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)

I bought these post brexit @139.75p.

The gap is being filled and the SP is heading for Deutsche TP of 215p.

Full Year Trading Update

Robust growth delivered in first year of trading as a public company

McCarthy & Stone (the "Group"), the UK's leading retirement housebuilder, is today issuing a trading update for the full year ended 31 August 2016, ahead of reporting its full year results on Tuesday 15 November 2016.

Highlights

· Legal completions increased by 20% to 2,299 units (2015: 1,923)
· Net average selling price increased by 8% to £259k (2015: £239k)
· Revenue increased by 31% to c.£635m (2015: £486m)
· Land bank increased to c.10,206 plots (2015: c.10,087) for future development at attractive margins, with terms agreed on a further c.1,700 plots
· Key strategic initiatives to improve sales rates, reduce development time and implement build efficiencies all on track, delivering improved capital turn of c.1.2x (2015: 1.0x)
· Sustained capital discipline, delivering an estimated ROCE of c.20%
· Group remains in a strong financial position, with c.£52m of net cash at the year end

Clive Fenton, Chief Executive Officer, commented:

"We continue to capitalise on increasing demand for retirement housing driven by the UK's rapidly ageing population and have delivered strong growth in completions, reservations and profit this year. Notwithstanding current increased market uncertainty following the EU Referendum result and any financial impact on the business in the short term, McCarthy & Stone remains in robust health to capitalise on a continuing benign land market and the attractive fundamentals of the retirement market over the medium term.

"The investment made in new regions and additional operational infrastructure in the first half of the year is beginning to show benefit, with all nine regions delivering profit for the full year. As anticipated in our trading update on 29 June, we have required somewhat higher levels of incentives in order to deliver our volume out-turn. Despite this, we expect to announce at least a c.100 bp improvement in underlying operating margins in the second half of the year versus the first half, which should enable the Group to increase its underlying profit before tax1 by c.19%.

"Our continuing focus on operational excellence, through our three strategic initiatives to increase sales rates, reduce the time taken between securing land and starting on site and implement build programme efficiencies, have allowed us to deliver further improvement in our capital turn for the year ended 31 August 2016. Coupled with a more measured approach to the pace of investment in land and build over recent weeks, this has enabled us to sustain a strong balance sheet, with a net cash position, ahead of previous expectations. This financial strength will allow us to respond flexibly as housing market conditions develop".


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Peel Hunt Buy 184.90 270.00 235.00 Retains

Deutsche Bank Hold 184.90 215.00 215.00 Reiterates

Goldman Sachs > 4%

ACMO Finance (Ireland) Limited > 12%

Announcement - change of director and trading update

McCarthy & Stone ("the Group"), the UK's leading retirement housebuilder, announces that Nick Maddock, who has served as the Group's Chief Financial Officer (CFO) since September 2011, has decided to leave the business to take up the position of CFO at SIG plc.

Nick will remain in post and a leaving date in Q1 2017 will be agreed in due course. A process to identify his successor and ensure a smooth transition is now underway, and a further update will be made when the Group announces its full year results statement on 15 November 2016.

Commenting on behalf of the Board, 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. He leaves the business in a very healthy financial position, having just recorded a 31% increase in revenue year-on-year and with c.£52 million of net cash on our balance sheet at the year end. We remain firmly on track to meet our medium term target of building and selling at least 3,000 units a year and achieving 25% ROCE."

Current trading

Following the Group's trading update on 2 September 2016 for the full year ended 31 August 2016, the Board would like to provide an additional update on the Group's first five weeks of trading in its new financial year.

The last trading update on 2 September noted that sales immediately post the EU referendum had slowed and cancellations rates had increased, and that consequently the Group came into the new financial year with a forward sales order book of £114 million, which was down on last year's £131 million.

The Group is pleased to confirm that since that update, trading and other lead indicators are now ahead of the previous year. 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. Consequently, the Group's forward order book, including legal completions since 1 September, is now moving towards a similar level to last year at c.£173 million (2015: £177 million).

This performance provides some early evidence of improving customer sentiment and a potential return to normal trading conditions. More detail on current trading and outlook will be provided in the full year results statement on 15 November 2016.

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Peel Hunt Buy 175.80 235.00 235.00 Retains

Canaccord Genuity Buy 175.55 - 185.00 Initiates/Starts

Jefferies International Buy 175.10 - 249.00 Initiates/Starts

McCarthy & Stone (the "Group"), the UK's leading retirement housebuilder, will report its full year results for the year ended 31 August 2016 on Tuesday, 15 November 2016.

On the same day, management will host a presentation for analysts and investors at the offices of Deutsche Bank, Winchester House, 75 London Wall, London, EC2N 2DB. Refreshments will be served from 09.00 for a 09.15 start.

CANADA PENSION PLAN INVESTMENT BOARD > 5%

Final Results

Financial highlights

· Underlying profit before tax2 increased by 19% to £105.0m (FY15: £88.4m)

· Revenue increased by 31% to a new record of £635.9m (FY15: £485.7m)

· Legal completions increased by 20% to 2,299 units (FY15: 1,923)

· Net average selling price increased by 8% to £259k (FY15: £239k)

· Adjusted underlying earnings per share3 increased by 9% to 16.1p (FY15: 14.8p)

· Strengthened financial position, with £52.8m of net cash4 (FY15: £44.4m of net debt) at the year end

· The Directors are proposing a final dividend of 3.5 pence per share in accordance with previous guidance given within our half year results. This follows the (pro-rata) interim dividend of 1.0 pence per share, giving a total dividend for the year of 4.5 pence per share


Strategic and operational highlights

· Re-joined the Main Market of the London Stock Exchange in November 2015 and re-admitted to the FTSE 250 in March 2016

· 65 further high-quality development sites (FY15: 90 sites) added to the land bank. Total land bank of 10,186 plots (FY15: 10,087), equivalent to 4.4 years' supply. Terms agreed on a further c.1,700 plots (FY15: c.486 plots)

· Sufficient land with detailed planning consent to deliver all targeted sales to FY18 and sufficient land under control to deliver all targeted sales to FY19

· 64 new sales outlets opened during the period (FY15: 51), contributing to a 10% increase in net reservations above FY15

· Improved capital turn7 of 1.2x (FY15: 1.0x) supported by key strategic initiatives to increase sales rates, reduce development time and implement build efficiencies

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

· Two awards at the annual Housebuilder Awards in November 2016, including Best Retirement Scheme for Ramsay Grange and Lyle Court, our combined Assisted Living and Ortus Homes development in Barnton, Edinburgh, and Best Customer Satisfaction Initiative

· Investment in three new regions and new operational infrastructure now delivering benefits, with all nine regions contributing towards full year profit

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


Current trading and outlook

The Group delivered strong growth in the year ended 31 August 2016 notwithstanding the impact of weakness in the secondary housing market in July and August following the EU Referendum result in June. This led to the Group carrying a forward order book8 of c.£114m into the new financial year, which was lower than the previous financial year (FY15: £131m). However, over the first ten weeks of the new financial year, reservations have been stronger and cancellation rates have returned to more normal levels. Sales leads from new enquiries have increased and first time visitors to developments have also been ahead of the prior year. The Group has seen a 13% improvement in its weekly net reservation rate since 1 September compared to the same period last year, assisted by three additional sales releases (FY16: 13, FY15: 10). Consequently, the Group's forward order book8 including legal completions since 1 September is now ahead of the prior year and stands at c.£250m as at 12 November 2016 (FY15: £241m).

While there will be some impact on the Group's growth in 2017, particularly in H1, primarily resulting from a lower forward order book brought into the year following the EU Referendum and a more measured approach to land negotiation, the Group has seen evidence of improved customer sentiment and a return to normal trading conditions. With the necessary operational infrastructure and quality land bank in place, the Group's confidence in achieving its medium term strategic objective of building and selling 3,000 units per annum remains unchanged.

Commenting on the results, John White, Group Chairman, said: "I am pleased to present our first set of results since re-joining the Main Market of the London Stock Exchange in November 2015. The Group delivered record revenue this year, together with robust growth in completions, reservations and profits. We continue to capitalise on the attractive demographic opportunity and structural shortage of supply of retirement housing in the UK.

"I was greatly encouraged by our flexibility and resilience shown in response to market uncertainty surrounding the EU Referendum result in June. Our highly conditional land bank and experienced management team enabled us to navigate the uncertainty. We acted quickly to close out completion chains and adopted a more measured approach with respect to land investment, delivering a strong balance sheet at the year end and positioning us for a quick return to business as usual as soon as market conditions improved."

Clive Fenton, Chief Executive Officer, added: "We have started the new financial year with a high-quality land bank, a strengthening forward order book and a strong net cash position. We also have the necessary regional infrastructure and strength of brand to ensure that we are uniquely placed to capitalise on the significant demographic opportunity available to us. We have all the tools in place to sustain a business capable of building and selling more than 3,000 units per annum. Our medium term target remains to deliver a ROCE of 25%."

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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.

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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."

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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