McCarthy & Stone announces half year sales and revenue growth
04 March 2014
Bournemouth: McCarthy & Stone, Britain’s leading builder of retirement housing, provides the following update on trading for the half year ended 28 February 2014. The company anticipates announcing full results for the half year on 31 March 2014.
In the latest full financial year ending 31 August 2013, McCarthy & Stone confirmed 1,527 unit sales, a 21 per cent growth in revenue to £310.8 million and posted a 15 per cent increase in EBITDA to £46 million. At the six month point of this financial year, the company now reports:
- A 30 per cent increase in legal completions to 659 units, compared to this point in 2013
- Overall half year revenues up by approximately 50 per cent to approximately £150 million
- Continued strong sales growth, with forward sales into the second half standing 30 per cent ahead of prior year at circa £133 million
- Since September 2013, the company has legally agreed to buy 34 new development sites, totalling more than 1,100 units. The company now has a sizeable land bank under its control, equating to c8,500 units
- Net debt at 28 February of £95m following refinancing, down from £431m at end of February 2013
- A new board in place, including former Barratt director, Clive Fenton, who has joined as CEO.
McCarthy & Stone has also announced that it is undertaking an organisational review, with the goal of transforming the business and achieving long-term growth. It will consider the right structures, systems and processes to create a more profitable, scalable and effective business. Change is expected to impact a number of individual roles, primarily in its head office, and a more limited number across the company’s five regional offices. All affected employees will be consulted.
John White, chairman of McCarthy & Stone, commented: “Following refinancing of the business last year, and a recent reshaping of the board, McCarthy & Stone is in an excellent position to generate strong revenue growth. Our new shareholders are highly supportive and, with their significant financial strength, provide a great opportunity for the company to achieve its ambitions.
“We are benefiting from the recent return to health of the sector, innovation with our house types and a growing acknowledgement, especially by planning authorities, of the many benefits achieved by older people, and society as a whole, when moving to specialist retirement housing.
“Our organisational review is indicative of an ambitious programme of change within the business, designed to see us outperform growth in both our niche sector and the retirement housing market generally. We have also significantly reduced our net debt and we are able to appeal to a wider market interested in downsizing through new products that will come online this year.
“We will give a further update of progress at our results announcement on 31 March.”
For more information:
Andrew Baud, Tala, firstname.lastname@example.org, 020 3397 3383 or 07775 715775
Notes to Editors:
McCarthy & Stone is Britain’s leading builder of retirement housing, responsible for the construction of more than 45,000 homes for more than 50,000 residents. The company is renowned for its focus on the needs of people in later life.