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Tue November 13 2018

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New McCarthy & Stone boss wields the axe

5 Mar 14 Following its financial restructuring last year, McCarthy & Stone is now set to shake up its operating structure.

New chief executive Clive Fenton
New chief executive Clive Fenton

Job cuts are expected at head office of the retirement housing specialist but the five regional offices should be less significantly affected.

New chief executive Clive Fenton, the former Barratt director who took over on 17 February, is planning an organisational review to transform the business for long-term growth. 

McCarthy & Stone chairman John White said: “Following refinancing of the business last year, and a recent reshaping of the board, McCarthy & Stone is in an excellent position to generate strong revenue growth. We are benefiting from the recent return to health of the sector, innovation with our house types and a growing acknowledgement, especially by planning authorities, of the many benefits achieved by older people, and society as a whole, when moving to specialist retirement housing.

“Our organisational review is indicative of an ambitious programme of change within the business, designed to see us outperform growth in both our niche sector and the retirement housing market generally.  We have also significantly reduced our net debt and we are able to appeal to a wider market interested in downsizing through new products that will come online this year.

“We will give a further update of progress at our results announcement on 31 March.”

The company has benefited from the market improvement, with half-year revenues up 50% on this time last year to approximately £150m.

In the latest full financial year ending 31 August 2013, McCarthy & Stone reported 1,527 unit sales, a 21% rise in revenue to £310.8m and a 15% increase in EBITDA to £46m.  At the half-way point of this financial year, the company now reports a 30% increase in legal completions to 659 units and forward sales 30% ahead of last year at £133m.

Since September 2013, the company has legally agreed to buy 34 new development sites, totalling more than 1,100 units.  The company now has a land bank under its control that equates to 8,500 units.

Net debt at 28 February was down to £95m, compared to £431m a year ago, before the refinancing.

MPU

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