McCarthy & Stone share price rises after retirement home builder reports 33 per cent revenue growth

William Turvill
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McCarthy & Stone's share price was up this morning after the retirement home builder reported 33 per cent revenue growth.

The figures

In the six months to 29 February, McCarthy & Stone reported revenue of £250.2m, up from £188.5m in the same period last year.

Its underlying pre-tax profit was £39.1m, up 23 per cent from £31.8m.

Read more: £1bn McCarthy & Stone IPO: It's on

The firm also reported an underlying operating profit of £40.2m, up from £36.5m.

The group announced an interim dividend of 1 pence per share, due to be paid on 31 May, and is guiding towards of final dividend for the year of “not less than 3.5 pence per share”. This would mean a total dividend for the year of at least 4.5 pence per share.

Why it's interesting

McCarthy & Stone completed an initial public offering (IPO) in November last year, after years of rumours suggesting it would make such a move.

Read more: Housebuilder "uniquely placed" to serve on ageing UK

Since then, its share price has risen to heights of up to 287p, up 39 per cent on November's 207p.

The price closed at 256.7p on Monday and on Tuesday, shortly before 12pm, shares were up by around 0.55 per cent to 258.1p.

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What the company said

Chief executive Clive Fenton:

Our strategy is helping to deliver strong top-line growth as we continue to address increasing market demand for retirement housing driven by the UK’s rapidly ageing population. The UK’s population is maturing at a fast rate, but continues to suffer from a chronic undersupply of suitable retirement properties of the type we provide. McCarthy & Stone is uniquely placed to capitalise on this opportunity.