Retirement housing builder McCarthy & Stone says demand for its homes increased by 10% during its most recent financial year and that most every aspect of its business is performing well including revenue, completions, average selling price and profits.
The company built 2,299 homes between August 2015 and August 2016, a 20% increase on the previous financial year, while its average selling price increased by 8% and its gross profits increased by 15%.
It’s been a good year for the company overall. It it was re-admitted to the FTSE 250 in March this year after leaving the Stock Exchange in 2006 and later experiencing difficulties during the financial crisis. In 2013 it was sold to Goldman Sachs and private equity group TPG by its banker Lloyds following an earlier debt-for-equity deal.
Financial matters could not be more different now. It currently has a land bank of 10,186 plots, plans to build 3,000 homes this financial year and £52.8m in the bank compared to £44.4m of debt the year before.
Despite the improved position, McCarthy & Stone says its order book is down by 13% and although it blames this drop on the EU Referendum, the company says it has seen improving customer sentiment and “a return to normal trading conditions”.
“We continue to capitalise on the attractive demographic opportunity and structural shortage of supply of retirement housing in the UK,” says John White, the company’s Group Chairman (pictured).
“I was greatly encouraged by our flexibility and resilience shown in response to market uncertainty surrounding the EU Referendum result in June.”