospects, increases employee satisfaction
and engagements, and ultimately increases the
organisation’s capacity to grow.
At Cairn we have adopted the 70:20:10 learning model,
which deems 70% of our learning and development
comes through experience, 20% comes from working
with others, and 10% comes from formal training.
Our Actions
We redesigned our orientation experience for new hires
in 2024, ensuring we are providing all new starters with a
more engaging, hybrid learning experience. Our orientation
is now delivered in two parts: 1) Pre-read document, which
provides a holistic overview of Cairn’s functions and helps
build a deeper understanding of how we operate structurally
as an organisation; 2) In-person workshop, including an
introduction from a Leadership Team member, followed by
an overview of Cairn’s brand, culture and values.
We also focused on expanding our Graduate Programme
during 2024 to facilitate our largest intake of graduates
to date, with 24 graduates being hired in 2024. We have
implemented several key changes to our Graduate
Programme based on learnings from previous years. We have:
• New formal and informal touchpoints in the business
through buddies, managers, and senior sponsors;
• Provided managers and graduates with role specific
milestone checklists to encourage consistent on-the-job
learning; and
• Provided certified technical training through our
Construction Training Calendar and the option of further
education funding for those pursuing learning externally.
Our new Construction Training Calendar has been fully
implemented and rolled out across the business during 2024.
This calendar sets out the role-specific training focus areas
and rhythm targeted at our high-volume site delivery roles.
To develop this, we partnered with functional leads and
senior managers to determine the specific skill or knowledge
need and then collaborated with external providers for any
specialised technical training or with internal champions to
capture learning related to our Cairn ways of working and
shared internal knowledge.
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78
Health & Safety
Our Approach and Policies
The Health & Safety initiatives implemented on site
and discussed under ‘Own Workforce’ and their
associated policies are also applicable to all value
chain workers on Cairn sites. There are typically
2,100+ workers who are not part of our day-to-
day supervision but who are working on our sites
on any given day. Cairn does not underestimate
the responsibility of providing a safe working
environment and ensuring every individual finishes
their day’s work safely.
Our Supplier Code of Conduct sets out our standards
and expectations of our supply chain, so that their
Health & Safety culture aligns with that of Cairn. Our
requirement for our supply chain partners to provide
a healthy and safe working environment for their
workers is unequivocal.
Our Actions
Cairn regularly engages with all subcontractors
to discuss safety, health and welfare at work, and
to share relevant data and findings from both
scheduled data capture and audits which help
those firms improve and refine the ways in which
they manage safety across their operations.
In conjunction with the Construction Industry
Federation (CIF) we implemented the ‘Critical Risk’
review and management across all Cairn sites
for the second year running. We reinforced the
safety messaging around the key hazards of the
construction industry (Working at Height, People
and Plant Interface and Mental Health) along with
reinforcing the safety management system that is
in place.
Through our partnership with The Lighthouse
Charity, (see page 79 for more information),
twenty of our supply chain companies have now
partnered with the charity, recognising their vital
supports and Cairn’s leadership in this space.
As we improve our reporting capabilities, we will
work closely with our supply chain to ensure the
workers in our value chain are protected and have
access to a safe working environment.
Workers in the Value Chain
At Cairn we are deeply committed to our supply chain
partnerships which have been built through strong
communication and trust, with the average tenure
of our top 20 supply chain partnersips being six years,
and through which, Cairn supports over 5,500 jobs.
Our commitment to building sustainable communities
where people can thrive, includes conducting our business
in a sustainable, responsible, and ethical manner – values
we expect our supply chain partners to demonstrate while
conducting their business. Our Supplier Code of Conduct
summarises the minimum standards we require from our
supply chain partnerships, covering a broad range of issues
including Health & Safety, human rights and labour practices,
environmental requirements and confidential reporting.
2 million
hours worked on Cairn sites
to date
5,500
jobs supported by Cairn
2,100+
workers on Cairn sites on any
given day
Social continued
CASE STUDY
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Social continued
Creating a Safe
Environment
Operating and maintaining safe
environments for our employees,
subcontractors, suppliers, customers
and the communities in which we live
and work has always been our number
one priority at Cairn.
Typically, there are 2,100+ workers who are not under our day-
to-day supervision, but who are working on Cairn sites. During
2024, there were 5,500 people employed on Cairn sites through
our supply chain. We take the responsibility for the safety of
these workers extremely seriously; it is our number one priority
that every worker on a Cairn site returns home safely. In 2024 we
appointed an Environmental, Health & Safety (EHS) Director to
ensure our EHS agenda remains industry leading and aligns fully
with our strategic priorities.
Managing Safety with our Supply Chain Partners
In the context of a year where output increased by over 30%, we
commenced ten new large-scale sites and began eleven new
phases of existing sites, our Accident Frequency Rate decreased
by 27% and our Lost Time Incident Rate reduced by 9%. To ensure
Health & Safety remained a focus throughout the year, we
implemented multiple site stand downs to ensure best practice
and encourage contractors to make fundamental changes to
manage and improve safety across their businesses. We are
working in partnership with the supply chain to continue to
implement our collective ownership principles across our sites.
Critical Risk Review and Management
In conjunction with the Construction Industry Federation (CIF)
we implemented the ‘Critical Risk’ review and management
across all Cairn sites for the second year. The management of
‘Critical Risk’ across each function was drilled down into for each
contractor. Cairn reinforced the safety messaging around the
INCREASED OUTPUT
c.30%
AFR REDUCED BY
27%
Responsible Sourcing
Our Approach and Policies
We cannot deliver high-quality, sustainable homes at scale,
without strong, long-term relationships with our subcontractors
and suppliers, built on collaboration, trust and transparency.
In 2022, we began a Responsible Sourcing programme which is
designed to ensure our supply chain partnerships support the
delivery of our sustainability objectives. In alignment with our
sustainability priorities, the key areas of focus in our Responsible
Sourcing programme include emissions reductions, energy and
resource efficiency, sustainable materials, biodiversity, health &
safety, human and labour rights, and design and innovation.
This workstream is ongoing and is underpinned by our Supplier
Code of Conduct which requires that products, materials and
services should be sourced in a way that supports environmental
stewardship and respects human rights and social responsibility.
Our Actions
Cairn is a Founding Partner of the Supply Chain Sustainability
School (SCSS) Ireland, a free virtual learning platform for our
supply chain partners, which supports them with the upskilling
they need to deliver a sustainable built environment.
Cairn holds multiple off-site engagement and strategy days with
our subcontractors each year. We use these opportunities to
review the performance of both Cairn and our subcontractors,
enabling clarity around performance expectations and
identifying areas for change and improvement.
Over 100 subcontractor relationship management meetings take
place each year to allow for personal review of the subcontractor
performance across the Commercial function from Health &
Safety to Procurement.
key hazards of the construction industry including Working at
Height, People and Place Interface, and Mental Health, along with
reinforcing the safety management system that is in place to
create a safe working environment for everyone on a Cairn site.
The Lighthouse Charity Partnership
Our continued partnership with The Lighthouse Charity highlights
the importance we place on integrating our mental health
strategy throughout our business, for both Cairn employees and
workers in our value chain. We facilitated multiple Lighthouse
roadshows across our sites featuring prominent guest speakers
who raised awareness of various mental health issues.
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Modern Slavery, Human Rights
& Labour Practices
Our Approach and Policies
Our Supplier Code of Conduct sets out the minimum
standards that our supply chain partners are required to
meet in order to become a trusted partner with Cairn.
We require our supply chain partners to uphold human
rights and fair labour practices within all business
activities and condemn all forms of exploitation.
This includes but is not limited to the following:
• Comply with all applicable labour and human
rights laws, including the Sectoral Employment
Order (Construction) and laws regarding legal
working age;
• Prohibition of modern slavery, including: child
labour, forced and compulsory labour, servitude,
slavery, and trafficking; and,
• Respecting Freedom of Association, Diversity,
and Inclusion: respect freedom of association and
provide an inclusive working environment which
respects diversity of characteristics including but
not limited to sexual orientation, age, gender,
race, ethnicity, disability, civil status, personality,
thinking style and religious beliefs.
Our Actions
Our Anti-Slavery Policy clearly sets out Cairn’s
stance on modern slavery and the actions we take
to identify all potential risks of modern slavery
related to our business. We continue to put in
place steps aimed at ensuring there is no slavery
or human trafficking within our contractors or
supply chain.
We shall continue to identify and implement
practices designed to eliminate the risk of modern
slavery in any way being engaged in Cairn’s
activities, whether through its contractors or
supply chain.
As we deepen our understanding of our value
chain, its associated workers, and the impacts
we may have on them, we will re-evaluate our
current policies and initiatives, using our leadership
position to positively impact where possible.
Cairn Apprenticeship Programme
Following the ‘Analysis of Skills for Residential Construction & Retrofitting’ report
released in 2023, which found there would a significant apprentice shortfall by 2025
in the construction industry, Cairn developed a strategic framework in partnership
with our existing supply chain members to tackle the barriers contributing to the
skills shortage. As part of this framework, the Cairn Apprenticeship Programme was
launched in 2024.
The Government has identified increasing the number of construction apprentices
across the residential sector as a crucial component of its Housing for All strategy.
As an industry leader, Cairn is committed to collaborating with the Government
to address the challenges in housing supply.
Our €10 million investment over five years in our Cairn Apprenticeship Programme
is designed to attract and retain apprentices, thereby supporting our supply chain
and the broader industry.
For more information on the Cairn Apprenticeship Programme, please refer to our
Sustainability Report.
Social continued
CASE STUDY
CASE STUDY
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81
Our Approach and Policies
Cairn recognises that communities thrive not just within the walls
of homes but in the spaces between them. Our placemaking
framework places a strong emphasis on providing amenities
that encourage community bonding and interaction, while also
attracting the wider local community. This commitment has led
to significant placemaking projects such as greenways, and parks
with state-of-the-art sporting facilities for the enjoyment of the
whole community.
We believe that the local communities living beside or around
our developments are just as important as the communities
we are building. We facilitate regular meetings with the existing
communities around our developments under construction,
keeping them informed of our plans, project timelines, works
that may impact the local area and how these will be managed
to reduce disruption.
Our Supplier Code of Conduct and Sustainable Procurement
Policy support our approach to affected communities in our
supply chain, ensuring Cairn’s Responsible Sourcing policies and
procedures are adopted by our supply chain partners.
Affected Communities
We believe the local communities living beside
or around our developments are just as important
as the communities we are building.
We aim to leave a positive legacy in the areas we build,
ensuring we consider and understand the needs
and requirements of the existing community such
as infrastructure and amenities.
88%
of employees surveyed feel
good about the ways we
contribute to the community
600ha
of public realm, parks pitches
and green space created to date
€30,000
Seven Mills Community Fund
Social continued
Our Actions
We continue to support our local communities
through providing infrastructure and recreational
spaces, and initiatives such as our national and
community funding commitments and our
educational interactions with local schools.
The Cairn Community Games is a testament
to our commitment of creating communities
where people can thrive, while promoting active,
healthy lifestyles.
Our investment in this partnership reflects our
core values of equality, inclusion, and local impact.
Through this investment we aim to increase
participation in the games by 10% with our first
year of partnership already seeing a 2.2% increase
in overall participation. Please see page 23 for more
information on Cairn Community Games.
All employees are encouraged to use their
volunteer days in conjuction with our community
initiatives to increase our direct positive impact.
Sustainable Communities
Our commitment to creating
sustainable communities is at
the heart of everything we do.
We believe that building homes is not just about buildings,
but about fostering environments where people can
thrive and feel a sense of belonging. This is achieved
through thoughtful planning, considered public realm
and shared spaces and amenities and a holistic approach
to placemaking.
Our vision is to create new communities of connection and
belonging, building towards an Ireland where everyone can
prosper. This is embodied in our most recently launched
initiative, the Seven Mills Community Fund. We have
committed up to €30,000 to support organisations which
are local to our Seven Mills development in Dublin 22.
This fund is designed to support pre-existing clubs, community
groups, and societies that are already making a difference in
their communities. By offering seven rewards to support seven
inspiring local projects, we aim to make a positive impact in
the existing community in which we are building.
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Our Approach and Policies
Our customer strategy is to build on our current
partnerships and explore new opportunities with our
customer base. Over 80% of Cairn’s starter homes are
available to our customers at prices which are below state-
support pricing caps, allowing more of our prospective
customers to qualify for impactful initiatives such as
the Help To Buy (HTB) and First Home Equity Scheme.
The quality of our homes is pivotal to the long-term
success of our business. We build high-quality
A-rated new homes which comply with all relevant
regulatory requirements and consistently exceed
our customer expectations.
The next step in our journey is to demostrate the
positive impact building better can have. By adopting
the Passive House standard for flagship developments
we are showing how we can make a difference at a
national scale.
We are determined to leave a legacy that ensures our
developments evolve and grow over time, catalysing
community cohesion and a sense of belonging for all
our residents.
Social continued
Consumers and End Users
Our commitment to understanding our customers
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 partner of choice and deliver new homes
that exceed the expectations of our customers.
O V E R
25,000
people now living in
a Cairn home
3,600
residents reached through
Home Together programme
in 2024
96%
Customer experience rating
Our Actions
During 2024, Customer and Aftercare became a
functional objective pillar for our Constructions
and Operations Team, ensuring our customers are
at the heart of our unique end-to-end operating
platform. The team implemented a number of
processes, procedures, and initiatives allowing for a
more targeted approach to our customer journey.
Our Aftercare and Customer Team ensures that
our customers remain supported upon moving
into their new Cairn home, which has resulted in
our Aftercare cases being at an all-time low, thus
strengthening customer trust and relationships.
In 2024 we created a dedicated Advice Hub,
a six-part podcast series in partnership with
MyHome – How to Buy a Home: The Ultimate
Guide to Home Ownership. Our aim in creating this
Advice Hub is to raise awareness of government
support schemes and the different routes to home
ownership for our customers.
As a leader in sustainable construction, we are
the first homebuilder to deliver new homes to
Passive House standard at scale in Ireland, having
commenced more than 1,750 units during 2024.
We see this evolution as an investment in our
customers and the residents who will live in the
homes we build, enabling them to experience a
better quality of life with increased comfort and
reduced utility bills.
Our Home Together programme, run in
collaboration with Neighbourhood Network, is an
ongoing and expanding programme that focuses
on developing communities that are sustainable
in the long term. This approach ensures that our
developments evolve and grow over time, giving
residents the power to drive actions and initiatives
that fulfil their needs.
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Social continued
Home Together
By the close of 2024, the Home Together team successfully implemented
neighbourliness programmes across 10 Cairn Home Together estates,
fostering community connections among residents in over 2,300 homes
since its inception. More than 1,000 adults and children met each other
during 2024 at gatherings in Graydon, Whitethorn, Archers Wood,
Donnybrook Gardens, Parkleigh, Harpur Lane and Sorrel Wood estates.
T O T A L O F
1,500
households
REACHING OVER
3,600
residents
44%
of all residents are now
directly connected and
actively engaged with
Home Together
O V E R
600
households continue
to directly engage with
Home Together through
WhatsApps, emails
and events
“The best aspects of my neighbourhood after
participating in Home Together are the sense
of community and collaboration it fostered.
It gave neighbours an opportunity to connect
on a deeper level, work together on common
goals, and create a welcoming environment.
Events like group activities, shared meals,
and discussions brought everyone closer,
making the neighbourhood feel like a
supportive and inclusive space. The initiative
highlighted the importance of teamwork,
mutual respect, and the joy of building a
stronger, more connected community.”
GRAYDON RESIDENT
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Governance
Sustainability
Governance
Our continued emphasis on the highest
standards of corporate governance has
provided the platform for the business to
focus on building sustainable communities,
where people can thrive.
In this section:
85 Foreword
86 Business Conduct
Embedding ethical practices in all we do
supports the long-term sustainability of
our business.
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Governance continued
It drives ethical behaviours, informs sound decision
making, enables the effective running of our business
and ultimately builds trust internally and externally
across our stakeholders. As a publicly listed company
subject to national, UK, and European regulation, we
manage our business with integrity and transparency,
ensuring we minimise operational risk. The strength
of our leadership and the breadth of skills and
experience on our Board enables us to make sound
and balanced decisions for the long-term benefit
of our shareholders and stakeholders.
As an increasingly mature and sustainable business, we
are proud of our ability to continue to deliver homes at
scale, supported by a strong macroeconomic backdrop
in Ireland. The Board is collectively responsible for
promoting the long-term sustainable success of
the Group, generating value for shareholders as a
whole and contributing to wider society by fulfilling
its purpose. In exercising this responsibility, the
Board considers all relevant stakeholders including
customers, employees, suppliers, shareholders,
regulators and government and the effect of the
activities of the Group on the environment.
In 2024 the Board established a new role to facilitate
more oversight and support for Cairn’s sustainability
agenda. The Director Responsible for Sustainability
and Environmental Impact oversees operational
workstreams, engages and interacts with various
personnel across key functions who are responsible
for sustainability matters, and reports their findings,
recommendations and any other pertinent
information to the Board.
Additionally in 2024, Cairn created a Sustainability
Steering Group (SSG) which is supported by Cairn’s
Senior Review Team (SRT) and Sustainability
Reporting Team. The SSG is a decision making body
with responsibility for driving and determining
Cairn’s sustainability strategy and roadmap,
reporting its progress to the Board.
The SRT are responsible for integrating
sustainability considerations into day-to-day
operations and decision making, including through
the gateway process. To ensure sustainability
considerations are fully embedded in the business,
the SSG and SRT have responsibility for engaging
managers, employees, and workers, and clearly
communicating the role of each team and
individual in achieving Cairn’s sustainability goals.
Cairn’s Sustainability Reporting Team are
responsible for ensuring the accurate and
transparent reporting of Cairn’s progress against,
and impacts on, sustainability matters. This
includes our continued focus on improving
how we collect and report our non-financial
information, in particular, information relating to
our environmental and social impacts.
Operationally there are numerous working groups
with input into each fuction of the business which
support Cairn’s Sustainability Strategy, including
our Waste Working Group, Carbon Working Group,
Engagement Working Group and Employee
Resource Groups.
FURTHER DETAILS RELATING TO
GOVERNANCE AT CAIRN ARE PRESENTED
in our Corporate Governance report (pg 110).
Foreword
Our commitment to strong governance underpins our strategic
decision making, and our ability to create value for our stakeholders.
GOVERNANCE STRUCTURE
Our Board
Oversight and Ultimate Responsibility
Sustainability Working Groups
Sustainability Reporting Team
Senior Review Team (SRT)
Sustainability Steering Group (SSG)
Audit & Risk
Committee
Oversight of the Group’s
risk profile and health
and safety strategy
Remuneration
Committee
Oversight of the
remuneration elements
of our employee
value proposition
Nomination
Committee
Oversight of the diversity
and inclusion strategy and
employee engagement
initiatives
FOR DETAILED INFORMATION ON OUR
SUSTAINABILITY GOVERNANCE STRUCTURE
please see our TCFD disclosure (pg 58)
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Our Approach & Policies
At the heart of good governance is corporate culture
and business conduct. Our purpose, values, and
culture define us and ensure we can build sustainable
communities where people can thrive. To create the
best outcomes for our customers and stakeholders,
we endeavour to ensure our colleagues feel valued,
respected, and recognised, allowing them to feel
empowered in their role and thus have a positive
impact on our stakeholders.
Our Company Code of Conduct provides a framework
which ensures we consistently strive to maintain a
healthy corporate culture, providing guidance to all
employees on the behaviours and standards that
everyone, without exception, must understand and
meet. This Code applies to all staff and addresses
topics such as conflicts of interest, bribery, gifts and
entertainment, and our commitment to sustainability.
Our Confidential Reporting Policy details how concerns
or issues in relation to misconduct, financial malpractice
or fraud, and breaches in regulation may be reported
confidentially. This Policy applies to all our business
activities and encourages employees, suppliers, and
contractors to report genuine issues and concerns
through our confidential reporting platform as soon
as they arise so they can be investigated thoroughly.
To ensure risks associated with bribery and corruption
are avoided, our Anti-Bribery and Corruption Policy
describes in detail the key rules which must always
be followed in respect of the giving and receiving
of gifts. There are value limits placed on all gifts and
hospitality and these may only be exceeded with the
prior authorisation of the Company Secretary and
Chief Financial Officer. To support this, each business
function is required to maintain a Gift and Hospitality
register which is overseen by the Company Secretary.
Our Actions
All our policies form part of our employee induction
training and are readily accessible online through
our information management system. Employees
must also confirm they have read, understood and
agree to adhere to the Group’s policies.
Policies relating to business conduct are also
publicly available on our website for our
Supply Chain Partners to access. Our Supplier
Code of Conduct applies to all our Suppliers,
Subcontractors and Service Providers, and is
provided during the tender process in addition
to being publicly available on our website.
Management of Suppliers
Whilst we require our Supply Chain to conduct
their business appropriately, we recognise we
are reliant on them to operate.
We provide fair, transparent, and timely payment
terms, allowing us to maintain relationships with
existing suppliers and attract new ones. These
prompt payment practices and how we manage
them, offer our supply chain a clear understanding
of when they will be paid, which allows them
to manage their cash flow accordingly. This is
especially beneficial to the SMEs we have in our
supply chain. Embedding these ethical practices
in all we do supports the long-term sustainability
of our business.
Governance continued
Business Conduct
Our continued emphasis on the highest standards
of corporate governance has provided the platform
for the business to focus on building sustainable
communities where people can thrive. This includes
conducting our business in a sustainable, responsible,
and ethical manner, and we expect our Suppliers,
Subcontractors and Service Providers (Our ‘Supply
Chain’) to conduct their business in the same way.
Governance continued
€2Billion+
Procured since 2015
64
Current Peak Net Promoter Score
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Governance continued
We are proud of the commitments we have
made to our supply chain and the relationships
and reputation we have cultivated through our
business conduct. Our commitment to these
relationships is demonstrated by the current
average tenure of our Top 20 Subcontractors
being 6 years. We believe collaboration with our
Supply Chain partners is paramount to achieving
our decarbonisation and sustainability goals,
and we are committed to maintaining strong
communication channels.
Our Supplier Code of Conduct, which we introduced
in 2024, is the next phase of this commitment and
is an integral part of our strategy to improve our
supply chain’s adherence to our environmental,
social and governance expectations.
“Cairn is an absolute leader in
terms of work management,
quality and final product output.
Communication is excellent
and the work is smooth, safe
and well organised.”
2024 SUBCONTRACTOR
SURVEY RESPONSE
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88
Strategic Report Corporate Governance Financial Statements
88
Sustainability
Disclosures
Through our disclosures we aim to transparently
communicate our performance and impacts on
a wide range of sustainability topics, spanning
environmental, social and governance parameters.
In this section:
89 SASB Standards Index
93 Additional Indicators
94 GRI Index
To ensure we report accurately and
transparently, we are continuously
developing and improving our processes
for non-financial data collection and
reporting.
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Disclosures
Our current disclosures are aligned to the standards and definitions set out by the IFRS Sustainability Accounting Standards Board (SASB)
1
, the Global Reporting Initiative (GRI), and the Task Force
on Climate Related Financial Disclosures (TCFD). We also report in line with Ireland’s Gender Pay Gap (GPG) Information Act 2021. Whilst we have been diligently preparing to report under the
Corporate Sustainability Reporting Directive (CSRD), which applied to the Company from 1 January 2025, we are closely monitoring the impacts from the recent Omnibus proposal, to see how
this may affect our current in-scope position. Regardless of the outcome of this proposal, we remain committed to continuously working to improve the way in which we collect and report non-
financial information.
SASB Standards Index
The activity metrics are reported as of the last day of the fiscal year, as per SASB
1
guidelines.
TOPIC SASB CRITERIA CODE 2024 DISCLOSURE
Activity Metrics Number of controlled lots IF-HB-000.A 15,523
Number of
homes delivered
IF-HB-000.B 2,241
2
units sold during 2024 including 51 commercial units
Number of active
selling communities
IF-HB-000.C There were new homes sales at 21 developments in 2024.
Land Use and
Ecological Impacts
Number of (1) lots and
(2) homes delivered on
redevelopment sites
IF-HB-160a.1 Cairn had 2,728 lots contractually available on redevelopment sites as at the end of 2024 (c.17% of our total landbank). The total number of lots
available is an estimate based on the expected future development potential of the landbank. In 2024, 847 (38%) of the 2,241 units sold were on
redevelopment sites.
Number of (1) lots and (2)
homes delivered in regions
with High or Extremely
High Baseline Water Stress
IF-HB-160a.2 No homes or lots in regions with High or Extremely High Baseline Water Stress.
Total amount of monetary
losses as a result of legal
proceedings associated
with environmental
regulations
IF-HB-160a.3 No losses were recorded (unchanged from 2023).
1 Homebuilders Sustainability Accounting Standard, Industry Standard | Version 2023-12, December 2023
2 This comprises both closed sales and equivalent units. Equivalent units relate to forward fund transactions which are calculated on a percentage completion basis based on the
constructed value of work completed divided by total estimated cost.
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Disclosures continued
TOPIC SASB CRITERIA CODE 2024 DISCLOSURE
Land Use and Ecological
Impacts (continued)
Discussion of process to
integrate environmental
considerations into site
selection, site design,
and site development
and construction
IF-HB-160a.4
Site Selection
Prior to acquisition all candidate sites are subject to a rigorous due diligence process which includes scoping of environmental and ecological
sensitivities and constraints. The process is led by our multi-disciplinary Planning Team with additional support from our Environmental Health
and Safety Team. We obtain additional expert scientific and engineering input on environmental issues that arise.
As part of this process all candidate sites are assessed under a number of environmental and sustainability criteria such as proximity to public transport
networks; access to schools, childcare and community facilities; greenfield or brownfield condition; known contamination; flood risk; and other
environmental impacts.
Site Design
At the commencement of site design all projects are scoped for Environmental Impacts. This process is led by our in-house Planning Team with
assistance from planning and environmental consultants. This establishes whether a full Environmental Impact Assessment Report (EIAR) is required
or a series of focussed impact assessments on key issues. The Impact Assessment is fully integrated with the design process and our baseline studies
and early impact assessment feeds back into the developed design. The EIAR is co-ordinated by the Planning Consultants who attend all design team
meetings to ensure full co-ordination and consideration of all issues.
Once the planning application for a project is submitted, the Cairn Environmental Team review all applicable environmental planning compliance
documents. This includes the Environmental Impact Assessment Report, Construction Environmental Management Plan (CEMP), Bat Report,
Appropriate Assessments, Ecological Impact Assessment, and others as appropriate.
Once all environmental planning compliance documents are reviewed, the Cairn Environmental Team engage with the site project manager to ensure
all environmental mitigation measures are addressed at the earliest stages of a project and monitored on an ongoing basis.
Site Development and Construction
Site-specific CEMP and a waste management plan are drafted by the Cairn Environmental Team for all sites and these address all environmental risks
associated with that site.
The CEMP will outline the environmental risks and detail best practice environmental management which will enable the site to proceed while limiting
its environmental impact. The waste management plan summarises how waste will be managed, stating the responsibilities within the site team, and
includes estimates of expected waste, and reusability of soil under Article 27 of the European Communities (Waste Directive) Regulations 2011.
The CEMP provides both the site team and Cairn Environmental Team a platform to work from and ensures all environmental risks are managed and
reduced. All environmental concerns raised by the public and/or any third-party regulatory body will be dealt with in a timely manner and addressed
immediately throughout the construction phase of a project.
Any environmental planning condition issued by the local authority will be addressed prior to works commencing. Cairn Homes will engage with third-
party environmental consultants to ensure compliance with a site’s environmental planning conditions. All necessary environmental monitoring will
be adhered to with all consultant reports saved and recorded for future reference.
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Disclosures continued
TOPIC SASB CRITERIA CODE 2024 DISCLOSURE
Workforce Health & Safety (1) Total recordable
incident rate (TRIR)
and (2) fatality rate for
(a) direct employees and
(b) contract employees
IF-HB-320a.1 1) TRIR = 2.18
2) There were no fatalities in 2024 nor were there any fatalities in previous years. Despite increasing our unit delivery by 179% from 804 in 2018 to
2,241
1
units in 2024, first aid and accident events across our sites have declined: from 241 in 2018 to 120 in 2024. 2024 Health & Safety Incidents are as
follows: Direct employees: 13 work-related health & safety incidents were recorded in 2024, of which 5 were first aid treated and 8 were reported to
the Health and Safety Authority of Ireland in line with our statutory obligations. Contractor incidents on our sites: 107 work-related health & safety
incidents recorded in 2024, of which 64 were first aid treated, 28 counted as accidents and 15 were reported to the Health and Safety Authority of
Ireland in line with our statutory obligations.
Total: 120 incidents of which 72 were categorised as first aid, 28 counted as accidents and 20 were reported to the Health and Safety Authority of
Ireland in line with our statutory obligations.
Design for Resource
Efficiency
(1) Number of homes
that obtained a certified
residential energy
efficiency rating and
(2) average rating
IF-HB-410a.1 In Ireland, all homes are subject to our Building Energy Ratings (BER) assessment. (1) All our homes sold in 2024 are BER rated (2) A rating is our average,
with all homes rated A2 or A3: BER ratings range from A1, most efficient, to G.
Percentage of installed
water fixtures certified
to a water efficiency
standard
IF-HB-410a.2 We ensure that all of our homes are fitted with water fixtures that aim to minimise the amount of water used by the homeowner, and their
performance is rated by the DEAP software used in the BER assessments (See above).
Number of homes
delivered certified to
a third-party multi-
attribute green
building standard
IF-HB-410a.3 To date, we certify our homes to the BER standard and all of our homes are Arated. Additionally, our homes are NZEB compliant and meet strict
energy use and resource efficiency standards. During 2022 we began assessing homes on new sites in line with the Home Performance Index, a multi-
attribute green building certification explicitly designed for homes that are available in Ireland. This practice is now standard for all new site activations.
Description of risks and
opportunities related to
incorporating resource
efficiency into home
design, and how benefits
are communicated
to customers
IF-HB-410a.4 Ireland has one of the most rigorous energy standards for new homes in Europe, and we design the homes to build to meet or exceed these standards,
as well as other efficiency standards defined by planning authorities and Government, as well as EU regulation.
Homebuyers are increasingly demanding greater resource efficiency, driven by climate-related concerns, rising energy costs, sustainability demands
and lender preferences. This creates a dynamic landscape for home design which can give rise to increasing development costs and, where
expectations are not met, adverse impacts on the value of the homes we build. This gives rise to a variety of development, financial and compliance
risks, as well as opportunities.
As part of Cairn’s sustainability commitments, we constantly seek new ways to improve the resource efficiency of the homes we build. This ensures
we remain at the forefront of sustainable home design, so meeting the demands of our target market. This means developing homes that use more
sustainable building materials such as timber frames in our houses, always meeting a Building Energy Rating of A or above and researching new
materials to pilot through our employee Innovation Forum who are tasked with reviewing and improving current ways of working as well as testing
modern methods of construction to ensure we remain at the forefront of sustainable innovations in construction.
The building energy rating of the homes we build is one of the core benefits to our home buyers and is communicated through all marketing materials
for our developments. Our Annual and Sustainability Reports are available to the public such that key information is available to all interested
stakeholders. Additionally, our corporate social media accounts are used to communicate with a broad range of stakeholders on innovation and
change at Cairn Homes.
1 This comprises both closed sales and equivalent units. Equivalent units relate to forward fund transactions which are calculated on a percentage completion basis based on the constructed value of work completed divided by total estimated cost.
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Disclosures continued
TOPIC SASB CRITERIA CODE 2024 DISCLOSURE
Community Impacts of
New Developments
Description of how
proximity and access to
infrastructure, services,
and economic centres
affect site selection and
development decisions
IF-HB-410b.1 Proximity to services and public transport is a central tenet of our sustainable development model and is a strategic consideration in site selection.
Prior to acquisition all candidate sites are subject to a rigorous due diligence process which includes scoping of environmental and ecological
sensitivities and constraints. The process is led by our multi-disciplinary Planning Team with additional support from our Environmental Health and
Safety Team. We obtain additional expert scientific and engineering input on environmental issues that arise. Our Corporate Development Team
evaluate the local amenities and transport links available to our prospective customers. As part of this process all candidate sites are assessed under
a number of criteria including proximity to public transport networks; access to schools, childcare and community facilities; greenfield or brownfield
condition; known contamination; and other environmental impacts. We build quality homes in great locations; in practice this means that we build
close to existing public transport nodes and urban centres. A map showing the locations of our developments is available on page 6, demonstrating
our strategic commitment to this priority. 100% of all active developments are within 1km of a public transport node and many are connected to
road and rail as well as sustainable transport options such as cycleways. We provided 33 acres of new public parks and green infrastructure in 2024,
contributing to the 133 acres of open space provided since the company was founded.
Number of (1) lots and (2)
homes delivered on infill
sites
IF-HB-410b.2 1) Cairn had 1,720 lots contractually available on infill sites as at the end of 2024 (c.11% of our total landbank). The total number of lots available is an
estimate based on the expected future development potential of the landbank. 2) In 2024, 588 (26%) of the 2,241
1
homes sold were on infill sites.
(1) Number of homes
delivered in compact
developments and (2)
average density
IF-HB-410b.3 1) Cairn had c.15,500 lots contractually available on compact developments as at the end of 2024. The total number of lots available is an estimate
based on the expected future development potential of the landbank. In 2024, 2,241 (100%) of units sold were on compact developments.
2) The average density for Cairn developments planned in 2024 is
• Future Sites (planned for development but not commenced in the reporting period): 80 units per Hectare;
• Active Sites (where construction is under way): 78 units per Hectare; and
• Sales Sites (where construction is complete and sales are ongoing): 71 units per Hectare.
Climate Change
Adaptation
Number of lots located in
100-year flood zones
IF-HB-420a.1 None of our homes are within flood zones. Where part of a site is within a potential flood zone this area is incorporated in the open space design to
ensure no risk to property. 100% of our developments incorporate Sustainable Urban Drainage Systems designed to accomodate once-in-100-year
flood events.
Description of climate
change risk exposure
analysis, degree of
systematic portfolio
exposure, and strategies
for mitigating risks
IF-HB-420a.2 Climate change risk is considered on the basis of risks associated with its exposure to the transition to a carbon-neutral economy, and physical risks
affecting construction activity and developments. When considering climate change risks, we seek to identify and consider all material existing and
emerging factors relevant to the business’s core activities, including policy risk, brand risk, economic risks, development risks, and compliance risks.
Risks are assessed for likelihood and materiality based on a range of financial and non-financial factors. All risks (other than low risks) are managed and
alleviated unless they are accepted by the business, with high risks being tolerable only with the approval of the Board, and extreme risks not being
tolerated in any circumstances. In line with our risk management framework, decisions on how risks are to be managed are determined on a case-by-
case basis, informed by a range of factors that are considered in the context of the specific risk and its wider business impact.
Please see our TCFD disclosures on pages 58 to 63 for further information.
1 This comprises both closed sales and equivalent units. Equivalent units relate to forward fund transactions which are calculated on a percentage completion basis based on the constructed value of work completed divided by total estimated cost.
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Disclosures continued
ADDITIONAL INDICATORS DEFINITION/CRITERIA FRAMEWORK 2024 RESULTS AND PROGRESS COMPARED TO 2023
Gender Pay Gap GPG Information Act 2021 Our mean Gender Pay Gap is 30%. Our median Gender Pay Gap is 29%. Please see page
126 for more information. We report our Gender Pay Gap in line with Irish legislation and
a full report detailing our pay gap, and the actions we are taking to close it, is available on
our website.
Number of graduates/apprentices/
trainees enrolled in reporting year
Industry 19 Interns and 24 Graduates hired during 2024.
Percentage of sites with biodiversity
impact assessments in place.
Industry 100% of our developments meet this standard.
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Disclosures continued
GRI Index
Disclosure Title and Description
Disclosure
Number Performance and Disclosures
GENERAL DISCLOSURES
GRI 2: GENERAL DISCLOSURES
THE ORGANISATION & ITS REPORTING PRACTICES
Organisational details 2.1 Cairn Homes PLC, 45 Mespil Road, Dublin 4, Ireland, D04 W2F1
Cairn operates only in Ireland
Entites included in organisation’s
sustainablity reporting
2.2 Entities within the Group
Principal Activity Company’s Holding
Group Company Direct Indirect
Cairn Homes Holdings Limited Holding company 100% –
Cairn Homes Properties Limited Holding of property – 100%
Cairn Homes Construction Limited Construction company – 100%
Cairn Homes Butterly Limited No activity in period 100% –
Cairn Homes Galway Limited Holding of property 100% –
Cairn Homes Killiney Limited No activity in period 100% –
Cairn Homes Finance Designated Activity Company Financing activities 100% –
Cairn Homes Montrose Limited Holding of property 100% –
Balgriffin Investment No.2 HoldCo Designated Activity Company Holding company 100% –
Cairn Homes Property Holdco Limited Holding company – 100%
Cairn Homes Property Holding Three Limited No activity in period – 100%
Balgriffin Investment No.2 Designated Activity Company No activity in period – 100%
Reporting period, frequency and contact point 2.3 Our reporting period is the calendar year for 2024 and this aligns to our financial reporting period. Our preliminary financial results were published on 27 February 2025.
Restatements of information 2.4 To ensure we report accurately and transparently, we are continuously developing and improving our processes for non-financial data collection and reporting.
Following improvements made during 2024 in both areas, and at the recommendation of our external advisors who assist us in the data collection and reporting
landscape, we are restating our 2023 disclosures made under GRI 305-3 and 305-4 to ensure we continue to follow best practice and guidance.
External assurance 2.5 We have undertaken assurance readiness assessments annually, since 2021. The results of these assessments guide our approach to determining our policies and
processes, as well as our data collection, verification, and testing methods. Additionally, we obtain external assurance on several KPIs annually, in conjunction with
our sustainability-linked loan (SLL).
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Disclosure Title and Description
Disclosure
Number Performance and Disclosures
ACTIVITIES & WORKERS
Activities, value chain and other
business relationships
2.6 Cairn is an Irish homebuilder. Our activities primarily comprise the building of houses, duplexes, and apartments. Commercial buildings and infrastructure
comprise a smaller share of our activities where needed, to support a new housing development or the existing community in which we are building.
Cairn operates only in Ireland, predominantly in the greater Dublin area.
Employees 2.7 Diversity by Gender and Age
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 400 69 272 59 341 56 237 48
Female 99 16 75 8 87 13 69 5
Male 301 53 197 51 254 43 168 43
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 100% 18% 68% 15% 100% 16% 70% 14%
Female 25% 23% 28% 14% 26% 23% 29% 10%
Male 75% 77% 72% 86% 74% 77% 71% 90%
Workers who are not employees 2.8 This data is not collected centrally at present. We have 400 direct employees. Typically, we also have c.200 employees who are contracted to work for Cairn and
are under our direct supervision. This quantum can vary depending on the stage of development, time of year, and other factors. There are typically an additional
c.2,100 employees who are not part of our day-to-day supervision but who are working on our sites on any given day. This supports 5,500 jobs in total.
GOVERNANCE
Governance structure and composition 2.9 Please see page 106 and 107.
Nomination and selection of the highest
governance body
2.10 Please see page 124.
Chair of the highest governance body 2.11 Chairman of the Board, John Reynolds.
Delegation of responsibility
for managing impacts
2.13 Please see pages 58 to 63, and 85.
Role of the highest governance body
in sustainability reporting
2.14 Please see page 85.
Conflicts of Interest 2.15 Please see page 114.
Communication of critical concerns 2.16 Please see page 86.
Collective knowledge of the highest
governance body
2.17 Please see page 126.
Remuneration policies 2.19 Please see pages 128 to 144.
Process to determine remuneration 2.20 Please see pages 128 to 129.
Annual total compensation ratio 2.21 Please see pages 133.
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Disclosure Title and Description
Disclosure
Number Performance and Disclosures
STRATEGY, POLICIES AND PRACTICES
Statement on sustainable
development strategy
2.22 Please see pages 10 & 11 of the Cairn Homes PLC 2023 Sustainability Report.
Compliance with laws and regulations 2.27 There were no significant instances of non-compliance to report in the period.
Significant instances would include those where legal action is taken, and would not include simple fines for minor breaches.
STAKEHOLDER ENGAGEMENT
Approach to stakeholder engagement 2.29 Please see pages 30 to 32.
MATERIAL TOPICS
GRI 3: MATERIAL TOPICS
Process to determining material topics 3.1 Please see pages 52 & 53.
List of material topics 3.2
Please see page 14 of the Cairn Homes PLC 2022 Sustainability Report.
These will be updated in our 2025 reporting with the results of our Double Materilaity Assessment.
Management of material topics 3.3
Please see page 14 of the Cairn Homes PLC 2022 Sustainability Report.
These will be updated in our 2025 reporting with the results of our Double Materilaity Assessment.
GRI 201: ECONOMIC PERFORMANCE
Financial implications and other risks
and opportunities due to climate change
201-2 Please see pages 58 to 63 where our TCFD disclosures are set out.
Financial assistance received
from the Government
201-4 The Group did not avail of any subsidies or tax credits during the period and has not done so since the company was founded in 2015.
GRI 205: ANTI CORRUPTION
Operations assessed for risks
related to corruption
205-1 Please see page 86 and the Company’s Anti-Bribery & Corruption Policy available on our website.
GRI 206: ANTI COMPETITIVE BEHAVIOUR
Legal actions for anti-competitive behaviours,
anti-trust and monopoly practices
206-1 There were no legal actions relating to anti-competitive behaviour and violations of anti-trust and monopoly legislation.
GRI 302: ENERGY
Topic management 3.3 Please see our Climate Action Policy.
Total energy consumption
within the organization
302-1 15,260,678 is the total absolute kWh for FY24 including gas, electricity, diesel and petrol purchased by Cairn. (2023: 13,050,001, 2022: 10,647,906)
Energy intensity ratio for the organization 302-3 15,260,678 is the total absolute kWh for FY24 including gas, electricity, diesel and petrol purchased by Cairn. The intensity value reflects kWh per home sold
in FY24 of 6,810 kWh per completion (there were 2,241
2
units sold in the year). The number of sqm sold was 182,159 so our intensity = 83.78 kWh per sqm sold
in FY24
.1.
Reduction of energy consumption 302-4 Although the total quantum of energy purchased has increased from 13,050,001 kWh in 2023 to 15,260,678 kWh in 2024, we have increased the share of
renewable energy sources, thereby reducing total emissions from that energy use.
1 It is important to note that these intensity values do not reflect the energy in use of a Cairn-built home, rather it is a means of assessing the energy used by Cairn over 12 months for a given level of output. This allows like-for-like comparisons to be made year on year as we
scale the business and increase output.
2 This comprises both closed sales and equivalent units. Equivalent units relate to forward fund transactions which are calculated on a percentage completion basis based on the constructed value of work completed divided by total estimated cost.
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Disclosure Title and Description
Disclosure
Number Performance and Disclosures
GRI 303: WATER AND EFFLUENTS
Topic management 3.3 Please see our Environmental Policy.
Interactions with water as a shared resource 303-1 Cairn’s main use of water is for dust suppression during the construction phase, and for module cleaning in the operations phase of our projects. Various water
sources are used in different locations including groundwater and potable water from municipal water networks.
Management of water
discharge-related impacts
303-2 Cairn liaises with all relevant authorities where any water discharge from sites is required. All licencing requirements are incorporated into the planning of sites.
Cairn also liaises with the water services provider to ensure that all water discharges are compliant with their requirements. All by-products are assessed, and
based on this assessment, mitigation requirements will vary. For example: surface water discharge is managed through the use of silt tanks.
Water withdrawal 303-3 This data is not currently available in a consolidated format.
Water discharge 303-4 This data is not currently available in a consolidated format.
Water consumption 303-5 This data is not currently available in a consolidated format.
GRI 304: BIODIVERSITY
Topic management 3.3 Please see page 66-68 and our Biodiversity Policy.
Habitats protected or restored 304-3 Please see page 66-68.
GRI 305: GHG EMISSIONS
Topic management 3.3 Please see our Climate Action Policy.
Gross direct (Scope 1) GHG emissions 305-1 638 tCO
2
e (2023: 793; 2022: 1,680; 2021: 1,522; 2020: 1,741; 2019: 1,664).
Gross location and market-based energy
indirect (Scope 2) GHG emissions
305-2 240 tCO
2
e (2023: 241; 2022: 299; 2021: 695; 2020: 626; 2019: 862).
Other indirect (Scope 3) GHG emissions
by category (including embodied carbon)
305-3 326,369 tCO
2
e (2023: 259,393; 2022: 237,132; 2021: 177,138; 2020: 130,235; 2019: 217,711)
1.79 tCO
2
e per sqm (2023: 1.60; 2022: 1.59; 2021: 1.49; 2020: 1.54; 2019: 1.73).
GHG emissions intensity 305-4 327,246 is the total emissions tCO
2
e for FY24 for Scope 1, Scope 2 and Scope 3. The intensity value reflects tCO
2
e per unit sold in FY24 of 146 tCO
2
e per completion
(there were 2,241
1
units sold in the year). The number of sqm sold was 182,159 so our intensity = 1.80 tCO
2
e per sqm sold in FY24.
2024 Emissions Increase Disclosure.
Cairn has taken immediate action which has helped us exceed our 2030 Scope 1 & 2 reduction target, resulting in our emissions being reduced by 65.2% to date from a 2019 baseline. We also committed to a 61% Scope 3 intensity
reduction by 2030. Our 2024 Scope 3 emissions intensity increased by 3.8% on our 2019 baseline. This increase is largely due to a change in the unit mix for 2024 which saw more apartment units being completed than houses,
and as these high-density units require greater quantities of concrete and steel, they are currently more carbon-intensive than our timber-framed houses. We fully expect that as the concrete and steel industries decarbonise, and
alternative structural solutions including mass timber are approved for use in multi-storey buildings in Ireland in the coming years, this will reverse, and in conjunction with other initiatives Cairn will drive over the next number of
years, will assist us in achieving our Scope 3 reduction targets.
One of these initiatives introduced during 2024 was the commencement of 1,750+ units built to the Passive House standard, 515 of which are included in our 2024 emissions calculations. Due to change in the unit recognition
methodology in the business in 2024, and to ensure we continue to measure our carbon emissions on a consistent basis with how the business recognises units, we have only recognised a portion of the units commenced to the
Passive standard in our 2024 calculations.
Having completed detailed analysis of our Scope 3 emissions calculations, the application of the Passive House standard to these 515 units reduced our Scope 3 emissions intensity by 5.4%. We look forward to recognising the
emissions savings associated with the remaining Passive units in the near term.
1 This comprises both closed sales and equivalent units. Equivalent units relate to forward fund transactions which are calculated on a percentage completion basis based on the constructed value of work completed divided by total estimated cost.
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Disclosure Title and Description
Disclosure
Number Performance and Disclosures
GRI 306: EFFLUENTS AND WASTE
Topic management 3.3 Please see our Environmental Policy.
Total weight of waste generated including
breakdown by disposal route
306-3,306-4 10,250 tonnes of general waste was generated in 2024 (12,207 tonnes in 2023). 2.8%, 286 tonnes was sent to landfill (3.6% or 443 tonnes in 2023). 97.2% was
either recycled or recovered (96.4% in 2023), of which 1,599 tonnes were recycled (1,869 tonnes in 2023) and 8,365 tonnes were recovered (9,895 tonnes in 2023).
GRI 307: ENVIRONMENTAL COMPLIANCE
Topic management 3.3 Please see pages 56 to 57.
Environmental non-compliance 307-1 There were no significant instances of non-compliance to report in the period. Significant instances would include those where legal action is taken, and would
not include simple fines for minor breaches.
GRI 401: EMPLOYMENT
Topic management 3.3 Please see page 74 to 77.
New employee hires and employee turnover 401-1 The employee turnover for the period was 65 employees or 16% of our average headcount for the year.
Total number and rate of new employee hires 401-1 Turnover by Gender and Age
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 16% 31% 13% 12% 23% 58% 16% 19%
Female 12% 12% 13% 0% 27% 38% 22% 60%
Male 18% 37% 13% 14% 22% 64% 14% 14%
Hiring by Gender and Age
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 168 67 91 10 93 35 49 9
Female 41 18 20 3 22 5 14 3
Male 127 49 71 7 71 30 35 6
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 100% 40% 54% 6% 100% 38% 53% 10%
Female 24% 27% 22% 30% 24% 14% 29% 33%
Male 76% 73% 78% 70% 76% 86% 71% 67%
Benefits provided to full-time employees
that are not provided to temporary or
part-time employees
401-2 Benefits including life insurance, health care, and parental leave are available to all employees.
Pension coverage is available to all employees; however, employer contributions for Fixed Term Contract employees are dependent on the length of the contract.
All employees were awarded the maximum Benefit in Kind (BIK) exemption of €1,000 in line with the Budget 2024 through prepaid gift cards. This benefit is
dependent on start date conditions, where employees must be employed in Cairn for between 1 to 3 months to be eligible.
Cairn has one significant location of operation: Ireland.
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Disclosure Title and Description
Disclosure
Number Performance and Disclosures
GRI 401: EMPLOYMENT CONTINUED
Parental Leave 401-3 Parents in Ireland are entitled to both Parental leave and Parents’ leave, two categories of unpaid leave protected under Irish legislation.
Parental leave consists of an entitlement to 26 weeks of unpaid leave available to be used until a child turns 12 while Parents’ leave comprises nine weeks and is
available until the child turns 2. Parental leave is fully unpaid, Parents Leave is paid by the Government Department for Social Protection.
Separately, parents are entitled to either Maternity or Paternity leave following the birth of a child of 26 weeks ordinary and an additional 16 weeks unpaid
Maternity leave and 2 weeks’ Paternity leave respectively, again this is protected under Irish legislation.
At Cairn, we offer the mandatory Parental and Parents’ leave entitlements along with enhanced Maternity and Paternity benefits: employees can access 26 weeks
of paid maternity leave and 2 weeks of paid paternity leave after 1 year’s tenure. This leave is available only to full time permanent employees. Below 1 year’s
tenure, employees receive state benefit only.
The number of employees entitled to such leave can only be estimated by those who self-report becoming parents or being parents of older children. There may
be employees who are parents but who have not made this known to Cairn despite the range of benefits on offer.
14 female employees and 25 male employees were entitled to some form of Parental Leave as described above in 2024.
Parental Leave Tables
Employees that took Leave Employees that returned to work Return Rate 2024
Leave Type Male Female Male Female Male Female
Maternity 0 3 0 2 67%
Paternity 18 1 18 1 100% 100%
Parental 4 7 4 7 100% 100%
Parents’ 9 7 9 7 100% 100%
Retention Rates, all parental leave types Male Female
Returned from leave in 2023 12 6
Remained employed 12 months later 9 4
Retention rate 75% 67%
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Disclosure Title and Description
Disclosure
Number Performance and Disclosures
GRI 403: OCCUPATIONAL HEALTH & SAFETY
Topic management 3.3 Please see page 74.
Occupational health and safety 403-1 In compliance with current and new legislation and regulatory requirements, we currently work to an ‘A’ rating Safe-T-Cert accreditation. This management system
and structure enables us to manage all interactions from pre-construction to turn-key product completion. Our safety management system is aligned to ISO
45001 and we achieved ISO certification in 2023 following completion of Stage 1 and Stage 2 audits which were performed without any non-conformances.
Our Health & Safety policy and systems enable us to manage and co-ordinate all aspects of safety, health and welfare of all personnel (both direct staff and
subcontractors). Our structure allows us to engage with all personnel, provide training and supervision and collaborate with all contractor principles to review
and streamline the safety culture across the business. We ensure that consultation takes place between management, employees, contractors and others
on all health & safety-related matters and employees are encouraged to notify management of identified hazards in the workplace. All employees have the
responsibility to co-operate with supervisors and management to achieve a healthy and safe workplace and to take reasonable care of themselves and others.
We are committed to the following policy objectives to ensure:
• Continuous improvement in the safe systems of work adapted through all aspects of the organisation;
• Continuous improvement and development of the Safety Culture within the company;
• Continuous development of employees through CPD training;
• Continuous communication of workplace hazards and information across all sites and departments; and
• Continuous review and provision of information to contractors through site meetings safety bulletins.
Worker training on occupational
health and safety
403-5 Please see page 74.
Prevention and mitigation of occupational
health and safety impact
403-7
Please see page 74, as well as our Health & Safety Policy.
Work-related injuries 403-9 Despite increasing our unit delivery by 179% from 804 in 2018 to 2,241
1
homes in 2024, first aid and accident events across our sites have declined: from 241
in 2018 to 120 in 2024. There were no fatalities in 2024 nor were there any fatalities in previous years. 2024 Health & Safety Incidents are as follows: Direct
employees: 13 work-related health & safety incidents were recorded in 2024, of which 5 were first aid treated and 8 were reported to the Health and Safety
Authority of Ireland in line with our statutory obligations. Contractor incidents on our sites: 107 work-related health & safety incidents recorded in 2024, of
which 64 were first aid treated, 28 counted as accidents and 15 were reported to the Health and Safety Authority of Ireland in line with our statutory obligations.
Total: 120 work-related health & safety incidents, of which 72 were categorised as first aid, 28 counted as accidents and 20 were reported to the Health & Safety
Authority of Ireland in line with our statutory obligations. Total Recordable Incident Rate (‘TRIR’) = 2.18.
GRI 404: EDUCATION & TRAINING
Topic management 3.3 Please see page 77.
Percentage of employees receiving regular
performance career development reviews
404-3 100% of employees received a regular performance and career development review.
1 This comprises both closed sales and equivalent units. Equivalent units relate to forward fund transactions which are calculated on a percentage completion basis based on the constructed value of work completed divided by total estimated cost.
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Disclosure Title and Description
Disclosure
Number Performance and Disclosures
GRI 405: DIVERSITY & EQUAL OPPORTUNITY
Topic management 3.3 Please see page 76 and our policies on Board Diversity.
Percentage of women on the board and in
management (diversity of governance bodies
and employees)
405-1 There are 3 women on our Board of 9 (33.3% female), while our Senior Leadership Team is comprised of 8 men and 2 women i.e. 20% women, 25% of the average
headcount of 400 employees over the course of 2024 were women.
Diversity by Gender and Age
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 400 69 272 59 341 56 237 48
Female 99 16 75 8 87 13 69 5
Male 301 53 197 51 254 43 168 43
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 100% 18% 68% 15% 100% 16% 70% 14%
Female 25% 23% 28% 14% 26% 23% 29% 10%
Male 75% 77% 72% 26% 74% 77% 71% 90%
Turnover by Gender and Age
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 16% 31% 13% 12% 23% 58% 16% 19%
Female 12% 12% 13% 0% 27% 38% 22% 60%
Male 18% 37% 13% 14% 22% 64% 14% 14%
Hiring by Gender and Age
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 168 67 91 10 93 35 49 9
Female 41 18 20 3 22 5 14 3
Male 127 49 71 7 71 30 35 6
2024 2023
All 0-30 30-50 50+ All 0-30 30-50 50+
All 100% 40% 54% 6% 100% 38% 53% 10%
Female 24% 27% 22% 30% 24% 14% 29% 33%
Male 76% 73% 78% 70% 76% 86% 71% 67%
Ratio of basic salary and remuneration
of women to men
405-2
Our mean Gender Pay Gap is 30%. Our median Gender Pay Gap is 29%. Please see page 126 for more information. We report our Gender Pay Gap in line with Irish
legislation and a full report detailing our pay gap, and the actions we are taking to close it, are shared in the report, which is available on our website.
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Disclosure Title and Description
Disclosure
Number Performance and Disclosures
GRI 406: NON-DISCRIMINATION
Topic management 3.3 Please see our policies on Dignity at Work and Equality, Diversity, & Inclusion.
Incidents of discrimination and corrective
actions taken
406-1 There were no incidents of discrimination across our operations in the reporting period.
GRI 411: RIGHTS OF INDIGENOUS PEOPLE
Incidents of violations involving rights of
indigenous peoples
411-1 This is not relevant in our jurisdiction, Ireland.
GRI 413: LOCAL COMMUNITIES
Topic management 3.3 Please see page 81 to 83.
Operations with local community
engagement, impact assessments,
and development programs
413-1 100% of operations with implemented local community engagement, impact assessments and/or development programmes.
Operations with significant actual and potential
negative impacts on local communities
413-2 Please see page 81 to 83.
GRI 414: SUPPLIER SOCIAL ASSESSMENT
New suppliers that were screened using
social criteria
414-1 We have not reached the stage where we screen our suppliers based on social criteria; however, we are careful to work with reputable subcontractors and
suppliers, ensuring we continue to build on the high standards we have set to date.
In 2022, we commenced a programme to address Responsible Sourcing. Through the programme we engaged with our supply chain to determine their maturity
and to understand the most appropriate and necessary policies and screening criteria to use going forward. Additionally in 2023 we became a Founding Partners
of the Supply Chain Sustainabilty School (SCSS) Ireland.
For further information, please see page 79.
GRI 416: CUSTOMER HEALTH & SAFETY
Incidents of non-compliance concerning
health & safety of products and services
416-2 Cairn received no Health & Safety warnings in 2024. Where inspections of sites have been carried out, reports on Health & Safety performance and activity have
been issued to the Audit & Risk Committee.
Disclosures continued
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Disclosures continued
To find out more about our policies visit:
www.cairnhomes.com/about/our-policies
Environment
Sustainability
Biodiversity
Climate Action
Environmental
Sustainable Procurement
Social
Anti-Slavery
Dignity at Work
Equality, Diversity and Inclusion
Health and Safety
Gender Pay Gap Report
Supplier Code of Conduct
Governance
Anti-bribery
Anti-trust
Business Continuity
Board Diversity
Confidential Reporting
Conflicts of Interest Policy
Cairn Homes plc | Annual Report 2024
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Corporate GovernanceStrategic Report Financial Statements
Corporate
Governance
In this section:
105 Board Highlights
106 Board of Directors
108 Senior Leadership Team
110 Corporate Governance Report
118 Audit & Risk Committee Report
122 Nomination Committee Report
128 Directors’ Remuneration Report
146 Directors’ Report
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Board Highlights
Our Yea r
in Review
The Board defines the Company’s purpose and sets
a strategy to deliver it, underpinned by the values
and behaviours that shape its culture and the way
it conducts its business.
BOARD AND COMMITTEE MEETINGS
BOARD GENDER DIVERSITY
AT 1 JANUARY 2025
Male 5
Female 4
11
Board
Meetings
6
Audit & Risk
Committee Meetings
8
Nomination
Committee Meetings
5
Remuneration
Committee Meetings
Site Walks
• Health & Safety focused site walks with
Audit & Risk Committee members.
• Sustainability site walk (focused on
Passive building, biodiversity and waste)
by Director responsible for Sustainability
and Environmental Impact.
• Board site walk focused on sustainability,
scale and programme management.
• Tour of ‘the Rig’, our mobile training centre.
Workforce Engagement Director
Several employee engagement meetings
with various groups of employees focused
on key areas from employee engagement
survey responses. Read more about this on
page 125.
Shareholder Engagement
Nomination Committee Chair met with
several shareholders to discuss Board
succession planning and diversity at Board
and senior leadership levels
Passive Position Paper
Attendance of the Chairman and a Non-
Executive Director at the launch of Cairn’s
Passive House Position Paper on the 10th
of September 2024.
External Board Evaluation
Process conducted, questionnaires and
interviews with group feedback session. Read
more about this on page 112.
Community Initiatives
Attendance of several Board members at the
launch of Cairn Community Games in January
2024. Read more about this on page 23.
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Board of Directors
John Reynolds (66)
Chairman
Appointed: 28 April 2015
Skills and experience:
John Reynolds was previously Chief
Executive Officer of KBC Bank Ireland plc
(2009 to 2013) and President of the Irish
Banking Federation (2012 to 2013), during
which time he was also a board member of
the European Banking Federation. John was
also formerly a Non-Executive Director of
the National Concert Hall and Business in
the Community Ireland. John is a Chartered
Director, an Economics graduate of Trinity
College Dublin, and holds a Master’s degree
in Banking and Finance from University
College Dublin.
Other current appointments:
President of the Institute of Directors Ireland,
Non-Executive Director of Computershare
Investor Services (Ireland) Limited, and
Senior Advisor in Alantra Credit Portfolio
Advisors Ireland.
Michael Stanley (59)
Chief Executive Officer (CEO)
Appointed: 12 November 2014
Skills and experience:
Michael Stanley co-founded Cairn Homes
plc and was appointed CEO prior to the IPO
in June 2015. Michael has a strong pedigree
in residential development and the broader
property industry. He was previously CEO of
Stanley Holdings, a large Irish homebuilder and
real estate investment company. Michael also
has extensive experience in the packaging,
energy, agritech and healthcare sectors.
Other current appointments:
Board Member of IBEC Ireland.
Richard Ball (47)
Chief Financial Officer (CFO)
Appointed: 10 April 2024
Skills and experience:
Richard was previously Partner in Urbeo
Residential, one of Ireland’s leading residential
property businesses. Prior to that, he was
Chief Investment Officer at Hibernia REIT
plc, an Irish real estate company, for a period
of five years from its IPO. Richard also held
several corporate finance roles at various
organisations including at commercial
property company, Clancourt Group.
Other current appointments:
None.
Julie Sinnamon (66)
Non-Executive Director
Appointed: 15 September 2021
Skills and experience:
Julie Sinnamon brings deep experience in
assisting Irish businesses to grow and scale
having had a highly successful career at
Enterprise Ireland where she held a number
of senior roles including the position of CEO
from 2013 until her retirement in 2021. Julie is
a business graduate of the University of Ulster,
holds a Master’s in International Business from
Fordham University, USA and is a graduate of
the Stanford Executive Programme, USA.
Other current appointments:
Chair of European Movement Ireland and
APC Ltd, Director of PwC Ireland Public
Interest Body, Insurance Ireland, The
Agricultural Trust and The Young Scientist &
Technology Exhibition. Julie is also Chair of
the Implementation Oversight Group for the
Commission on the Defence Forces and a
member of the External Oversight Body of the
Defence Forces.
Committee Membership:
Chair of the Nomination Committee and
member of the Audit & Risk Committee.
Linda Hickey (63)
Non-Executive Director
Appointed: 12 April 2019
Skills and experience:
Linda Hickey is a highly experienced non-
executive director. She was previously Head of
Corporate Broking at Goodbody Stockbrokers,
where she worked for 15 years, and where she
advised clients on a range of capital markets
and corporate governance matters. Prior to
this, Linda worked at both NCB Stockbrokers
in Dublin and Merrill Lynch in New York. Linda
also has a degree in Business Studies from
Trinity College Dublin. Linda was also formerly
Chair of the Irish Blood Transfusion Service.
Other current appointments:
Non-Executive Director at Kingspan Group plc
and Greencore Group plc; and Member of the
Investment Committee of the Irish Strategic
Investment Fund.
Committee Membership:
Senior Independent Director, Chair of
Remuneration Committee and member of
Audit & Risk Committee.
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Orla O’Gorman (52)
Non-Executive Director
Appointed: 10 November 2021
Skills and experience:
Orla O’Gorman spent seven years at the Irish
Stock Exchange (“ISE”), where she was Head
of Equity. She was centrally involved in
the sale of the ISE to Euronext in 2018 and,
following that transaction, was appointed
as Head of Listing for UK and Ireland. Prior to
joining the ISE, Orla founded OR Associates,
and previously held senior management
positions at Eurologic Systems, ABN AMRO
and PwC. Orla is a Chartered Accountant, holds
a Bachelor of Commerce from University
College Dublin and a Master of Accounting
from UCD Smurfit School.
Other current appointments:
Non-Executive Director of Mincon Group plc,
Bons Secours Hospital System CLG and Elite
SpA. Member of Scale Ireland Steering Group,
Chartered Accountants Ireland Ethics and
Governance Committee and Sustainability
Expert Working Group.
Committee Membership:
Chair of the Audit & Risk Committee (from
1 January 2025), member of the Nomination
Committee and Director responsible for
Workforce Engagement.
Giles Davies (56)
Non-Executive Director
Appointed: 28 April 2015
Skills and experience:
Giles Davies qualified as a Chartered
Accountant with PwC in London and spent
five years in management consultancy
in London and New York. He went on to
establish Conservation Capital, a leading
international practice in the emerging field
of conservation enterprise, ESG and related
investment financing. He previously served
as Non-Executive Chairman of Wilderness
Scotland and Capital Management &
Investment plc, and as a non-executive
director of Algeco Scotsman Group.
Other current appointments:
None.
Committee Membership:
Member of the Nomination Committee
and the Remuneration Committee, and
Director responsible for Sustainability &
Environmental Impact.
Bernard Byrne (56)
Non-Executive Director
and Chair-Designate
Appointed: 1 January 2025
Skills and experience:
Bernard most recently served as CEO of
J+E Davy, Ireland’s largest independent
stockbroking and wealth management
business, and led the subsequent sale of the
business and its integration into the Bank
of Ireland Group plc. Prior to this, Bernard
served as CEO of AIB Group plc leading the
successful rationalisation and IPO of the
bank. Before joining AIB Group, Bernard was
Group Finance and Commercial Director at
ESB, Deputy CEO and Finance Director of IWP
International plc and Commercial Director
of ESB International. Bernard is a Chartered
Accountant, having qualified with PwC,
and also a Certified Bank Director.
Other current appointments:
Co-Chair of Balance for Better Business
and Chairman of SOAR.
Orla O’Connor (55)
Non-Executive Director
Appointed: 1 January 2025
Skills and experience:
Orla is the Chair of Arthur Cox LLP, one of
Ireland’s leading law firms, and a Financial
Services Partner. She was appointed as Chair
of Arthur Cox in 2019 for a term running until
2025 and previously served on the firm’s
Management Committee for five years. Orla
has over 25 years’ experience in financing and
restructuring transactions across the financial
services, property, and private equity sectors.
Orla has an LLB degree from Trinity College
and a BCL degree from Oxford University.
Other current appointments:
Chair and Partner of Arthur Cox LLP, Member
of Electoral Committee Football Association
of Ireland, Director of AsIAm and Focus
Ireland, and Council Member of Chartered
Accountants Ireland.
Committee Membership:
Member of the Audit & Risk Committee
and the Remuneration Committee.
Board of Directors continued
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Senior Leadership Team
Maura Winston
Chief People Officer
Maura joined Cairn in June 2019. Formerly
Director of Innovation and Change at
Federal Court of Australia, Maura spent
10 years with Accenture specialising in
Organisational Development.
Fergus McMahon
Director of Commercial
& Procurement
Fergus joined Cairn in April 2016. Previously
Cairn Group Managing Surveyor responsible
for our team of quantity surveyors. Formerly
an Associate Director of McInerney Homes Ltd.
Gerald Hoare
Chief Investment Officer
Gerald joined Cairn in June 2017. Previously
Director of Business Development and Group
Pre-Construction Manager. Formerly worked
with leading Main Contractors in the UK
specialising in residential developments.
Stephen Kane
Director of Corporate Finance
& Investor Relations
Stephen joined Cairn in October 2023.
Previously Director of Corporate Finance in
Goodbody Stockbrokers. Prior to this, Stephen
worked in investment banking in London.
James Benson
Director of Strategic Delivery
& Policy
James joined Cairn in August 2022 from the
Irish House Builders’ Association (“IHBA”)
where he was Director of Housing, Planning
and Development. James is a qualified
engineer and quantity surveyor.
Declan Murray
Head of Finance & Treasury
Declan joined Cairn in February 2016.
Previously Director, Structured Solutions
at Royal Bank of Scotland plc. Formerly
held management positions in two
domestic banks.
Gavin Whelan
Chief Operating Officer
Gavin joined Cairn in January 2021.
Previously Managing Director and founder
of Bailey Brothers Construction Management
Services, Gavin also held senior roles in
Skanska and Laing O’Rourke. Most notably
Gavin acted as Construction Delivery Lead
on the £1.7bn mixed use Battersea Power
Station redevelopment.
Tara Grimley
Company Secretary &
Head of Sustainability
Tara joined Cairn in March 2018. Previously
Deputy Company Secretary & Head of Group
Integration at UDG Healthcare plc. Member of
the Chartered Governance Institute.
Michael Stanley
Chief Executive Officer (CEO)
FOR FULL BIOGRAPHY, SEE PAGE 106
Richard Ball
Chief Financial Officer (CFO)
FOR FULL BIOGRAPHY, SEE PAGE 106
Cairn Homes plc | Annual Report 2024
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Corporate Governance Report
“Upholding high
governance standards
for the benefit
of shareholders
and society.”
JOHN REYNOLDS
CHAIRMAN OF THE BOARD
Dear Shareholder,
I am pleased to present my final Corporate
Governance Report as Cairn’s Chairman, offering an
opportunity to reflect on the Company’s governance
journey since I assumed the role at the time of our
IPO in June 2015. This report outlines how the Board
operates and oversees management, strategy and
operations at Cairn. Our Board is responsible for the
leadership of the business and our role is to promote
the long-term sustainable success of the Company,
generating value for shareholders and contributing to
wider society. I am proud of the exceptional progress
we have overseen since the Board was established in
2015 and am deeply grateful to all past and current
Directors for their contributions to the Company’s
success. 2024 marks another milestone, with record-
breaking financial performance and value creation,
underscoring the collective efforts of our Board,
management and employees in building and scaling
our operating platform over the past decade.
Having served on the Board since the Company’s IPO,
and following a well-considered succession planning
process, I will be stepping down from the Board in
April. Bernard Byrne, who joined the Board in January,
will succeed me as Chairman of the Board with
effect from 1 May 2025. Bernard brings outstanding
business acumen and extensive experience leading
large private and public Irish companies. Since January,
we have worked closely to ensure a smooth transition
of Chairman responsibilities, and I am confident in
Cairn’s future under his and Michael’s leadership.
As Gary Britton stepped down from the Board at the
end of last year, having also served since the IPO, we
were delighted to welcome Orla O’Connor as a new
Board member. Orla brings deep legal and financial
expertise, complemented by a strong track record
in business development. With the appointments
of Orla and Bernard, we continue to enhance the
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diversity, skills, and experience of the Board as the
Company embarks on its next phase of growth.
I would like to express my heartfelt thanks to Gary for
his invaluable contributions to the Board and extend
my best wishes to both Orla and Bernard in their new
roles. Further details on Board changes can be found
within the Nomination Committee Report.
During the year under review, Cairn reported for
the last time against the provisions of the 2018 UK
Corporate Governance Code (the ‘UK Code’) and
the Irish Corporate Governance Annex. This report
outlines how we have applied the corresponding
principles and provisions throughout the year. In 2024,
the Board confirms that the Company complied with
all provisions except for Provision 38 of the UK Code,
which relates to the alignment of Executive Director
pension contributions with those of the wider
workforce. The Remuneration Committee has made
significant progress in this area, reducing Executive
Director pension contributions from 25% of salary
in 2019 to 10% in 2024, and considers 10%
to be an appropriate rate for Executive Directors.
Further details can be found in the Directors’
Remuneration Report.
In September 2024, Euronext Dublin introduced
its inaugural Irish Corporate Governance Code (the
‘Irish Code’), which builds upon the principles and
provisions of the UK Code while being tailored to the
Irish market and broader EU regulatory framework.
The Irish Code applies to Irish-incorporated companies
with an equity listing on Euronext Dublin for financial
years beginning on or after 1 January 2025. As a
company listed in both Ireland and the UK, Cairn
has the option to follow either the Irish Code or the
UK Code. After a thorough review, the Board has
decided to adopt the Irish Code starting 1 January
2025. As an Irish business with a primary listing
on Euronext Dublin, transitioning to the Irish Code
aligns naturally with our corporate identity and
regulatory environment.
However, while the Irish and UK Codes are closely
aligned, our Board recognises that the Irish Code
offers more flexibility in certain areas. Cairn’s Board
has consistently sought to not only meet regulatory
requirements but go beyond them, underpinning our
commitment to adhering to the highest standards
of corporate governance. As a Board, we do this by
ensuring that, where appropriate, we also incorporate
shareholder expectations into our governance and
reporting. As a result, we do not envisage any material
changes being implemented to our governance
framework due to our reporting against the Irish Code.
Instead, we will continue to abide by the view that
Cairn’s success is rooted in our commitment to high
standards of governance, balanced with a recognition
of the culture of the business we oversee, which
form the foundation of our strategic decisions and
our ability to consistently deliver value to both our
shareholders and our wider stakeholders.
Once again, I would like to thank everyone at Cairn for
their input, support and commitment over what has
been a fulfilling ten years.
JOHN REYNOLDS
CHAIRMAN OF THE BOARD
Corporate Governance Report continued
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Cairn Homes plc | Annual Report 2024
Board Evaluation and Effectiveness
During 2024, we commissioned Independent Audit
Limited (IAL) to conduct our triennial external Board
evaluation. IAL is a signatory to the Code of Practice
for independent board reviewers and the Company
had no prior connection with IAL, with this being the
first time that IAL has undertaken an external board
evaluation for Cairn.
External evaluations are extremely insightful, allowing
the Board and its members to reflect on what works
well or could be improved. The expertise, oversight and
independence of the external evaluator is a core part
of us getting the most from the exercise. IAL reviewed
Board and Committee papers and interviewed Board
members, as well as members of the Senior Leadership
Team and external partners and advisors. IAL also
attended a board meeting to discuss the outcomes
of the review and answer directors’ questions.
The findings of the evaluation pointed to the
Board and its sub-Committees having a number of
important strengths, and each were deemed to be
benefitting from strong composition.
More recent appointments were considered strong
additions and the external perspectives they bring to
the business are particularly valued. As the business
and its environment continue to evolve, the evaluator
identified areas where the Board could challenge itself
to develop further and set Cairn up for continued
success, including its processes with regard to strategy
setting and risk management, and retaining its focus
on people and culture.
Employee Engagement
The work carried out by Orla O’Gorman in her capacity
as Non-Executive Director with responsibility for
workforce engagement continued to provide a
valuable forum for the Board to hear employee views
in 2024. Orla held several meetings with employees at
all levels of the organisation, across functions and with
a mix of tenures, to ensure a comprehensive level of
feedback was provided. The importance of employee
engagement has increased recently, particularly
against the backdrop of cost-of-living challenges for
our colleagues, and the initiatives we have taken in
response were appreciated by employees.
While inflation in Ireland decreased in 2024, we have
continued to closely monitor the financial wellbeing of
our employees and to support them throughout the
year. Employees have welcomed the opportunity to
meet with a Non-Executive Director and appreciated
the value of the roundtable discussions, which
presented an opportunity to share information
directly with Board members. Further details on Orla’s
activities during 2024 are set out in the Nomination
Committee Report.
Sustainability
Our commitment is to build homes that are
thoughtfully designed and built for good, and our
sustainability agenda is woven into every aspect of
our business and culture. During 2024, we continued
to put words into action. We published our first
Climate Transition Plan, illustrating the actions and
measures we have implemented to achieve our
emissions targets (validated by SBTi in 2023) and
transitioned our operations and business model to
a decarbonisation trajectory that aligns with climate
science recommendations.
As well as decarbonisation initiatives, these
actions included formalisation of Board oversight
of sustainability matters, robust climate risk
management, and a comprehensive stakeholder
engagement approach. Contributing to our
environmental objectives, we have four Passive House
developments under construction, representing
c.1,750 units; we sold our first EU Taxonomy aligned
development in H1 2024; and more than half of units
commenced in 2024 target Biodiversity Net Gain.
Outside of environmental efforts, we were delighted
to launch the Cairn Apprenticeship Programme and
the ‘Women in Cairn’ Employee Resource Group in
2024. We also continue to be placed in the top 20 of
Best Workplaces in Ireland in the Large Category, while
maintaining our Great Place to Work Certification for
2024, reflecting our efforts across the broad spectrum
of sustainability considerations.
During the year, we also commenced our Double
Materiality Assessment as prescribed by the EU’s
Corporate Sustainability Reporting Directive (CSRD) and
published a new Supply Chain and Procurement Policy.
Corporate Governance Report continued
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Corporate Governance Report continued
Board Leadership and Company Purpose
Role of the Board
The Board is collectively responsible for promoting
the long-term sustainable success of the Group,
generating value for shareholders as a whole and
contributing to wider society by fulfilling its purpose.
In exercising this responsibility, the Board takes
into account all relevant stakeholders including
customers, employees, suppliers, shareholders,
regulators and Government and the effect of the
activities of the Group on the environment. The Board
provides effective leadership by setting the strategic
priorities of the Group and overseeing management’s
execution of the strategy in a way that enables
sustainable long-term growth, while maintaining
a balanced approach to risk within a framework of
prudent and effective controls.
Our Purpose
Our purpose is building homes and creating
communities where people can thrive, and our
sustainability priorities help us to achieve this purpose
in a tangible way. Developing a business based on
strong, sustainable foundations, and where our
employees have the opportunity to achieve their full
potential, provides the platform for our continued
success. We recognise that this success is dependent
upon strong engagement with, and delivery for, all of
our stakeholders.
Our Values
The Board and Senior Leadership Team aim to ensure
that our values are lived within the business and
integrated into decision making at all levels. Where
behaviour is not aligned with these values, the Board
and Senior Leadership Team seek to ensure that
appropriate action is taken.
Agile & Innovative
We are creative and open to new ideas, ready to
implement change when required. We are prepared
and able to adapt to changing market conditions and
customer requirements.
Honest & Straight Talking
Maintaining an open and transparent dialogue. Saying
what needs to be said and not just what people want
to hear. Being open and transparent, means that we
can get to a better solution quicker.
Collaboration
Collaboration is at the core of our homebuilding.
Projects involve hundreds of people from varied
disciplines and professions working together to
achieve a clear common goal – to build great homes.
Commercially Minded
Being sector aware. Knowing the customer. Seeking
value and making savings. As well as building great
and competitively priced new homes, we are building
sustainable long-term value for our stakeholders.
Committed & Engaged
We are all in. We will be there to deliver on stakeholder
needs throughout their journey with us, sharing our
knowledge, our insights and our expertise to guide,
support and reassure.
Division of Responsibilities
Roles and Responsibilities
The Board has a formal schedule of matters reserved
for its decision which includes the approval of
significant acquisitions or disposals, significant capital
expenditures, financial statements and budgets,
risk management processes and the Principal Risks
and Uncertainties, and, the approval of the Terms of
Reference for each of the Committees of the Board.
Certain governance responsibilities have been
delegated by the Board to Board Committees,
to ensure that there is independent oversight of
internal control and risk management and to assist
the Board with carrying out its responsibilities. Three
Committees have been established which are the
Audit & Risk Committee, the Nomination Committee
and the Remuneration Committee. Each of the Board
Committees are comprised of independent Non-
Executive Directors. Each individual Committee’s
Chair reports to the Board on matters discussed at
Committee meetings and highlights any significant
issue that requires Board attention. There are also
two additional Non-Executive Board roles; Workforce
Engagement Director and Director Responsible for
Sustainability and Environmental Impact. Both roles
have an approved remit delegated by the Board and
each role reports back to the Board at least once per
year. The roles of Chairman and Chief Executive Officer
are set out in writing, clearly defined and approved
by the Board. Day-to-day management responsibility
rests with the Senior Leadership Team, the members
of which are listed on page 108.
Chairman
John Reynolds
Responsible for leadership of the Board and ensuring
effectiveness in all aspects of its role. He is responsible
for setting the Board’s agenda and ensuring adequate
time is available for discussion of all agenda items,
including strategic issues. He is responsible for
encouraging and facilitating active engagement by
and between all Directors, drawing on their skills,
knowledge and experience. He was independent
when appointed to the role in 2015 and will retire at
the end of April 2025.
Chief Executive Officer
Michael Stanley
Specific responsibility for recommending the Group’s
strategy to the Board and for delivering the strategy
once approved. In undertaking such responsibilities,
the Chief Executive Officer takes advice from, and is
provided with support by, his Senior Leadership Team
and all Board colleagues.
Together with the Chief Financial Officer, the Chief
Executive Officer monitors the Group’s operating
and financial results and directs the day-to-day
business of the Group. The Chief Executive Officer
is also responsible for recruitment, leadership and
development of the Group’s Senior Leadership Team
below Board level.
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Senior Independent Director
Linda Hickey
Linda Hickey succeeded Giles Davies as Senior
Independent Director during the first quarter of 2024.
She acted as a sounding board for the Chairman and
as an intermediary for the other Directors when
necessary. She is responsible for evaluating the
performance of the Chairman in consultation with the
other Non- Executive Directors. Linda held informal
discussions with each Board member in the latter
months of 2024 in order to complete this evaluation.
Linda is also available to address shareholders’
concerns that have not been resolved through
the normal channels of communication with
the Chairman, Chief Executive Officer or Chief
Financial Officer.
Non-Executive Directors
The Non-Executive Directors provide an external
perspective, sound judgement and objectivity to
the Board’s deliberations and decision making.
With their diverse range of skills and expertise, they
support and constructively challenge the Executive
Directors and monitor and scrutinise the Group’s
performance against agreed goals and objectives.
The Non-Executive Directors are also responsible
for determining appropriate levels of executive
remuneration, appointing and removing Executive
Directors, and succession planning through their
membership of the Remuneration and Nomination
Committees. The Non-Executive Directors together
with the Chairman meet regularly and informally
without any Executive Directors being present.
Company Secretary
Tara Grimley
Supports and works closely with the Chairman, the
Chief Executive Officer and the Chairs of the Board
Committees in setting agendas for meetings of the
Board and its Committees. She supports accurate,
timely and clear information flows to and from the
Board and the Board Committees, and between
Directors and senior management. In addition, she
supports the Chairman in designing and delivering
Directors’ induction programmes and the Board and
Committee performance evaluations. She also advises
the Board on corporate governance matters and
Board procedures and is responsible for administering
the Share Dealing Code and General Meetings.
Conflicts of Interest
The Board reviews potential conflicts of interest
as a standing agenda item at each Board meeting.
Directors have continuing obligations to update the
Board on any changes to these conflicts.
Induction and Training
The induction programme for new Board members,
which was established in early 2019, was further
enhanced in 2024. The formal induction process is
designed to provide new Board members with an
in-depth understanding of their role, a background
to the business and an introduction to key individuals
within the organisation. The programme includes
dedicated time with the Executive Directors, Non-
Executive Board members and senior management,
along with scheduled site visits and the provision of
necessary resources to enhance their understanding
of the business and their role. The Board considers on
an ongoing basis the need for additional training in
respect of any matters relevant to the development
and operation of the Board or any of its Committees.
D&O Insurance
The Company maintains appropriate Directors’
and Officers’ liability insurance cover in respect of
legal action against Directors, the level of which is
reviewed annually. Subject to the provisions of, and
so far as may be permitted by the Companies Act
2014 and the Company’s Constitution, every Director,
Secretary or other officer of the Company is entitled
to be indemnified by the Company against all costs,
charges, losses, expenses and liabilities incurred by
them in the execution and discharge of their duties.
Commitment and External Appointments
As part of the Board evaluation process, the Board
has considered the individual Directors’ attendance,
their contribution, and their external appointments,
and is satisfied that each of the Directors is able to
allocate sufficient time to the Group to discharge
his or her responsibilities effectively. As evidenced
by the attendance table below, the Directors have
maintained the ability to devote sufficient time to
their roles and the Company. Contracts and letters of
appointment with Directors are made available at the
Annual General Meeting or upon request.
Executive Directors are permitted to take up non-
executive positions on the boards of other listed
companies so long as this is not deemed to interfere
with the business of the Group. Executive Directors’
appointments to such positions are subject to the
approval of the Board which considers, amongst other
things, the time commitment required. In line with the
Code, Non-Executive Directors are also encouraged to
seek Board approval prior to taking on any additional
external appointments.
Board Meetings in 2024
The Board meets regularly and would typically
hold seven scheduled meetings during the year,
including a strategy day. The Board met 11 times
for Board meetings during 2024. Generally, each
formal Board meeting follows a carefully tailored
agenda agreed in advance by the Chairman, Chief
Executive Officer, Chief Financial Officer and Company
Secretary. A typical meeting will comprise reports on
current trading and financial performance from the
Chief Executive Officer and Chief Financial Officer,
sustainability, risk, governance, health & safety and
investor relations updates and ‘deep dives’ into areas
of particular strategic importance.
Corporate Governance Report continued
Attendance Table
Director No. of Meetings Attended/Held Board Tenure
John Reynolds (Chairman)
1
10/11 10 years
Richard Ball
2
7/7 <1 year
Gary Britton 11/11 10 years
Giles Davies 9/11 10 years
Shane Doherty
3
3/4 5 years
Linda Hickey 11/11 6 years
Alan McIntosh
4
1/1 10 years
Orla O’Gorman 11/11 3 years
Julie Sinnamon 11/11 3 years
Michael Stanley 11/11 10 years
1 John Reynolds abstained from one meeting where his tenure and succession planning had been tabled, and in his absence,
Linda Hickey chaired this meeting as Senior Independent Director.
2 Richard Ball was appointed as a Director at the AGM on 10 May 2024.
3 Shane Doherty retired as a Director with effect from 10 May 2024.
4 Alan McIntosh retired as a Director with effect from 25 January 2024.
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Directors’ Terms of Appointment
The Executive Directors have service agreements
with the Company which have notice periods of
12 months or less. The Non-Executive Directors have
Letters of Appointment which set out their terms
of appointment. The initial period of appointment
is three years, and any term renewal is subject
to the approval of the Board and appointments
are terminable on one month’s notice. Under the
Company’s Constitution, one third of all Directors
must retire by rotation at each Annual General
Meeting and may seek re-election. However, in
keeping with best corporate governance practice,
the Board has decided that all Directors will seek re-
election annually. Accordingly, all Directors will retire
at the Annual General Meeting on 8 May 2025 and,
being eligible, each will offer themselves for re-
election, with the exception of John Reynolds who
will retire at the end of April. The Board is satisfied that
the Company benefits greatly from the services of all
Directors and accordingly, the Board recommends the
re-election of all of the Directors.
Information and Support
All members of the Board are supplied with
appropriate, clear and accurate information in a timely
manner covering matters which are to be considered
at forthcoming Board or Committee meetings. The
papers for each meeting are made available via
an electronic Board portal along with a wealth of
supporting and reference material. Should Directors
judge it necessary to seek independent legal advice
about the performance of their duties with the Group,
they are entitled to do so at the Group’s expense.
Directors also have access to the advice and services
of the Company Secretary, who is responsible for
advising the Board on all governance matters and
ensuring that Board procedures are complied with.
The appointment and removal of the Company
Secretary is a matter requiring Board approval.
Independence
As is done annually, the independence of the Non-
Executive Directors was reviewed during 2024.
In doing so, the Board considered factors such as
length of tenure and relationships or circumstances
that are likely to affect, or appear to affect, the
Directors’ judgement, in determining whether they
remain independent. Following this year’s review,
all of the Non-Executive Directors are considered
independent in character and judgement and are free
from any business or other relationships that could
materially affect the exercise of their judgement.
The Chairman of the Board was deemed independent
on appointment.
In assessing the independence of Linda Hickey, the
Board had due regard for her position on the Board of
Kingspan Group plc (‘Kingspan’), one of the Company’s
suppliers. The Board concluded that Ms Hickey was
fully independent having taken into consideration
the total value of purchases from Kingspan during
2024. The procurement of products purchased from
Kingspan remains subject to the Company’s strict
procurement procedures and were not material for
a business of Kingspan’s size.
In assessing the independence of Gary Britton and
Giles Davies, the Board had due regard for the fact that
their tenure on the Board reached nine years during
2024. The Board was satisfied that both Gary and Giles
continued to be fully independent, underpinned by
their continued contributions and challenge at Board
and Committee meetings. As announced in January
2024, Gary Britton stepped down as a Non-Executive
Director at the end of 2024. Giles Davies will also be
stepping down from the Board at the end of 2025.
In considering the independence of Orla O’Connor
(appointed from 1 January 2025), the Committee had
particular regard for her position as Chair and Partner
of Arthur Cox LLP, one of the Company’s legal advisors.
The Committee concluded that Ms O’Connor was
fully independent, taking into account the following
material factors:
• A&L Goodbody solicitors remain the Company’s
corporate lawyers advising on all matters
pertaining to governance and corporate affairs;
• all fees paid to Arthur Cox LLP relate to specific
property transactions including conveyancing.
All work undertaken by Arthur Cox LLP for the
Company is managed by other employees within
the firm;
• Ms O’Connor does not have, and has not had,
any involvement in advising the Company on
any legal matters;
• Ms O’Connor has on no occasion acted as an
advisor in any capacity to the Company;
• the fees paid to Arthur Cox LLP during 2024 were
c.€215k (2023: c.€100k) and account for less than
5% of Arthur Cox LLP annual revenues; and
• she has no role in the selection or retention of
legal advisors to the Company.
Ms O’Connor is an experienced and accomplished
corporate lawyer and adds important legal and
regulatory experience to the Board, alongside her
financial expertise and business development track
record. Based on the foregoing, and the fact that
Ms O’Connor will be stepping down as Chair of Arthur
Cox LLP in 2025, the Board concluded that there was
no material relationship, financial or otherwise, which
might directly or indirectly influence her judgement.
We will continue to closely monitor the level of fees
paid to Arthur Cox LLP in the coming year, and the
Board will continue to be guided by the terms of the
Company’s Conflicts of Interest Policy.
Board Appointment Process
When making Board appointments, the Nomination
Committee reviews and approves an outline brief
and role specification and appoints an external search
consultancy for the assignment. The Chairman of
the Board (except in relation to his own succession)
alongside representation from the Nomination
Committee, the Chief Executive Officer, Chief People
Officer and Company Secretary, meet to discuss the
specification and search parameters, as well as the
Group’s need for enhancing diversity. An external
search consultancy is appointed and prepares an initial
long list of candidates from which the Nomination
Committee assembles a shortlist. Interviews are
held with the Chairman, Chief Executive Officer and a
selection of Non-Executive Directors, supported by
the Chief People Officer.
The Nomination Committee then makes a
recommendation to the Board for its consideration.
Following Board approval, the appointment is
announced in line with requirements of the rules
applying to public companies. In the event that
a candidate is identified through an alternative
channel, the suitability of the candidate’s profile is
assessed through the same process, against the role
specification and through the interview process .
Diversity and Inclusion
In 2019, the Board adopted a formal Diversity and
Equality Policy applicable to the Company, which is
available on our website. The Board and management
continue to recognise the benefits of diversity and the
recommendations of the Balance for Better Business
and Parker reviews, and recognise the clear benefits of
increasing diversity at all levels of the organisation.
Corporate Governance Report continued
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Cairn Homes plc | Annual Report 2024
At 31 December 2024, female employees made up
25% of our total workforce, while 25% of the Senior
Leadership Team (excluding Executive Directors)
were female. Many of the Company’s employee base
are also from varying backgrounds of nationality,
ethnicity, and religion. Further details on diversity
within the Company can be found on pages 76
and 127.
Audit, Risk and Internal Controls
Internal Control
The Board has overall responsibility for the
Company’s system of internal control, for reviewing
its effectiveness and for confirming that there is an
ongoing process in place for identifying, evaluating and
managing the significant risks facing the Company. The
process was in place throughout the year under review
and up to the date of approval of the Annual Report
and Financial Statements. The Board has reviewed the
effectiveness of the Company’s risk management and
internal control systems, with the assistance of the
Audit & Risk Committee. Effective risk management is
critical to the achievement of the Company’s strategic
objectives. Risk management controls are in place
across the business. The Company’s risk framework
continues to evolve, and the Company will continue to
monitor and improve its risk management framework.
Further details are available in the Risk Report on
pages 36 to 48.
The Company has documented its financial policies,
processes and controls which will be reviewed and
updated on an ongoing basis. The key elements of the
system of internal control include the following:
• Clearly defined organisation structure and lines
of authority;
• Company policies for financial reporting, treasury
management, information technology and
security and project appraisal;
• Annual budgets and business plans; and
• Monitoring performance against budget.
The preparation and issuance of financial reports
is managed by the finance function. The financial
reporting process is controlled using the Company’s
accounting policies and reporting system. The financial
information is reviewed by the Chief Financial Officer
and the Chief Executive Officer. The interim and
preliminary results and the Annual Report and Financial
Statements are reviewed by the Audit & Risk Committee
who recommend their approval to the Board.
Risk Management
The Company considers risk management to be of
paramount importance. The Board, together with
Senior Leadership Team, deals with risk management
on behalf of the Company as part of its regular
monitoring of the business. The Board and the Audit
& Risk Committee have put in place procedures
designed to ensure that all applicable risks pertaining
to the Company can be identified, monitored and
managed at all times. Further information on the
principal risks applicable to the Company is given
in the Risk Report on pages 39 to 47.
Financial Risk Management
The financial risk management objectives and policies
of the Company are set out in Note 29 to the
consolidated financial statements.
Health and Safety Policy
It is the policy of the Company and its subsidiaries to
comply with the following legislation as a minimum
standard for all work activities:
• Safety, Health and Welfare at Work Act, 2005;
• The Safety, Health and Welfare at Work (General
Application) Regulations, 2007–2016;
• The Safety, Health and Welfare at Work
(Construction) Regulations, 2013 and all
amendments to date; and
• All codes of practice applicable to the work
undertaken by the Company or its subsidiaries.
In complying with the statutory requirements and
implementing our safety management system the
Company ensures, so far as reasonably practicable,
the safety, health and welfare of all employees whilst
at work and provides such information, training
and supervision as is required for this purpose. It
is the policy of the Company to protect, so far as is
reasonably practicable, persons not employed by
the Group who may be affected by our activities.
It is the policy of the Company to ensure that
adequate consultation takes place between
management, employees, sub-contractors and others
on all health & safety related matters and employees
are encouraged to notify management of identified
hazards in the workplace. All employees have the
responsibility to co-operate with supervisors and
management to achieve a healthy and safe workplace
and to take reasonable care of themselves and others.
The Health & Safety Policy is available at all work
locations for consultation and review by all employees.
The Policy is kept up to date and amended as
necessary to meet changes in the nature and
size of the business. The Policy is communicated
to employees at the commencement of their
employment and on an annual basis thereafter
as the safety statement review is carried out.
The Company continues to strive to work for the
ongoing integration of health & safety into all of
its activities, with the objective of retaining high
standards of health & safety performance. The
Company seeks the full co-operation of all concerned
in the carrying through of its commitment. Health &
safety has also been integrated into the remuneration
arrangements for the Executive Directors, with pay
opportunity reduced in the event of unsatisfactory
health & safety performance.
General Meetings
The Company holds a general meeting each year as
its Annual General Meeting in addition to any other
meeting in that year. Not more than 15 months shall
elapse between the date of one Annual General
Meeting and that of the next. The Board is responsible
for the convening of general meetings.
The 2025 Annual General Meeting of the Company is
scheduled to be held at The Merrion Hotel, Merrion
Street Upper, Dublin 2, D02 KF79 at 12 noon on 8 May
2025. The 2024 Annual Report and 2025 Notice of the
Annual General Meeting will be circulated at least 20
working days prior to the meeting and will be available
to download from the Company’s website. The Notice
contains a description of the business to be transacted
at the Annual General Meeting. The Chairman, Chief
Executive Officer, Chief Financial Officer and Non-
Executive Directors will be available at the Annual
General Meeting to answer shareholder questions.
Every shareholder has the right to attend and vote
at the Annual General Meeting and to ask questions
related to the items on the agenda of the Annual
General Meeting.
Voting Rights
(a) Votes of Members: Votes may be given either
personally or by proxy. Subject to any rights or
restrictions for the time being attached to any
class or classes of shares, on a show of hands every
member present in person and every proxy shall
have one vote, so, however, that no individual
shall have more than one vote, and on a poll
every member shall have one vote for every share
carrying voting rights of which they are the holder.
The Chairman shall be entitled to a casting vote
where there is an equality of votes.
Corporate Governance Report continued
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(b) Resolutions: Resolutions are categorised as either
ordinary or special resolutions. The essential
difference between an ordinary resolution and
a special resolution is that a bare majority of
more than 50% of the votes cast by members
voting on the relevant resolution is required for
the passing of an ordinary resolution, whereas a
qualified majority of 75% or more of the votes cast
by members voting on the relevant resolution
is required in order to pass a special resolution.
Matters requiring a special resolution include
for example:
• Altering the Objects of the Company;
• Altering the Constitution of the Company; and
• Approving a change of the Company’s name.
Communication with Shareholders
The Company attaches considerable importance
to shareholder communication. There is regular
dialogue with institutional shareholders, including
detailed presentations and roadshows after the
announcement of interim and preliminary results.
The Executive Directors meet with institutional
investors during the year and participate in broker/
investor conferences.
The Chairman has overall responsibility for ensuring
that the views of our shareholders are communicated
to the Board. In addition to being available to answer
any questions shareholders may have at the
Company’s Annual General Meeting, the Chairman
remains available to all shareholders should they
wish to engage throughout the year. The Executive
Directors also report regularly to the Board on their
engagement with shareholders. The Board also
regularly receives analysts’ reports on the Company.
The Company’s website www.cairnhomes.com
provides the full text of all announcements
including the interim and preliminary results
and investor presentations.
During 2024, Julie Sinnamon, in her capacity as Chair of
the Nomination Committee, met with several of the
top ten shareholders of the Company, to discuss items
including succession planning and diversity. Further
details are available on page 123.
Other
The Company discloses information to the market as
required by the Listing Rules of Euronext Dublin and
the Listing Rules of the London Stock Exchange and
Financial Conduct Authority, including inter alia:
• Periodic financial information such as interim and
preliminary results;
• Price sensitive information, which for example,
might be a significant change in the Company’s
financial position or outlook, unless there is a
reason not to disclose such information (e.g.,
prejudicing commercial negotiations);
• Information regarding major developments in the
Company’s activities;
• Information regarding dividend decisions;
• Any changes to the Board once a decision has
been made, and
• Information in relation to any significant changes
notified to the Company of shares held by a
substantial shareholder.
The Company will make an announcement if it has
reason to believe that a leak may have occurred about
any ongoing negotiations of a price sensitive nature.
Any decisions by the Board which might influence the
share price must be announced as soon as possible
and in any event before the start of trading the next
day. Information relayed at a shareholders’ meeting,
which could be price sensitive, must be announced
no later than the time the information is delivered at
the meeting. In relation to any uncertainty regarding
the communication of a particular matter, advice
will be sought from the Company’s sponsors and/or
legal advisor(s).
Remuneration
Details on the Company’s compliance with the
provisions of the UK Corporate Governance Code
in relation to remuneration are set out in the Directors’
Remuneration Report.
Corporate Governance Report continued
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Cairn Homes plc | Annual Report 2024
Audit & Risk Committee Report
“Ensuring accountability
for sustainable growth.”
ORLA O’GORMAN
CHAIR OF THE AUDIT & RISK COMMITTEE
Committee Member Meeting Attendance Committee Tenure
Gary Britton (Chair to 31 December 2024) 6/6 10 years
Linda Hickey 6/6 6 years
Orla O’Gorman (Chair from 1 January 2025) 6/6 3 years
Julie Sinnamon 6/6 3 years
Orla O’Connor (Appointed 1 January 2025) n/a n/a
Dear Shareholder,
I am pleased to present my first report as Chair of the
Audit & Risk Committee (‘the Committee’). Following
the announcement in early 2024 that Gary Britton
would retire from the Board at the end of the year,
I had the benefit of shadowing him in his final year as
the Committee Chair before commencing in the role
from 1 January 2025. I would like to thank Gary for all
of his guidance in supporting a smooth transition.
The Committee has fulfilled its responsibilities during
the year under its Terms of Reference (which are
available on our website) and under the relevant
requirements of the UK Corporate Governance Code
and Irish Corporate Governance Annex (together
‘the Code’).
The Committee is satisfied that its role and authority
include those matters envisaged by the UK Corporate
Governance Code that should fall within its remit and that
the Board has delegated authority to the Committee
to address those tasks for which it has responsibility.
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Audit & Risk Committee Report continued
Committee Membership
The Committee currently comprises four Non-
Executive Directors. All members of the Committee
are determined by the Board to be independent
Non-Executive Directors in accordance with
provision 24 of the UK Corporate Governance Code
with several members deemed to have recent and
relevant financial experience. The biographical details
on pages 106 and 107 demonstrate that members
of the Committee have a wide range of financial,
capital markets, commercial and business experience
relevant to the sector in which the Group operates.
The Committee met six times during the year and
the attendance of each member is laid out in the
table. Meetings are attended by members of the
Committee and others being principally the Chairman,
the Company Secretary, the Chief Financial Officer,
representatives from the finance function, the
Director of Commercial and Procurement, the Health
& Safety Manager, our Risk Management Consultant,
and representatives of the External Auditor as well
as the outsourced Internal Audit function who also
attend by invitation. Other members of management
may be invited to attend to provide insight or
expertise in relation to specific matters.
The Committee also met privately with the External
Auditor and representatives of the outsourced
Internal Audit function without management present
at least once during the year.
The Chair of the Committee reports to the Board
following each meeting, on the work of the
Committee and on its findings and recommendations.
Key Duties
• Monitoring the integrity of the Group’s financial
statements and announcements relating to the
Group’s performance.
• Advising the Board on whether the Annual Report
and Financial Statements, taken as a whole, are
fair, balanced and understandable, and whether
they provide the information necessary for
shareholders to assess the Group’s performance,
business model and strategy.
• Monitoring the effectiveness of the external
audit process and making recommendations
to the Board in relation to the appointment,
re-appointment and remuneration of the
External Auditor.
• Overseeing the relationship between the Group
and the External Auditor including the terms of
engagement and the scope of audit.
• Reviewing the scope, resourcing, findings and
effectiveness of the Internal Audit function.
• Monitoring and reviewing the overall effectiveness
of the Group’s risk management systems, and
overseeing its strategic response to risk, in
particular, the principal and emerging risks to its
strategic objectives.
• Reviewing the adequacy and effectiveness of the
Group’s systems and controls for risks associated
with health & safety, bribery and fraud, and the use
of personal data.
• Reporting to the Board on how the Committee has
discharged its responsibilities.
Key Areas of Activity During 2024
A summary of the key activities of the Committee
during the year is set out below.
Financial Reporting
The Committee reviewed the draft trading updates,
draft preliminary results, draft annual report and
draft interim results before recommending their
approval to the Board. The Committee considered
the appropriateness of the relevant accounting
policies and significant judgements and key
estimates adopted in the preparation of the financial
statements. The Committee also considered the
views of the External Auditors in making these
assessments. The significant issues in relation to the
financial statements considered by the Committee
and how these were addressed are set out on pages
120 and 121. The Committee also reviewed the
observations on internal control prepared by the
External Auditor as part of the audit process.
In accordance with the reporting requirements of
the Code, the Committee confirms to the Board that,
in our view, the Annual Report, taken as a whole, is
fair, balanced and understandable, and provides the
information necessary for shareholders to assess the
Group’s position and performance, business model
and strategy.
Risk Management and Internal Control
Responsibility for monitoring the effectiveness of
the Group’s system of risk management and internal
control is delegated to the Committee by the Board.
The Committee is satisfied with the procedures
established for identifying, assessing and managing
key risks, and will continue to evaluate those
procedures against best practice for the industry.
Further information on the Group’s risk management
process is outlined in the Risk Report on pages 36
to 48.
Corporate Sustainability Reporting Directive
(CSRD)
Whilst we have been diligently preparing to report
under the Corporate Sustainability Reporting Directive
(CSRD), which applied to the Company from 1 January
2025, we are closely monitoring the impacts of the
recent Omnibus proposal, to see how this may affect
our current in-scope position.
As part of our preparation for alignment with the
CSRD, the Committee undertook a training and
development session early in the year, supported by
our external auditors. An additional session was also
held with the CSRD Manager, to discuss the ongoing
Double Materiality Assessment Process, the output of
which will inform our material topics to be reported
against, from 1 January 2025.
Regardless of the outcome of the recent Omnibus
proposal, we remain committed to utilising the
results of our Double Materiality Assessment (DMA),
incorporating our stakeholders’ views into our
reporting, and ensuring we minimise our impact on
environmental and social issues, whilst continuously
improving our sustainability reporting.
Health & Safety
The Committee met with the Group’s Health &
Safety Manager and Director of Commercial and
Procurement on a number of occasions during
the year. These meetings included reviewing key
health & safety statistics, monitoring resourcing
requirements for the function, reviewing the findings
and recommendations from four targeted audits
(conducted during the year by an independent,
specialist external audit firm), and overseeing the
achievement of key objectives during 2024 which
were set at the beginning of the year. The Committee
also undertook site walks with members of the
health & safety team. The Chair of the Committee also
frequently engaged with the Health & Safety Manager
outside of meetings.
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Data Protection
The Committee has engaged with the Company
Secretary who has overall responsibility for the
Group’s lawful use of personal data in accordance
with Irish and European data protection laws,
including Regulation (EU) 2016/679 (the General
Data Protection Regulation) (GDPR). The Group
has designated an independent Data Protection
Officer who has access to the Committee, advises
the Company Secretary and carries out the tasks
mandated by the GDPR.
Throughout 2024, the Committee continued to
monitor the progress and effectiveness of the Group’s
data protection programme, consistent with the data
protection risks faced by the Group.
Cyber-Security
The Group relies heavily on information technology
and systems to support the management of its
operations and reporting. A failure of these systems
or the loss of corporate data is a risk which is actively
managed by a dedicated team in line with CIS and
NIS2 standards, monitored by the Senior Leadership
Team. All Cairn employees receive information
security training at least quarterly, as well as monthly
cyber-security assessments. The status of this risk is
reported regularly to the Committee, with a formal
report to the Board at least annually. To date, Cairn
have not had an information security breach. Further
detail on our risk disclosures is contained within our
Risk Report.
Going Concern, Viability and Directors’
Compliance Statements
The Committee reviewed the draft Going Concern
Statement, Viability Statement and Directors’
Compliance Statement prior to recommending them
to the Board for its review and approval. The Going
Concern Statement and the Viability Statement are
on page 48. The Directors’ Compliance Statement is
included in the Directors’ Report on page 148.
Internal Audit
The Group’s Internal Audit function is outsourced,
however the Committee continues to maintain
oversight of and responsibility for the function’s
effectiveness. The Internal Audit function completed
four Internal Audit reviews during the year;
(1) Waste Management
(2) Development Bonds
(3) Construction Accounting
(4) Budgeting & Forecasting
The Committee considered reports and updates from
the Internal Audit function for each of these reviews
which summarised the work undertaken, findings,
recommendations and management responses
to audits conducted during the year. A register is
maintained internally which monitors progress
against any recommended process and control
enhancements to ensure that they are implemented
appropriately and in a timely and controlled manner.
The Committee considered and approved the
programme of work to be undertaken by the Internal
Audit function in 2024 and the planned programme
of work for 2025. The Committee also met with the
members of the Internal Audit function privately
without management present.
External Auditor
Our External Auditor, KPMG, was appointed in 2015.
In accordance with S.1548 of the Companies Act 2014,
KPMG’s tenure as the statutory auditor for a public
interest entity will reach its maximum duration at the
end of the 2024 reporting cycle. Consequently, KPMG
will relinquish its role as the auditor of the Company
following the completion of the audit for the fiscal
year ending on 31 December 2024.
The Company announced during 2024 that the Board
had approved the appointment of Ernst & Young
Chartered Accountants as the Company’s auditor for the
financial year ending 31 December 2025 following the
conclusion of a competitive tender process led by the
Company’s Audit & Risk Committee. This appointment
is subject to approval by the Company’s shareholders
at the Annual General Meeting to be held in 2025.
The Committee reviewed the External Auditor’s
overall audit plan for the 2024 audit and approved
the remuneration and terms of engagement of the
External Auditor. The Committee also considered
the quality and effectiveness of the external audit
process and the independence and objectivity of the
External Auditor.
In order to ensure the independence of the External
Auditor, the Committee received confirmation from
the External Auditors that they are independent
of the Group under the requirements of the Irish
Auditing & Accounting Supervisory Authority (IAASA)
Ethical Standard for Auditors (Ireland). The External
Auditors also confirmed that they were not aware of
any relationships between the firm and the Group or
between the firm and persons in financial reporting
oversight roles in the Group that may affect its
independence. The Committee considered and was
satisfied that the relationships between the External
Auditor and the Group including those relating to the
provision of non-audit services did not impair the
External Auditor’s judgement or independence.
Non-Audit Services
The Committee reviews the engagement of the
External Auditor to provide non-audit services on an
ongoing basis and in line with our non-audit services
policy. In considering any proposal for the provision
of non-audit services by the External Auditor, the
Committee considered several matters including:
• Threats to independence and objectivity
resulting from the provision of such services and
any safeguards in place to eliminate or reduce
these threats to a level where they would not
compromise the External Auditor’s integrity
and objectivity;
• The nature of the non-audit services;
• Whether the skills and experience of the external
audit firm make it the most suitable supplier of the
non-audit services;
• The fees incurred, or to be incurred, for non-
audit services both for individual services and in
aggregate, relative to the audit fee; and
• Any relevant legislation.
The External Auditor will not be engaged for any non-
audit services without the approval of the Committee.
The External Auditor is precluded from providing
certain services under Regulation (EU) No 537/2014
or from providing any non-audit services that have
the potential to compromise its independence or
judgement.
Details of the audit and non-audit services provided
by the External Auditor for 2024 and their related fees
are disclosed in Note 9 to the consolidated financial
statements. The Committee has undertaken a review
of non-audit services provided during 2024 and is
satisfied that these services were efficiently provided
by the External Auditor with the benefit of their
knowledge of the business and did not prejudice their
independence or objectivity.
In line with EU audit regulations, the Group’s non-audit
fees for 2024 were less than 70% of the average of the
audit fees over the previous three-year period.
Confidential Reporting and Anti-Bribery
& Corruption
The Group’s Confidential Reporting and Anti-Bribery
& Corruption Policies were reviewed during the year.
The policies are published on the Group’s website and
intranet, and employees are required to confirm they
have read them. The Committee continues to monitor
and review any breaches to these policies.
The Company also has a Confidential Reporting
platform available to employees and subcontractors
to raise any concerns. No reports were raised during
the period.
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Estimates and Judgements
The Committee reviewed in detail the areas of
significant judgement, complexity and estimation in
connection with the financial statements for 2024.
The Committee considered a report from the
External Auditors on the audit work undertaken
and conclusions reached as set out in their audit
report on pages 152 to 159. The Committee also
had an in-depth discussion on these matters with
the External Auditors. These significant areas were
revenue recognition in relation to forward fund
transactions and the carrying value of inventories
and profit recognition.
Revenue Recognition in Relation
to Forward Fund Transactions
During the year, the Group entered into a number
of forward fund transactions with State-supported
counterparties. The accounting treatment for revenue
is assessed based on the specific terms of the
contractual arrangements for each transaction. The
forward fund transactions in the financial year involve
the Group delivering new homes under a contractual
relationship where land is sold up-front to the State-
supported counterparties and the cost of delivering
the new homes is paid by the State-supported
counterparties to the Group on a phased basis.
Where these contractual arrangements exist, there
is a judgement as to whether the sale of land and the
delivery of residential units are a single performance
obligation or separate performance obligations for
the purposes of revenue recognition. Based on the
facts and circumstances, it was determined that for
these transactions, the delivery of land and residential
units were highly interrelated and formed a single
performance obligation to be delivered over time.
The Committee has reviewed the revenue recognition
in relation to forward fund transactions during the
year and are satisfied that the treatment reflects the
specific terms of the transactions.
Carrying Value of Inventories
and Profit Recognition
The scale and mix of each development and
associated planning permission involve assumptions
on new or amended planning permission applications.
This judgement then feeds into the process of
forecasting expected profitability by development
which is used to determine the profit that the
Group is able to recognise on its developments
in each reporting period and the net realisable
value of inventories.
As the business continues to scale its construction
activities, the Group has been investing capital in
developing its landbank and construction work in
progress. As a result, the carrying value of inventories
is a crucial area for management and audit judgement.
In 2024, the Group conducted a detailed annual
impairment test with input from relevant internal and
external stakeholders to ensure that the investment
in development land and related construction
work in progress was not impaired. The annual
impairment test examined the performance of each
site individually to determine its net realisable value,
including an assessment of the number of units that
could be achieved on each site and a full evaluation of
the likely sales prices of those units, which were then
compared to actual sales prices achieved to date.
All costs related to individual sites are regularly
evaluated and updated based on new information
and actual experience. If the net realisable value of a
site is found to be lower than its cost, it is considered
impaired, and its value is written down to its net
realisable value. This process is subject to review by
management and is thoroughly tested during the
annual audit process.
The annual impairment test did not show any
evidence of impairment on a site-by-site basis.
The Group calculates its gross profit for each sale by
considering the specific unit sold and its associated
total cost. Since the construction cost of a site can
span multiple reporting periods, determining the
cost of sale for each unit sold relies on current cost
forecasts and anticipated profit margins for the entire
project. There is a possibility that some or all of the
assumptions used in these forecasts may be incorrect,
which could affect the carrying value of inventories
or the amount of profit recognised. To manage this
risk, the Group regularly updates its site profitability
forecasts and makes any necessary adjustments in
the appropriate reporting period.
The Committee considered the evidence from
impairment reviews and profit forecasting models
across the various sites and discussed the results with
management and is satisfied with the carrying values
of inventories (development land and construction
work in progress) and with the methodology for the
release of costs on the sale of individual units.
Conclusion
Since I have commenced in the role as Chair of the
Committee on 1 January 2025, I have engaged
with the Company Secretary, the Chief Financial
Officer, Director of Construction and Operations,
the Environmental Health and Safety Director,
representatives from the finance function, the Internal
Audit function, the Risk Management Consultant, and
the External Auditor as part of my onboarding and
induction programme. I look forward to continuing to
engage with key stakeholders within the business in
preparation for upcoming meetings and continuing
the supportive and constructive relationship my
predecessor had with the management team.
The Committee will continue to focus on key areas
of financial reporting processes, risk management,
internal controls and health & safety in 2025. The
Committee will also take a proactive approach in
anticipating and preparing for upcoming legislative
and regulatory changes, particularly in the area of
climate change and sustainability.
I also attend the Annual General Meeting and
am available to respond to any questions that
shareholders may have concerning the activities
of the Committee.
On behalf of the Committee and the Board, I wish
also to sincerely thank KPMG and all of their team
members, who have worked on the Company’s
external audit over the past ten years as they now
pass the baton over to EY.
ORLA O’GORMAN
CHAIR OF THE AUDIT & RISK COMMITTEE
Audit & Risk Committee Report continued
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Cairn Homes plc | Annual Report 2024
Nomination Committee Report
“Refreshing the Board
as the business
continues to grow.”
JULIE SINNAMON
CHAIR OF THE NOMINATION COMMITTEE
Dear Shareholder,
I am pleased to present the Nomination Committee
(‘the Committee’) report, detailing the work
undertaken by the Committee during 2024. This
marks my first report as Committee Chair, a role
I assumed in January 2024, succeeding Giles Davies.
Having joined the Board in September 2021 and the
Committee in November of the same year, I have had
the opportunity of gaining a deep understanding of
the business, its people, and its processes ahead of
my appointment as Committee Chair. I would like to
express my gratitude to Giles for his leadership of the
Committee from 2019 to 2023 and for his invaluable
guidance during this transition. I am also grateful for
his continued input as a Committee member.
Our Committee is responsible for reviewing the
structure, size, and composition of the Board,
ensuring it maintains an appropriate balance of skills,
experience, and diversity of thought to effectively
support the long-term growth of the business.
The Committee understands the importance of
succession planning in achieving the Company’s
strategy and in developing a diverse pipeline of
talent. Succession planning for the Board and senior
management is reviewed by the Committee, with
regular succession and talent updates being delivered
by the Chief People Officer and Group HR Director.
All succession plans are based on merit and objective
criteria, reviewed against the needs of the business,
and the skills and experience needed to strengthen
the Board. Within this context, the Committee seeks
to ensure that appointments promote all aspects
of diversity, with a particular focus on gender, social
mobility and ethnicity.
In crafting Board succession plans, the Committee
also carefully considers the importance of achieving
a healthy balance between longer-serving Non-
Executive Directors and those with shorter tenures.
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Nomination Committee Report continued
In terms of management succession planning, the
Committee seeks to ensure that emphasis is placed
on preparing for planned and unplanned departures,
with a number of contingency plans considering
internal and external talent pipelines. Within these
considerations, the Committee is keenly aware of the
benefits of ensuring that future plans recognise the
importance of developing a diverse and deep internal
and external talent pipeline.
In keeping with the aims around Board refreshment
set out above, there were a number of changes to
Board composition announced in 2024. With several
Directors having served since the IPO in June 2015,
the continued refreshment and orderly succession of
the Board remained a key priority for the Committee.
To this end, we were pleased to identify and secure
the appointments of two highly regarded candidates,
Bernard Byrne and Orla O’Connor, to further
strengthen our Board. Bernard joined the Board on
1 January 2025 as a Non-Executive Director and Chair-
Designate. He will assume the role of Board Chairman
at the end of April when our current Chairman, John
Reynolds, retires after serving on the Board since the
Company’s IPO. Bernard brings extensive financial and
commercial expertise alongside a distinguished record
of leading large private and public Irish companies.
Since January 2025, Bernard and John have worked
closely to ensure a smooth and seamless transition
of Board leadership.
Orla O’Connor also joined the Board on 1 January
2025, following the departure of Gary Britton, the
former Chairman of our Audit & Risk Committee, who
had served on the Board since the Company’s IPO.
Gary was succeeded as Committee Chair by financial
expert Orla O’Gorman.
Orla O’Connor brings a wealth of financial and legal
expertise, along with a strong track record in business
development. In addition to her Board appointment,
Orla has also joined our Audit & Risk Committee
and our Remuneration Committee. With the
appointments of Orla O’Connor and Bernard Byrne,
we are further enhancing the diversity, skills, and
experience of the Board as the Company enters its
next phase of growth.
As part of our considerations, and in light of recent
refreshment of the Board’s composition, Giles
Davies has been reappointed to the Board, subject
to shareholder approval at the 2025 AGM. Giles is the
last Non-Executive Director to have been a member
of the Board since our IPO in 2015, and will focus on
further embedding oversight of our sustainability
strategy ahead of stepping down from the Board at
the end of 2025. The ongoing balance of continuity
and newer appointments at Board level will continue
to encourage the exchange of diverse perspectives,
fresh ideas and innovative business strategies.
In terms of executive appointments, following a
comprehensive recruitment process led by the
Committee, Richard Ball succeeded Shane Doherty
as Cairn’s Chief Financial Officer in April 2024 and was
subsequently appointed to the Board at the May 2024
AGM. After announcing his decision to step down
in October 2023, Shane agreed to extend his tenure
beyond the expiration of his six-month notice period,
remaining with Cairn until the end of October 2024.
This extension allowed for an orderly transition of
responsibilities to Richard. We are deeply grateful
to both Shane and Richard for their collaboration
and commitment, ensuring a smooth and effective
handover.
During 2024, in my capacity of Chair of the Committee,
I also met with two of our major shareholders, to
discuss Board refreshment and diversity, as well as the
steps the Company is taking to enhance the diversity
of our talent pipeline. These engagements were highly
insightful, and I appreciated shareholder feedback
on how they evaluate Nomination Committee
performance at their investee companies. The
feedback provided was particularly helpful as we
take steps to improve diversity, build out plans
around future Board successions and to most
effectively communicate decisions in our annual
reporting. The Board as a whole recognises the
value of direct engagement with shareholders and
I hope to continue to hear from shareholders in the
years ahead.
Following John’s retirement, the Board will achieve
gender parity, with an equal representation of men
and women. Notably, the Senior Independent
Director and all Committee Chair positions will
be held by women, reflecting the Committee
and Board’s strong commitment to diversity.
However, despite this progress at the Board level,
we acknowledge that the pace of improvement
in gender representation has been slower in
senior leadership roles. Over the next year,
addressing this imbalance will be a key focus
for the Committee. Additionally, we recognise
the importance of broadening our approach to
diversity to include other areas, such as ethnicity.
While demographic shifts in Ireland are underway,
we acknowledge the challenges in achieving
greater gender and ethnic diversity at senior
management and Board levels. Enhancing gender
and ethnic diversity will continue to be part of
our consideration in all future Board and senior
leadership appointments.
JULIE SINNAMON
CHAIR OF THE NOMINATION
COMMITTEE
Role of the Committee
The Committee is responsible for Board
recruitment and conducts regular assessments
of the Board’s composition against the
Company’s strategic priorities and the main
trends and factors affecting the long-term
success and future viability of the Company.
The Committee’s key objective is to ensure
that the Board comprises individuals with the
necessary skills, knowledge, experience and
diversity to ensure that the Board is effective
in discharging its responsibilities.
Committee
Member
Meeting
Attendance
Committee
Tenure
Julie Sinnamon
(Chair) 8/8 3 years
Giles Davies 7/8 10 years
Orla O’Gorman 8/8 3 years
All members of the Committee are
independent Non-Executive Directors.
Members of the Senior Leadership Team,
primarily the Chief People Officer, and the
Board Chairman John Reynolds, are invited
to attend meetings. The Company Secretary
Tara Grimley also acts as Secretary to the
Committee. The Committee met eight times
during the year and after each meeting, the
Board was apprised of key issues discussed
during our meetings.
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Cairn Homes plc | Annual Report 2024
Key Areas of Activity in 2024
• Considered the composition of the Board and
Committees and the succession of Non-Executive
Directors with reference to skills, knowledge,
experience, diversity and attributes required of
current and future Non-Executive Directors. In
considering Board succession, the Committee
considered the length of tenure of the Non-
Executive Directors and the importance of the
progressive refreshing of Board membership.
• Led the nomination process leading to the
appointment of Bernard Byrne as independent
Non-Executive Director and Chair-Designate.
• Led the nomination process leading to the
appointment of Orla O’Connor as an independent
Non-Executive Director.
• Oversight of the succession plans in place for the
Senior Leadership Team, with consideration of
the Group’s talent development programmes
and the requirements to build technical and
leadership capability.
• Led the recruitment process leading to the
appointment of Richard Ball as Chief Financial
Officer. The Committee also oversaw the
execution of the agreed succession strategy and
the effective transition of responsibilities from
Shane Doherty to Richard Ball.
• Oversight of the external Board evaluation process
and discussion of the feedback, observations
and recommendations from the review of the
Board and Committees, including the action plan
for approval by the Board. Details of the Board
evaluation process are set out in the Corporate
Governance report on pages 110 to 117.
• Continued application of the Board Diversity
Policy and initiatives, and reviewed progress made
against the agreed objectives set out in the Board
Diversity Policy.
• Incorporated feedback from the Board’s workforce
engagement outreaches, which provides important
insight into employees’ expectations and needs.
Board & Committee Changes
The continued reorganisation and orderly succession
of the Board has been a key focus of the Committee
during 2024. In evaluating Board composition
and plans for new appointments, the Committee
assesses the balance of skills, knowledge, tenure,
experience and diversity, against Cairn’s long-term
strategy, with consideration of the operating context
of the business. While not exhaustive, the skills
matrix set out on page 126 details certain attributes
the Committee looks at when evaluating Board
composition and appointments.
In January 2024, Alan McIntosh stepped down from
the Board while Gary Britton announced his intention
to step down at the end of the year.
Our former CFO, Shane Doherty announced his
intention to step down from the Board in October
2023 after serving more than four years in his role.
Following the announcement of Shane’s departure,
the Board, led by the Committee and supported
by external advisors, immediately commenced
a recruitment process for his replacement. That
comprehensive process resulted in the appointment
of Richard Ball. Richard joined Cairn on 10 April and
was appointed to the Board as an Executive Director
following the 2024 AGM. While Shane stepped down
from the Board at the 2024 AGM, as part of ensuring
an effective transition of responsibilities to his
successor, he stayed on to support Richard until the
end of October 2024.
In August 2024, Cairn announced the appointment
of Bernard Byrne as an independent Non-Executive
Director and Chair-Designate, effective 1 January
2025. Bernard will succeed the current Chairman,
John Reynolds, who will retire at the end of April
2025, having served as Non-Executive Chairman
since Cairn’s IPO in 2015. The appointment of Bernard
represents a very strong addition to our Board.
From a chartered accountancy background, he brings
a wealth of leadership, finance and commercial
experience to Cairn, as well as a deep understanding
of the Irish market and economy. Most recently, he
served as CEO of Davy, Ireland’s largest independent
stockbroking and wealth management business,
and led the subsequent sale of the business and its
integration into the Bank of Ireland Group. Bernard
has excellent credentials and is well suited to succeed
John as Cairn’s Chairman. Bernard left Davy at the
end of June 2024. As a Board, we were conscious
of John Reynolds’ tenure exceeding nine years
following the conclusion of the 2024 AGM and the
Committee was made aware of the availability of
Bernard, an exceptionally high calibre candidate in
the Irish market. While we did not employ an external
consultant/search firm or advertise the position
publicly, the Committee followed its standard
nomination process. After an interview process
with the Chair of the Committee, the CEO and the
Chief People Officer, the Committee considered his
background, skills, knowledge and experience against
objective criteria, including our skills matrix and
business strategy; assessed his fit within the overall
Board; and his potential as future Board Chairman. This
process led us to conclude that he was the right profile
for the role, and we recommended his appointment
to our fellow Board members, who unanimously
approved it.
During 2025, led by the Nomination Committee, the
Board will review the existing skills matrix to ensure
it continues to align with the evolution of strategy,
business priorities, stakeholder expectations and our
external operating environment. The Committee
will provide an update on the matrix in the 2025
Annual Report.
In November 2024, Cairn announced the appointment
of Orla O’Connor as an independent Non-Executive
Director, effective 1 January 2025. Orla is the Chair
of Arthur Cox LLP, one of Ireland’s leading law firms,
and a Partner in their Financial Services department.
She was appointed as Chair of Arthur Cox in 2019
for a term running until mid-2025, when she will
step down from her role, and previously served on
the firm’s Management Committee for five years.
She brings over 25 years’ experience in financial
transactions across the finance, property, and private
equity sectors to the Board. The appointment of Orla
is another step in ensuring the orderly succession of
the Board to support the business in its next stage of
growth and followed a comprehensive recruitment
process, led by the Committee and supported by
external advisors.
To ensure the Board and its Committees continue
to operate at a high standard, particularly in the
context of significant reorganisation and change,
the composition of the Audit & Risk Committee and
of the Remuneration Committee were refreshed
in January 2025. Orla O’Connor became a member
of both committees and Orla O’Gorman succeeded
Gary Britton as the Chair of the Audit & Risk
Committee. Similar to Gary, both Orla O’Gorman
and Orla O’Connor have strong financial expertise.
Nomination Committee Report continued
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Employee Engagement
We are proud of how committed Cairn’s employees
are to the long-term success of the business and
we regularly seek feedback from engagement with
employees. The direct link between the Board
and the employee voice through the Workforce
Engagement Director Orla O’Gorman, provides an
enhanced and interactive understanding of employee
sentiment. Each year, the programme of work of
Cairn’s Workforce Engagement Director is set out
with the support of our Chief People Officer, Maura
Winston. The Board is regularly updated on employee
remuneration and value proposition proposals, the
welfare of employees, employee initiatives, which
include learning and development programmes, and
the detailed results of the employee engagement
survey that is conducted on an annual basis. While we
are fully aware that these surveys do not represent a
full engagement strategy, they provide key insights
into employee satisfaction and are part of the
Committee and the Board’s tools in monitoring
culture. The success of this role is measured in action,
where the employee voice is consistently represented
in these engagements and provides important views
and insights into colleagues’ opinions and difficulties
that feature and contribute to Board and executive
management discussions.
The Workforce Engagement Director uses the outputs
of this survey to conduct engagement directly with
employees focusing on what we do well and where
we could improve across a number of key areas. Over
the last year, Orla carried out meetings with teams
in the Newcastle and Seven Mills sites as well as in
our Central Office. These meetings were attended
by 23 employees (13 female and 10 male), with
varying tenures within the organisation, providing
cross function representation. We were pleased with
the results of this assessment, where participants
continued to show a strong sense of belonging
and alignment with the Cairn culture, a topic that
is of importance to Cairn. While employees noted
they feel valued at Cairn and are satisfied with the
Company’s strong recruitment process, they also
highlighted a desire to extend support programmes
for all new starters, not just graduates, and increase
the frequency of team-building activities. Several
initiatives have also commenced based on the
feedback shared during these sessions, including the
establishment of various employee resource groups
and several remuneration-related benefits such as
tax-free gift cards and wellbeing allowances.
We have also maintained our focus on engaging
our female employees, by facilitating exposure and
development opportunities through our Women
in Cairn Network. During 2024, various networking
events, skills masterclasses and other initiatives
were facilitated by the Women in Cairn Network,
reinforcing our Employee Value Proposition for our
female employees.
Nomination Committee Report continued
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Succession, Talent Capability
and Development
The Senior Leadership Team plays a central role in
delivering Cairn’s strategy, the ongoing development
of our talent pipeline and in fostering the culture and
values required to continue to deliver on our strategy.
The Committee consistently reviews its approach to
executive management development and succession
planning, over the short, medium, and longer term.
The aim of these reviews is to ensure the Company
is in a strong position in the event of any planned or
unplanned departures, including ensuring that senior
executives and wider employees are receiving the
appropriate training and development opportunities
in line with the challenges and opportunities of
the business.
Succession for senior leadership roles, and our
strategy to support talent development by
building capability for the future, is overseen by the
Committee with support from the Chief People
Officer, with formal updates considered at least
once a year. On succession, at least annually, the
Committee reviews the existing internal pipeline of
candidates for immediate and medium- to longer-
term movement into key leadership and functional
roles. This is subject to routine challenge to ensure
understanding of the breadth of internal potential and
experience represented by external talent pools. The
Committee is also regularly apprised on how talent is
benchmarking externally, and on specific initiatives
to encourage more gender and ethnic diversity into
senior leadership talent pipelines.
Board Diversity, Skills and Expertise
The topic of diversity, equality and inclusion
remains a key priority for Cairn across all levels
of the business. The Committee is of the view that
diversity and inclusion are key drivers of business
success, as they promote balanced decision-
making, with consideration of the wider strategy
of the business and its impact on stakeholders.
All Board appointments are made on an objective
and shared understanding of merit, in line with
required competencies relevant to the Company as
identified by the Committee, and consistent with the
Board’s Diversity Policy. We are also conscious that
diversity extends beyond gender and ethnicity to
include age, disability and cognitive behaviour among
other characteristics that significantly enrich Board-
level deliberations.
The Committee will continue to identify suitable
candidates based on merit against objective criteria
and with due regard for the benefits of diversity on
the Board including social and ethnic background,
cognitive and personal strengths as well as diversity
of gender.
We are pleased to report that at the end of 2024,
women represented 37.5% of Board members, and,
following changes to the Board announced in January
2025, this number increased to 44%, exceeding
the new target of 40% set by the Balance for Better
Business Review and our Board will reach gender
parity following the succession of the Chairman of the
Board in April 2025. As things stand, 25% of the Senior
Leadership Team are women (excluding Executive
Directors). The Committee is aware of the new 40%
target set by Balance for Better Business and over the
course of 2025, as part of wider succession plans for
senior positions, the Committee – together with input
from the Chief People Officer – will continue its work
to attempt to increase diversity in senior leadership.
Skills Matrix
Skillset Number of Board members
Leadership, Strategy & Commercial 7
Financial & Risk Management 7
Policy & Government Engagement 5
Sustainability 5
Capital Markets 4
Industry-Relevant Background 4
Despite the differences in demographics in Ireland
compared to the UK, the Committee is also aware of
the importance of widening considerations around
diversity and is seeking ways to promote greater
ethnic diversity at the Board and throughout the
organisation. Reflecting on the evolution of our
customer base in recent years, there has been a
growing emphasis on the importance of improving
ethnic diversity on the Board. To successfully achieve
our mission of creating thriving communities,
the Board and the Committee are mindful of the
significance in ensuring that ethnic and cultural
diversity is also reflected at the highest level of the
organisation. While we have not set formal targets in
this regard, the Committee will continue to take steps
to ensure that such considerations are integrated into
succession planning and recruitment efforts.
Gender Pay Gap
The Company’s Gender Pay Gap Reports are available in the reports and presentations section on our
website at www.cairnhomes.com and details are included on page 101 of this report. The mean Gender
Pay Gap for the Group in 2024 was 30% (2023: 19.6%). The median Gender Pay Gap was 29% in 2024
(2023: 23.6%). As at 31 December 2024, the gender balance of the Group was 29% female and 71% male.
While the Group’s Gender Pay Gap is, in part, driven by the shape of our workforce and the limited female
representation in the construction industry generally, the Board and senior management are taking
proactive steps that we believe will begin to address the gap over the long term.
Specifically, the Company has set objectives around greater female representation in senior roles, where
the impact on any Gender Pay Gap will be most pronounced. As part of those steps, the Nomination
Committee worked closely with the Remuneration Committee to include a gender diversity measure in
the annual bonus plan, which sets the requirement of doubling female representation in senior positions
within the organisation by the end of 2025. As the Company and management drives progress towards
achieving these targets, it is anticipated that our Gender Pay Gap will reduce over time. In the years
ahead, the Committee will continue to focus on reducing the gap through meaningful action and clearly
communicate these steps to shareholders.
Nomination Committee Report continued
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Cairn Homes plc | Annual Report 2024
Diversity Representation
The following tables set out the information required
to be disclosed under UK Listing Rule 14.3.30, as of
31 December, 2024. For the purposes of these tables,
Executive management is defined as being the Senior
Leadership Team or the most senior executive or
managerial body below the Board (or where there is
no such formal committee or body, the most senior
level of managers reporting to the Chief Executive),
including the Company Secretary but excluding
administrative and support staff. For Cairn, this is
the Senior Leadership Team.
As set out previously in this report, following the
changes in Board composition that took place in
January 2025, 44% of the Board are now women.
The Committee is aware of the UK listing rules
expectations for greater ethnic diversity on Boards
and in senior positions. While the Company has not
met the expectation of the listing rules at the date
of the publication of this report, it notes that Cairn’s
operations are solely focused in Ireland, where the
demographics are different to the UK’s.
Nonetheless, as we continue to develop succession
plans for senior management and the Board, the
Committee will continue to emphasise the benefits
of diversity beyond gender to include ethnicity in
recruitment and candidate identification processes.
The Committee has a diverse range of skills and
backgrounds, and it keeps its own and the Board’s
membership under review. As we become increasingly
aware of the impact of our business strategy on
both the environment and the communities in which
we operate, ensuring that the skills, experience
and knowledge of individuals reflect the changing
demands of the business has become a fundamental
requirement to operate.
INDEPENDENCE
71.4%
75.0%
AVERAGE NED TENURE
6.5 years
4.7 years
At 31 December 2024 From 1 January 2025
45 26
Number of
Board Members
Number in
Leadership Team*
44.4%55.6% 25%75%
% of Board % of Leadership Team*
Male Female
43
Number of senior
positions on the Board
Chairman, SID, CEO, CFO, Committee Chairs
GENDER DIVERSITY FROM 1 JANUARY 2025
* excluding Executive Directors
Board Composition at 31 December 2024
Name Role
Independence
Classification
Tenure
(Years) Gender
Michael Stanley CEO No 10 M
Richard Ball CFO No <1 M
John Reynolds Chairman N/A (Yes – on
appointment)
10 M
Linda Hickey Senior Independent Director Yes 6 F
Gary Britton Non-Executive Director Yes 10 M
Giles Davies Non-Executive Director Yes 10 M
Orla O’Gorman Non-Executive Director Yes 3 F
Julie Sinnamon Non-Executive Director Yes 3 F
71.4% 6.5
37.5% F
62.5% M
Board Composition from 1 January 2025
Name Role
Independence
Classification
Tenure
(Years) Gender
Michael Stanley CEO No 10 M
Richard Ball CFO No <1 M
John Reynolds Chairman N/A (Yes – on
appointment)
10 M
Linda Hickey Senior Independent Director Yes 6 F
Bernard Byrne Non-Executive Director &
Chair Designate
Yes <1 M
Giles Davies Non-Executive Director Yes 10 M
Orla O’Connor Non-Executive Director Yes <1 F
Orla O’Gorman Non-Executive Director Yes 3 F
Julie Sinnamon Non-Executive Director Yes 3 F
75.0% 4.7
44.4% F
55.6% M
Nomination Committee Report continued
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Cairn Homes plc | Annual Report 2024
Directors’ Remuneration Report
“Continuing to ensure
our remuneration
arrangements support
the business’s growth
and expansion.”
LINDA HICKEY
CHAIR OF THE REMUNERATION COMMITTEE
Dear Shareholder,
On behalf of the Remuneration Committee (‘the
Committee’) and the Board, I am pleased to present
our Directors’ Remuneration Report to shareholders.
Following the approval of our Remuneration Policy
by 99.6% of shareholders at the 2024 AGM, the focus
of the Committee has been on the implementation
of this policy.
Remuneration Philosophy
The Committee and the Board ensure that our
Remuneration Policy stays aligned with market
practices, supports our corporate strategy and, where
appropriate, reflects shareholder feedback. The policy
aims to align the interests of Executive Directors
and senior management with those of shareholders.
It focuses on long-term, performance-based
incentives and encourages share ownership, fostering
an ‘ownership mindset’ within the Company’s
performance-orientated culture.
The main goal of the policy is to support the
Company’s long-term success by effectively linking
pay to business results and individual contributions,
including sustainability objectives, creating long-term
value for shareholders.
Performance during FY2024
As detailed throughout the Annual Report, Cairn
delivered another year of strong growth in volumes,
revenue and profitability. The business achieved
record housing output, combined with strong
earnings and a disciplined approach to balance sheet
management. We are pleased that the business
achieved our stated ambition of 15% Return on
Equity (ROE) in 2024, reflecting the focus placed on
value creation by the Board and management as our
business continues to scale and mature. The business
also remains highly cash generative, with over €70m
returned to shareholders through share buyback
programmes and total dividend payments of 8.2c per
share (FY2024 interim and final dividends).
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Directors’ Remuneration Report continued
Our financial performance has been matched by
continued progress on key sustainability measures,
including the central objectives of reducing our carbon
footprint, evidenced by having commenced more
than 1,750 apartments to Passive House standard in
2024 which will increase to 2,750 - 3,000 units by the
end of 2025, and enhancing biodiversity across our
sites and developments.
Annual Bonus Outcomes
The Executive Directors were awarded a bonus at
97.5% of maximum for FY2024. The annual bonus
award is determined based on performance against
a range of key financial, ESG/sustainability and
personal and strategic performance targets, each of
which is designed to incentivise the delivery of our
strategy. Ahead of 2024, the Committee made certain
adjustments to the weighting of the performance
measures under the bonus plan, designed to place
a greater emphasis on financial performance, while
maintaining a clear focus on quantifiable stakeholder-
related measures. The weighting for the EBIT measure
was increased from 60% to 70% of overall opportunity,
with a corresponding decrease in the weighting of
personal and strategic objectives. The Committee
is satisfied that the outcome of the bonus plan
appropriately reflects another year of exceptional
performance against the measures employed under
the bonus scheme and across financial and stakeholder
indicators generally. Further details of performance
under the bonus plan are set out on pages 131 to 135.
Long-term Incentive Outcomes
Awards under the Long-Term Incentive Plan (LTIP) will
vest at 97.2% of total opportunity for the CEO, which
the Committee believes is an accurate reflection of the
strength of Company performance, both financially and
on the quantifiable sustainability measures employed
for the 2022 award, over the three-year vesting period.
Further details of performance against the targets
associated with the awards made in 2022 under the
LTIP are set out on page 136. There was no LTIP eligible
to vest for the CFO as he was appointed in 2024.
Employee Engagement and
Workforce Remuneration
The Committee is fundamentally aware of its
responsibility to review workforce remuneration
and ensure a level of understanding amongst the
workforce on how executive remuneration aligns
with wider Company pay strategies. Throughout
2024, the Committee received regular updates from
the Chief People Officer, detailing key initiatives
throughout the workforce and the development
of those in senior leadership roles. This included
feedback received directly from employees through
anonymous employee engagement surveys on
remuneration-related strategies and our overall
employee value proposition. The Committee also
ensures that management present the annual bonus
plan metrics and targets to all employees as part of
our performance management programme, and
details of the LTIP awards to select recipients, ensuring
employees understand the link between Executive
remuneration, our Remuneration Policy and the
remuneration of the wider workforce.
In November 2024, the Workforce Engagement
Director, Orla O’Gorman also shared her findings
with the Board from her most recent meetings with
the workforce, which are set out in further detail in
the Nomination Committee report on page 125.
That process highlighted Cairn’s pay conditions as
a key factor contributing to the attraction of new
workers, as well as employees’ appreciation of the
tax-free gifts cards received in 2024. During the year
an inflationary increase of 5% was awarded to all
employees (excluding Executive Directors). While
inflationary pressures have decreased in Ireland, we
remain committed to supporting employees in 2025.
Employees who receive a base salary below a fixed
threshold will receive a salary increase of €1,500 per
annum. In addition, all employees will also receive tax-
free gift cards worth €1,500, which is an increase from
the €1,000 gift cards and €200 wellbeing allowance
in 2024.
Board Changes
Richard Ball succeeded Shane Doherty as our Chief
Financial Officer in April 2024 and joined the Board at
the May 2024 AGM. Having announced his decision
to step down from his role in October 2023, Shane
agreed to extend his six-month notice period and stay
with Cairn until the end of October 2024 to ensure an
orderly transition of responsibility to his successor.
As detailed in the 2023 Annual Report, in recognition
of Shane’s decision to stay on past his notice period,
the Committee determined he would be treated
as a good leaver. The Committee was satisfied that
this considered approach to succession planning for
the CFO was a clear positive for the business, with
Shane representing a valuable resource to Richard as
he established himself as CFO. Full details of Richard
and Shane’s remuneration for 2024 are detailed
throughout this report.
Bernard Byrne joined the Board as a Non-Executive
Director on 1 January 2025 and will succeed our
current Chairman, John Reynolds, on 1 May 2025. As
detailed in last year’s Annual Report, the fee levels for
the Non-Executive Directors were reviewed during
January 2024. Bernard will receive the same annual
fee of €180,000 as John. Fees for the Chairman role
will be paid on a pro-rata basis to Bernard and John
based on time spent in the role in 2025. As announced
during 2024, we also welcomed Orla O’Connor to the
Board as an independent Non-Executive Director on
1 January 2025. Orla has also joined the Committee,
replacing Gary Britton.
Implementation of Policy in FY2025
Looking ahead to 2025, the Committee has continued
to review the operation of our incentive plans and
remuneration policy, including the performance
measures and targets used. After consideration, the
Committee determined the approach used in FY2024
remained broadly fit for purpose, with only two minor
changes to the implementation of the policy for the
coming year. To ensure continued progress towards
delivering against our KPIs, we have included gender
diversity targets under the people component of the
annual bonus plan. Within the LTIP, the Biodiversity
Net Gain measure will remain; however, it will be
calculated on a portfolio-wide basis, which supports a
more holistic evaluation of our impact on biodiversity
and nature. Further details are contained on page 140.
The Executive Directors will not receive an increase in
salary for 2025.
Conclusion
The Company continued to deliver record profit
growth across key measures in 2024, while notably
achieving our stated ambition of 15% ROE – reflecting
our disciplined approach to capital allocation under
a critical KPI for our business and shareholders. In
2024, we also progressed our sustainability objectives
of reducing our carbon footprint and enhancing
biodiversity across our sites and developments. All
these KPIs are embedded in our short- and long-term
incentive structures and we are satisfied that these
measures continue to play a central role in the growth
and performance of the business.
As a Committee, we continue to receive feedback
from key stakeholders, particularly employees and
shareholders, on the approach to remuneration
for executives and other colleagues. On behalf of
the Committee, I would like to thank shareholders,
employees, and our other stakeholders for their
continued support following another exciting year
of progress for Cairn.
LINDA HICKEY
CHAIR OF THE REMUNERATION
COMMITTEE
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Committee Governance
Role of the Remuneration Committee
The Committee’s role is to determine and agree the
Remuneration Policy for Executive Directors and
senior management and to monitor and report on it.
The Committee’s responsibilities, delegated by the
Board as set out in its Terms of Reference, are to:
• Determine the remuneration packages of the
Chairman, Chief Executive Officer and Chief
Financial Officer and oversee the remuneration
structures for other senior managers, including
salary, annual incentive, pension contributions
and compensation payments, and oversee any
major changes in employees benefits structures
throughout the Company;
• Nominate Executive Directors and management
for inclusion in the LTIP, to grant awards under
the LTIP, to determine whether the criteria for the
vesting of awards have been met and to make any
necessary amendments to the rules of the LTIP;
• Ensure that contractual terms on termination or
redundancy, and any payments made, are fair to
the individual and the Company; and
• Be exclusively responsible for establishing the
selection criteria, selecting, appointing and setting
the Terms of Reference for any consultants who
advise the Committee.
Key Responsibilities and Activities in 2024
An overview of the Committee’s activities during 2024
is outlined below:
• Reviewed annual performance of the
Executive Directors.
• Determined fixed and variable remuneration for
Executive Directors and senior management.
• Set 2024 LTIP and Annual Bonus targets.
• Determined performance outcomes for the 2022
LTIP award.
• Assessed efficacy and stretch of LTIP targets
through all in-flight awards.
• Reviewed and made progress against the
remuneration strategy agreed to execute the
Remuneration Policy.
• Confirmed final pay arrangements for the
exiting CFO.
• Determined the remuneration arrangements
for the incoming CFO.
• Worked with the Committee’s consultants during
2024 to ensure rigour of Committee analysis
and decisions as well as reviewing remuneration
trends, extensive benchmarking reports and
reviews of evolving market practices.
• Considered and approved the Directors’
Remuneration Report and remuneration
disclosure requirements.
• Alongside the broader review of the
effectiveness of the Board, evaluated
the Committee’s effectiveness.
• Reviewed and approved its annual agenda
and Terms of Reference.
Committee Membership
The Committee currently consists of three Non-
Executive Directors whose collective role includes
ensuring that the Group’s remuneration arrangements
are aligned with the Group’s strategic priorities. The
Terms of Reference of the Committee include the
determination of the remuneration packages for
Executive Directors, the Company Secretary and
other members of the senior management team.
The Chairman and the Executive Directors determine
the fees for the Non-Executive Directors. The Terms of
Reference for the Committee are reviewed annually,
are updated as appropriate and are available on the
Group’s website, www.cairnhomes.com.
The Company Secretary acts as Secretary to the
Committee. During the year, the Chairman of the
Board, the Chief Executive Officer, Chief Financial
Officer and the Chief People Officer attended
meetings on an ad hoc basis at the invitation of the
Committee and provided information and support as
requested. No individual was present when their own
remuneration was being discussed.
The below table sets out the Committee membership
during FY2024 including their attendance and tenure:
Committee Member
Meeting
Attendance
Committee
Tenure
Linda Hickey (Chair) 5/5 6 years
Gary Britton* 5/5 10 years
Giles Davies 5/5 10 years
* Gary stepped down from the Board at the end of 2024. He
was replaced on the Committee by Orla O’Connor, who joined
the Board and Committee on 1 January 2025.
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Remuneration at a Glance
The purpose of this section is to provide an overview of the Group’s performance in 2024 as well as the remuneration of our Executive Directors during the year and for the year ahead.
Directors’ Remuneration Report continued
Fixed Pay
BASE SALARY
€425,000 €271,635*
(CEO) (CFO)
PENSION CONTRIBUTIONS
10% of base salary
BENEFITS
Health insurance and car allowance
Long Term Incentive Plan
LTIP GRANT
€637,500 €750,000*
(CEO) (CFO)
PERFORMANCE CONDITIONS
Measures Weighting Threshold Max
Cumulative Basic EPS 55% 51c 57c
ROE (in FY2026) 25% 14% 16%
Biodiversity Net Gain 10% 49% 55%
Passive Housing/
Energy Efficiency
10% 24% 30%
2024
Annual Bonus
ANNUAL BONUS EARNED
€621,562 €304,203*
(CEO) (CFO)
ANNUAL BONUS OUTCOME
Measure Weighting Outcome
EBIT 70% 70%
Stakeholder: People & Customer Experience
Health & Safety Underpin
20% 20%
Personal/Strategic 10% 7.5%
Overall 100% 97. 5%
BONUS DELIVERY
CEO CFO
Outcome 97.5% 97.5%
Total Bonus Earned €621,562 €304,203
Cash €416,447 €203,816
Delivered in Shares €205,115 €100,387
* The annual base salary for Richard Ball, CFO, is €375,000. The figure above represents a pro-rated amount from when he commenced employment on 10 April 2024. The bonus earned by Mr. Ball has also been pro-rated from 10 April 2024.
Mr. Ball received a joining LTIP award of 200% of base salary, to reflect awards forfeited at his previous employer. From 2025, his award levels will revert to the normal maximum under the LTIP, being 150% of base salary.
Former CFO Shane Doherty received an annual base salary of €375,000 pro-rated to his exit date of 31 October 2024. Mr. Doherty also received a bonus outcome of €468,750 representing the pro-rated element of his bonus
to 31 October 2024. As Mr. Doherty exited the business on 31 October 2024, bonus deferral requirements for Executive Directors were not applied. There was also no LTIP award made to Mr. Doherty in 2024.
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Directors’ Remuneration Report continued
Fixed Pay
BASE SALARY
€425,000 €375,000
(CEO) (CFO)
PENSION CONTRIBUTIONS
10% of base salary
BENEFITS
Health insurance and car allowance
Long Term Incentive Plan
AWARDS % OF BASE SALARY
150% 150%
(CEO) (CFO)
PERFORMANCE CONDITIONS
Measures Weighting Threshold Max
Cumulative Basic EPS 55% 59.0c 65.6c
ROE (in FY2027) 25% 15.5% 17%
Biodiversity Net Gain 10% 25% 30%
Passive Housing/
Energy Efficiency
10% 24% 30%
2025
Annual Bonus
% OF BASE SALARY
150% 115%
(CEO) (CFO)
ANNUAL BONUS FRAMEWORK
Measure Weighting
EBIT 70%
Stakeholder: People & Customer Experience
Health & Safety Underpin
20%
Personal/Strategic 10%
Total 100%
BONUS DEFERRAL
33%
of total bonus paid to be deferred into shares for CEO and CFO.
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IMPLEMENTATION OF THE REMUNERATION POLICY IN 2024
Single Total Figure of Remuneration
Remuneration Outcomes for Executive Directors for the Year Ended 31 December 2024
The table below sets out the details of the remuneration paid to the Executive Directors for the year ended 31 December 2024, with comparatives for the prior year ended 31 December 2023.
Salary Pension Benefits Total Fixed Annual Bonus LTIP Total Variable Total Pay
Ratio of Fixed
to Variable
Executive Director
2024
€’000
2023
€’000
2024
€’000
2023
€’000
2024
€’000
2023
€’000
2024
€’000
2023
€’000
2024
€’000
2023
€’000
2024
€’000
2023
€’000
2024
€’000
2023
€’000
2024
€’000
2023
€’000 2024 2023
Michael Stanley 425 425 43 53 10 10 478 488 622 631 1,176 1,056 1,798 1,687 2,276 2,175 21/79 22/78
Richard Ball
(1)
241 – 24 – 11 – 276 – 270 – – – 270 – 546 – 51/49 –
Shane Doherty
(2)
313 375 39 47 13 15 365 437 469 557 980 932 1,449 1,489 1,814 1,926 20/80 23/77
(1) Richard Ball joined the business on 10 April 2024 and became an Executive Director on 10 May 2024. The remuneration in the above table is reflective of his tenure from 10 May 2024. Between 10 April 2024 and 10 May 2024, Richard received €35,000 in salary, pension and
benefits, and a recruitment bonus of €35,000, prior to becoming an Executive Director. In addition, €34,000 of the total annual bonus earned of €304,203 has been attributed pro-rata to the period of employment prior to 10 May 2024.
(2) Shane Doherty resigned from the Board with effect from 10 May 2024 and left the business on 31 October 2024. The remuneration in the table above includes all remuneration received to 31 October 2024.
The LTIP values for 2024 represent an estimate of the value of the 2022 awards, which are due to vest in April 2025, and were valued at the average share price for the three months ended 31 December 2024 (€2.16), plus dividend
equivalents. The LTIP values for 2023 represent the final value of the 2021 LTIP awards, plus dividend equivalents, which vested in April 2024.
Pension
The maximum pension contribution for Cairn’s Executive Directors has been reduced to 10% of salary, effective from 2024. This final adjustment to pension contributions for Cairn’s Executive Directors was carried out in line with
the wider review of Cairn’s executive remuneration policy and in line with shareholder expectations.
2024 Annual Bonus
The maximum bonus opportunity for 2024 was 150% of salary for the Chief Executive Officer and 115% for the Chief Financial Officer. It was 150% for the former Chief Financial Officer. The bonuses paid to the incoming and the
former CFO were pro-rated based on the time they spent with Cairn in 2024. Annual incentives were based on a mix of financial and non-financial objectives. The financial measure employed was EBIT (70% of maximum), the
non-financial stakeholder measures (20% of maximum) related to people and customer metrics with a health & safety underpin, with personal and strategic objectives (10% of maximum) relating to strategy and leadership for the
CEO, and strategy, leadership, financial frameworks and governance for the CFO. There was full achievement under each component of the bonus however, in recognition of the lack of progress on gender representation at senior
levels within the business, the Committee applied a 2.5% adjustment to the payout level under personal and strategic, from 10% to 7.5%. The Committee considers the final 2024 Annual Bonus outcome to be aligned with strong
financial performance and a fair outcome for Executive Directors and broader stakeholders. Further details are set out below:
Measure Weighting
Threshold
(25%) Max (100%)
2024
Performance Payout
Financial EBIT 70% €130m €150m €150m 70%
Non-Financial Customer Experience (10%)
People Engagement & Development (10%)
(Health & Safety underpin)
20% N/A N/A See overleaf 20%
Personal & Strategic 10% N/A N/A See overleaf 7.5%
Total 100% 97.5%
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Corporate GovernanceStrategic Report Financial Statements
Bonus Deferral
For 2024, 33% of bonus paid to the CEO and the CFO will be deferred into shares. Shane Doherty, former CFO left the business on 31 October 2024 and as such, bonus deferral requirements were not applied.
The following was the resulting breakdown of the payout for 2024:
Name
Maximum Bonus
(% of salary)
Payout
(% of salary)
Actual Bonus
Awarded
Value of Bonus
Paid in Cash
Value of Bonus
Deferred into Shares
Michael Stanley (CEO) 150% 146.25% €621,562 €416,447 €205,115
Richard Ball (CFO)* 115% 112.125% €304,203 €203,816 €100,387
* The CFO’s bonus has been pro-rated from his start date on 10 April 2024.
Stakeholder
The Stakeholder measures, targets and associated performance for 2024 are detailed below:
Measure Pillar Objective Target Performance
People Engagement & Employee
Satisfaction
Investment in our
People Development
• Measure employee satisfaction through
anonymous engagement survey
• Upskill employees through continued career
development and continuous learning
• Deliver top talent and manager
development programmes
• Retain employee engagement scores within 10% range
of prior year.
• Retain Great Place to Work Certification
• Drive top talent programme with focus on female
talent development
• At least 20% of workforce to complete training and
development programme
• 84% employee engagement index
• Great Place to Work Certified for 2024
• 60% of females through talent development programme
• 68% of workforce enrolled in training and
development programme
Customer Customer Experience • Measure success of customer experience through
customer surveys and handover process. Ensure
aftercare experience is best in class with focus on post-
occupation experience.
• 85% customer satisfaction • 96% achieved
The stakeholder measures for People focused on retaining our strong engagement scores and our Great Place to Work certification to ensure we continued embedding a culture of wellbeing. We also were keen to drive success
through top talent programmes internally with a focus on female talent development and recruitment within our graduate programme, our mentoring programme, people manager training and further education funding. Further
training and development opportunities which were delivered during 2024 included bespoke health and safety training, sustainability and Passive House build training and communication skills and excel skills workshops.
The stakeholder measures for Customer focused on ensuring the various stages of our customer journey are captured, measured, and improved upon year-on-year to ensure a best-in-class service and experience. In relation to
the handover process, we ensure our customers are well informed and armed with all of the details they need to own, manage and maintain their properties. We are also keen to ensure we understand what is important to our
customers, what went well and what could be improved upon from feedback obtained through our survey process to improve our customer offering. There is also focus on ensuring our customer and aftercare experience is best
in class and our post-occupation check in with all of our customers ensures we are capturing the sentiment of our customers and their residents.
Health & Safety Underpin
The above measures were also subject to a health & safety underpin, performance of which was determined by the Audit & Risk Committee and a recommendation on achievement made to the Remuneration Committee.
The Audit & Risk Committee determined that the underpin for 2024 had been successfully met, by reference to the achievement of the 2024 annual objectives which included measuring increased engagement of the supply
chain and improvement of their Environmental, Health & Saferty KPIs, a reduction in waste and increase in recycled waste and ensuring the Health and wellbeing strategy is promoted and understood.
Directors’ Remuneration Report continued
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Personal/Strategic
During the past year, exemplified by the strong financial performance of the Company, the below personal and strategic measures were achieved:
Chief Executive Officer – Michael Stanley
Area & Weighting Outcome Aims and Measures Performance Review
Strategy (5%) 5% • Identify & Influence market opportunities across differing
customer cohorts.
• Management of existing landbank to balance market
demand and deliver unit targets.
• Drive Cairn sustainability strategy & support framework
implementation.
• Continued the successful pivot towards the forward funding opportunity with State-supported entities. Led the development of the five
year strategic plan to address all customer cohorts through identifying land requirements for the broader markets, including a greater focus
on our low density product and first-time buyer market. Embedded the three year business plan covering capital structure, capital allocation
and driving shareholder value, evidenced by EPS performance and progressive ROE growth to 15% over the period.
• Led the company to transact on over 4,300 units, creating a significant committed forward order book and capital allocation opportunity for
the business. Successfully acquired multiple capital efficient and strategic land options, adding high value sites to our landbank with existing
planning to facilitate a continued pipeline for our delivery platform.
• Significant work underway on defining and refining the Sustainability strategy and focussed initiatives under the pillars of ‘E’ and ‘S’ to set the
long-term ambition for the business towards 2030 and 2050, including the roll out of Passive build standard across c.1,700 units.
Leadership (5%) 5% • Risk balanced approach and best in class governance.
• Leadership in supporting corporate reputation, brand and
position within the external market.
• Develop leadership team to drive further effectiveness &
support delivery of targets and strengthen future succession.
• Continued to prioritise and balance investment in business with other capital allocation strategies to ensure position for sustainable growth.
Led business in continuing to prioritise best in class approach to H&S and quality control.
• Engaged with various government stakeholders on policy and support frameworks to address current challenges in the State’s delivery
of housing. Promoted Cairn’s brand and reputation externally through a number of advisory interactions with key stakeholders, and
sponsorship opportunities including Cairn Community Games.
• Successfully transitioned leadership structures ensuring pipeline of talent into senior positions in the business, further bolstering
succession planning.
Chief Financial Officer – Richard Ball
Area & Weighting Outcome Aims and Measures Performance Review
Strategy &
Leadership (5%)
5% • Support the CEO in the definition and leadership of strategy
to grow and scale the business
• Alongside the CEO, set the three year plan, budget and capital structure and allocation strategy, supporting further shareholder value
creation, evidenced by ROE performance
• Provided support and guidance for the business to execute on several forward funding deals during the year.
• Developed relationships with existing shareholders, while continuing to build out the investor relations programme.
Financial
Frameworks/
Governance (5%)
5% • Ensure excellence in all matters pertaining to the Board,
governance, and reporting.
• Provide the financial frameworks and roadmap to create an
environment that supports profit and cash maximisation.
• Drive commercial decision making across all functions to
align outcomes/performance with Company targets.
• Provided improved clarity on KPIs, impact and alignment of financial methodologies with delivery of returns.
• Financial oversight of budgeting and cash management throughout the year.
Whilst the Remuneration Committee determined that each of the personal and strategic objectives set at the beginning of the year had been achieved in full, on reflection and considering the lack of gender diversity and female
representation within the business, a 2.5% adjustment to payout for members of the Senior Leadership Team (including Executive Directors) was made in 2024.
Former Chief Financial Officer – Shane Doherty
Area & Weighting Outcome Aims and Measures Performance Review
Orderly succession &
transition (10%)
10% • Smooth transition of CFO area/Support to CEO • Developed and supported an extensive transition plan for the new CFO, to include:
– Financial planning workshops on approach to setting challenging and robust financial metrics
– Extensive overview of the three year plan
– Board and Committee agendas education with associated rhythm and prerequisites
– Updates on the Finance, IT & Investor Relations teams to include succession considerations and capabilities review
The bonus paid to Shane Doherty was pro-rated to his exit date of 31 October 2024.
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Vesting of Long Term Incentive Plan Awards
Awards granted in 2022 will vest on 4 April 2025 and are related to the three-year performance period ended 31 December 2024. Both the CEO and the former CFO received an LTIP award in 2022. The value of shares awarded to the
CEO in May 2022 was €637,500, or 514,113 shares. The value of shares awarded to the former CFO in May 2022 was €562,500, or 453,629 shares. The share price at the date of grant was €1.24. As at 31 December 2024, the value of
the shares that are due to vest to the CEO and former CFO, were €1,161,844 and €968,203, respectively, based on a vesting outcome of 97.2%, a closing share price of €2.325 and after pro-rating of the former CFO’s award .
At the time of vesting of all LTIP awards, the Committee reviews the shareholder experience over the performance period in confirming final vesting levels. Having reviewed the share prices at grant, during the performance period,
and at its conclusion in December 2024, the Committee is satisfied that strong performance under each measure had been achieved and remained aligned to the overall stakeholder experience. In particular, the Committee was
satisfied that management had directly contributed to performance under each of the LTIP measures, which had played a key role in delivering superior returns to shareholders over the performance period. The performance
criteria and resulting outcomes are detailed below:
Metric Weighting
Threshold
(25% of vesting)
Maximum
(100% vesting) Actual Payout
Cumulative Basic EPS 60% 28.4c 40.1c 39.4c 57.2%
Return on Equity 20% 13% 15% 15.1% 20%
Biodiversity Net Gain 20% 25% 40% 59% 20%
TOTAL: 97.2%
The 2022 LTIP awards were also eligible for dividend equivalents. The total dividends paid over the performance period 1 January 2022 to 31 December 2024 were 19c per share. Each recipient will receive an equivalent value in the
form of additional shares, following the vesting of the award in April 2025.
Awards Granted During the Past Year
LTIP
On 10 April 2024, the following conditional share awards were granted under the LTIP to Michael Stanley, CEO and Richard Ball, CFO:
Director
Number of
Shares Granted
Share Price
at Grant
Face Value at
Date of Grant
Michael Stanley (CEO) 401,448 €1.588 €637, 500
Richard Ball (CFO) 472,292 €1.588 €750,000
The vesting of the 2024 LTIP awards will be determined by performance against the following metrics:
Metric Weighting Threshold (25%) Max (100%)
Cumulative Basic EPS 55% 51c 57c
ROE (in FY2026) 25% 14% 16%
Biodiversity Net Gain 10% 49% 55%
Passive Housing/Energy Efficiency 10% 24% 30%
The primary measure for these awards, cumulative EPS over the three-year performance period ending 31 December 2026, provides an easily understandable and transparent framework for all stakeholders and is designed to
motivate participants to deliver Cairn’s strategy over the performance period. The ROE target, a key metric for the business and our shareholders, is calculated based on performance in FY2026 and will incentivise strong returns
on equity for the three-year period. Cairn has a clear commitment to responsible business practices, as it continues to work towards reducing its carbon footprint while enhancing the biodiversity across its sites. The biodiversity
measure will continue to be based on independent ecologists’ reports that will verify whether sites will achieve Biodiversity Net Gain. The Passive Housing measure will be determined by the proportion of passive units
commenced relative to the total number of units commenced. Both metrics are measured cumulatively over the performance period.
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Stretch CEO LTIP
At the EGM held on 31 August 2023, shareholders approved an additional long-term incentive plan, the Stretch CEO LTIP. The plan was designed to ensure that the CEO is not only incentivised to increase business growth through
upscaled new homes delivery resulting in ambitious profitability and return on equity targets, but also to maximise performance and shareholder value throughout the full performance period and beyond it, as shares vest in
years three and four from the original date of grant, with a two-year hold period. The Stretch CEO LTIP is a one-off arrangement granted in two tranches (in 2023 and 2024) to the CEO, relating to two equal numbers of ordinary
shares in the capital of the Company. The 2023 award was made over 3,158,844 shares and will be subject to a three-year performance period (FY2023 - FY2025). The 2024 award was made over an identical number of shares and
subject to a four-year performance period (FY2023 - FY2026), ensuring that the achievement of targets becomes more challenging for the second tranche. As part of the award, the CEO has agreed to hold at least 5.5 million shares
(representing approximately 25% of his total shareholding at the time of grant) for the six-year duration of the plan.
No other employee of the Company or any of its subsidiaries will be eligible for an award under the Stretch CEO LTIP. The Stretch CEO LTIP operates outside of the Company’s Remuneration Policy (which was approved at the 2024
AGM) and the existing Long Term Incentive Plan (which was approved by shareholders in 2017). The vesting of these awards will be determined by performance against profit after tax and return on equity.
75% of the awards will be tied to the Company’s compound annual growth rate in reported (unadjusted) profit after tax:
Award Performance Period
Threshold
25% vesting
Stretch*
85% vesting
Maximum
100% vesting
Profit growth
from base for
maximum payout
Award 1 (2023) FY 2023 - FY 2025 inclusive 7.5% C AGR 10% CAGR 12.5% CAGR 42%
Award 2 (2024) FY 2023 - FY 2026 inclusive 7.5% C AGR 10% CAGR 12.5% CAGR 60%
* Straight-line vesting will apply between threshold and stretch, and stretch and maximum.
25% of the award will be based on Return of Equity (‘ROE’) performance during the final year of each performance period:
Award Performance Period
Threshold
25% vesting
Stretch*
85% vesting
Maximum
100% vesting
Award 1 (2023) FY 2023 - FY 2025 inclusive 14% 15.5% 17%
Award 2 (2024) FY 2023 - FY 2026 inclusive 14% 15.5% 17%
* Straight-line vesting will apply between threshold and stretch, and stretch and maximum.
Cessation of Employment
Cessation of employment during the performance period will generally result in the awards lapsing, save for in exceptional circumstances or if the CEO is treated as a ‘good leaver’. For the purpose of the Plan, the CEO will be
deemed to be a ‘good leaver’ if he ceases to be employed by the Company and its subsidiaries (the Group) for health reasons, redundancy, voluntary severance, the transfer or sale of the entity that employs him or the part of the
business in which he works outside the Group, or any other reasons where the Remuneration Committee determines that exceptional circumstances apply. If the CEO is a good leaver after an award has been granted and prior to
the vesting of the award, the Remuneration Committee will have discretion to allow him to continue to hold any unvested award until it vests or lapses in accordance with the rules of the Plan, subject to the achievement of the
established performance conditions. In normal circumstances, awards will be pro-rated for time served relative to the applicable performance period. The Remuneration Committee has discretion to pro-rata the award and to
determine the rate of vesting. If the CEO dies after the grant of an award and prior to its vesting, the Remuneration Committee has discretion to determine whether the whole or a specified percentage of the award vests.
Malus and Clawback
The Remuneration Committee can recalculate the number of shares comprised in an award under the Stretch CEO LTIP prior to vesting where:
• there is a material misstatement of the Group’s published accounts; or
• any Group company suffers any business or reputational damage arising from a criminal offence, serious misconduct or gross negligence by the CEO; or
• there is material breach of applicable health & safety regulations by the CEO.
Similarly, if any of the above circumstances apply at any time prior to the second anniversary after the date on which an award vests, there may be a clawback of some or all of the shares, or a cash payment, on a basis determined
by the Remuneration Committee in accordance with the rules of the Plan. This two-year period may be extended if the CEO, the Company or any other member of the Group or relevant business unit is under investigation by a
regulatory authority and such investigation is not expected to be concluded by the end of the two-year period.
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Non-Executive Directors’ Remuneration Details
As detailed in last year’s Annual Report, during January 2024, the fee levels for the Non-Executive Directors were reviewed, to ensure they continued to reflect the demands on the time of Directors and their respective roles. The
Remuneration Committee reviewed the fee of the Chairman, while the Board as a whole reviewed the fees for Non-Executive Directors and those with additional responsibilities. Following a comprehensive review of the time
commitments of each Director, and incorporating external data as a reference point, changes to the Non-Executive Directors’ fees have been implemented for 2024. The Board is fully satisfied that the revised fees are reflective
of the increased time commitment expected of Directors to fulfil their role since the last review of fees, implemented in 2018. The fees paid to Non-Executive Directors in respect of the year ended 31 December 2024, with
comparatives for the year ended 31 December 2023, are detailed in the table below:
Base Fee Committee Chair Fee SID Fee Other Roles Total
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
John Reynolds 180 150 – – – – – – 180 150
Gary Britton 70 60 15 15 – – – – 85 75
Giles Davies 70 60 – 12 – 10 10
1
– 80 82
Linda Hickey 70 60 15 12 10 – – – 95 72
Alan McIntosh
3
10 60 – – – – – – 10 60
Orla O’Gorman 70 60 – – – – 10
2
– 80 60
Julie Sinnamon 70 60 15 – – – – – 85 60
(1) Giles Davies was appointed as Director Responsible for Sustainability & Environmental Impact for 2024
(2) Orla O’Gorman continued as Workforce Engagement Director for 2024
(3) Alan McIntosh stepped down from the Board on 25 January 2024
Payments for Loss of Office
There were no payments for loss of office paid during 2024.
Payments to Former Directors
Details of remuneration for Shane Doherty, from 10 May 2024 (when he ceased to be an Executive Director) until 31 October 2024 (when he ceased to be an employee) are contained within the Single Total Figure of Remuneration
table on page 133.
Directors’ Remuneration Report continued
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IMPLEMENTATION OF THE REMUNERATION POLICY IN 2025
This section provides an overview of the how the Committee is proposing to implement the Remuneration Policy in 2025.
Base Salary
Base salary will remain unchanged for the Executive Directors. As part of the implementation of the Stretch CEO LTIP, approved at the EGM in August 2023, the Committee detailed its commitment not to adjust the CEO’s fixed pay
during the lifetime of the plan. The Company’s approach to remuneration is built on a commitment to restrained fixed salaries, supplemented with significant ‘at-risk’ variable pay, designed to incentivise superior performance and
alignment with shareholder interests.
Executive Director Base Salary
Michael Stanley (Chief Executive Officer) €425,000
Richard Ball (Chief Financial Officer) €375,000
Pension and Benefits
The Chief Executive Officer and Chief Financial Officer will receive a pension contribution worth 10% of base salary in 2025.
Annual Bonus
The maximum annual bonus opportunity will remain at 150% of base salary for the Chief Executive Officer and 115% for the Chief Financial Officer. 33% of any bonus payout will be deferred into shares for a two-year period. The
annual bonus for 2024 for Executive Directors will be based on the following criteria:
Measure
Percentage of
Max Opportunity
Earnings Before Interest and Tax (EBIT) 70%
Stakeholder Measures: Customer & People 20%
Personal and Strategic Objectives 10%
The selection of measures and targets reflects the strategic priorities of the Company.
The bonus plan will continue to include a focus on stakeholder measures through i) Customer satisfaction and ii) People measures, each weighted equally at 10% of the bonus. With the underlying and overarching role of health
& safety considerations across all our operations, the stakeholder measures will continue to be subject to a health & safety underpin. The achievement of the underpin will only be confirmed following a review by the Audit & Risk
Committee based on all key health & safety priorities throughout the year.
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Long-Term Incentives
In April 2025, awards will be made at 150% of base salary for the CEO and the CFO. Awards will vest subject to the criteria set out below over a three-year performance period up to 31 December 2027 and will be subject to a
two-year holding period following vesting. Vesting will continue to be determined by Cumulative EPS performance weighted at 55%, with ROE weighted at 25% and calculated in the final year of performance, and with an ESG
component weighted at 20% of the total award. The ESG metric will be split into two equally weighted metrics, being 10% for Biodiversity Net Gain performance and 10% for carbon reduction/Passive Housing/energy efficiency
performance.
Measure
Percentage of
Max Opportunity Threshold (25%) Max (100%)
Cumulative Basic EPS 55% 59c 65.6c
Return on Equity (ROE) FY 2027 25% 15.5% 17%
Biodiversity Net Gain 10% 25% 30%
Passive Housing/Energy Efficiency 10% 24% 30%
Total 100%
Ensuring the appropriateness and stretch of our targets has always been a priority for the Committee, as the business continues to deliver superior and sustainable growth. As set out previously, return on equity is a key metric for
the business, as it is for shareholders’ ability to understand the Company’s financial performance and long-term prospects.
In 2021, Cairn identified Biodiversity Net Gain as a key focus area, undertaking two pilot studies in 2022 and expanding to a ten-site roll out by 2024. We are now updating our biodiversity target to expand calculations to cover all
sites within our portfolio.
When implementing Biodiversity Net Gain at a site level, we experienced certain difficulties in achieving the requirements on a site-by-site basis as the business grows and we aim to deliver housing at scale, with achievement
fundamentally not feasible at particular sites. In addition, the regulatory environment and lack of a Biodiversity Net Gain framework in Ireland made off-site habitat creation challenging. During this time the regulation at an EU level
has also changed, with the EU Directive on Nature Restoration mandating that by 2030 all developments must achieve No Net Biodiversity Loss. Our biodiversity targets were set with reference to emerging regulation in the UK,
however a lack of a consistent regulatory framework in Ireland made achieving Biodiversity Net Gain at a site level challenging.
We are now updating our approach to evaluating biodiversity as a result of those challenges and to ensure our remuneration measures are aligned with our strategy and the realities of our operations.
Our biodiversity LTIP targets will now evaluate performance at a portfolio level. By assessing biodiversity performance at a portfolio level, we believe we are developing a strategy which is more aligned with the nature of our
business and includes targets that can be influenced by management, while increasing our level of ambition for biodiversity. By implementing a new framework for measuring our impact on biodiversity, we are widening the
scope of our target, considering all sites rather than just those where Biodiversity Net Gain is feasible. We believe that this change allows us to view biodiversity more holistically, aiming to ensure the business as a whole has a net
positive impact on biodiversity, rather than simply doing so at a portion of the sites we operate on.
The new target recognises the potential opportunity to create a significant Biodiversity Net Gain at some sites, while balancing this with the challenges in achieving biodiversity enhancements elsewhere. We believe these changes
include greater ambition than our previous goal, as all sites are incorporated within the target and associated calculations.
In addition to the changes to the methodology detailed above, the Committee is confident that the Passive Housing measure includes greater stretch for the coming three-year period, given the larger number of units
management are expected to commence.
Overall, the targets set for the 2025 award are no less challenging than those set previously and do not include any change in our level of ambition in delivering Biodiversity Net Gain across our portfolio.
Directors’ Remuneration Report continued
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ADDITIONAL INFORMATION
Directors’ & Secretary’s Interests in the Long Term Incentive Plan (LTIP)
Details of outstanding nil cost share awards granted to the Directors’ and the Company Secretary under the LTIP are set out below:
Number of Shares Under Award
At 1 January
2024
Granted
During the Year
Exercised
During the Year
Lapsed
During the Year
At
31 December
2024
Market Price at
Date of Award
€
Market Price at
Date of Vesting
€ Date of Award Vesting Date
Michael Stanley (Chief Executive Officer) 612,981 – 606,851 6,130 – 1.04 1.594 18.05.21 04.04.24
514,113 – – – 514,113* 1.24 N/A 04.04.22 04.04.25
615,347 – – – 615,347 1.036 N/A 04.04.23 04.04.26
– 401,448 – – 401,448 1.588 N/A 10.04.24 10.04.27
1,742,441 1,530,908
Richard Ball (Chief Financial Officer) – 472,292 – – 472,292 1.588 N/A 10.04.24 10.04.27
– 472,292
Shane Doherty (Former Chief Financial Officer) 540,865 – 535,456 5,409 – 1.04 1.594 18.05.21 04.04.24
453,629 – – – 453,629* 1.24 N/A 04.04.22 04.04.25
542,953 – – – 542,953 1.036 N/A 04.04.23 04.04.26
1,537,447 996,582
Tara Grimley (Company Secretary) 103,486 – 102,451 1,035 – 1.04 1.594 18.05.21 04.04.24
91,134 – – – 91,134* 1.24 N/A 04.04.22 04.04.25
119,449 – – – 119,449 1.036 N/A 04.04.23 04.04.26
– 94,458 – – 94,458 1.588 N/A 10.04.24 10.04.27
314,069 305,041
* these awards will vest at 97.2% in April 2025.
Directors’ Remuneration Report continued
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Directors’ & Secretary’s Interests in Other Share Plans
Michael Stanley also had outstanding nil cost share awards under the Stretch CEO LTIP of 6,317,690 shares at 31 December 2024. 50% of these shares vest, subject to performance conditions in each of April 2026 and April 2027, with
a two year hold period to the end of 2028 and 2029 respectively.
Richard Ball and Tara Grimley held options at 31 December 2024 to acquire 12,587 shares through the Company’s Save as You Earn (SAYE) scheme in December 2027. The SAYE scheme is a Revenue approved savings plan where
participants are granted a right to acquire discounted shares in the Company following a three-year savings period.
Directors’ & Secretary’s Interests in Ordinary Share Capital
The interests of the Directors and Company Secretary who held office at 31 December 2024 in the issued ordinary share capital of the Company are set out in the table below. The interests disclosed below include both direct and
indirect interests in shares.
Director
No. of Ordinary
Shares at
31 December 2024
No. of Ordinary
Shares at
31 December 2023
John Reynolds (Chairman) 129,174 129,174
Michael Stanley (Chief Executive Officer) 14,354,751 21,746,063
Richard Ball (Chief Financial Officer) – –
Gary Britton (Non-Executive Director)
(1)
130,000 130,000
Giles Davies (Non-Executive Director) 50,000 50,000
Linda Hickey (Non-Executive Director) 75,000 75,000
Orla O’Gorman (Non-Executive Director) – –
Julie Sinnamon (Non-Executive Director) – –
Tara Grimley (Company Secretary) 104,291 231,721
1
Retired
on
31
December
2024
All of the interests noted above are beneficially owned.
There were no changes in the above Directors’ and Secretary’s interests between 31 December 2024 and 12 March 2025 with the exception of Richard Ball and Tara Grimley, who each purchased 5,921 shares on 4 March 2025
under the Cairn Homes plc Approved Profit Sharing Plan. The Company’s Register of Directors’ Interests (which is open to inspection) contains full details of Directors’ shareholdings and other interests. The Company has a policy
on dealing in shares that applies to all Directors. Under this policy, Directors are required to obtain clearance from the Company before dealing in Company shares. Directors are restricted from dealing during designated close
periods and at any other time when they are in possession of Inside Information (as defined by the Market Abuse Regulation).
Directors’ Remuneration Report continued
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Change in Remuneration of the Directors Compared to the Average Employee
The table below shows the annual percentage change in remuneration paid to the Executive and Non-Executive Directors in comparison to the average overall percentage change for employees (excluding Executive Directors)
across the Group (on a full-time equivalent basis) over the past eight years.
Director
2017
v 2016
2018
v 2017
2019
v 2018
2020
v 2019
2021
v 2020
2022
v 2021
2023
v 2022
2024
v 2023
2024
€’000
John Reynolds (Chairman) 25% 20% 0% 0% 0% 0% 0% 20% 180
Michael Stanley (Chief Executive Officer) -14% 15% 5% -46% 119% -1% 93% 5% 2,276
Richard Ball (Chief Financial Officer)
1
– – – – – – – N/A 546
Shane Doherty (Former Chief Financial Officer)
2
– – – N/A 72% 103% 9% -6% 1,814
Andrew Bernhardt (Former Non-Executive Director)
3
18% 15% 0% 0% 0% -100% N/A N/A –
Gary Britton (Non-Executive Director)
4
8% 7% 0% 0% 0% 0% 0% 13% 85
Giles Davies (Non-Executive Director) 18% 15% 0% 0% 0% 0% 0% -2% 80
Linda Hickey (Non-Executive Director)
5
– – N/A 47% 0% 0% 0% 32% 95
Jayne McGivern (Former Non-Executive Director)
5
– – N/A 20% -32% -100% N/A N/A –
Alan McIntosh (Non-Executive Director)
6
-13% -55% -75% 0% 0% 0% 0% -83% 10
David O’Beirne (Former Non-Executive Director)
5
– – N/A 20% 0% -62% -100% N/A –
Orla O’Gorman (Non-Executive Director)
7
– – – – N/A 609% 0% 33% 80
Julie Sinnamon (Non-Executive Director)
7
– – – – N/A 247% 0% 42% 85
Tim Kenny (Former Finance Director)
8
N/A 218% 5% -100% N/A N/A N/A N/A –
Group Performance
Profit Before Tax 312% 530% 56% -75% 240% 86% 6% 36% 134,872
Average Remuneration on a full-time equivalent basis of employees
Employees of the Group -5% -2% 15% 2% 2% -1% 9% -1% 102
1. Mr Ball was appointed on 10 April 2024 and was appointed as an Executive Director on 10 May 2024. The figures above for 2024 are inclusive of remuneration earned from 10 May 2024.
2. Mr Doherty was appointed as Executive Director on 13 April 2020 and resigned as Director on 10 May 2024. Mr Doherty ceased employment with the Company effective 31 October 2024. The figures in the above table for 2024 are reflective of time served to 31 October 2024.
3. Mr Bernhardt retired as a Director on 31 December 2021.
4. Mr Britton resigned as Non-Executive Director on 31 December 2024.
5. Ms Hickey, Ms McGivern and Mr O’Beirne were appointed as Non-Executive Directors on 12 April 2019, 1 March 2019 and 1 March 2019 respectively. Ms McGivern resigned as a Director on 3 September 2021 and David O’Beirne retired in May 2022.
6. Mr McIntosh stepped down as an Executive Director in August 2018 and retired as a Non-Executive Director on 25 January 2024.
7. Ms O’Gorman and Ms Sinnamon were appointed on 10 November 2021 and 17 September 2021 respectively.
8. Mr Kenny was appointed as an Executive Director on 22 August 2017 and resigned effective 7 January 2020.
Directors’ Remuneration Report continued
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Relative Importance of Spend on Pay
The table below shows total employee remuneration (excluding LTIP awards) and distributions to shareholders, in respect of 2024 and 2023.
2024 2023 2022
Total Employee Remuneration €42.8m €38.0m €32.6m
Distributions to Shareholders* €115.3m €84.6m €115.8m
* Dividends and buybacks of own shares in 2024 and 2023.
Directors’ Shareholding as Percentage of Salary
The table below sets out the percentage of base salary held in shares in the Company by the Executive Directors, as at 31 December 2024, based on the closing share price of €2.325
Name Base Salary No. of Shares Held
Percentage
of Salary Held
Michael Stanley (Chief Executive Officer) €425,000 14,354,751 7,853%
Richard Ball (Chief Financial Officer) €375,000 – 0%
Statement of Shareholder Voting
The Company is committed to ongoing shareholder dialogue and takes shareholder views into consideration when formulating remuneration policy and practice. The following table sets out the actual votes at the 2024 Annual
General Meeting in respect of the Directors’ Remuneration Report.
Directors’ Remuneration Report For Against Withheld*
Number of Votes 386,097,162 27,973,377 7,678,020
Percentage 93.24% 6.76% –
* A vote withheld is not a vote in law and is therefore excluded from the calculation of votes for and against the resolution.
Advisors
The Committee relied on ad hoc advisory support during the year from FTI Consulting (FTI), engaged by the Company to provide independent advisory corporate governance support to the Board, as well as both the Nomination
and Remuneration Committees. The Committee also engaged Korn Ferry for remuneration related advices and benchmarking analysis. The Committee is satisfied that the engagement with both Korn Ferry and FTI was objective
and independent and neither firm has any connection with Cairn that may impair their independence.
Directors’ Remuneration Report continued
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Directors’ Report
The Directors present their report to the shareholders together with the audited financial statements for the year ended 31 December 2024.
Principal Activities, Business Review and Future Developments
Cairn Homes plc is one of Ireland’s leading homebuilders, constructing high quality new homes with an emphasis on design, innovation and customer service. At 31 December 2024, the Group consisted of the Company, Cairn
Homes plc, and a number of subsidiaries, which are detailed in Note 27 to the consolidated financial statements. Shareholders are referred to the Chairman’s Statement, Chief Executive Officer’s Statement and Chief Financial Officer’s
Statement which contain a review of operations and the financial performance of the Group for 2024, the outlook for 2025 and the key performance indicators used to assess the performance of the Group. These are deemed to be
incorporated in the Directors’ Report.
Results for the Year
The Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2024 and the Consolidated Statement of Financial Position at that date are set out on pages 159 and 160 respectively. The
Group’s profit for the year ended 31 December 2024 was €114.6 million (2023: €85.4 million).
Accounting Records
The Directors are responsible for ensuring that adequate accounting records are maintained by the Group as required by Sections 281 - 285 of the Companies Act, 2014. The Directors believe that they have complied with this
requirement through the employment of suitably qualified accounting personnel and the maintenance of appropriate accounting systems. The accounting records of the Company are maintained at the registered office: 45 Mespil
Road, Dublin 4, D04 W2F1.
Dividends
The Company paid a final 2023 dividend of 3.2 cent per ordinary share on 17 May 2024 and an interim dividend of 3.8 cent per ordinary share on 4 October 2024. The Board has also proposed a final dividend of 4.4 cent per ordinary
share for the year ended 31 December 2024. Subject to shareholder approval at the Company’s Annual General Meeting on 8 May 2025, the proposed final dividend of 4.4 cent per ordinary share will be paid on 16 May 2025 to ordinary
shareholders on the Company’s register at 5.00 p.m. on 25 April 2025.
Directors
The names of the Directors and a biographical note on each appear on pages 106 and 107. In accordance with the provisions contained in the UK Corporate Governance Code (the ‘Code’), all Directors at that time retired at the Annual
General Meeting of the Company on 10 May 2024 and, being eligible, offered themselves for re-election except for Shane Doherty, who retired as a Director on 10 May 2024. Richard Ball was appointed as a Director on 10 May 2024. Gary
Britton retired as a Director on 31 December 2024.
Any Director appointed to the Board by the Directors will be subject to election by the shareholders at the first Annual General Meeting held following their appointment. Furthermore, under the Company’s Constitution, one third of
all Directors must retire by rotation at each Annual General Meeting and may seek re-election. However, in accordance with the provisions of the Code, the Board has decided that all Directors should retire at the 2025 Annual General
Meeting and offer themselves for re-election, with the exception of John Reynolds who has announced his intention to step down from his role as Chairman on 30 April 2025. Bernard Byrne and Orla O’Connor who were appointed as
Non-Executive Directors with effect from 1 January 2025 will also be proposed for election at the upcoming Annual General Meeting.
Directors’ and Company Secretary’s Interests
Details of the Directors’ and Company Secretary’s share interests and interests in unvested share awards of the Company are set out in the Directors’ Remuneration Report on pages 128 to 144.
Share Dealing
The Company has in place a Share Dealing Code which gives guidance to the Directors and certain employees of the Company to be followed when dealing in the shares of the Company or any other type of securities issued by or related
to the Company. It is designed to ensure that these individuals neither abuse, nor set themselves under suspicion of abusing, information about the Company which is not in the public domain. It is also designed to ensure compliance
with the EU Market Abuse Regulation (596/2014) which came into effect on 3 July 2016. A copy of the Share Dealing Code is available on the Company’s website at www.cairnhomes.com.
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Directors’ Report continued
Share Capital
The Company has one authorised class of Ordinary shares. As at 31 December 2024 and 14 March 2025, the Company had 621,051,046 and 620,247,107 Ordinary Shares in issue respectively, each with a nominal value of €0.001. The
Company had no other shares in issue at those dates.
Further information on the Company’s share capital, including the rights attached to the shares, is set out in Note 19 to the consolidated financial statements.
The Company has two long-term incentive plans (2017 Long Term Incentive Plan and Stretch CEO LTIP) and a Save As You Earn plan, the details of which are set out in the Directors’ Remuneration Report and Note 20 of the consolidated
financial statements.
Substantial Shareholdings
As at 31 December 2024 and 12 March 2025, the Company had been notified of the following details of interests of over 3% in the ordinary share capital of the Company.
Except as disclosed below, the Company has not been notified as at 12 March 2025, the latest practicable date prior to approval of this report, of any interest of 3% or more in its ordinary share capital, nor is it aware of any person who
directly or indirectly, jointly or severally, exercises or could exercise control over the Company.
Shareholder
Notified Holding
12 March 2025 %
Notified Holding
31 December 2024 %
Fidelity Investments Limited 72,554,015 11.70 72,554,015 11.68
JP Morgan Asset Management (UK) Limited 40,300,505 6.50 39,742,037 6.40
Abrdn plc 38,831,607 6.26 38,831,607 6.25
Fidelity Management & Research Company 37,564,981 6.06 44,072,061 7.10
The Capital Group Companies, Inc. 37,233,255 6.00 23,951,430 3.86
Ameriprise Financial 31,591,441 5.09 31,591,441 5.09
Blackrock, Inc. 24,266,659 3.91 29,164,370 4.70
Ninety One UK Ltd 21,543,668 3.47 21,543,668 3.47
Drumcliffe Fund 18,725,000 3.02 18,725,000 3.02
T. Rowe Price Associates, Inc 18,149,838 Less than 3% 25,435,483 4.10
Lansdowne Partners International Ltd 17,734,560 Less than 3% 22,195,707 3.57
Total Shares in Issuance 620,247,107 621,051,046
Principal Risks and Uncertainties
Under Irish company law, the Group is required to give a description of the Principal Risks and Uncertainties which it faces. These Principal Risks and Uncertainties are set out in the Risk Report on pages 36 to 47 and are deemed to be
incorporated in the Directors’ Report.
Subsidiaries
Information on the Company’s subsidiaries is set out in Note 27 to the consolidated financial statements.
Political Contributions
No political contributions were made by the Group during the year that require disclosure in accordance with the Electoral Acts 1997 to 2002 and the Electoral Political Funding Act 2012.
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Directors’ Report continued
Takeover Regulations 2006
For the purposes of Regulation 21 of Statutory Instrument 255/2006 ‘European Communities (Takeover Bids (Directive 2004/25/EC)) Regulations 2006’, the details provided on share capital in note 19 to the consolidated financial
statements, substantial shareholdings above, and the disclosures on Directors’ remuneration and interests in the Directors’ Remuneration Report on pages 128 to 144 are deemed to be incorporated in this section of the Directors’
Report.
Transparency Regulations 2007
For the purposes of information required by Statutory Instrument 277/2007 ‘Transparency (Directive 2004/109/EC) Regulations 2007’ concerning the development and performance of the Group, the following sections of this Annual
Report shall be treated as forming part of this Directors’ Report:
1. The Chairman’s Statement on pages 8 and 9, the Chief Executive Officer’s Statement on pages 10 and 11, and the Chief Financial Officer’s Statement on pages 34 and 35.
2. The Corporate Governance Report on pages 110 to 117.
3. The Principal Risks and Uncertainties on pages 36 to 47.
4. Details of Earnings Per Share in Note 28 of the consolidated financial statements.
5. Details of the Capital Structure of the Company in Note 19 of the consolidated financial statements.
Corporate Governance Regulations
As required by company law, the Directors have prepared a Corporate Governance Report which is set out on pages 110 to 117 and which, for the purposes of Section 1373 of the Companies Act 2014, is deemed to be incorporated in
this part of the Directors’ Report. Details of the capital structure and employee share schemes are included in notes 19 and 20 to the consolidated financial statements respectively.
Directors’ Compliance Statement
The Directors, in accordance with Section 225(2) of the Companies Act 2014, acknowledge that they are responsible for securing the Company’s compliance with certain obligations specified in that section arising from the Companies
Act 2014, the Market Abuse (Directive 2003/6/EC) Regulations 2005, the Prospectus (Directive 2003/71/EC) Regulations 2005, the Transparency (Directive 2004/109/EC) Regulations 2007, and Tax laws (‘relevant obligations’).
The Directors confirm that:
• a compliance policy statement has been drawn up setting out the Group’s policies that in their opinion are appropriate with regard to such compliance;
• appropriate arrangements and structures have been put in place that, in their opinion, are designed to provide reasonable assurance of compliance in all material respects with those relevant obligations; and
• a review has been conducted, during the financial year, of those arrangements and structures.
Going Concern and Longer-Term Viability
The Directors’ statements on going concern and longer-term viability are included on page 48.
Post-Balance Sheet Events
Information in respect of events since the year end is contained in Note 32 to the consolidated financial statements.
Audit & Risk Committee
The Group has an established Audit & Risk Committee comprising of four independent Non-Executive Directors. Details of the Committee and its activities are set out on pages 118 to 121.
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Directors’ Report continued
Non-Financial Information Statement
The Group aims to comply with the requirements of the Non-Financial Reporting Directive (SI 360/2017) and these requirements are addressed throughout the Strategic Report and Corporate Governance Section. The following non-
financial information constitutes our Non-Financial Information Statement, pursuant to the EU Directive 2014/95/EU and covers the requirements in respect of the environment, people, social and community issues, human rights, anti-
bribery & corruption, and is intended to help stakeholders understand our position on these non-financial matters. Certain of the non-financial information required pursuant to the EU Directive 2014/95/EU is also provided by reference
to the following locations:
Non-Financial Information Section Pages
Description of our Business Model Business Model Pages 24 to 29
Environmental, Social & Employee Matters Sustainability Statements Pages 54 to 83
Human Rights, Bribery & Corruption Sustainability Statements Pages 80 and 86
Our Policies Company Website https://www.cairnhomes.com/about/our-policies/
Principal Risks Risk Report Pages 39 to 48
Non-Financial Key Performance Indicators Our Strategy, TCFD, SASB, GRI and Gender Pay Gap Pages 14 to 33 and 58 to 63 and 88 to 103
Our Annual Report collectively contains a range of non-financial information. We have a variety of policies and guidance that support our key outcomes for all our stakeholders. Policies, guidance and statements of intent are in place to
ensure consistent governance and are available to view on our website at www.cairnhomes.com.
External Auditor
KPMG, Chartered Accountants, were appointed statutory auditor on 10 June 2015. The Company announced in 2024 that the Board had approved the appointment of Ernst & Young Chartered Accountants as the Company’s auditor
for the financial year ending 31 December 2025 following the conclusion of a competitive tender process led by the Company’s Audit & Risk Committee. This appointment is subject to approval by the Company’s shareholders at the
Annual General Meeting to be held in May 2025. A resolution authorising the Directors to fix the remuneration of Ernst & Young Chartered Accountants as external auditor for the year ending 31 December 2025 will be proposed at the
forthcoming 2025 Annual General Meeting.
KPMG will relinquish its role as the auditor of the Company following the completion of the audit for the year ended 31 December 2024.
Disclosure of Information to the External Auditor
Each of the Directors who held office at the date of approval of the Directors’ Report confirms that:
• so far as they are aware, there is no relevant audit information of which the External Auditor is unaware; and
• they have taken all steps that they ought to have taken as a Director to make themselves aware of any relevant audit information and to establish that the External Auditor is aware of such information.
Approval of Financial Statements
The Financial Statements were approved by the Board on 14 March 2025.
Signed on behalf of the Board
MICHAEL STANLEY RICHARD BALL
DIRECTOR DIRECTOR
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Financial
Statements
Passive Housing
Commenced our fourth scaled energy efficient Passive House development and are currently building nearly 1,750 apartments
to this internationally recognised building standard which reduces energy demand by over 40% when compared to Near Zero
Energy Building (nZEB) standards. We will have commenced 2,750-3,000 new homes to Passive House standard by the end of
2025.
In this section:
151 Statement of Directors’ Responsibilities in respect of
the Annual Report and the Financial Statements
152 Independent Auditor’s Report
160 Consolidated Statement of Profit or Loss and Other
Comprehensive Income
161 Consolidated Statement of Financial Position
163 Consolidated Statement of Changes in Equity
165 Consolidated Statement of Cash Flows
166 Notes to the Consolidated Financial Statements
203 Company Statement of Financial Position
204 Company Statement of Changes in Equity
206 Company Statement of Cash Flows
207 Notes to the Company Financial Statements
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The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare Group and Company financial statements for each financial year. Under that law, the directors are required to prepare the Group financial statements in accordance with IFRS as
adopted by the European Union and applicable law including Article 4 of the IAS Regulation. The directors have elected to prepare the Company financial statements in accordance with IFRS as adopted by the European Union as
applied in accordance with the provisions of Companies Act 2014.
Under company law the directors must not approve the Group and Company financial statements unless they are satisfied that they give a true and fair view of the assets, liabilities and financial position of the Group and
Company and of the Group’s profit or loss for that year. In preparing the Group and Company financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
• assess the Group’s and Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
• use the going concern basis of accounting unless they either intend to liquidate the Group or Company or to cease operations, or have no realistic alternative but to do so.
The directors are also required by the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland to include a management report containing a fair review of the business and
a description of the principal risks and uncertainties facing the Group.
The directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the assets, liabilities, financial position and profit or loss of the Company and which enable them to
ensure that the financial statements are prepared in accordance with the applicable accounting framework and comply with the provision of the Companies Act 2014. The directors are also responsible for taking all reasonable
steps to ensure such records are kept by its subsidiaries which enable them to ensure that the financial statements of the Group comply with the provisions of the Companies Act 2014 including Article 4 of the IAS Regulation. They
are responsible for such internal controls as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for
safeguarding the assets of the Group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are also responsible for preparing a directors’ report that complies with
the requirements of the Companies Act 2014.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group’s and Company’s website www.cairnhomes.com. Legislation in the Republic of Ireland concerning
the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Responsibility Statement as required by the Transparency Directive and UK Corporate Governance Code
Each of the Directors, whose names and functions are listed on pages 106 to 107 of this annual report, confirm that, to the best of each person’s knowledge and belief:
• The Group financial statements, prepared in accordance with IFRS as adopted by the European Union and the Company financial statements prepared in accordance with IFRS as adopted by the European Union as applied in
accordance with the provisions of Companies Act 2014, give a true and fair view of the assets, liabilities, and financial position of the Group and Company at 31 December 2024 and of the profit or loss of the Group for the year
then ended;
• The Directors’ report contained in the annual report includes a fair review of the development and performance of the business and the position of the Group and Company, together with a description of the principal risk and
uncertainties that they face; and
• The annual report and financial statements, taken as a whole, provides the information necessary to assess the Group’s performance, business model and strategy and is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Company’s position and performance, business model and strategy.
On behalf of the board
MICHAEL STANLEY RICHARD BALL
DIRECTOR DIRECTOR
14 MARCH 2025
Statement of Directors’ Responsibilities
In Respect of the Annual Report and the Financial Statements
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Report on the audit of the financial statements
Opinion
We have audited the financial statements of Cairn Homes plc (‘the Company’) and its consolidated undertakings (‘the Group’) for the year ended 31 December 2024 set out on pages 160 to 216, contained within the reporting
package 635400DPX6WP2KKDOA83-2024-12-31-0-en.zip, which comprise the consolidated statement of profit or loss and other comprehensive income, the consolidated and company statements of financial position, the
consolidated and company statements of changes in equity, the consolidated and company statements of cash flows and related notes, including the material accounting policies set out in note 3 for the Group and Note 1 for the
Company.
The financial reporting framework that has been applied in their preparation is Irish Law, including the Commission Delegated Regulation 2019/815 regarding the single electronic reporting format (ESEF) and International Financial
Reporting Standards (IFRS) as adopted by the European Union and, as regards the Company financial statements, as applied in accordance with the provisions of the Companies Act 2014.
In our opinion:
• the financial statements give a true and fair view of the assets, liabilities and financial position of the Group and Company as at 31 December 2024 and of the Group’s profit for the year then ended;
• the Group consolidated financial statements have been properly prepared in accordance with IFRS as adopted by the European Union;
• the Company financial statements have been properly prepared in accordance with IFRS as adopted by the European Union, as applied in accordance with the provisions of the Companies Act 2014; and
• the Group consolidated financial statements and Company financial statements have been properly prepared in accordance with the requirements of the Companies Act 2014 and, as regards the Group financial statements,
Article 4 of the IAS Regulation.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section
of our report. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the Audit and Risk Committee.
We were appointed as auditor by the Directors on 10 June 2015. The period of total uninterrupted engagement is the ten years ended 31 December 2024. We have fulfilled our ethical responsibilities under, and we remained
independent of the Group in accordance with, ethical requirements applicable in Ireland, including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority (IAASA) as applied to public interest entities.
No non-audit services prohibited by that standard were provided.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. In our evaluation of the directors’ assessment of
the Group’s and Company’s ability to continue to adopt the going concern basis of accounting we considered the inherent risks to the Group’s and Company’s business model and analysed how those risks might affect the Group’s
and Company’s financial resources or ability to continue operations over the going concern period.
The risks that we considered most likely to adversely affect the Group’s and Company’s available financial resources over this period were currently unforeseen factors leading to one or a combination of the following: material
reductions in sales arising from a deterioration in employment levels and consumer confidence; material reduction in credit availability in the mortgage market; and reduced demand for apartment developments from State-
supported agencies.
Our evaluation of the directors’ assessment of the Group’s and Company’s ability to continue to adopt the going concern basis of accounting included:
• considering the cash and undrawn bank loan facilities available to the Group and the related covenants in the facility agreement which are currently applicable in the going concern period;
• analysing the base-case scenario cashflow projections prepared by management showing forecast available liquidity and considering the reasonableness of the underlying assumptions; and
• analysing downside scenario cashflow projections prepared by management illustrating the impact of materially reduced sales compared to the base-case scenario and examining the reasonableness of management’s
conclusion that liquidity would be maintained throughout the going concern period in this scenario.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s or the Company’s ability to
continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.
Independent Auditor’s Report
To the members of Cairn Homes plc
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
In relation to the Group’s and the Company’s reporting on how they have applied the UK Corporate Governance Code and the Irish Corporate Governance Annex, we have nothing material to add or draw attention to in relation to
the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern basis of accounting.
Detecting irregularities including fraud
We identified the areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements and risks of material misstatement due to fraud, using our understanding of the entity’s
industry, regulatory environment and other external factors and inquiry with the directors. In addition, our risk assessment procedures included:
• Inquiring with the directors and other management as to the Group’s policies and procedures regarding compliance with laws and regulations, identifying, evaluating and accounting for litigation and claims, as well as whether
they have knowledge of non-compliance or instances of litigation or claims.
• Inquiring of directors, the Audit and Risk Committee and internal audit as to the Group’s policies and procedures to prevent and detect fraud, including the internal audit function, and the Group’s channel for “whistleblowing”,
as well as whether they have knowledge of any actual, suspected or alleged fraud.
• Inquiring of directors, the Audit and Risk Committee and internal audit regarding their assessment of the risk that the financial statements may be materially misstated due to irregularities, including fraud.
• Inspecting the Group’s regulatory and legal correspondence.
• Reading Board, Audit and Risk Committee and Remuneration Committee minutes.
• Considering remuneration incentive schemes and performance targets for Directors and other management.
• Performing planning analytical procedures to identify any usual or unexpected relationships.
We discussed identified laws and regulations, fraud risk factors and the need to remain alert among the audit team.
Firstly, the Group is subject to laws and regulations that directly affect the financial statements including companies and financial reporting legislation. We assessed the extent of compliance with these laws and regulations as part
of our procedures on the related financial statement items, including assessing the financial statement disclosures and agreeing them to supporting documentation when necessary.
Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the
imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, employment law, environmental law. Auditing standards limit the required audit procedures to
identify non-compliance with these non-direct laws and regulations to inquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. These limited procedures did not identify
actual or suspected non-compliance.
We assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. As required by auditing standards, we performed procedures to address the risk of
management override of controls and the risk of fraudulent revenue recognition. We identified a fraud risk in relation to the existence of revenue. We also identified a fraud risk relating to the completeness and accuracy of the
allocation of development costs to cost of sales of completed residential units.
Further detail in respect of these fraud risks is set out in the relevant key audit matter disclosures in this report.
In response to the fraud risks, we also performed procedures including:
• Identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation.
• Assessing significant accounting estimates for bias.
• Assessing the disclosures in the financial statements.
As the Group is regulated, our assessment of risks involved obtaining an understanding of the legal and regulatory framework that the Group operates in and gaining an understanding of the control environment including the
entity’s procedures for complying with regulatory requirements.
Independent Auditor’s Report continued
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Report on the audit of the financial statements continued
Detecting irregularities including fraud continued
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our
audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the
inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not
responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Key audit matters: our assessment of risks of material misstatement
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement (whether or not
due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in
the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
In arriving at our audit opinion above, the key audit matters, in decreasing order of audit significance (unchanged from 2023), were as follows:
Group key audit matters
Group: Carrying values of inventories €862.1 million (2023: €943.4 million) and profit recognition
Refer to page 121 (Audit and Risk Committee Report), pages 171 to 172 (accounting policy for inventories) and Note 16 to the consolidated financial statements (financial disclosures – inventories)
The key audit matter
Inventories consist of the costs of land, materials, design and related production and site development costs to date, less amounts recognised as cost of sales. The carrying value of development land and work in progress depends on key
assumptions relating to forecast selling prices for houses or apartments, site planning (including planning consent), build costs and other direct cost recoveries, all of which contain an element of uncertainty.
The Group recognises profit on each sale, based on the particular unit or units sold, by reference to the overall expected site margin. As site development and the resulting sale of residential units can take place over a number of reporting periods
the determination of profit is dependent on the accuracy of the key assumptions used in the forecasts about future selling prices, build costs and other direct costs. There is a risk that one or all of the above key assumptions may be inaccurate
with a resulting impact on the carrying value of inventories or the amount of profit recognised.
The key audit matter relates to:
• profit recognition on sites with material sales during the year; and
• the net realisable value of inventories relating to sites assessed to be at a higher risk of potential impairment.
How the matter was addressed in our audit
Our audit procedures included, among others:
a) We documented our understanding of the processes, and tested the design and implementation of relevant controls, over the accuracy and completeness of the data inputs and key assumptions made in the Group’s financial
models which support the carrying value of development land and work in progress, and the allocation of costs to residential units.
b) We applied judgement in identifying sites at a higher risk of impairment based on their location, results to date, results from previous phases on the same site where applicable, and newly acquired sites. For these higher risk
sites, we inspected management’s detailed year-end assessments of the net realisable value of development sites. These calculations were primarily based on residual value calculations whereby the estimated total costs of
the development were deducted from total forecast sales proceeds. We challenged the key data inputs and key assumptions in the following ways, among others:
• inspecting forecast residential unit sales prices for consistency with sales prices achieved for similar properties;
• for sites not yet in development, considering the consistency of estimates for the major cost categories with the estimates for sites in development;
• evaluating the key assumptions in relation to forecast numbers of units to be constructed based on appropriate documentary support;
• enquiring of management as to whether there were any site-specific factors which may indicate that an individual site could be impaired; and
• considering wider market evidence relating to the demand for housing in Ireland which in our judgement was relevant to the key data inputs and key assumptions
Independent Auditor’s Report continued
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Independent Auditor’s Report continued
c) For sites with sales in the current and prior year, we compared actual revenues and costs to estimates to assess whether net realisable values were updated and that the overall expected sales margins were adjusted
accordingly. We evaluated the sensitivity of margins on these sites to changes in sales prices and costs and considered whether this indicated a risk of impairment of the inventories balance.
d) For sites with sales in the year, we tested the completeness and accuracy of the release from inventories to cost of sales recorded in the general ledger for consistency with the financial cost models for the relevant sites.
For sites which commenced sales in the year we agreed a sample of forecast costs to supplier agreements or other relevant documentation from third parties.
e) For significant new development land acquisitions in the year, we inspected purchase contracts and other supporting documentation to agree the costs of acquisition, including related direct purchase costs and we agreed
amounts paid to corroborating documentary evidence.
f) We agreed a sample of additions to construction work in progress during the period to invoices/payment certificates and examined whether these additions were construction related and had been appropriately recorded as
part of the costs of the relevant site.
Based on evidence obtained, we found that the Group had appropriate processes in place to regularly update forecasts of development site profitability to take account of costs incurred, updated forecast costs to complete and
estimated sales prices. We found that the profit margins recognised on sales during the year appropriately reflected the costs attributable to units sold based on the Group’s financial models.
We found that, for sites not yet in development that were assessed as having a higher risk of potential impairment, the key assumptions for numbers and mix of units to be built were supported by appropriate documentation,
and the estimates of sales prices and costs used in the assessment of the net realisable value of these sites were reasonable compared to similar sites in development.
Our audit procedures on the key assumptions underpinning the year-end assessments of the net realisable value of development sites, and the related sensitivity analysis, did not identify any misstatements in relation to the
Group’s conclusion that inventories are stated at the lower of cost and net realisable value and therefore are not impaired.
We found that the costs of new development site acquisitions during the year, and of the sample of additions to construction work in progress inspected, were appropriately recorded. We also found that the disclosures in the
financial statements relating to inventories are adequate to provide an understanding of the accounting policy and key assumptions relating to the Group’s inventories and profit recognition
Group: Revenue recognition €859.9 million (2023: €666.8 million)
Refer to page page 121 (Audit and Risk Committee Report), page 171 (accounting policy for revenue) and Note 6 to the consolidated financial statements (financial disclosures – revenue)
The key audit matter
A relatively high proportion of total revenue was recorded in the latter part of the year, which required particular emphasis on the recognition of revenue in the correct accounting period. The fraud risk relates to the existence of
revenue i.e. the risk that sales may have been inappropriately accelerated and recorded in the wrong period.
Also, as well as sales of residential units to private individuals, the Group has other types of contractual arrangements with certain customers for the sale of multiple units. These require particular consideration in relation to the
application of the relevant accounting standard, in order to determine whether revenue recognition should be applied to sales on “a point in time” or “over time” basis.
For the reasons outlined above the engagement team determine this matter to be a key audit matter.
How the matter was addressed in our audit
Our audit procedures included, among others:
a) We documented our understanding of the processes in relation to revenue recognition. We tested the design and implementation of relevant controls over the existence of revenue for individual and multiple-unit sales, and
the completeness and accuracy of multiple-unit sales.
b) We agreed a sample of sales of individual residential units to private customers and sales of residential sites to signed contracts and cash proceeds and examined whether there was appropriate evidence that control over
those properties had transferred to customers prior to the year-end, and hence that revenue had been recognised in the correct accounting period.
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Key audit matters: our assessment of risks of material misstatement continued
Group: Revenue recognition €859.9 million (2023: €666.8 million) continued
How the matter was addressed in our audit continued
c) We evaluated the approach adopted by management in relation to the timing and amount of revenue to be recognised in accordance with the relevant accounting standard from all contracts with customers for the sale of
multiple units. In this regard, we independently inspected the related contract documentation and considered the appropriate application of the revenue recognition model in the relevant accounting standard, including
whether revenue should be recognised (i) at a point in time or (ii) over time.
d) The Group entered into several forward funding arrangements with State-supported agencies in 2024, whereby there is a contract for sale of the land at inception and a development agreement for multiple units on the site.
We examined the accounting for all forward fund transactions, with reference to the underlying contracts and detailed accounting papers prepared by management which contained their rationale for revenue being recognised
on an “over time” basis, in order to evaluate whether revenue was recognised in the correct period and on the correct basis under the relevant accounting standard.
e) We agreed all other multiple unit sales, which had been recorded on a point in time basis, to signed contracts and cash proceeds and we examined whether there was appropriate evidence that control over those properties
had transferred to customers prior to the year-end, and hence that revenue had been recognised in the correct accounting period.
We found that the Group had appropriate processes in place in relation to the recording of revenue.
Appropriate documentary evidence was available for all of the sample of sales of individual residential units and residential sites that we tested and as a result we found that revenue had been accurately recorded for those sales in
the year.
We found that the approach taken in the financial statements by the Group for the recognition of revenue from forward funding arrangements, whereby the revenue in the year was recognised over time on a percentage
completion basis, was consistent with the requirements of the relevant accounting standard.
We found that the approach taken in the financial statements by the Group for the recognition of revenue from contracts for other sales of multiple units, whereby the revenue in the year was recognised at a point in time on legal
completion of those particular sales, was consistent with the requirements of the relevant accounting standard.
Company key audit matter
Company: Amounts due from subsidiary undertakings €360.2 million (2023: €401.4 million)
Refer to Note 6 to the Company financial statements (financial disclosures – Amounts due from Subsidiary Undertakings)
The key audit matter
The Company financial statements include material amounts due from subsidiary undertakings. Due to the financial position of the Group, this was not considered to give rise to a significant risk of material misstatement.
However, due to the materiality of the amounts due from subsidiary undertakings in the context of the Company financial statements, the recoverability of these balances is considered to be the area that had the greatest focus of
our overall audit of the Company financial statements.
For the reasons outlined above the engagement team determine this matter to be a key audit matter.
How the matter was addressed in our audit
Our audit procedures included among others:
a) We agreed the amounts due from each subsidiary to the counterparty balance as included in the matrix of intercompany balances prepared for the purposes of elimination on consolidation.
b) We inspected the financial position of each subsidiary undertaking using our judgement to independently assess recoverability of intercompany balances.
c) We considered the results of management’s assessment of the recoverability of intercompany balances and the rationale for their conclusion that an expected credit loss provision of €4.77 million was required as at
31 December 2024.
We found management’s assessment of the carrying value of the amounts due from subsidiary undertakings to be appropriate .
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Our application of materiality and an overview of the scope of our audit
The materiality for the consolidated financial statements as a whole was set at €6.5 million (2023: €5.0 million).
This has been calculated with reference to a benchmark of profit before taxation, which is a benchmark typically applied for listed groups which have reached a mature stage. Materiality represents approximately 4.8% (2023: 5.0%)
of this benchmark, which we consider to be one of the principal considerations for members of the Company in assessing the financial performance of the Group. In applying our judgement in determining the percentage to be
applied to the benchmark, the following qualitative factors, had the most significant impact, increasing our assessment of materiality:
• the Group is a well established business in a well established sector of economy; and
• the business is well capitalised and has a relatively low level of borrowings compared to total assets.
Performance materiality for the Group financial statements as a whole was set at €4.88 million (2023: €3.75 million) determined with reference to materiality of which it represents 75% (2023: 75%).
We reported to the Audit and Risk Committee any corrected and uncorrected misstatements we identified through our audit with a value in excess of €0.325 million (2023: €0.25 million), in addition to any other audit
misstatements below that threshold that warranted reporting on qualitative grounds.
Materiality for the Company financial statements as a whole was set at €1.6 million (2023: €1.6 million), determined with reference to a benchmark of total assets, of which it represents 0.54% (2023: 0.36%). Performance
materiality for the Company financial statements as a whole was set at €1.2 million (2023: €1.2 million) determined with reference to materiality of which it represents 75% (2023: 75%).
We used materiality to assist us to determine what risks were significant risks and to determine the audit procedures to be performed including those discussed above.
Our audit was undertaken to the materiality and performance materiality level specified above and was all performed by a single Group engagement team.
Other information
The directors are responsible for the other information presented in the Annual Report together with the financial statements. The other information comprises the information included in the Strategic Report and the Corporate
Governance Statement (which includes the directors’ report).
The financial statements and our auditor’s report thereon do not comprise part of the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit
opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or
our audit knowledge. Based solely on that work we have not identified material misstatements in the other information.
Based solely on our work on the other information undertaken during the course of the audit, we report that:
• we have not identified material misstatements in the directors’ report;
• in our opinion, the information given in the directors’ report is consistent with the financial statements;
• in our opinion, those parts of the directors’ report specified for our review, which does not include sustainability reporting when required by Part 28 of the Companies Act 2014, have been prepared in accordance with the
Companies Act 2014.
Corporate governance statement
We have reviewed the directors’ statements in relation to going concern, longer-term viability, and that part of the Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK Corporate
Governance Code and the Irish Corporate Governance Annex specified for our review by the Listing Rules of Euronext Dublin and the UK Listing Authority.
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Our application of materiality and an overview of the scope of our audit continued
Corporate governance statement continued
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements and our knowledge
obtained during the audit:
• directors’ statement with regards the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified;
• directors’ explanation as to their assessment of the Group’s prospects, the period this assessment covers and why the period is appropriate;
• directors’ statement on whether they have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities;
• directors’ statement on fair, balanced and understandable and the information necessary for shareholders to assess the Group’s position and performance, business model and strategy;
• Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks and the disclosures in the annual report that describe the principal risks and the procedures in place to identify emerging risks
and explain how they are being managed or mitigated;
• section of the annual report that describes the review of effectiveness of risk management and internal control systems; and;
• section describing the work of the Audit and Risk Committee.
The Listing Rules of Euronext Dublin also requires us to review certain elements of disclosures in the report to shareholders by the Remuneration Committee of the Board of Directors. We have nothing to report in this regard.
In addition as required by the Companies Act 2014, we report, in relation to information given in the Corporate Governance Statement, that:
• based on the work undertaken for our audit, in our opinion, the description of the main features of internal control and risk management systems in relation to the financial reporting process and information relating to voting
rights and other matters required by the European Communities (Takeover Bids (Directive 2004/EC) Regulations 2006 and specified for our consideration, is consistent with the financial statements and has been prepared in
accordance with the Act;
• based on our knowledge and understanding of the Company and its environment obtained in the course of our audit, we have not identified any material misstatements in that information; and
• the Corporate Governance Statement contains the information required by the European Union (Disclosure of Non-Financial and Diversity Information by certain large undertakings and groups) Regulations 2017.
We also report that, based on work undertaken for our audit, the information required by the Act is contained in the Corporate Governance Statement.
Our opinions on other matters prescribed by the Companies Act 2014 are unmodified
We have obtained all the information and explanations which we consider necessary for the purposes of our audit.
In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited and the financial statements are in agreement with the accounting records.
We have nothing to report on other matters on which we are required to report by exception
The Companies Act 2014 requires us to report to you if, in our opinion:
• the disclosures of directors’ remuneration and transactions required by Sections 305 to 312 of the Act are not made;
• the Company has not provided the information required by Section 1110N in relation to its remuneration report for the financial year 31 December 2023.
We have nothing to report in this regard.
Respective responsibilities and restrictions on use
Responsibilities of directors for the financial statements
As explained more fully in the directors’ responsibilities statement set out on page 151, the directors are responsible for: the preparation of the financial statements including being satisfied that they give a true and fair view; such
internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Group’s and Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group or the Company or to cease operations, or have no
realistic alternative but to do so.
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Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A fuller description of our responsibilities is provided on IAASA’s website at https://iaasa.ie/publications/description-of-the-auditors-responsibilities-for-the-audit-of-the-financial-statements/.
The purpose of our audit work and to whom we owe our responsibilities
Our report is made solely to the Company’s members, as a body, in accordance with Section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the Company’s members those matters
we are required to state to them in an auditor’s 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 and the Company’s members,
as a body, for our audit work, for this report, or for the opinions we have formed.
RYAN MCCARTHY
FOR AND ON BEHALF OF
KPMG
CHARTERED ACCOUNTANTS, STATUTORY AUDIT FIRM
1 STOKES PLACE
ST. STEPHEN’S GREEN
DUBLIN 2
D02 DE03
14 March 2025
Independent Auditor’s Report continued
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| Note | €’000 | €’000 | |
| Continuing operations | |||
Revenue | 6 | ||
Cost of sales | ( | ( | |
Gross profit | |||
Administrative expenses | 7 | ( | ( |
Operating profit | |||
Finance costs | 8 | ( | ( |
Share of (loss)/profit of equity-accounted investee, net of tax | 15 | ( | |
Finance income | |||
Profit before taxation | |||
Tax charge | 10 | ( | ( |
Profit for the year attributable to owners of the Company | |||
| Other comprehensive loss | |||
Fair value movement on cashflow hedges | ( | ||
Cashflow hedges reclassified to profit and loss | ( | ( | |
14 | ( | ( | |
Total comprehensive income for the year attributable to owners of the Company | |||
Basic earnings per share | 28 | ||
Diluted earnings per share | 28 |
2024
2023
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2024
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Note
2024
€’000
2023
€’000
Assets
| Non-current assets | |||
Property, plant and equipment | 11 | ||
Right of use assets | 12 | ||
Intangible assets | 13 | ||
Derivatives | 14 | ||
Equity-accounted investee | 15 | ||
Trade and other receivables | 17 | ||
| Current assets | |||
Inventories | 16 | ||
Trade and other receivables | 17 | ||
Current taxation | |||
Cash and cash equivalents | 18 | ||
Derivatives | 14 | ||
Total assets | |||
| Equity | |||
Share capital | 19 | ||
Share premium | 19 | ||
Other undenominated capital | 19 | ||
Treasury shares | 20 | ( | ( |
Share-based payment reserve | 20 | ||
Cashflow hedge reserve | 14 | ||
Retained earnings | |||
Total equity |
Consolidated Statement of Financial Position
At 31 December 2024
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Consolidated Statement of Financial Position continued
| 2024 | 2023 | ||
| Note | €’000 | €’000 | |
| Liabilities | |||
| Non-current liabilities | |||
Loans and borrowings | 21 | ||
Lease liabilities | 12 | ||
Deferred taxation | 23 | ||
| Current liabilities | |||
Loans and borrowings | 21 | ||
Lease liabilities | 12 | ||
Trade and other payables | 24 | ||
Current taxation | |||
Total liabilities | |||
Total equity and liabilities |
On behalf of the Board
MICHAEL STANLEY RICHARD BALL
DIRECTOR DIRECTOR
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Attributable to owners of the company
| Other | Share-based | |||||||
| Ordinary | Share | undenominated | Treasury | payment | Cashflow | Retained | ||
| shares | premium | capital | shares | reserve | hedge reserve | earnings | Total | |
| €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | |
As at 1 January 2024 | ( | |||||||
| Total comprehensive income for the year | ||||||||
Profit for the year | ||||||||
Fair value movement on cashflow hedges | ||||||||
Cashflow hedges reclassified to profit and loss | ( | ( | ||||||
( | ||||||||
| Transactions with owners of the Company | ||||||||
Purchase of own shares – share buybacks (Note 19) | ( | ( | ||||||
Cancellation of repurchased shares | ( | ( | ||||||
Purchase of own shares – held in trust (Note 20) | ( | ( | ||||||
Equity-settled share – based payments (Note 20) | ||||||||
Settlement of dividend equivalents (Note 20) | ( | ( | ||||||
Shares issued on vesting/exercise of share awards and options (Note 20) | ||||||||
| Transfer from share-based payment reserve to retained earnings in relation to vesting/ | ||||||||
exercise or lapsing of share awards and options (Note 20) | ( | |||||||
Dividends paid to shareholders (Note 25) | ( | ( | ||||||
( | ( | ( | ( | |||||
As at 31 December 2024 | ( |
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
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Consolidated Statement of Changes in Equity continued
| Attributable to owners of the company | ||||||||||
| Share Capital | Other | Share-based | ||||||||
| Ordinary | Deferred | Founder | Share | undenominated | Treasury | payment | Cashflow | Retained | ||
| shares | shares | shares | premium | capital | shares | reserve | hedge reserve | earnings | Total | |
| €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | |
As at 1 January 2023 | ||||||||||
| Total comprehensive income for the year | ||||||||||
Profit for the year | ||||||||||
Fair value movement on cashflow hedges | ( | ( | ||||||||
Cashflow hedges reclassified to profit and loss | ( | ( | ||||||||
( | ||||||||||
| Transactions with owners of the Company | ||||||||||
Purchase of own shares – share buybacks (Note 19) | ( | ( | ||||||||
Cancellation of repurchased shares | ( | ( | ||||||||
Cancellation of founder and deferred shares (Note 19) | ( | ( | ||||||||
Purchase of own shares – held in trust (Note 20) | ( | ( | ||||||||
Equity-settled share – based payments (Note 20) | ||||||||||
Settlement of dividend equivalents (Note 20) | ( | ( | ||||||||
Shares issued on vesting/exercise of share awards and options (Note 20) | ||||||||||
Transfer from share- based payment reserve to retained earnings in relation to vesting/exercise or lapsing of share awards and options (Note 20) | ( | |||||||||
Dividends paid to shareholders (Note 25) | ( | ( | ||||||||
( | ( | ( | ( | ( | ( | |||||
As at 31 December 2023 | ( |
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2024
€’000
2023
€’000
| Cash flows from operating activities | ||
Profit for the year | ||
| Adjustments for: | ||
Share-based payments expense | ||
Finance costs | ||
Finance income | ( | |
Depreciation of property, plant and equipment | ||
Depreciation of right of use assets | ||
Amortisation of intangible assets | ||
Taxation | ||
Decrease in inventories | ||
Increase in trade and other receivables | ( | ( |
Increase in trade and other payables | ||
Tax paid | ( | ( |
Net cash from operating activities | ||
| Cash flows from investing activities | ||
Purchases of property, plant and equipment | ( | ( |
Purchases of intangible assets | ( | ( |
Net cash used in investing activities | ( | ( |
| Cash flows from financing activities | ||
Purchase of own shares – share buybacks | ( | ( |
Proceeds from issue of share capital | ||
Settlement of dividend equivalents | ( | ( |
Purchase of own shares – held in trust | ( | ( |
Dividends paid | ( | ( |
Proceeds from loans and borrowings net of debt issue costs | ||
Repayment of loans and borrowings | ( | ( |
Repayment of lease liabilities | ( | ( |
Interest and other finance costs paid | ( | ( |
Net cash used in financing activities | ( | ( |
Net increase in cash and cash equivalents in the year | ||
Cash and cash equivalents at beginning of the year | ||
Cash and cash equivalents at end of the year |
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
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1. Basis of Preparation 167
2. Key Judgements and Estimates 168
3. Material Accounting Policies 169
4. Measurement of Fair Values 175
5. Segmental Information 176
6. Revenue 176
7. Administrative Expenses 176
8. Finance Costs 177
9. Statutory and Other Information 177
10. Taxation 178
11. Property, Plant and Equipment 179
12. Leases 180
13. Intangible Assets 182
14. Derivatives and Cashflow Hedge Reserve 182
15. Equity-Accounted Investee 183
16. Inventories 184
17. Trade and Other Receivables 185
18. Cash and Cash Equivalents 185
19. Share Capital and Share Premium 186
20. Share-Based Payments 187
21. Loans and Borrowings 189
22. Reconciliation of Movement of Liabilities to Cash Flows Arising from Financing Activities 190
23. Deferred Taxation 191
24. Trade and Other Payables 191
25. Dividends 192
26. Related Party Transactions 192
27. Group Entities 192
28. Earnings Per Share 193
29. Financial Instruments and Risk Management 193
30. Other Commitments and Contingent Liabilities 201
31. Profit or Loss of the Parent Company 201
32. Events After the Reporting Period 201
33. Approval of Financial Statements 201
Notes to the Consolidated Financial Statements
For the year ended 31 December 2024
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Notes to the Consolidated Financial Statements continued
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Notes to the Consolidated Financial Statements continued
1. Basis of Preparation continued
2. Key Judgements and Estimates
The preparation of 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 significant accounting judgements impacting these financial statements, in order of significance, are:
• scale and mix of each development and the achievement of associated planning permissions.
This may involve assumptions on new or amended planning permission applications. This judgement then feeds into the process of forecasting expected profitability by development which is used to determine the profit that the
Group is able to recognise on its developments in each reporting period and the net realisable value of inventories.
• revenue recognition in relation to forward fund transactions.
When contractual arrangements exist whereby land is sold up-front and the cost of delivering the new homes is paid for by the purchaser on a phased basis, there is a judgement as to whether the sale of land and the delivery of
residential units are a single performance obligation or separate performance obligations for the purposes of revenue recognition. Based on the facts and circumstances it was determined that for these transactions the delivery of
land and residential units were highly interrelated and formed a single performance obligation to be delivered over time.
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2. Key Judgements and Estimates continued
The key sources of estimation uncertainty impacting these financial statements are:
• forecast selling prices;
• build cost inflation; and
• carrying value of inventories and allocations from inventories to cost of sales (see Note 3 (g) and 16).
Due to the nature of the Group’s activities and, in particular the scale of its development costs and the length of the development cycle, the Group has to allocate site-wide development costs between units completed in the
current year and those in future years. It also has to forecast the costs to complete on such developments and make estimates relating to future sales prices. Forecast selling prices and build cost inflation are inherently uncertain
due to changes in market conditions. These estimates impact management’s assessment of the net realisable value of the Group’s inventories and also determine the extent of profit or loss that should be recognised in respect of
each development in each reporting period. Note 16 includes disclosures on judgements and estimates in relation to profit margins and carrying values of inventories. In making such assessments and allocations, there is a degree
of inherent estimation uncertainty.
The Group has developed internal controls designed to effectively assess and review carrying values and profit recognition and the appropriateness of estimates made. The Group recognises its gross profit on each sale, based on
the particular unit sold and the total cost attaching to that unit. As the build cost on a site can take place over a number of reporting periods the determination of the cost of sale to release on each individual unit sale is dependent
on up-to-date cost forecasting and expected profit margins across the scheme.
In preparing the financial statements, the Directors have considered the impact of climate change and the Group’s commitment to the Science Based Targets initiative (SBTi) Net Zero standard as well as any additional costs,
savings and revenues associated with climate risks or opportunities as identified in the Task Force on Climate-Related Financial Disclosures on pages 58 to 63 of the annual report. Costs and revenues associated with climate risks
or opportunities are reflected in the Group’s forecasts used to determine margins on active and non-active developments. There has been no other material impact identified on the financial reporting judgements and estimates
as a result of climate change. In particular, the Directors considered the impact of climate change in respect of the following areas: going concern and viability of the Group over the next three years; cash flow forecasts used in the
impairment assessments of inventories; and carrying value and useful economic lives of property, plant and equipment. Whilst there is currently no expected material medium-term impact on the Group from climate change, the
Directors are aware of the ever-changing risks attached to climate change and will regularly assess these risks against judgements and estimates made in preparation of the Group’s financial statements.
3. Material Accounting Policies
The accounting policies set out below have been applied in these financial statements.
Notes to the Consolidated Financial Statements continued
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3. Material Accounting Policies continued
Notes to the Consolidated Financial Statements continued
171
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3. Material Accounting Policies continued
(e) Intangible assets continued
Notes to the Consolidated Financial Statements continued
172
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3. Material Accounting Policies continued
(g) Inventories continued
Notes to the Consolidated Financial Statements continued
173
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3. Material Accounting Policies continued
Notes to the Consolidated Financial Statements continued
174
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3. Material Accounting Policies continued
IFRS 9 classification | |
Amortised cost | |
Amortised cost | |
Amortised cost | |
Amortised cost |
Notes to the Consolidated Financial Statements continued
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3. Material Accounting Policies continued
(r) Financial instruments continued
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting year during which the change has occurred.
Further disclosures about the assumptions made in measuring fair values are included in Note 29 Financial Instruments and Risk Management.
Notes to the Consolidated Financial Statements continued
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5. Segmental Information
Segmental information is presented on the same basis as that used for internal reporting purposes. Operating segments are reported in a manner consistent with the internal reporting provided to the CODM. The CODM has been
identified as the Board of Directors of the Company.
Having considered the criteria in IFRS 8 Operating Segments and considering how the Group manages its business and allocates resources, the Group has determined that it has one reportable segment. The Group is managed as a
single business unit, building and property development. As the Group operates in a single geographic market, Ireland, no geographical segmentation is provided.
| 2024 | 2023 | |
| Residential property sales | €’000 | €’000 |
Recognised at a point in time | 382,802 | 649,879 |
Recognised over time | 455,706 | – |
Total residential property sales | 838,508 | 649,879 |
Site and other sales – recognised at a point in time | 21,310 | 16,902 |
Revenue from contracts with customers | 859,818 | 666,781 |
| Other revenue | ||
Income from property rental | 53 | 26 |
859,871 | 666,807 |
| 2024 | 2023 | |
| €’000 | €’000 | |
| Residential property sales | ||
Houses and duplexes | 287,066 | 382,903 |
Apartments | 551,442 | 266,976 |
838,508 | 649,879 |
| 2024 | 2023 | |
| €’000 | €’000 | |
Employee benefits expense (Note 9) | 23,223 | 22,518 |
Other expenses | 13,731 | 11,711 |
36,954 | 34,229 |
Notes to the Consolidated Financial Statements continued
177
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| 2024 | ||
| €’000 | ||
2024 | 2023 | |
Number of employees | 397 | 345 |
| 2024 | 2023 | |
| €’000 | €’000 | |
Wages and salaries | 41,255 | 36,634 |
Social welfare costs | 4,455 | 4,049 |
Pension costs – defined contribution schemes | 1,528 | 1,350 |
Share-based payments charge | 6,942 | 7,075 |
54,180 | 49,108 | |
Amounts included in cost of sales or capitalised into inventories | (30,826) | (25,987) |
Amounts capitalised into intangibles | (131) | (603) |
Employee benefits expense | 23,223 | 22,518 |
Notes to the Consolidated Financial Statements continued
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9. Statutory and Other Information continued
| 2024 | 2023 | |
| €’000 | €’000 | |
| Directors’ remuneration | ||
Salaries, fees and other emoluments | 2,533 | 2,572 |
Pension contributions – defined contribution schemes | 84 | 100 |
Gains on vesting of awards under LTIP scheme | 1,988 | 912 |
4,605 | 3,584 |
10. Taxation
| 2024 | 2023 | |
| €’000 | €’000 | |
| Current tax charge for the year | ||
Corporation tax – current year | 20,569 | 13,951 |
Adjustment in respect of prior year | (220) | 40 |
20,349 | 13,991 | |
Deferred tax credit for the year (Note 23) | (49) | – |
Total tax charge | 20,300 | 13,991 |
Notes to the Consolidated Financial Statements continued
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10. Taxation continued
The tax assessed for the year differs from the standard rate of tax in Ireland. The differences are explained below.
| 2024 | 2023 | |
| €’000 | €’000 | |
Profit before tax | 134,872 | 99,423 |
Tax charge at standard Irish income tax rate of 12.5% | 16,859 | 12,428 |
| Effects of: | ||
Expenses not deductible for tax purposes | 1,203 | 1,523 |
Income taxed at the higher rate | 1,285 | – |
Adjustment in respect of prior year | (220) | 40 |
Other | 1,173 | – |
Total tax charge | 20,300 | 13,991 |
Global minimum top-up tax
The Group operates in Ireland, which has enacted legislation to implement the global minimum top-up tax. The Group does not expect to be subject to the top-up tax in relation to its operations in Ireland in the medium-term.
| Leasehold | Motor | Computers & | 2024 | |
| improvements | vehicles | equipment | Total | |
| €’000 | €’000 | €’000 | €’000 | |
| Cost | ||||
At 1 January 2024 | 2,905 | 59 | 8,436 | 11,400 |
Additions | – | – | 2,592 | 2,592 |
Disposals | – | (59) | – | (59) |
At 31 December 2024 | 2,905 | – | 11,028 | 13,933 |
| Accumulated depreciation | ||||
At 1 January 2024 | (828) | (58) | (4,394) | (5,280) |
Depreciation | (260) | – | (1,281) | (1,541) |
Disposals | – | 58 | – | 58 |
At 31 December 2024 | (1,088) | – | (5,675) | (6,763) |
| Net book value | ||||
At 31 December 2024 | 1,817 | – | 5,353 | 7,170 |
Notes to the Consolidated Financial Statements continued
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11. Property, Plant and Equipment continued
| Leasehold | Motor | Computers & | 2023 | |
| improvements | vehicles | equipment | Total | |
| €’000 | €’000 | €’000 | €’000 | |
| Cost | ||||
At 1 January 2023 | 2,860 | 77 | 6,792 | 9,729 |
Additions | 45 | – | 1,644 | 1,689 |
Disposals | – | (18) | – | (18) |
At 31 December 2023 | 2,905 | 59 | 8,436 | 11,400 |
| Accumulated depreciation | ||||
At 1 January 2023 | (567) | (68) | (3,305) | (3,940) |
Depreciation | (261) | (8) | (1,089) | (1,358) |
Disposals | – | 18 | – | 18 |
At 31 December 2023 | (828) | (58) | (4,394) | (5,280) |
| Net book value | ||||
At 31 December 2023 | 2,077 | 1 | 4,042 | 6,120 |
12. Leases
The Group leases its central support office property and certain motor vehicles. The office lease formed the majority of the right of use assets and lease liabilities balance as at 31 December 2024 and 31 December 2023. The
discount rate attributed to the office lease is 2.6%.
The additions during the year ended 31 December 2024 relate to vehicle leases and have various commencement dates throughout the year. The average discount rate associated with these leases is 6.03% (2023: 6.21%) which
reflects the Group’s incremental borrowing rate at the date of commencement.
| 2024 | 2023 | |
| €’000 | €’000 | |
| Cost | ||
At 1 January | 7,139 | 8,190 |
Additions | 1,022 | 391 |
Disposal | (162) | (1,442) |
At 31 December | 7,999 | 7,139 |
| Accumulated depreciation | ||
At 1 January | (1,582) | (2,187) |
Disposal | 162 | 1,442 |
Depreciation | (987) | (837) |
At 31 December | (2,407) | (1,582) |
| Net book value | ||
At 31 December | 5,592 | 5,557 |
Notes to the Consolidated Financial Statements continued
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12. Leases continued
Lease liabilities
| 2024 | 2023 | |
| €’000 | €’000 | |
| Current liabilities | ||
Repayable within one year | 1,254 | 937 |
1,254 | 937 | |
| Non-current liabilities | ||
| Repayable as follows: | ||
Between one and two years | 1,194 | 927 |
Between two and five years | 2,427 | 2,244 |
Greater than five years | 1,570 | 2,319 |
5,191 | 5,490 | |
Total lease liabilities | 6,445 | 6,427 |
| 2024 | 2023 | |
| €’000 | €’000 | |
At 1 January | 6,427 | 6,797 |
Additions | 1,022 | 391 |
Interest on lease liabilities (Note 8) | 233 | 206 |
Lease payments | (1,237) | (967) |
At 31 December | 6,445 | 6,427 |
| Contractual cash flows | ||||||
| 6 months | ||||||
| Total | or less | 6-12 months | 1-2 years | 2-5 years | 5 years + | |
| €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | |
Lease liabilities | (7,120) | (750) | (713) | (1,356) | (2,683) | (1,618) |
| Contractual cash flows | ||||||
| 6 months | ||||||
| Total | or less | 6-12 months | 1-2 years | 2-5 years | 5 years + | |
| €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | |
Lease liabilities | (7,170) | (564) | (558) | (1,077) | (2,543) | (2,428) |
Notes to the Consolidated Financial Statements continued
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| 2024 | 2023 | |
| Software | €’000 | €’000 |
| Cost | ||
At 1 January | 6,630 | 4,282 |
Additions | 1,744 | 2,401 |
Disposals | – | (53) |
At 31 December | 8,374 | 6,630 |
| Accumulated amortisation | ||
At 1 January | (2,419) | (1,239) |
Amortisation | (1,532) | (1,180) |
At 31 December | (3,951) | (2,419) |
| Net book value | ||
At 31 December | 4,423 | 4,211 |
| 2024 | 2023 | |
| Current assets | €’000 | €’000 |
| Derivative financial instruments | ||
Interest rate swaps – cash flow hedges | 105 | – |
| 2024 | 2023 | |
| Non-current assets | €’000 | €’000 |
| Derivative financial instruments | ||
Interest rate swaps – cash flow hedges | – | 436 |
Notes to the Consolidated Financial Statements continued
183
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| 2024 | 2023 | |
| €’000 | €’000 | |
Opening investment in joint venture | 237 | 85 |
Group’s share of (loss)/profit | (203) | 152 |
Closing investment In joint venture | 34 | 237 |
| 2024 | 2023 | |
| €’000 | €’000 | |
| Summarised statement of financial position for Clonburris Infrastructure Limited | ||
Non-current assets | – | – |
Current assets | 2,132 | 1,134 |
Current liabilities | (2,089) | (839) |
Non-current liabilities | – | – |
Net assets of Clonburris Infrastructure Limited (100%) | 43 | 295 |
Percentage ownership interest by the Group | 80.57% | 80.57% |
Group share of net assets recognised as investment in joint venture (80.57%) | 34 | 237 |
| Summarised income statement of Clonburris Infrastructure Limited | ||
Revenue | 26,682 | 13,895 |
Operating expenses | (26,934) | (13,706) |
Tax | – | – |
(Loss)/profit for the year (100%) | (252) | 189 |
Group share of (loss)/profit for year recognised in profit or loss (80.57%) | (203) | 152 |
Notes to the Consolidated Financial Statements continued
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16. Inventories
| 2024 | 2023 | |
| €’000 | €’000 | |
Land held for development | 615,743 | 609,160 |
Construction work in progress | 246,381 | 334,257 |
862,124 | 943,417 |
Land held for development includes strategic land acquisitions during the year ended 31 December 2024 of €99.5 million (2023: €57.9 million).
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, the timing of planning permissions and site commencement dates.
The cost of inventories includes direct labour costs and other direct wages and salaries as well as the cost of land, raw materials, and other direct costs. During the year ended 31 December 2024 and 31 December 2023 no direct
wages and salaries for employees in construction related roles were estimated to be non-productive and therefore all such costs were included in the cost of inventories or cost of sales.
As the build costs on each development 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. The Directors review forecasting and profit margins on a regular basis and have incorporated any additional costs as a result of inflation. The Directors have also considered the impact of climate
change and the Group’s commitment to the Science Based Targets initiative (SBTi) Net Zero standard as well as any additional costs, savings and revenues associated with climate risks or opportunities as identified in the Task
Force on Climate-Related Financial Disclosures on pages 58 to 63 of the annual report in relation to costs and expected profit margins. There has been no other material impact identified on the financial reporting judgements and
estimates as a result of climate change. Nearer-term costs are largely fixed as they are in most cases fully procured, and others are variable and particular focus has been given to these items to ensure they are accurately reflected
in forecasts and profit margins. 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 inventories or the amount of profit
recognised. The risk is managed through ongoing development profitability reforecasting with any necessary adjustments being accounted for in the relevant reporting period.
All active developments on which construction has commenced are profitable and due to the forecasting process by which cost of sales is determined as referred to above, the Directors therefore concluded that the net realisable
value of active sites was greater than their carrying amount at 31 December 2024 and hence those sites were not impaired.
All developments on which construction has not yet commenced were also assessed for impairment at 31 December 2024. This assessment was based on the current development plan for the development, reflecting the
number and mix of units expected to be built. For each of these developments, the forecast revenue based on current market prices was greater than the sum of the site cost and the estimated construction costs. The Directors
therefore concluded that the net realisable value of sites on which construction has not yet commenced was greater than their carrying amount at 31 December 2024 and hence those developments were not impaired.
There were no reasonably foreseeable changes in assumptions that would have resulted in an impairment of inventories at 31 December 2024. As a result of the detailed reviews undertaken the Directors 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 inventories.
The total amount charged to cost of sales from inventories during the year was €665.5 million (2023: €514.8 million).
Notes to the Consolidated Financial Statements continued
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| 2024 | 2023 | |
| Current assets | €’000 | €’000 |
Trade receivables | 73,495 | 32,706 |
Contract assets | 45,331 | – |
Prepayments | 1,311 | 1,152 |
Construction bonds | 11,938 | 16,533 |
Other receivables | 9,457 | 3,666 |
141,532 | 54,057 |
| 2024 | 2023 | |
| Non-current assets | €’000 | €’000 |
Contract assets | 10,001 | – |
Other receivables | 787 | – |
10,788 | – |
18. Cash and Cash Equivalents
| 2024 | 2023 | |
| €’000 | €’000 | |
Cash and cash equivalents | 27,623 | 25,553 |
Cash deposits are made for varying short-term periods depending on the immediate cash requirements of the Group. All deposits can be withdrawn without any changes in value and accordingly the fair value of cash and cash
equivalents is identical to the carrying value.
Notes to the Consolidated Financial Statements continued
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| 2024 | 2023 | |||
Authorised | Number | €’000 | Number | €’000 |
Ordinary shares of €0.001 each | 1,000,000,000 | 1,000 | 1,000,000,000 | 1,000 |
Founder shares of €0.001 each | – | – | 100,000,000 | 100 |
Deferred shares of €0.001 each | – | – | 120,000,000 | 120 |
A Ordinary shares of €1.00 each | – | – | 20,000 | 20 |
Total authorised share capital | 1,000 | 1,240 |
| Share | Share | |||
| capital | premium | Total | ||
Issued and fully paid | Number | €’000 | €’000 | €’000 |
| As at 31 December 2024 | ||||
Ordinary shares of €0.001 each | 621,051,046 | 621 | 201,894 | 202,515 |
Total issued and fully paid | 621 | 201,894 | 202,515 |
| Share | Share | |||
| capital | premium | Total | ||
Issued and fully paid | Number | €’000 | €’000 | €’000 |
| As at 31 December 2023 | ||||
Ordinary shares of €0.001 each | 654,888,041 | 655 | 201,100 | 201,755 |
Total issued and fully paid | 655 | 201,100 | 201,755 |
Notes to the Consolidated Financial Statements continued
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19. Share Capital and Share Premium continued
| 2024 | 2023 | |
| Other Undenominated Capital | €’000 | €’000 |
At 1 January | 183 | 105 |
Nominal value of own shares purchased | 39 | 39 |
Cancellation of Deferred and Founder shares | – | 39 |
At 31 December | 222 | 183 |
20. Share-Based Payments
Long-Term Incentive Plan (‘LTIP’)
The Group operates an equity settled LTIP, which was approved at the May 2017 Annual General Meeting, under which conditional awards of 16,166,510 shares made to employees remain outstanding as at 31 December 2024
(2023: 15,775,886). The shares will vest on satisfaction of service and performance conditions attaching to the LTIP over a three-year period. During the year ended 31 December 2024 the Company issued 4,817,522 (2023:
5,331,233) ordinary shares at par in relation to the vesting of the 2021 (2023:2020) LTIP. €4.927 million (2023: €4.110 million) was transferred from the share-based payments reserve to retained earnings in relation to the 2021
(2023:2020) vesting.
The outstanding 2022, 2023 and 2024 LTIP awards are subject to both financial and non-financial metrics. 60% of the 2022 and 2023 awards will vest subject to the achievement of cumulative EPS targets over the three-year
performance period from 2022 to 2024 and 2023 to 2025 respectively. 55% of the 2024 award will vest subject to the achievement of cumulative EPS targets over the three-year performance period from 2024 to 2026. 20% of the
2022 and 2023 awards will vest subject to the achievement of a return on equity (ROE) target and 20% subject to the achievement of a biodiversity target. 25% of the 2024 award will vest subject to the achievement of an ROE
target, 10% subject to the achievement of a biodiversity target and 10% dependent on passive standard unit commencements. Awards to Executive Directors are also subject to an additional two-year holding period after vesting.
The Group recognised a charge related to the LTIP during the year ended 31 December 2024 of €3.845 million (2023: €4.390 million) of which €3.157 million (2023: €3.332 million) was charged to administrative expenses in profit or
loss and a charge of €0.688 million (2023: €1.058 million) was included in construction work in progress within inventories. Conditional awards of 5,423,265 shares (2023: 6,187,597 shares) were made to employees under the LTIP
in the year ended 31 December 2024.
Notes to the Consolidated Financial Statements continued
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20. Share-Based Payments continued
Long-Term Incentive Plan (‘LTIP’) continued
The number of outstanding conditional share awards under the LTIP are as follows:
| 2024 | 2023 | ||
| €’000 | €’000 | ||
Outstanding at beginning of year | 15,775,886 | 15,776,346 | |
Forfeited during the year | (215,119) | (856,824) | |
Vesting during the year | (4, | 817,522) | (5,331,233) |
Granted during the year | 5,423,265 | 6,187,597 | |
Outstanding at end of year | 16,166,510 | 15,775,886 |
Dividend equivalents
The Group operates a dividend equivalent scheme linked to its equity settled LTIP. Under this scheme employees are entitled to shares or cash (the choice of settlement is as determined by the Group) to the value of dividends
declared over the LTIP’s vesting period based on the number of shares that vest. During the year ended 31 December 2024 the Group settled dividend equivalents in cash of €0.619 million (2023: €0.457 million) and this amount
was deducted from the share-based payment reserve.
The Group recognised a charge related to dividend equivalents during the year ended 31 December 2024 of €1.084 million (2023: €0.669 million) of which €0.946 million (2023: €0.473 million) was charged to administrative
expenses in profit or loss and a charge of €0.138 million (2023: €0.196 million) was included in construction work in progress within inventories.
Stretch CEO LTIP
On 31 August 2023 shareholders approved the adoption and implementation of an additional LTIP to deliver certain bespoke awards of shares to the Company’s CEO, Mr. Michael Stanley (the Stretch CEO LTIP). The award is
structured in two tranches, with an equal number of ordinary shares in the capital of the Company granted to the CEO in each of 2023 and 2024. The 2023 Award will be subject to a three-year performance period (2023-2025) and
the 2024 Award will be subject to a four-year performance period (2023-2026), both from the baseline year of 2022 and subject to the achievement of certain performance conditions linked to profit after tax and ROE weighted
75% and 25% respectively.
The 2023 award was granted in 2023, at a value of €3.5 million, with the number of conditional share awards determined by the closing share price on the evening preceding the grant date. The number of conditional share awards
granted under the 2024 award was identical to the first award. The 2023 grant took place on 8 September 2023 with a grant price of €1.108 per share equating to 3,158,845 ordinary shares. The 2024 grant of 3,158,845 ordinary
shares took place on 10 April 2024.
Due to the nature of the awards and given that the performance period for the 2023 and 2024 awards commenced on 1 January 2023, the Group recognised a charge in profit or loss related to the Stretch CEO LTIP of €1.952 million
(2023: €1.899 million) during the year ended 31 December 2024.
The Group purchased 2,409,797 shares, for the purpose of the stretch CEO LTIP, at a total cost of €3.196 million during the year ended 31 December 2023 which was recorded directly in equity in treasury shares. During the year
ended 31 December 2024 a further 2,581,487 shares were purchased by the Group, at a total cost of €5.006 million, and were recorded directly in equity as treasury shares. A trust structure has been set up with Computershare
Trustees (Jersey) Limited to hold these shares until any future vesting arises.
Save as you earn scheme
The Group operates a Revenue approved savings related share option scheme (save as you earn scheme), which was approved at the May 2019 Annual General Meeting, under which the Group recognised a charge during the year
ended 31 December 2024 of €0.061 million (2023: €0.117 million) of which €0.022 million (2023: €0.048 million) was charged to profit or loss and €0.039 million (2023: €0.069 million) was included in construction work in progress
within inventories. During the year ended 31 December 2024, the Company issued 359,769 ordinary shares at a nominal value of €0.001 in relation to the vesting of the 2021 option scheme. This resulted in €0.377 million being
included in share premium. €0.153 million was transferred from the share-based payments reserve to retained earnings relating to the 2021 vesting.
Notes to the Consolidated Financial Statements continued
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20. Share-Based Payments continued
Other share options
500,000 ordinary share options were issued in the year ended 31 December 2015 to a Director at that time. 250,000 of these options vested during 2018 and the remaining 250,000 vested during 2019. The exercise price of each
ordinary share option is €1.00. At grant date, the fair value of the options that vested during 2018 was calculated at €0.219 per share while the fair value of options that vested during 2019 was calculated at €0.220 per share. During
the year ended 31 December 2024, 500,000 ordinary share options were exercised and €0.110 million was transferred from share-based payment reserve to retained earnings (2023: €nil).
| 2024 | 2023 | |
| €’000 | €’000 | |
| Bank and other loans | ||
| Current liabilities | ||
Repayable within one year | 14,992 | 14,992 |
14,992 | 14,992 | |
| Non-current liabilities | ||
| Repayable as follows: | ||
Between one and two years | 42,495 | 14,992 |
Between two and five years | 124,559 | 143,844 |
Greater than five years | – | – |
167,054 | 158,836 | |
Total | 182,046 | 173,828 |
Notes to the Consolidated Financial Statements continued
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22. Reconciliation of Movement of Liabilities to Cash Flows Arising from Financing Activities
| Liabilities | |||||||
| Loans and | Accrued interest | ||||||
| Revolving | borrowings Total | and other | |||||
| Term loan | credit facility | Loan notes | (Note 21) | finance costs | Lease liabilities | Total | |
| €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | |
Balance at 1 January 2024 | 76,348 | 25,000 | 72,480 | 173,828 | 672 | 6,427 | 180,927 |
Proceeds from borrowings | 12,850 | 380,000 | – | 392,850 | – | – | 392,850 |
Repayment of loans | – | (370,000) | (15,000) | (385,000) | – | – | (385,000) |
Interest and other finance costs paid | – | – | – | – | (14,667) | (233) | (14,900) |
Repayment of lease liabilities | – | – | – | – | – | (1,004) | (1,004) |
Total changes from financing cash flows | 12,850 | 10,000 | (15,000) | 7,850 | (14,667) | (1,237) | (8,054) |
| Other changes | |||||||
Amortisation of borrowing costs | 360 | – | 8 | 368 | – | – | 368 |
Interest and other finance costs for the year | – | – | – | – | 14,041 | 233 | 14,274 |
Recognition of lease liabilities for new leases | – | – | – | – | – | 1,022 | 1,022 |
Total other changes | 360 | – | 8 | 368 | 14,041 | 1,255 | 15,665 |
Balance at 31 December 2024 | 89,558 | 35,000 | 57,488 | 182,046 | 46 | 6,445 | 188,537 |
| Liabilities | ||||||||
| Loans and | Accrued interest | |||||||
| Revolving | borrowings Total | and other | ||||||
| Term loan | credit facility | Loan notes | (Note 21) | finance costs | Lease liabilities | Total | ||
| €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | ||
Balance at 1 January 2023 | 76,019 | 22,500 | 72,472 | 170,991 | 883 | 6,797 | 178,671 | |
Proceeds from borrowings | – | 317,50 | 0 | – | 317,500 | – | – | 317,500 |
Repayment of loans | – | (315,000) | – | (315,000) | – | – | (315,000) | |
Interest and other finance costs paid | – | – | – | – | (13,866) | (206) | (14,072) | |
Repayment of lease liabilities | – | – | – | – | – | (761) | (761) | |
Total changes from financing cash flows | – | 2,500 | – | 2,500 | (13,866) | (967) | (12,333) | |
| Other changes | ||||||||
Amortisation of borrowing costs | 329 | – | 8 | 337 | – | – | 337 | |
Interest and other finance costs for the year | – | – | – | – | 13,655 | 206 | 13,861 | |
Recognition of lease liabilities for new leases | – | – | – | – | – | 391 | 391 | |
Total other changes | 329 | – | 8 | 337 | 13,655 | 597 | 14,589 | |
Balance at 31 December 2023 | 76,348 | 25,000 | 72,480 | 173,828 | 672 | 6,427 | 180,927 |
Notes to the Consolidated Financial Statements continued
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| 2024 | 2023 | |
| Movement in net deferred tax liability: | €’000 | €’000 |
Opening balance | 3,139 | 3,139 |
Credit to profit or loss (Note 10) | (49) | – |
As at year end | 3,090 | 3,139 |
| Deferred tax | Deferred tax | Net deferred | |
| assets | liabilities | tax liability | |
| 2024 | €’000 | €’000 | €’000 |
Opening balance | 476 | (3,615) | (3,139) |
Credit/(charge) to profit or loss | 859 | (810) | 49 |
Closing balance | 1,335 | (4,425) | (3,090) |
| Deferred tax | Deferred tax | Net deferred | |
| assets | liabilities | tax liability | |
| 2023 | €’000 | €’000 | €’000 |
Opening balance | 476 | (3,615) | (3,139) |
Credit/(charge) to profit or loss | – | – | – |
Closing balance | 476 | (3,615) | (3,139) |
| 2024 | 2023 | |
| €’000 | €’000 | |
Trade payables | 26,896 | 22,053 |
Deferred consideration | 7,500 | 11,810 |
Accruals | 52,168 | 35,425 |
VAT liability | 17,920 | 27,977 |
Other creditors | 2,969 | 2,079 |
107,453 | 99,344 |
Notes to the Consolidated Financial Statements continued
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25. Dividends
Dividends of €44.7 million were paid by the Company during the year (2023: €41.9 million). A dividend of 3. 20 cent per ordinary share, totalling €20.6 million, was paid on 17 May 2024 and a dividend of 3. 80 cent per ordinary share,
totalling €24.1 million, was paid on 4 October 2024. Details of proposed dividends subsequent to the year end are set out in Note 32.
| 2024 | 2023 | |
| €’000 | €’000 | |
Short-term employee benefits | 2,987 | 2,572 |
Post-employment benefits (pension contributions – defined contribution schemes) | 106 | 100 |
Share-based payment expense – LTIP/Stretch CEO LTIP | 3,324 | 2,995 |
Total key management personnel compensation | 6,417 | 5,667 |
| Subsidiaries | |||
| Company’s holding | |||
Group company | Principal activity | Direct | Indirect |
Cairn Homes Holdings Limited | Holding company | 100% | – |
Cairn Homes Properties Limited | Holding of property | – | 100% |
Cairn Homes Construction Limited | Construction company | – | 100% |
Cairn Homes Butterly Limited | No activity in period | 100% | – |
Cairn Homes Galway Limited | Holding of property | 100% | – |
Cairn Homes Killiney Limited | No activity in the period | 100% | – |
Cairn Homes Finance Designated Activity Company | Financing activities | 100% | – |
Cairn Homes Montrose Limited | Holding of property | 100% | – |
Balgriffin Investment No.2 HoldCo Designated Activity Company | Holding company | 100% | – |
Cairn Homes Property Holdco Limited | Holding company | – | 100% |
Cairn Homes Property Holding Three Limited | No activity in period | – | 100% |
Balgriffin Investment No.2 Designated Activity Company | No activity in period | – | 100% |
| Company’s holding | |||
Joint Venture Undertaking | Principal activity | Direct | Indirect |
Clonburris Infrastructure Limited (Note 15) | Construction company | – | 80.57% |
Notes to the Consolidated Financial Statements continued
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28. Earnings Per Share
The basic EPS for the year ended 31 December 2024 is based on the earnings attributable to ordinary shareholders of €114.6 million (2023: €85.4 million) and the weighted average number of ordinary shares outstanding for the
period.
| 2024 | 2023 | |
| €’000 | €’000 | |
Profit for the year attributable to the owners of the Company | 114,572 | 85,432 |
Numerator for basic and diluted earnings per share | 114,572 | 85,432 |
| Number of | Number of | |
| Shares | Shares | |
Weighted average number of ordinary shares for the year (basic) | 640,183,692 | 673,796,613 |
Dilutive effect of options | – | 41,284 |
Dilutive effect of LTIP awards | 4,491,305 | 4,738,040 |
Denominator for diluted earnings per share | 644,674,997 | 678,575,937 |
| Earnings per share (cent) | ||
– Basic | 17.9 | 12.7 |
– Diluted | 17.8 | 12.6 |
The diluted earnings per share calculation reflects the dilutive impact of LTIP awards and share options (Note 20).
Notes to the Consolidated Financial Statements continued
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29. Financial Instruments and Risk Management continued
| 2024 | 2023 | |
| €’000 | €’000 | |
Trade and other receivables (excluding prepayments) | 151,009 | 52,905 |
Cash and cash equivalents | 27,623 | 25,553 |
178,632 | 78,458 |
Notes to the Consolidated Financial Statements continued
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29. Financial Instruments and Risk Management continued
(c) Liquidity risk continued
| 2024 | 2023 | |
| €’000 | €’000 | |
| Financial liabilities due in less than one year | ||
Trade payables and accruals | 79,064 | 57,478 |
Deferred consideration | 7,500 | 11,810 |
Lease liabilities | 1,254 | 937 |
Loans and borrowings | 14,992 | 14,992 |
102,810 | 85,217 | |
| Financial liabilities due after more than one year | ||
Lease liabilities | 5,191 | 5,490 |
Loans and borrowings | 167,054 | 158,836 |
172,245 | 164,326 | |
Total financial liabilities | 275,055 | 249,543 |
| Available funds: | ||
Cash and cash equivalents | 27,623 | 25,553 |
Revolving credit facilities undrawn | 202,000 | 175,000 |
229,623 | 200,553 |
Notes to the Consolidated Financial Statements continued
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29. Financial Instruments and Risk Management continued
(c) Liquidity risk continued
| Contractual cash flows | |||||||
| Carrying | 6 months | ||||||
| amount | Total | or less | 6-12 months | 1-2 years | 2-5 years | >5 years | |
| 31 December 2024 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 |
Trade payables and accruals | 79,064 | (79,064) | (79,064) | – | – | – | – |
Deferred consideration | 7,500 | (7,500) | (3,750) | (3,750) | – | – | – |
Lease liabilities | 6,445 | (7,120) | (750) | (713) | (1,356) | (2,683) | (1,618) |
Loans and borrowings | 182,046 | (199,659) | (3,847) | (18,516) | (48,958) | (128,338) | – |
275,055 | (293,343) | (87,411) | (22,979) | (50,314) | (131,021) | (1,618) |
| Contractual cash flows | |||||||
| Carrying | 6 months | ||||||
| amount | Total | or less | 6-12 months | 1-2 years | 2-5 years | >5 years | |
| 31 December 2023 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 | €’000 |
Trade payables and accruals | 57,478 | (57,478) | (57,478) | – | – | – | – |
Deferred consideration | 11,810 | (11,810) | (6,310) | (5,500) | – | – | – |
Lease liabilities | 6,427 | (7,170) | (564) | (558) | (1,077) | (2,543) | (2,428) |
Loans and borrowings | 173,828 | (193,419) | (3,326) | (17,991) | (20,559) | (151,543) | – |
249,543 | (269,877) | (67,678) | (24,049) | (21,636) | (154,086) | (2,428) |
Notes to the Consolidated Financial Statements continued
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29. Financial Instruments and Risk Management continued
(d) Market risk continued
(ii) Interest rate risk continued
| 2024 | 2023 | |
| €’000 | €’000 | |
| Interest rate profile of loans and borrowings | ||
Fixed-rate | 115,527 | 130,361 |
Variable-rate | 66,519 | 43,467 |
Loans and borrowings | 182,046 | 173,828 |
| Variable rate instruments | ||
Gross variable rate borrowings | 66,519 | 43,467 |
Impact of interest rate swaps | (18,519) | (18,467) |
48,000 | 25,000 |
Profit or loss | Equity | |||
| 100 bp | 100 bp | 100 bp | 100 bp | |
| increase | decrease | increase | decrease | |
| 31 December 2024 | €’000 | €’000 | €’000 | €’000 |
Variable-rate instruments – borrowings | (1,308) | 1,308 | (1,308) | 1,308 |
Cash flow sensitivity (net) | (1,308) | 1,308 | (1,308) | 1,308 |
Profit or loss | Equity | |||
| 100 bp | 100 bp | 100 bp | 100 bp | |
| increase | decrease | increase | decrease | |
| 31 December 2023 | €’000 | €’000 | €’000 | €’000 |
Variable-rate instruments – borrowings | (1,214) | 1,214 | (1,214) | 1,214 |
Cash flow sensitivity (net) | (1,214) | 1,214 | (1,214) | 1,214 |
Notes to the Consolidated Financial Statements continued
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29. Financial Instruments and Risk Management continued
(e) Derivatives and hedging activities
| 2024 | 2023 | |
| €’000 | €’000 | |
| Current assets – Derivative Financial Instruments | ||
Interest rate swaps – cash flow hedges | 105 | – |
| 2024 | 2023 | |
| €’000 | €’000 | |
| Non-current assets – Derivative Financial Instruments | ||
Interest rate swaps – cash flow hedges | – | 436 |
| Cash flow | Cash flow | |
| hedge reserve | hedge reserve | |
| 2024 | 2023 | |
| €’000 | €’000 | |
Opening balance 1 January | 436 | 847 |
Change in fair value of hedging instrument recognised in cash flow hedge reserve | 124 | (331) |
Reclassified from cash flow hedge reserve to profit or loss – included in finance cost | (455) | (80) |
Closing balance 31 December | 105 | 436 |
Notes to the Consolidated Financial Statements continued
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29. Financial Instruments and Risk Management continued
Notes to the Consolidated Financial Statements continued
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29. Financial Instruments and Risk Management continued
(g) Fair value of financial assets and financial liabilities continued
| 2024 | Fair value | |||
| Carrying value | Level 1 | Level 2 | Level 3 | |
| €’000 | €’000 | €’000 | €’000 | |
| Financial assets measured at fair value | ||||
Derivative interest rate swap | 105 | 105 | ||
| Financial assets measured at amortised cost | ||||
Trade and other receivables (excluding prepayments) | 151,009 | |||
Cash and cash equivalents | 27,623 | |||
| 178,632 | ||||
| Financial liabilities measured at amortised cost | ||||
Trade payables and accruals | 79,064 | |||
Deferred consideration | 7,500 | |||
Loans and borrowings | 182,046 | 181,912 | ||
| 268,610 |
| 2023 | Fair value | |||
| Carrying value | Level 1 | Level 2 | Level 3 | |
| €’000 | €’000 | €’000 | €’000 | |
| Financial assets measured at fair value | ||||
Derivative interest rate swap | 436 | 436 | ||
| Financial assets measured at amortised cost | ||||
Trade and other receivables (excluding prepayments) | 52,905 | |||
Cash and cash equivalents | 25,553 | |||
| 78,894 | ||||
| Financial liabilities measured at amortised cost | ||||
Trade payables and accruals | 57,478 | |||
Deferred consideration | 11,810 | |||
Loans and borrowings | 173,828 | 168,479 | ||
| 243,116 |
Notes to the Consolidated Financial Statements continued
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31. Profit or Loss of the Parent Company
The parent company of the Group is Cairn Homes plc. In accordance with Section 304 of the Companies Act 2014, the Company is availing of the exemption from presenting its individual statement of profit or loss and other
comprehensive income to the Annual General Meeting and from filing it with the Registrar of Companies. The Company’s profit after tax for the year ended 31 December 2024, determined in accordance with IFRS as adopted by
the EU, is €69.0 million (2023: loss of €18.6 million). The company made a profit during the year due to changes in the Group’s operating model relating solely to intragroup transactions.
32. Events After the Reporting Period
Between 2 January 2025 and 9 January 2025, the Company repurchased 803,939 shares which completed the FY24 €45 million share buyback programme (Note 20). In accordance with the share buyback programme, all
repurchased shares are subsequently cancelled.
On 26 February 2025, the Company proposed a final 2024 dividend of 4 .4 cent per share subject to shareholder approval at the 2025 AGM on 08 May 2025. Based on the ordinary shares in issue at 14 March 2025, the amount of
dividend proposed is €27 .3 million. The proposed final dividend of 4.4 cent per ordinary shares will be paid on 16 May 2025 to ordinary shareholders on the Company’s register on 25 April 2025.
During February 2025, the Group successfully completed a debt refinancing of the €327.5 million syndicate facility into a new €402.5 million Sustainability Linked Syndicate term loan and revolving credit facility with Allied Irish
Banks plc, Bank of Ireland plc and HBFI, repayable in June 2029 with a one-year extension option (Note 21).
33. Approval of Financial Statements
The financial statements were approved by the Board of Directors on 14 March 2025.
Notes to the Consolidated Financial Statements continued
202
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1. Company Statement of Financial Position 203
2. Company Statement of Changes in Equity 204
3. Company Statement of Cash Flows 206
4. Notes to the Company Financial Statements 207
Company Financial Statements
203
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Note
2024
€’000
2023
€’000
Assets
Non-current assets
Property, plant and equipment 2 2,550 2,779
Right of use assets 3 4,334 4,953
Intangible assets 4 4,379 4,144
Investments in subsidiaries 5 26,744 26,744
38,007 38,620
Current assets
Amounts due from subsidiary undertakings 6 360,200 401,394
Trade and other receivables 7 659 2,562
Cash and cash equivalents 1,798 340
362,657 404,296
Total assets 400,664 442,916
Equity
Share capital 8 621 655
Share premium 8 201,894 201,100
Other undenominated capital 222 183
Treasury shares 8 (8,202) (3,196)
Share-based payment reserve 9 14,721 13,588
Retained earnings 148,415 189,521
Total equity 357,671 401,851
Liabilities
Non-current liabilities
Deferred taxation 12 8 –
Lease liabilities 3 4,454 5,130
4,462 5,130
Current liabilities
Trade and other payables 10 26,507 35,276
Current taxation 11,347 –
Lease liabilities 3 677 659
38,531 35,935
Total liabilities 42,993 41,065
Total equity and liabilities 400,664 442,916
On behalf of the Board
MICHAEL STANLEY RICHARD BALL
DIRECTOR DIRECTOR
Company Statement of Financial Position
At 31 December 2024
204
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Corporate GovernanceStrategic Report Financial Statements
Ordinary
shares
€’000
Share
premium
€’000
Other
undenominated
capital
€’000
Treasury
shares
€’000
Share-based
payment
reserve
€’000
Retained
earnings
€’000
Total
€’000
As at 1 January 2024 655 201,100 183 (3,196) 13,588 189,521 401,851
Total comprehensive income for the year
Profit for the year – – – – – 69,015 69,015
– – – – – 69,015 69,015
Transactions with owners of the Company
Purchase of own shares – share buybacks – – – (70,591) – – (70,591)
Cancellation of repurchased shares (39) – 39 70,591 – (70,591) –
Purchase of own shares – held in trust – – – (5,006) – – (5,006)
Equity-settled share-based payments (Note 9) – – – – 6,942 – 6,942
Shares issued on vesting/exercise of share awards and options 5 794 – – – – 799
Settlement of dividend equivalents – – – – (619) – (619)
Transfer from share-based payment reserve to retained earnings in relation to vesting/
exercise or lapsing of share awards – – – – (5,190) 5,190 –
Dividends paid to shareholders (Note 8) – – – – – (44,720) (44,720)
(34) 794 39 (5,006) 1,133 (110,121) (113,195)
As at 31 December 2024 621 201,894 222 (8,202) 14,721 148,415 357,671
Company Statement of Changes in Equity
For the year ended 31 December 2024
205
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Corporate GovernanceStrategic Report Financial Statements
Company Statement of Changes in Equity continued
Share Capital
Share
premium
€’000
Other
undenominated
capital
€’000
Treasury
shares
€’000
Share-based
payment
reserve
€’000
Retained
earnings
€’000
Total
€’000
Ordinary
shares
€’000
Deferred
shares
€’000
Founder
shares
€’000
As at 1 January 2023 686 20 19 199,616 105 – 11,809 287,891 500,146
Total comprehensive loss for the year
Loss for the year – – – – – – – (18,614) (18,614)
– – – – – – – (18,614) (18,614)
Transactions with owners of the Company
Purchase of own shares – share buybacks – – – – – (42,697) – – (42,697)
Cancellation of repurchased shares (39) – – – 39 42,697 – (42,697) –
Cancellation of founder and deferred shares – (20) (19) – 39 – – – –
Purchase of own shares – held in trust – – – – – (3,196) – – (3,196)
Equity-settled share – based payments (Note 9) – – – – – – 7,075 – 7,075
Shares issued on vesting of share awards 8 – – 1,484 – – – – 1,492
Settlement of dividend equivalents – – – – – – (459) – (459)
Transfer from share-based payment reserve
to retained earnings in relation to vesting/exercise
or lapsing of
share awards – – – – – – (4,837) 4,837 –
Dividends paid to shareholders (Note 8) – – – – – – – (41,896) (41,896)
(31) (20) (19) 1,484 78 (3,196) 1,779 (79,756) (79,681)
As at 31 December 2023 655 – – 201,100 183 (3,196) 13,588 189,521 401,851
206
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Corporate GovernanceStrategic Report Financial Statements
2024
€’000
2023
€’000
Cash flows from operating activities
Profit/(loss) for the year 69,015 (18,614)
Adjustments for:
Share-based payments expense 6,077 5,752
Finance costs 151 165
Depreciation of property, plant and equipment 603 555
Depreciation of right of use assets 619 619
Amortisation of intangible assets 1,505 1,164
Taxation 11,391 –
89,361 (10,359)
Decrease in amounts due from group undertakings 41,194 86,006
Decrease/(increase) in trade and other receivables 1,903 (1,895)
(Decrease)/increase in trade and other payables (8,046) 9,745
Tax paid – (28)
Net cash from operating activities 124,412 83,469
Cash flows from investing activities
Purchases of property, plant and equipment (374) (341)
Purchases of intangible assets (1,740) (2,317)
Net cash used in investing activities (2,114) (2,658)
Cash flows from financing activities
Proceeds from issue of share capital 799 1,492
Purchase of own shares – share buybacks (70,591) (42,697)
Dividends paid (44,720) (41,896)
Purchase of own shares – held in trust (5,006) (3,196)
Settlement of dividend equivalents (619) (459)
Repayment of lease liabilities (853) (563)
Interest paid 151 (165)
Net cash used in financing activities (120,840) (87,484)
Net increase/(decrease) in cash and cash equivalents in the year 1,458 (6,673)
Cash and cash equivalents at beginning of the year 340 7,013
Cash and cash equivalents at end of the year 1,798 340
Company Statement of Cash Flows
For the year ended 31 December 2024
207
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Corporate GovernanceStrategic Report Financial Statements
1. Material Accounting Policies 208
2. Property, Plant and Equipment 209
3. Leases 210
4. Intangible Assets 211
5. Investments in Subsidiaries 212
6. Amounts due from Subsidiary Undertakings 212
7. Trade and Other Receivables 212
8. Share Capital and Share Premium 212
9. Share-Based Payments 212
10. Trade and Other Payables 212
11. Financial Instruments 213
12, Deferred Taxation 215
13. Related Party Transactions 215
14. Events after the Reporting Period 216
15. Approval of Financial Statements 216
Notes to the Company Financial Statements
For the year ended 31 December 2024
208
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Corporate GovernanceStrategic Report Financial Statements
Notes to the Company Financial Statements continued
1. Material Accounting Policies
The individual financial statements of the Company have been prepared in accordance with IFRS as adopted by the EU and as applied in accordance with the Companies Act 2014. As described in Note 31 of the consolidated
financial statements, the Company has availed of the exemption from presenting its individual statement of profit or loss and other comprehensive income. The Company’s profit after tax for the year ended 31 December 2024 is
€69.0 million (2023: loss of €18.6 million). The company made a profit during the year due to changes in the Group’s operating model relating solely to intragroup transactions.
The material accounting policies applicable to these individual company financial statements which are not reflected within the accounting policies for the consolidated financial statements are detailed below.
(a) Investments in subsidiaries
Investments in subsidiaries are accounted for in these individual financial statements on the basis of the direct equity interest, rather than on the basis of the reported results and net assets of investees. Investments in subsidiaries
are carried at cost less any impairment.
The recoverable amount of investments in subsidiary undertakings is assessed with regard to the net assets of the subsidiary undertakings.
(b) Intra-group guarantees
The Company has given guarantees to third parties in respect of specific borrowings arising in the ordinary course of business of subsidiaries.
The Company considers these guarantees to be insurance contracts. Following the introduction of IFRS17 Insurance Contracts in 2023, the Company elected to apply IFRS9 Financial Instruments, being eligible, in relation to these
intra-group financial guarantees. The Company determined that the fair value of its intra-group guarantees at inception was not material to the financial statements based on the estimated difference between the guaranteed and
unguaranteed borrowing rates of the Group. The Company has also considered the expected credit loss arising from intra -group guarantees and determined that these are not material to the financial statements based on the
fact that the main underlying assets (inventories) on which the Group’s borrowings are secured against are primarily held by the subsidiary which has borrowed the debt within the Group structure and whereby the assets of this
subsidiary are substantially greater than the amount borrowed. On this basis, no amounts have been reflected in the financial statements in relation to these intra-group financial guarantees.
209
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Corporate GovernanceStrategic Report Financial Statements
2. Property, Plant and Equipment
Leasehold
improvements
€’000
Computers &
equipment
€’000
2024
Total
€’000
Cost
At 1 January 2024 2,907 1,850 4,757
Additions – 374 374
At 31 December 2024 2,907 2,224 5,131
Accumulated depreciation
At 1 January 2024 (829) (1,149) (1,978)
Depreciation (260) (343) (603)
At 31 December 2024 (1,089) (1,492) (2,581)
Net book value
At 31 December 2024 1,818 732 2,550
Leasehold
improvements
€’000
Computers &
equipment
€’000
2023
Total
€’000
Cost
At 1 January 2023 2,860 1,556 4,416
Additions 47 294 341
At 31 December 2023 2,907 1,850 4,757
Accumulated depreciation
At 1 January 2023 (567) (856) (1,423)
Depreciation (262) (293) (555)
At 31 December 2023 (829) (1,149) (1,978)
Net book value
At 31 December 2023 2,078 701 2,779
Notes to the Company Financial Statements continued
210
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Corporate GovernanceStrategic Report Financial Statements
3. Leases
Right of use assets
The Company has a lease liability and a right-of-use-asset in respect of the lease of its central support office property.
The lease relates to a 10-year lease agreement for an office with a lease commencement date of 01 January 2022. The lease liability and related right-of-use asset were determined by discounting the lease payments over the term
of the lease at a discount rate of 2.6% reflecting the Group’s incremental borrowing rate at the time.
2024
€’000
2023
€’000
Cost
At 1 January 6,193 7,635
Disposal – (1,442)
At 31 December 6,193 6,193
Accumulated depreciation
At 1 January (1,240) (2,063)
Depreciation (619) (619)
Disposal – 1,442
At 31 December (1,859) (1,240)
Net book value
At 31 December 4,334 4,953
Lease liabilities
2024
€’000
2023
€’000
Current liabilities
Repayable within one year 677 659
677 659
Non-current liabilities
Repayable as follows:
Between one and two years 693 676
Between two and five years 2,191 2,135
More than five years 1,570 2,319
4,454 5,130
Total lease liabilities 5,131 5,789
Notes to the Company Financial Statements continued
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Corporate GovernanceStrategic Report Financial Statements
3. Leases continued
Lease liabilities continued
The movements in total lease liabilities during 2024 and 2023 were as follows:
2024
€’000
2023
€’000
At 1 January 5,789 6,352
Interest on lease liabilities 151 165
Lease payments (809) (728)
At 31 December 5,131 5,789
The undiscounted remaining contractual cash flows at 31 December 2024 were as follows:
Contractual cash flows
As at 31 December 2024
Total
€’000
6 months
or less
€’000
6-12 months
€’000
1-2 years
€’000
2-5 years
€’000
>5 years
€’000
Lease liabilities (5,663) (404) (405) (809) (2,427) (1,618)
The undiscounted remaining contractual cash flows at 31 December 2023 were as follows:
Contractual cash flows
As at 31 December 2023
Total
€’000
6 months
or less
€’000
6-12 months
€’000
1-2 years
€’000
2-5 years
€’000
>5 years
€’000
Lease liabilities (6,472) (404) (405) (809) (2,427) (2,427)
4. Intangible assets
Software
2024
€’000
2023
€’000
Cost
At 1 January 6,547 4,282
Additions 1,740 2,317
Disposals – (52)
At 31 December 8,287 6,547
Accumulated amortisation
At 1 January (2,403) (1,239)
Amortisation (1,505) (1,164)
At 31 December (3,908) (2,403)
Net book value
At 31 December 4,379 4,144
Notes to the Company Financial Statements continued
212
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5. Investments in Subsidiaries
2024
€’000
2023
€’000
Cost
At the beginning of the year 26,744 26,744
At the end of the year 26,744 26,744
6. Amounts Due from Subsidiary Undertakings
2024
€’000
2023
€’000
Amounts due from subsidiary undertakings 360,200 401,394
360,200 401,394
All amounts due from subsidiary undertakings are interest-free and repayable on demand. At year end management assessed the future economic benefits expected to be generated by each subsidiary to ensure balances were
recoverable.
The amounts owed by subsidiaries have been reviewed and a credit loss of €4.77 million (2023: nil) is expected based on the financial position of subsidiaries. The total amount of €4.77 million has been charged to the profit and
loss in the year and the amounts due from subsidiary undertakings are shown net of this expected credit loss provision.
7. Trade and Other Receivables
2024
€’000
2023
€’000
Other receivables – 1,820
Prepayments 659 742
659 2,562
8. Share Capital and Share Premium
For further information on Share Capital and Share Premium refer to Note 19 of the consolidated financial statements. For further information on Treasury Shares refer to Note 20 of the consolidated financial statements. For
further information on dividends refer to Note 25 of the consolidated financial statements.
9. Share-Based Payments
For further information on Share-Based Payments refer to Note 20 of the consolidated financial statements.
10. Trade and Other Payables
2024
€’000
2023
€’000
Trade payables 655 660
Accruals 6,255 5,725
VAT liability 17,920 27,977
Other creditors 1,677 914
26,507 35,276
Other creditors relate to amounts due for payroll taxes.
Notes to the Company Financial Statements continued
213
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Corporate GovernanceStrategic Report Financial Statements
11. Financial Instruments
The carrying value of the Company’s financial assets and liabilities, comprising amounts due from and to subsidiary undertakings, cash and cash equivalents, other receivables, trade payables and accruals are a reasonable
approximation of their fair value.
(a) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s amounts due from subsidiary
undertakings and cash and cash equivalents. The carrying amount of financial assets represents the maximum credit exposure.
Exposure to credit risk
Company management, in conjunction with the Board, manages the risk associated with cash and cash equivalents by depositing funds with a number of Irish financial institutions and BBB+ rated international institutions.
The amounts owed by subsidiaries have been reviewed and a credit loss of €4.77 million (2023: nil) is expected based on the financial position of subsidiaries. The total amount of €4.77 million has been charged to the profit and
loss in the year. In circumstances where a subsidiary had a net liability position at year end management assessed the future economic benefits expected to be generated by that subsidiary to ensure balances were recoverable.
Expected credit losses in relation to all other financial assets are immaterial.
The maximum amount of credit exposure is therefore:
2024
€’000
2023
€’000
Amounts due from subsidiary undertakings 360,200 401,394
Other receivables – 1,820
Cash and cash equivalents 1,798 340
361,998 403,554
(b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Company’s approach to managing
liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Company’s reputation.
Notes to the Company Financial Statements continued
214
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Corporate GovernanceStrategic Report Financial Statements
11. Financial Instruments continued
(b) Liquidity risk continued
The Company monitors the level of expected cash inflows on receivables together with expected cash outflows on trade and other payables and commitments. All trade and other payables at 31 December 2024 are considered
current with the expected cash outflow equivalent to their carrying value.
2024
€’000
2023
€’000
Financial liabilities due in less than one year
Trade payables and accruals 6,910 6,385
Lease liabilities 677 659
7,587 7,044
Financial liabilities due after more than one year
Lease liabilities 4,454 5,130
Total financial liabilities 12,041 12,174
Available funds:
Cash and cash equivalents 1,798 340
Revolving credit facilities undrawn 202,000 175,000
203,798 175,340
The Company has access to the Group’s revolving credit facilities (see Note 29 of the consolidated financial statements). As a result the Directors expect that the Company will meet all of its obligations as they fall due on the basis
that there is expected to be sufficient liquidity available to the Company for the period beyond one year from the date of approval of these financial statements.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted and include contractual interest payments.
Contractual cash flows
31 December 2024
Carrying
amount
€’000
Total
€’000
6 months
or less
€’000
6-12 months
€’000
1-2 years
€’000
2-5 years
€’000
>5 years
€’000
Trade payables and accruals 6,910 (6,910) (6,910) – – – –
Lease liabilities 5,131 (5,663) (404) (405) (809) (2,427) (1,618)
12,041 (12,573) (7,314) (405) (809) (2,427) (1,618)
Contractual cash flows
31 December 2023
Carrying
amount
€’000
Total
€’000
6 months
or less
€’000
6-12 months
€’000
1-2 years
€’000
2-5 years
€’000
>5 years
€’000
Trade payables and accruals 6,385 (6,385) (6,385) – – – –
Lease liabilities 5,789 (6,472) (405) (404) (809) (2,427) (2,427)
12,174 (12,857) (6,790) (404) (809) (2,427) (2,427)
The company is not exposed to significant currency risk or interest rate risk.
Relevant disclosures on Group financial instruments and risk management are given in Note 29 of the consolidated financial statements.
Notes to the Company Financial Statements continued
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12. Deferred Taxation
Movement in net deferred tax liability:
2024
€’000
2023
€’000
Opening balance – –
Charge to profit or loss 8 –
As at year end 8 –
Deferred tax arises from temporary differences relating to lease liabilities (deferred tax asset of €0.643 million at 31 December 2024) and right of use assets (deferred tax liabilities of €0.651 million at 31 December 2024). The
movements in gross deferred tax assets and liabilities are set out below.
2024
Deferred tax
assets
€’000
Deferred tax
liabilities
€’000
Net deferred
tax liability
€’000
Opening balance – – –
Credit/(charge) to profit or loss 643 (651) (8)
Closing balance 643 (651) (8)
During the year ended 31 December 2024, the Company recognised a deferred tax asset of €0.643 million and a deferred tax liability of €0.651 million in relation to its lease liabilities and right of use assets due to the fact that the
Company now expects to have taxable profits. There is an unrecognised deferred tax asset of €0.129 million as at 31 December 2024 relating to losses not expected to be utilised.
2023
Deferred tax
assets
€’000
Deferred tax
liabilities
€’000
Net deferred
tax liability
€’000
Opening balance – – –
Credit/(charge) to profit or loss – – –
Closing balance – – –
As at 31 December 2023, the Company did not recognise any deferred tax related to its right of use assets or lease liabilities, due to the fact that the Company did not expect to recover the related net deferred tax asset at that time.
13. Related Party Transactions
Under IAS 24, Related Party Disclosures, the Company has related party relationships with key management and with its subsidiary undertakings (see Note 26 of the consolidated financial statements). During the year the
Company had the following transactions with its subsidiary undertakings:
• Cairn Homes Construction Limited, nil (2023: recharge of costs: €1.7 million).
• Cairn Homes Properties Limited, development management services income of €135.2 million, recharge of costs €14.9 million (2023 recharge of costs: €13.3 million).
For amounts due from subsidiary undertakings please refer to Note 6.
Key management personnel compensation is set out in Note 26 of the consolidated financial statements.
Notes to the Company Financial Statements continued
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Notes to the Company Financial Statements continued
14. Events after the Reporting Period
Between 2 January 2025 and 9 January 2025, the Company repurchased 803,939 shares which completed the FY24 €45 million share buyback programme (see Note 19 of the consolidated financial statements). In accordance with
the share buyback programme, all repurchased shares are subsequently cancelled.
On 26 February 2025, the Company proposed a final 2024 dividend of 4.4 cent per share subject to shareholder approval at the 2025 AGM on 08 May 2025. Based on the ordinary shares in issue at 14 March 2025, the amount of
dividend proposed is €27.3 million. The proposed final dividend of 4.4 cent per ordinary shares will be paid on 16 May 2025 to ordinary shareholders on the Company’s register on 25 April 2025.
During February 2025, the Group successfully completed a debt refinancing of the €327.5 million syndicate facility into a new four year €402.5 million sustainability linked syndicate term loan and revolving credit facility with Allied
Irish Banks plc, Bank of Ireland plc and HBFI, repayable in June 2029 with the option of a one-year extension.
15. Approval of Financial Statements
The financial statements were approved by the Board of Directors on 14 March 2025.
Cairn Homes plc | Annual Report 2024
Cairn Homes plc
45 Mespil Road
Dublin 4
D04 W2F1
T: +353 1696 4600
E: info@cairnhomes.com
www.cairnhomes.com