McCarthy & Stone (MCS) announces half-year figures on Wednesday and the retirement apartment builder has indicated that the post-referendum dip has been largely overcome, and that it remains on target to sell 3,000 units annually in the medium term.
However, a recent trading update revealed that first-half trading was constrained by the lower forward order book brought into the year and the weighting of completions from higher-margin sites into the second half. Total legal completions slipped from 923 a year earlier to 866 in the third quarter, and turnover for the second half as a whole is expected to be around £238m, against £250m a year earlier.
Net reservations were down from 1,132 at 1,084, and the total forward order book was lower at £418m, from £440m. And while margins are expected to be lower in the first half, the outcome for the full year is expected to meet market expectations.
The group has made significant progress on the planning front, with consent gained on 34 sites covering around 1,314 units, well up from 19 sites representing around 780 units a year earlier.
Average selling prices have edged up fractionally to £260,000, and further increases are expected in the second half as more high-value developments are brought to market. Finances remain in good shape and while net debt is expected to come in higher at £30m, this represents gearing of less than 5 per cent.
