1st Feb 2016 08:32
(Correcting that McCarthy & Stone is not a constituent of the FTSE 250.)
LONDON (Alliance News) - McCarthy & Stone PLC on Monday reiterated its expectations for its full financial year following a very strong first half as the retirement housebuilder benefited from the buoyant conditions in the UK property market.
The company, which listed in London in November, said its weekly net reservation rate for the 22 weeks to January 29 was 27% higher year-on-year, pushing its forward sales order book up to GBP354.0 million at January 29, from GBP252.0 million a year earlier.
The group acquired 21 new development sites since the start of its financial year on September 1 and said that while the increased costs associated with adding the new land to its portfolio will suppress margins in the first half, the benefits of the land acquisitions will come through in the second half.
McCarthy & Stone reiterated its expectations for a 20% rise in sales volumes and a 100 basis point improvement in its return on capital employed for the full year to the end of August and said it remains on track meet its expectations for the year.
It will publish a further trading update for the half to the end of February on March 3.
By Sam Unsted; [email protected]; @SamUAtAlliance
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