BOURNEMOUTH-based retirement house builder McCarthy and Stone has announced plans to float on the Stock Exchange.

The firm, which has its headquarters at Holdenhurst Road, said it plans to proceed with an initial public offering on the London Stock Exchange.

McCarthy & Stone claims to be the UK’s leading retirement housebuilder, with approximately a 70 per cent market share of the owner-occupied market.

The Group buys land, secures detailed planning consent and then designs, builds, sells and manages a range of retirement developments.

Since 1977 it has sold approximately 50,000 units across more than 1,000 developments in the UK.

McCarthy and Stone's underlying operating profit has grown significantly in recent years, from £45 million in 2013 to £95 million this year.

It also said that its tangible net asset value had increased from £358 million to £469 million in the same time frame.

The company said it was planning to invest £2.5 billion in land and build over the next four financial years in order to grow the business.

Clive Fenton, CEO, said: “This is an incredibly exciting time in the company’s evolution. There is a structural under-supply of specialist retirement housing in the UK and McCarthy & Stone has the expertise, track record and financial strength to address this need.

"We have a proven business model with high barriers to entry and a strong brand that resonates with our target customers supported by an industry-leading record for customer satisfaction.

"Listing on the London Stock Exchange will provide the ideal foundation for the group to move to the next stage of its development and the board and I will continue to work hard to deliver on our ambitious growth plans.”

John White, non-executive chairman of McCarthy & Stone, said: “In the UK, approximately 3.5 million people are interested in buying a retirement property, but only 128,000 properties had been built as at April 2014.

"As the industry leader, McCarthy & Stone is in a unique position to address the unprecedented market opportunity we see before us.

"McCarthy & Stone comes to the market with a strong track record of growth in revenues, profits and cashflow, an outstanding management team and a clear strategy to deliver sustainable growth. I am delighted to be chairing the business at this important moment in its development.”

The firm said it remained on track to deliver its target of selling more than 3,000 units per annum over the medium term, "capitalising on the pressing need for specialised housing for older people in the UK".

Its current land bank of 10,087 units represents 5.2 years’ of supply, including 3.1 years’ supply with detailed planning consent.

The company said that "provides strong visibility over medium-term volume, sales and profit and underpins future expected growth".

It added: "The group has a strong balance sheet and robust financial position, with reported net debt as at August 31, 2015, of £33.1m, equivalent to gearing of six per cent.

"The group’s debt requirements are currently provided through a five-year £200m revolving credit facility. The group’s plan to invest £2.5bn over the next four financial years is expected to be financed substantially from this facility and from existing operations."