89 jobs could go as McCarthy & Stone announces plans to restructure

Bournemouth Echo: REVIEW: McCarthy & Stone, Bournemouth REVIEW: McCarthy & Stone, Bournemouth

A BOURNEMOUTH based building company could cut up to 89 jobs in a planned restructure.

It comes after retirement homes specialist McCarthy & Stone announced an organisation review alongside their latest trading update.

McCarthy & Stone chairman John White said the board had been reshaped in the last few months and now includes former Barratt director Clive Fenton as the new CEO.

It has been confirmed that job losses could be as high as 89 – primarily at its head office, but more could be made across the company’s five regional offices.

In a year, the company has reduced its net debt from £431m at the end of February, 2013 to £95m at the end of last month.

John White said: “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.”

In an interview with trade publication Construction News, Mr White said the company will focus on development-led schemes with scope to open new offices over the next three years.

He said the company’s goal thereafter was to get back to peak volumes of 2,327 completions a year, seen in 2006/07, which he said would be achieved by increasing existing capacity.

McCarthy & Stone built their first apartments in New Milton in 1977 and now provides 70 per cent of the UK’s owner-occupied retirement and assisted living accommodation.

Its portfolio boats 45,000 individual apartments in 1,000 developments nationally.

In 2006 the company was de-listed from the Stock Exchange and taken over by a consortium led by Halifax Bank of Scotland.

In its latest trading update, McCarthy & Stone posted a 30 per cent increase in completions to 659 units for the half-year ended 28 February 2014.

It reported a 21 per cent growth in revenue to £310.8million.

The company has said that all staff will be consulted regarding the job cuts.

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