McCarthy & Stone delivers another strong performance in the six months ended 28 February 2015
30 March 2015
McCarthy & Stone (the “Company”), the UK’s leading retirement housebuilder, announces its unaudited interim results for the half year ended 28 February 2015. The Company delivered another strong financial performance, increasing net asset value to £497.4m (2014: £444.1m).
- Profit before tax* up 76% to £32.0m (2014: £18.2m)
- Revenue up 26% to £188.5m (2014: £149.7m)
- Legal completions up 18% to 776 (2014: 659) at a net average selling price of £226k (up 10% on 2014: £205k)
- Operating profit* up 50% to £36.5m (2014: £24.3m) with improved operating margin* of 19% (2014: 16%)
- Return on capital employed (ROCE)* increased to 18% (2014: 13%)
- Strong balance sheet and robust financial position, with net debt at the half year of £82.0m (2014: £94.2m), equivalent to gearing* of 16% (2014: 21%)
- Order book of forward sales up 36% to c. £194m at 27 March 2015 (2014: c. £143m)
Strategic and operational highlights
- 44 additional development sites under control since September 2014 (2014: 34); land pipeline of 9,459 plots (2014: 8,457), over 5 years’ supply
- Commenced build on 39 sites (2014: 22 sites)
- 29 new high-quality sales outlets in well-located areas, with sales off-plan at c.40% and further progress expected
- Progress in operational improvements, including launch of new North London region, plus plans to open three new regions and further development of our procurement capability
- On track to double the size of the business to more than 3,000 unit sales per annum over the medium term
- HBF 5 Star customer satisfaction award for an industry-record tenth consecutive year
Commenting on the results, John White, Group Chairman, said: “McCarthy & Stone continues to deliver strong growth as evidenced by another robust set of results for the first half of the 2015 financial year. The Company has seen further significant increases in revenue, completion volumes, average selling prices, net reservations and profit before tax during the period. The housing market has remained strong during the first half, as has the demand for specialist retirement accommodation.
“The challenges presented by an ageing population means that there remains a pressing need to build more specialist retirement housing, and we have been actively calling on all political parties to focus on this area ahead of the forthcoming general election. It is imperative that they look beyond the needs of first time buyers and proactively encourage more and better housing options for our growing elderly population.
“We continue to target investment of £2 billion in land and build over four years to deliver around 12,000 new homes across more than 300 locations, support growth and capture a wider share of the active retiree market. Our strategy of creating an efficient and scalable business capable of building and selling more than 3,000 units per annum over the medium term remains firmly on track."
McCarthy & Stone is the UK’s leading retirement housebuilder, with the largest share of the owner-occupied market. The Group buys land and then builds, sells and manages high-quality retirement developments. The Group has sold c. 50,000 homes across more than 1,000 developments since 1977.
Download the full financial report
For more information, please contact:
McCarthy & Stone, 01202 292480
Clive Fenton, Chief Executive Officer
Nick Maddock, Chief Financial Officer
Paul Teverson, Director of Communications
Brunswick Group, 020 7404 5959
Azadeh Varzi / Alison Kay
Notes to editors
*Operating profit, operating margin and profit before tax are stated excluding exceptional items and amortisation of intangible assets. Return on capital employed is calculated as operating profit*/ average tangible gross asset value. Gearing is calculated as net debt / net assets. Tangible gross asset value is calculated as net assets, less intangible assets and excluding net debt. 2014 comparison to 28 February 2014 apart from forward sales and net reservations, which is to 28 March 2014. Net debt is disclosed excluding issue costs. All figures are prepared in accordance with UK GAAP.