McCarthy & Stone unveils strong growth since floatation

John White
John White

Retirement home builder McCarthy & Stone enjoyed strong growth in sales in the six months to the end of February.

The first set of results since the group’s floatation in November saw revenue up 33 per cent to £250.2 million, but pre-tax profit was slightly down from £29.1m to £29m.

McCarthy & Stone saw legal completions up 19 per cent from 776 to 923 with net average selling price rising 12 per cent to £253,000.

The company, which entered the FTSE 250 last month, has seen a strong start to second half of its year with its forward order book up 26 per cent to around £306m. It is on course to meet its target of building 3,000 units a year by 2019, up from fewer than 2,000 last year.

Group chairman John White said: “The group has made strong progress in the period with its strategy of investment to create an efficient and scalable business capable of building and selling more than 3,000 units per annum.

“As a result of our strong performance since listing, I am pleased to be able to announce an interim dividend of 1p per share which will be paid on May 31 to holders of ordinary shares on the register at the close of business on April 29.”

Chief executive Clive Fenton added: “The UK’s population is maturing at a fast rate, but continues to suffer from a chronic undersupply of suitable retirement properties of the type we provide. McCarthy & Stone is uniquely placed to capitalise on this opportunity.

“Our land bank now includes sufficient land with full planning consent to deliver all targeted sales to 2017, and sufficient land under control to deliver all targeted sales to 2019. In the first half, we have put in place the regional infrastructure and management capability necessary to help deliver these sales, which gives us confidence in the progress we are making in achieving our strategic objective of building and selling more than 3,000 units per annum.

“We are also starting to see tangible benefits from our three strategic initiatives focusing on improving sales rates, reducing time taken between securing land and starting build and implementing build programme efficiencies, reflected in the acceleration of our capital cycle, and we continue to target ROCE of at least 25 per cent over the medium term.”

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