McCarthy and Stone swings to £91m loss as home sales halve
◆ The retirement housebuilder McCarthy and Stone has crashed to a half-year loss as coronavirus took its toll, writes Rachel Millard.
The FTSE 250 firm made a £91.3m loss during the six months to the end of April – driven by lower revenue but also a £60m one-off goodwill write-down.
Completions slumped to 471, compared to 845 during the same period last year, with revenue falling 64pc from £280m to £101m.
However, the company remains in a reasonably strong financial position with debt falling by £3.7m to £53.5m, and £146.5m in cash available.
Chief executive John Tonkiss said residents had coronavirus infection rates 27pc lower than the general over-65 population. There were also encouraging signs from its growing rental division, which has 192 units valued at £53.2m.
He said: “We believe we’ll emerge from the crisis in a stronger position.”
Its shares fell 0.5pc to close at 74p yesterday.