McCarthy & Stone on track to meet FY expectations
Retirement housebuilder McCarthy & Stone said on Tuesday that it is on track to deliver full-year results in line with market expectations following stable trading conditions in the first half of the year.
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In an update for the half year to 28 February, the company said trading conditions remained stable, with sales lead indicators ahead of the previous year and the market for retirement housing still attractive, fuelled by the rapidly ageing population.
As stated in previous announcements, trading in the first half of full-year 2017 has been constrained by the lower forward order book brought into the year, the weighting of completions from higher margin sites into the second half and the lower number of sales releases during the period.
Half year revenue is expected to be around £238m, down from £250m in 2016, with total legal completions for the period of 866 units, down from 923.
The average selling price increased by 1% to £260,000, with further increases expected in the second half of the year reflecting improvements in the quality and location of the developments the group is now bringing to market.
Net reservations stood at 1,084 during the period versus 1,132 a year ago, with a total forward order book including legal completions of around £418m, from £440m.
Meanwhile, net debt is expected to be around £30m compared to £24m the year before.
In accordance with previous guidance, McCarthy said it expects lower half-year margins than in the prior year, while expectations for the full-year outturn remain in line with market views.
Chief executive officer Clive Fenton said: “We have delivered a solid performance during this half year despite the headwinds created by the lower forward order book brought into the year and the weighting of expected completions from higher margin new sites into the second half of the year.
“Our forward order book remains healthy and leaves us well-placed to deliver results in line with market expectations for the full year.”