Housebuilder Cairn Homes has reported surging operating profits and revenues for 2018 as it capitalised on the recovery of the Irish residential property market.

Cairn Homes said its operating profits surged by 267% to €53.2m from €14.5m the same time last year, while its revenues grew by 125% to €337m from €149.5m in 2017.

The company said it closed 804 sales last year at an average selling price of €366,000. This compared with 418 sales in 2017 at an average selling price of €315,000.

At the end of the year, Cairn Homes said it was active on 12 sites, which will deliver about 4,400 new homes. 

The company is currently selling from nine sites with five new sites due to launch later this year.

"The strong performance in 2018 reflects the continuing success of our strategy, as we capitalise on the recovery of the Irish residential property market by establishing our reputation for high-quality, competitively priced new homes," the company's chief executive Michael Stanley said.

"Cairn's operational capability across our attractive landbank, combined with pent-up consumer and institutional demand for well built homes, will drive revenues, profitability and cash generation in 2019 and beyond. 

"This in turn enables us to commence a progressive capital return strategy this year. We look forward to the future with confidence," Mr Stanley added.