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McCarthy & Stone's share price climbs on positive outlook

Helen Cahill
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McCarthy & Stone builds retirement homes throughout the UK (Source: McCarthy & Stone)

Retirement housebuilder McCarthy & Stone's share price climbed seven per cent in morning trading on the back of a strong trading update.

The company suffered following the Brexit vote; sales slowed and cancellation rates on the purchase of its properties increased. This hit McCarthy & Stone's forward sales order book, which dropped to £114m on 2 September, down from £131m the year before.

Read more: Here's why housebuilder share prices have tumbled

However, things have improved for the company.

McCarthy & Stone said in a statement today:

Over the first five weeks of the new financial year, reservations have been stronger and cancellation rates have returned to more normal levels.

New enquiries have increased and first time visitors to our developments have been noticeably ahead of the prior year.

Now, the housebuilder's forward order book (which includes sale completions since 1 September) stands at £173m, moving towards the £177m that the company achieved at this point last year.

Read more: Retirement home builder McCarthy & Stone says Brexit will hit growth plans

McCarthy & Stone also announced today that its chief financial officer Nick Maddock will be leaving in the first quarter of 2017.

John White, chairman of McCarthy & Stone, said: "Nick has played an important role over the past five years in re-capitalising the company, delivering our growth strategy and preparing us for our successful return to the main market of the London Stock Exchange in November 2015.

"With the IPO now complete and the first year's results delivered, Nick has decided to move on."

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