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Retirement home builder McCarthy & Stone enjoys record sales as it bounces back from profit slump

McCarthy & Stone, the retirement home builder, has enjoyed record annual sales, following a 25 per cent slump in profits during a half-year of Brexit-related uncertainties.

The group announced sales had increased by 4 per cent, to approximately £660million for the year to August 31.

The results released prior to its full-year results in November were due to a ‘consistent improvement in trading’, according to the company.

Buoyant Sales: Average selling prices exceeded £273,000

Buoyant Sales: Average selling prices exceeded £273,000

Commenting on the buoyant figures a spokesperson for the Dorset-based group said: ‘The group delivered a consistent improvement in trading throughout the year, despite the increased uncertainty in the secondary market following the EU referendum result in June 2016 and the General Election in June 2017.’

It added: ‘As expected, there has been strong upward momentum in average selling prices and margins during the second half of the year, reflecting a continuing improvement in sales mix and quality of sites, and this is set to continue into the next financial year.’

Shares in the company rose by 3.45p to 163.85p, during morning trading.

McCarthy & Stone’s average selling price also exceeded £273,000 for the first time in the group’s history, up 3 per cent on the previous year.

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Forward orders also bounced back, up 21 per cent year-on-year at the end of August, at around £141million.

During the last financial year, the group has strengthened its business model by developing a strategic relationship with Places for People, the property and leisure management company.

The relationship between the two companies has resulted in the sale of 126 apartments, across 127 sites.

In total, 2,302 legal completions were made by the company during the year, slightly behind previous year’s sales of 2,296.

But the group said build activity had slowed in line with management expectations, having opened 52 new sales outlets against 64 the previous year.

Profits of McCarthy & Stone had fallen by a quarter to £21.8million during the first six months of trading following the EU referendum.

Read more: http://www.thisismoney.co.uk/money/markets/article-4857610/McCarthy-Stone-enjoy-record-sales.html#ixzz4rvgGX1u5
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