Key facts


As the UK’s leading retirement housebuilder, with over 39 years experience and thousands of happy homeowners, we create apartments to suit all lifestyles and stages of retirement

All our properties are designed to make living easier and are built to the highest standards – just two of the many reasons we’ve been awarded the 5-star rating for customer satisfaction in an independent survey by the Home Builders Federation for the past 11 years. We are the only housebuilder of any size or type to ever achieve this.

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McCarthy & Stone Fundamentals (MCS)

Peel Hunt Buy 175.15 235.00 215.00 Retains

Deutsche Bank Buy 167.55 219.00 211.00 Upgrades

Annual General Meeting and Trading Update

Half year trading update

On track for full year delivery in line with market expectations

McCarthy & Stone plc (the 'Group'), the UK's leading retirement housebuilder, is today issuing a trading update for the half year ended 28 February 2017, ahead of reporting its half year results on Wednesday 5 April 2017. All comparatives are to the prior year equivalent six month period ended 29 February 2016 ('2016') unless otherwise stated.

Highlights

· Trading conditions remained stable in the period with sales lead indicators ahead of the prior year. The market for retirement housing continues to be attractive, fuelled by the rapidly ageing population.

· As stated in previous announcements, trading in the first half of FY17 has been constrained by the lower forward order book brought into the year, the weighting of completions from higher margin sites into the second half and the lower number of sales releases during the period (FY17: 32, 2016: 36).

· A strong period for planning with detailed planning consents achieved on 34 sites representing c.1,314 units (2016: 19 sites representing c.780 units), further securing the Group's land pipeline to support future growth.

· Half year revenue expected to be c.£238m (2016: £250m).

· Total legal completions for the period of 866 units (2016: 923).

· The Group's gross average selling price increased by 1% to £260k (2016: £257k) with further increases expected in the second half of the year reflecting further improvements in the quality and location of the developments the Group is now bringing to market.

· Net reservations of 1,084 during the period (2016: 1,132) and total forward order book including legal completions of c.£418m (2016: £440m).

· Strong balance sheet and robust financial position with net debt expected to be c.£30m (2016: £24m).

· In accordance with previous guidance, the Group anticipates lower half year margins than in the prior year. Expectation for the full year outturn, however, remains in line with market expectations.

· The Group remains on track for delivery of its medium-term targets, with sufficient land with detailed planning consent to deliver all targeted sales to FY18 and sufficient land under control to deliver the strategic growth objective of building and selling more than 3,000 units per annum.



Clive Fenton, Chief Executive Officer, commented:

"We have delivered a solid performance during this half year despite the headwinds created by the lower forward order book brought into the year and the weighting of expected completions from higher margin new sites into the second half of the year. Our forward order book remains healthy and leaves us well-placed to deliver results in line with market expectations for the full year.

"We continue to address the increasing market demand for retirement housing generated by a rapidly ageing population and were pleased to note the commitment by the government to addressing the housing needs of older people in February's Housing White Paper. We look forward to working with the government to build on the policies in the White Paper and support the delivery of a greater choice of housing options for those in later life.

"We have maintained discipline around our cash position and land acquisitions, investing in high-quality sites that meet our hurdle rates. We continue to achieve high levels of customer satisfaction and expect to retain our Five Star Home Builders Federation ('HBF') customer satisfaction rating for the twelfth consecutive year, the only housebuilder of any size to do so.

"We remain on track to deliver our medium term targets in line with the expectations and have sufficient land under control to deliver our growth objective of building and selling more than 3,000 units per annum."
The Group will release its results for the half year ended 28 February 2017 on Wednesday 5 April 2017.

- Ends -

Final Results

Financial highlights

· Legal completions in line with prior year at 2,302 units (FY16: 2,296), despite a significantly lower number of first occupations during the year (FY17: 49, FY16: 69)

· Revenue increased by 4% to a new record of £661m (FY16: £636m)

· 52 new sales outlets opened during the period (FY16: 64)

· Average selling price increased by 3% to £273k (FY16: £264k)

· Strong recovery in underlying operating margin in H2 to 17% (FY16: 17%) from H1 underlying operating margin of 10% (+700 bp) (FY16: 16%)

· Profit before tax decreased by 1% to £92m (FY16: £93m)

· Underlying profit before tax2 at £94m (FY16: £105m), mainly impacted by age and mix of units sold and increased incentives and build costs

· Underlying basic earnings per share3,4 decreased by 12% to 14.2p (FY16: 16.1p)

· Basic earnings per share decreased by 1% to 13.8p (FY16: 13.9p)

· Strong financial position, with £31m of net cash4 (FY16: £53m) at the year end notwithstanding significant ongoing investment in land and work in progress

· The Directors are proposing a final dividend of 3.6 pence per share, giving a total dividend for the year of 5.4 pence per share (FY16: 4.5 pence per share pro-rated for period since listing).


Strategic and operational highlights

· 75 high-quality development sites (FY16: 65 sites) added to the land bank. Total land bank of 9,967 plots (FY16: 10,186), equivalent to 4.3 years' supply

· Sufficient land under control and operational platform in place to deliver strategic objective of building and selling more than 3,000 units per annum over the medium-term

· Workflow on track to support growth strategy and deliver c.80 new sales releases (FY17: 52) and more than 65 new first occupations in FY18 (FY17: 49)

· New strategic relationship with PfP Capital to access the growing rental market with the bulk sale of 126 units in FY17

· Awarded Five Star rating for customer satisfaction by the Home Builders Federation (HBF) for the twelfth consecutive year - the only UK housebuilder, of any size or type, to achieve this accolade

· 15 Quality awards (FY16: 10), 7 Seals of Excellence and 1 Regional Winner at the 2017 National House Building Council (NHBC) Pride in the Job awards, underpinning exceptional build quality.


Current trading and outlook

· Forward sales as at 10 November 2017 (week 10) up 11% at £277m (11 November 2016: £250m)

· c.80 new sites planned for sales release in FY18 (FY17: 52), of which 96% are already in build

· First occupations are planned to increase to more than 65 in FY18 (FY17: 49) and are expected to be weighted towards the second half of the year due to the timing of build programmes

· The demand for high-quality retirement housing remains strong and the Group remains confident of delivering its medium-term growth objective of building and selling more than 3,000 units per annum.


Commenting on the results, Clive Fenton, Chief Executive Officer, said:

"We achieved a strong result in the second half of the year and delivered an improvement in both margins and volumes compared to the first half of FY17. Our full year completion volumes were in line with the prior year despite some headwinds as a result of the increased level of uncertainty in the secondary market and the expected lower number of first occupations. We delivered to market 49 high-quality new developments and maintained our exceptional build quality and levels of customer satisfaction.

"The Group starts the new financial year with a strong forward order book and a robust balance sheet. We remain focused on delivering profitable growth and are on track to open c.80 sales outlets and deliver more than 65 first occupations in FY18. We have sufficient land under control, much of which already has detailed planning consent, to deliver our strategic growth plan of building and selling more than 3,000 units per annum."

- Ends -

Half year results 11/04.

Went long 05/03 on the spreads @ 138.98 and now stop at entry. Volume needs to get a wriggle on, came close yesterday to break 50DMA.

Below a pound - over done?

Yes skinny!

hmm. There must be a point where this gets interesting.

I'll wait for it to go a little lower but I'm now watching alot more closely

After the recent Trading and strategy update

20 Jun 18 Jefferies International Hold 98.00 267.00 116.00 Downgrades

20 Jun 18 Numis Hold 98.00 135.00 110.00 Reiterates

20 Jun 18 Deutsche Bank Buy 98.00 189.00 165.00 Reiterates

20 Jun 18 Peel Hunt Buy 98.00 170.00 135.00 Retains

https://www.theconstructionindex.co.uk/news/view/unhappy-builder-smashes-up-new-homes

The man took to the controls of an excavator to cause damage to a row of near-completed houses on a new-build development, believed to be a McCarthy & Stone site, in the Hertfordshire town of Buntingford.