Recovering market boosts business for Bournemouth developer McCarthy and Stone

REVENUE: The McCarthy and Stone building in Bournemouth

PLEASED: Company chairman John White

First published in News by

A RECOVERING market has boosted business for Bourne-mouth-based retirement dev-eloper McCarthy and Stone, which has recorded a rise in revenue of almost 50 per cent.

The company said growing sales volumes and selling prices had driven an increase in revenue from £100.4million to £149.7million in the six months ending February 28 this year.

Legal completions were up 30 per cent to 659 units and average selling price rose 17 per cent to £205,000.

The company’s net debt had reduced from £431m to £93m after refinancing last August.

Its land bank was up to 8,500 plots with a projected sales value of around £2bn and it had enough planning consents in place to deliver its anticipated sales volumes for the next financial year.

The company won the Five Star award for customer care for the ninth year in a row.

Company chairman John White, said: “We are pleased to report significant improvements across our operations. “We have had a successful first half to the financial year, more than doubling our profits. We are now in a strong position to increase volumes, improve margins, and continue to grow the value of the business. “We are on target to legally complete more than 1,700 units this year.

“We remain focused on leading the retirement housing market, both in terms of unit delivery and build quality, while growing our business profitably. “Our previously announced business review, which is currently being implemented, will ensure that we operate efficiently while providing an increase in much-needed retirement housing across the whole market.”

The company has appointed a new leadership team since September 2013, headed by Mr White, former chairman and chief executive of Persimmon, and CEO executive Clive Fenton, former Barratt Group director and CEO of Mount Avil.

The company said a “new supportive shareholder group” which came aboard after the financing had ensured it was well placed to focus

Comments (5)

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10:46am Thu 3 Apr 14

calamity carney says...

Yes more debt based credit to give the illusion of a "recovery". The constant house price inflation model went bust in 2009. Wonder how many people will vote con at the next election thus accepting the bribe of 30 pieces of silver. The cost has been to wreck the rest of the economy especially for the young.
Yes more debt based credit to give the illusion of a "recovery". The constant house price inflation model went bust in 2009. Wonder how many people will vote con at the next election thus accepting the bribe of 30 pieces of silver. The cost has been to wreck the rest of the economy especially for the young. calamity carney
  • Score: 7

11:00am Thu 3 Apr 14

Lord Spring says...

Are they still connected to Peverills in some way.
Are they still connected to Peverills in some way. Lord Spring
  • Score: 0

12:10pm Thu 3 Apr 14

mas1983 says...

Why are they laying off eighty odd employees in the Bournemouth office as the previous Echo article suggests?
Why are they laying off eighty odd employees in the Bournemouth office as the previous Echo article suggests? mas1983
  • Score: 4

1:25pm Thu 3 Apr 14

Superdooper says...

Yeah, it's great to hear how well they are doing when they are laying off loads of staff- thanks loyal employees for all your hard work helping to get the business back on track in a difficult market. Now off you go and we'll enjoy the profits come bonus time later this year!!
Yeah, it's great to hear how well they are doing when they are laying off loads of staff- thanks loyal employees for all your hard work helping to get the business back on track in a difficult market. Now off you go and we'll enjoy the profits come bonus time later this year!! Superdooper
  • Score: 5

8:39pm Thu 3 Apr 14

Cashy123 says...

This makes me furious. The company 'bigwigs' are talking about how well they are doing - but they are still laying loyal staff off left, right and centre. The affected families must be thrilled to read how well the company are doing. Typical.
This makes me furious. The company 'bigwigs' are talking about how well they are doing - but they are still laying loyal staff off left, right and centre. The affected families must be thrilled to read how well the company are doing. Typical. Cashy123
  • Score: 2

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