McCarthy & Stone announces continued strong growth
11 November 2013
McCarthy & Stone, Britain’s leading builder of retirement apartments, has announced financial results demonstrating continued strong growth and has also confirmed ambitious plans for growth in a housing market which is showing signs of recovery.
In the year to 31 August 2013, McCarthy & Stone achieved an 11% uplift in apartment sales to 1,527 (2012: 1,370), delivered a 21% growth in revenue to £310.8m (2012: £257.7m) and a 15% growth in EBITDA to a five year high of £46.0m (2012: £39.9m).
For McCarthy & Stone, the improving general housing market conditions are coupled with a significant nation-wide need for more specialist retirement developments. Recent analysis by the Demos think-tank, commissioned by the Home Builders Federation, reveals 58% of over-60s are interested in moving home but that many are restricted by a lack of suitable alternative housing. One quarter (25%) expressed particular interest in buying a retirement property – indicating a total of 3.5 million people - which dwarfs the 100,000 retirement properties currently built.
Commenting on the results, Chief Executive Officer, Mark Elliott said: “2013 has been an important and successful year for McCarthy & Stone. Our ongoing strategy to invest in greater numbers of development sites helped deliver a solid set of results and a significant step forward on 2012. With the help of our new investors, the company has been refinanced and put back on a firm financial basis for the first time since the ‘credit crunch’. In addition, I am delighted that John White agreed to join the Board as Chairman. With planned investment of some £1.5bn in over 250 sites over the next four years, I believe the company is well placed for continued growth.”
Group Chairman, John White, added: "The performance delivered in the last financial year, and our healthy pipeline of quality sites for development provides a strong platform for further robust growth. At 31 August 2013, we owned or controlled c. 8,300 plots on 263 sites in good locations across the UK. This provides the company with an excellent opportunity to increase sales volumes over the next few years. In addition, recent research points to very significant demand in the retirement sector. I am therefore confident that McCarthy & Stone will continue to capitalise on the increasing opportunities emerging in the housing market.”
For more information:
Andrew Baud, Tala, email@example.com, 07775 715775