McCarthy & Stone share price drops as retirement housebuilder says profits hit by Brexit

 
Helen Cahill
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The housebuilder said it was on "pause" after the EU referendum (Source: McCarthy & Stone)

Retirement housebuilder McCarthy & Stone's share price fell in morning trading after it said its profits were hit by Brexit.

The figures

Half-year sales at the retirement builder fell five per cent from £250.2m to £238.2m, with completions falling six per cent, from 923 to 866. The average selling price of a McCarthy & Stone home rose from £257,000 to £260,000.

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Profit before tax took a 25 per cent hit for the period, falling from £29m for the first half of 2016, to £21.8m this year.

At time of writing, McCarthy & Stone's share price was down 2.86 per cent.

Why it's interesting

McCarthy and Stone said this morning that it has been having to offer "higher incentives" to convince buyers over the last half and that its trading has been restricted "as a result of the market uncertainty following the EU referendum".

The business was on "pause" after the EU referendum, but McCarthy & Stone tried to reinsure investors this morning, saying the market had since become more stable.

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And, the housebuilder boasted that it had been awarded five stars from the Home Builders Federation for consumer satisfaction.

Anthony Codling, analyst at Jefferies International, said: "In a period of time where customer care and service is at the forefront of people’s minds, McCarthy & Stone, for the 12th successive year, has been awarded a five-star rating, which no doubt makes it the envy of its mainstream housing peers and underpins the robustness of its forward orderbook."

What McCarthy & Stone said

John White, group chairman, said: "The group continues to address the increasing market demand for retirement housing generated by a rapidly ageing population and has made good progress in recovering its workflow momentum following the outcome of the EU referendum last June.

"To meet this demand our strategic growth plan will see us almost double our build starts this year and our sales releases next year."

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